In view of the existing financing gap in the sanitation sector, the limited public budget available to the Government of Nepal and many competing government priorities, an increase in private investment in the sanitation sector is crucial to achieve the country's national sanitation targets, which is guided by targets set forth by the UN Sustainable Development Goals.
The Global Green Growth Institute (GGGI) - together with the Ministry of Water Supply and the Department of Water Supply and Sewerage Management of Nepal - conducted a series of consultations to identify current barriers to private investment in the sanitation sector. An initial assessment identified several policy interventions that could stimulate private investment in sanitation services in Nepal, particularly a reduction in the custom tax duties for the equipment used in fecal sludge management services.
This note summarizes the cost-benefit analysis and the proposed implementation plan for this specific policy intervention.