-Madhab Raj Ghimire
WATER TAX ACT, 1963
Water Tax Act 1963 is one of the laws promulgated in Nepal as a sector specific law for the water utilities and uses of water resources for focusing on Tax collection and recoveries through water utilities. The Act did have remarks on supply water naming ‘tap water’ tax collection.[i] The Act did have significant characters of price regulation of water utilities.
Prevailing law occupy some in-efficiencies of collection taxes such as from government offices and buildings.[ii] However, other exemptions such as junction, paati (resting place) and hospitals can be justified and ensured the service of general economic interest (SGEI). The law protected the rights and access of drinking water supply without discriminating among the users.
NEPAL WATER SUPPLY CORPORATION ACT 1989
Nepal Water Supply Corporation established under the Act which is as autonomous government controlled Corporation responsible for the supply of drinking water. Before Water Supply Management Board Act, 2006, it has sole responsibility to regulate water supply system including formation the organization, collection of tariff and managing the water supply system infrastructures. It is also prohibits certain acts and provides penalties/punishment for violation. Those areas where Board is not formed, the Corporation Act activates automatically to comply with legislations.
WATER RESOURCES ACT, 1992
Water Resources Act, 1992 tries to focus on sustainability of water resources.[iii] In the same time, Act has given priority on utilization, conservation, management and development of the water resources such as surface water, underground water or in whatsoever form.[iv] The Act makes timely legal arrangements for determining beneficial uses of water resources, preventing environmental and other hazardous effects thereof and also for keeping water resources free from pollution. The Act does have broad definition of usages of water resources and identified multiple tasks of water related activities.[v]
In the Act, there are exclusively designated of formation of Water Users Association[vi] for giving access to the end user consumers. This may ensure the water access guarantee to local levels. However, other factor such as quality of water and water standardization are out of reach to the Association due to lack of expertise and efficiency. On the other hand, high level of in-doctrination within Association severely hampering the main goals of easy and clean water access to the consumers.
Water uses priority of Act are in hierarchy; firstly- drinking water and domestic users, irrigation; agricultural uses such as animal husbandry and fisheries, hydroelectricity, cottage industry, industrial enterprises and mining uses, navigation and recreational uses.[vii] The article, further explains of dispute settlements[viii] in between/among different users and priority of waters uses.
Provisions of water regime on licensing are clear and also sophisticated. However, it’s not able to attract much private sectors investment into water extraction and distribution. Apart from Kathmandu Upatyaka Khanepani Limited, herein after mentioned after KUKL, there are no significant private sector market players in water utilities industries. The Act has further clearance on fixing of quality standard of water resources[ix] and water resources not to be polluted,[x] should be considered as guarantee of clean and drinkable water access to the consumers. On the sustainability side Article 20 strongly advocated and sanctioned of no substantial adverse affects on the water resources.
WATER RESOURCES RULES 1993
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Rules come immediately under Water Resources Act 1992 promulgated as an umbrella regulation governing water resources management.[xi] The Rules has come in-detail of Formation of Consumers' Association to ensure consumer rights on water access. The Rules further declares that chief district officer[xii] will head the water resources committee with other relevant members associated with water supply system. However, state-of-art for water resources is not clear on what kind of products and services segment, its need to be focused on. On the other hand, the Rules focused on to obtain License for Utilization of Water Resources[xiii] to sell or provide services on water resources sectors. In further, Article has given priority of EIA[xiv] recommendations to avoid adverse effects on environmental, social and economical issues needs to be addressed. The Rules it seems more focused on licensing or formation of association rather than quality of water, access of water or possible water accessibility of end users.
The Rules Inquiry relating to the Dispute regarding Water Resources Utilization Inquiry Committee[xv] has extensive details of consumers’ level to resolve out the issues on the ownership and utilization of water resources.
DRINKING WATER REGULATION 1998
The Regulation came under force formation of Drinking Water User Associations to use of drinking water. It is facilitated formation procedure and registration of users Association.[xvi] The regulation has clearly assured that Users Association has limited power to use water as per terms and conditions of the law.[xvii] Similarly, dispute settlement to use or exploit water resources,[xviii] and deals with licensing of use drinking water.[xix] In further, deals with quality standards for drinking water,[xx] control environmental degradation[xxi] the control of water pollution[xxii] following by environmental sustainability.
WATER SUPPLY MANAGEMENT BOARD ACT, 2006
The Act has given huge relief to formation of water supply management board to bring water supply skill holders to the board. It has also given access to local administration to facilitate the programme as per local basis which is notified by the Government of Nepal’ Gazette. In an other hand, the preamble of the legislation made clear of ‘to establish and operate the Water Supply Management Board for reliable services to the residents of the municipal areas by making water supply and sanitation services regular, managed, qualitative and easily available in these areas’;[xxiii] in an example; the Act has given access to set-up Kathmandu valley Water supply Management Board and later, Kavre Valley Integrated Water Supply System through the Act. Similarly, the act can be applied to single municipality or VDC level or part[xxiv] of can be covered through Water Supply Management Board. The Board is designated as autonomous corporate body[xxv] which has Functions, duties and powers of the Board[xxvi] such as prevent of misuse and pollution of water,[xxvii] carry out, study, research and survey on the source, distribution of potable water, and sanitation,[xxviii] fixing rate of tariff of services, [xxix] make necessary arrangements for the provision of qualitative and effective service,[xxx] give license to the service providers for providing the service, or provide the service by entering into an agreement with the service providers,[xxxi] recover or cause to be recovered, fixed tariff in consideration for the service provided to the users[xxxii] are featured into the legislation.
The Act has particularly facilitated power to institutional reform of Kathmandu Valley Water Management Board[xxxiii] under certain circumstances to form the management board for the Melamchi Project[xxxiv] in operation all structures of that Project and equipment installed to such structures and liabilities associated thereto to the Board formed pursuant to this sub-section[xxxv] is highly important project for consumers of Kathamndu valley. Followed by same Article, Kathmandu Valley Water Management Board has got responsibility to obtain such water from different region, it may provide reasonable amount to the local bodies or uses in that area.[xxxvi] The Board has same rights as corporation[xxxvii] for providing services; uses, operation, repair or maintenance.
WATER TARIFF FIXATION COMISSION ACT, 2006
The commission established to protect the interest of consumers for providing qualities and reliable service to supply water and sanitation with reasonable prices. The Act enacted as sector specific regulation of price regulation. The commission established as an autonomous body.[xxxviii] The commission has powers and duties[xxxix] of fix the tariff of services,[xl] maintain quality of services through service provider,[xli] dispute settlement between service providers and users,[xlii] determine criteria of determining the tariff[xliii] are prime task of the commission. Apart from other task, water tax collection for ‘tap water’[xliv] enforcement law already enacted as separate law as Water Tax Act 1966. Primarily, it is enforcement law for water tax collection in Nepal.
Sector Specific Regulation Consultant/ mrghimire@hotmail.com
[xi] Water Laws in Nepal, Water Aid, Feb 2005, Available on: http://www.wateraid.org/documents/plugin_documents/water_laws_in_nepal_english__february_2005.pdf
[xvii] Ibid, Article 8 (1)
[xxxiv] Kathmandu Upatyaka Khanepani Limited (KUKL) has responsibility of infrastructures built by Melamchi Water Supply Project. Currently, KUKL is headed by three international water utilities experts (General Manager, Operational and Technical Manager, and Administration & Financial Manager). Informations obtained from http://kathmanduwater.org/home/index.php
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