In

the past Nepal Water Supply Corporation (NWSC) was playing the three dimensional roles of ‘owner’, operator and tariff fixation. This system created a monopoly in the water supply operation and exposed the management to severe external influences and interventions. Such influence largely impacted on the operational efficiency of the utility. One of the examples of such influence is the recruitment of personnel. Unless this three dimensional roles could be clearly defined and separated the management side could not be improved. Therefore the following three entities were formed.

OrganizationRoleEstablished Date
Kathmandu Valley Water Supply Management BoardOwner2062/01/05
Kathmandu Upatyaka Khanepani LimitedOperator2064/11/1
Tariff Fixation CommissionTariff fixation2064

As per the new institutional setup KVWSMB and KUKL started functioning since 1st Falgun 2064 (13th Feb. 2008) when all the assets and liabilities were handed over to KVWSMB and on the same day all assets and liabilities was handed over to KUKL for operation on a 30 years lease and license.