Building a foundation of commercial approaches and new institutional models to close financing gaps to achieving universal access to water and sanitation services.

Nepal has made progress toward providing access to safe drinking water and sanitation for its population. According to the Government of Nepal’s 2016-2030 WASH Sector Development Plan (SDP) coverage is at 86% for water supply and 82% for sanitation. However, the WASH sector continues to face significant regional disparities in terms of both coverage and quality, as well as resilience challenges. In particular, WASH services and water availability are lagging in Province 5, 6 and 7 in the western part of Nepal, and Province 2 in the eastern Tarai area. The government has set ambitious targets for universal access to water and sanitation by the year 2030, requiring an unprecedented mobilization of funding. The SDP estimates an average budget gap of approximately USD120 million per year for the next decade. The SDP places an emphasis on mobilizing additional sources of domestic and international finance to fill the gap.