KVWSMB has taken over the assets and liabilities of Kathmandu Valley Water Supply Services System from NWSC from February 13, 2008. The total asset is worth Rs. 3.88 billion and total liability is worth Rs. 4.55 billion.The exact amount of asset and liabilities shall be confirmed only after the report of the auditor expected to be ready by the end of July 2008.

KVWSMB has already established its secretariat and started its work. It has already issued license to KUKL on 13 February, 2008 for the operation of valley water supply. The license is issued on the basis of a 30 year lease agreement. As per the agreement all the capital investments in the Kathmandu Valley including the distribution system rehabilitation works to be done under the Melamchi Project shall be executed by KUKL. KUKL is the sole service provider in the valley.

The KVWSMB has approved its conceptual Plan. The Plan contains the mission, vision, and set of activities. It has also prepared its financial model.Funds available under the Melamchi project for the distribution system improvement are much below the requirement but are expected to provide immediate relief until larger amounts of funds can be availed.

It is expected that KUKL shall work effectively and efficiently in order to meet the target mission and vision of KVWSMB. However since the funding for distribution network rehabilitation (DNI) and other minor parts is still insufficient, fund could be a constraint in meeting the target.