People the world over are struggling against water privatisation. Evidence shows that water privatisation has not only further marginalised the poor in terms of access to clean water and sanitation but also not improved the quality of water services. The government has also decided to hand over the management of Kathmandu’s water supply to a foreign private company for six years, and this has created doubts.

The Asian Development Bank (ADB) and other international institutions are pressuring governments to downsize, decentralise, and privatise social services, including water, while ensuring terms for debt and cost recovery, and corresponding financial, managerial, and engineering details are required for such “restructuring”. Nepal has no option other than to accept ADB’s conditions.

Nepal’s Poverty Reduction Strategy Paper prepared in support of the donors has allowed them to put more pressure on the government for privatisation. Hence the government was compelled to accept the contract with “Severn Trent-Water International”, a UK-based private company, for the management of Kathmandu’s water supply system. The government claims that this “new model” will ensure two hours of water supply everyday by January 2011, but its implementation seems to be a big challenge.

As the Kathmandu Valley’s population grows, the demand for drinking water increases. The Valley’s drinking water needs are fast rising as its population is increasing at a rapid rate. Valley’s water supply meets 79 per cent of the total demand. While exploring the supply side, the management side has been ignored, leading to disproportionate distribution of water. Similarly, there is unnecessary competition among households to use high voltage water meters.

Some meter readers are involved in unscrupulous practices like taking only minimum charges from some households. Sometimes, water meters are not installed. The access of the urban poor to water is not sufficient as they can neither install motors nor order tanker water.

Studies show that the quality of the Valley’s water has deteriorated due to the lack of treatment plants and poor supply network. About 70 per cent of water is contaminated through leakage. If the management is strengthened, the existing water can last for up to 20 years. But the government is in a hurry to transfer water management to the private sector.

The government has been unable to take advantage of expertise for safe drinking water distribution. Though it is shifting the responsibility to a private company, it should nevertheless continue to monitor the sector till the contract expires. After the private sector’s involvement, the user tariff might increase and lead to low accessibility among urban poor and rural migrants. Delivery of water will not be enough; it will have to be accessible and affordable to low-income groups.

Higher water tariff can worsen inequality. Private contractors have little incentive to protect the environment and consider the impact of their decisions on communities “downstream.” They are only interested in cost recovery.

The donors may apply different trade rules and block water supply. The government should be aware of these pitfalls and aim at providing safe drinking water to everyone at a low or subsidised price.