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Melamchi Municipality, NepalSituation Analysis for Green Municipal Development

May 2018

Global Green Growth InstituteMay 2018

Global Green Growth InstituteJeongdong Building 19F21-15 Jeongdong-gilJung-gu, Seoul 04518Republic of Korea

Recommended citation:GGGI (2018). Melamchi Municipality, Nepal: Situation Analysis for Green Municipal Development. Seoul: Global Green Growth Institute.

This report is one of a set of seven situation analyses of the Nepalese municipalities of Belkotgadhi, Dakshinkali, Mahalaxmi, Melamchi, Namobuddha, Palungtar and Thaha. All seven reports are available at www.gggi.org/country/nepal/

The Global Green Growth Institute does not make any warranty, either express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or any third party’s use or the results of such use of any information, apparatus, product, or process disclosed of the information contained herein or represents that its use would not infringe privately owned rights. The views and opinions of the authors expressed herein do not necessarily state or reflect those of the Global Green Growth Institute.

Design and printing by Pentagram, Nepal.

Cover photo of Melamchi by Robic Upadhayay.

Melamchi Municipality, NepalSituation Analysis for Green Municipal Development

May 2018

This situational analysis and accompanying report were prepared by the Global Green Growth Institute (GGGI) in Nepal under its Green Municipal Development Program. GGGI and the program team would like to express their gratitude to the Ministry of Forests and Environment (MoFE), and in particular to Dr. Bishwa Nath Oli, Secretary, Dr. Ram Prasad Lamsal, Joint-Secretary, and Mr. Ram Hari Pantha, Under-Secretary.

This analysis was undertaken in close coordination with the Ministry of Federal Affairs and General Administration (MoFAGA). GGGI would like to thank MoFAGA for their support and guidance in this work. In particular, appreciation is expressed to Mr. Dinesh Kumar Thapaliya, Secretary, Mr. Suresh Adhikari, Joint-Secretary, Mr. Bishnu Datta Gautam, Under-Secretary, and Mr. Jib Lal Bhusal, Under-Secretary,

Acknowledgements

who provided detailed technical support during the preparation of the seven reports. GGGI would also like to thank the municipal leaders, in particular the mayors and chief administrative officers (CAOs) of each of the municipalities of Belkotgadhi, Dakshinkali, Mahalaxmi, Melamchi, Namobuddha, Palungtar and Thaha municipalities. The mayors and CAOs provided vital qualitative and quantitative input and data which shaped the development of the assessment.

Kirti Joshi undertook field research and focus group discussions, the assessments of individual municipalities and data analysis, and was lead author of the reports. Additional contributions were provided by Aarsi Sagar, Donovan Storey, Vikram Basyal, Anantaa Pandey, and Rowan Fraser of GGGI. The reports were edited by Stephen J. Keeling. Photos were provided by Rameshwor Maharjan and Robic Upadhayay. Design and layout was undertaken by Pentagram.

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Contents

Acknowledgements iiContents iiiFigures ivTables vBoxes vAbbreviations vi

PART 1 – INTRODUCTION 11. Background 1 1.1 Urbanization in Nepal 1 1.2 Green Municipal Development Program 1 1.3 Objectives 3 1.4 Methodology 3

2. Green Municipal Development in Nepal 5 2.1 Overview 5 2.2 Green Urban Growth for Nepal 6 2.3 International Policy Drivers 7

PART 2: BASELINE SITUATION AND TRENDS 93. Basic Information 9 3.1 Location 9 3.2 Administrative Sub-divisions 9 3.3 Demography 12 3.4 Market Centers 17 3.5 Land Use and Urban Growth Patterns 17

4. Environment and Natural Resources 19

5. Economy 21

6. Infrastructure, Facilities and Basic Services 23 6.1 Housing 23 6.2 Roads and Transportation 23 6.3 Other Services 23

7. Policy, Regulation and Planning 27

8. Municipal Institutions and Capacity 29 8.1 Organizational Setup 29 8.2 Technical and Physical Capacity 29

9. Municipal Finances and Revenue 31

10. Municipal Stakeholders and Groups 33

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PART 3 – SECTORAL, POLICY AND PROJECT FINDINGS 3511. Priority Sectors and Strategic Themes 35 11.1 Sustainable Infrastructure Development 35 11.2 Commercialization of Agriculture 35

12. Policy and Planning Recommendations 37

13. Ideas for Projects 39

14. Conclusions 41

References 43Annex 1 – Research questions 44Annex 2 – Minutes of meeting with mayoral team (12 October 2017) 46Annex 3 – Participants in focus group discussions (17 October 2017) 48Annex 4 – Projects ideas from municipal consultations (17 October 2017) 50

FiguresFigure 1: GGGI’s Green Growth concept 2Figure 2: Location of the seven GMDP partner municipalities (with province numbers) 2Figure 3: Location of Melamchi Municipality in Sindhupalchowk District 9Figure 4: boundary of Melamchi Municipality, 2017 10Figure 5: Main route from Kathmandu to Melamchi via Panchkhal 10Figure 6: Route from Kathmandu to Melamchi via Sankhu 10Figure 7: Wards of Melamchi Municipality 11Figure 8: Population growth in Melamchi Municipality, 1991–2015 13Figure 9: Population change in erstwhile VDCs of Melamchi Municipality 14Figure 10: Age-wise population distribution in Melamchi Municipality, 2011 15Figure 11: Population living with a disability in Melamchi Municipality, 2011 15Figure 12: Satellite image of Melamchi Municipality and vicinity (17 January 2017) 17Figure 13: Land use map of Melamchi Municipality, 1994 17Figure 14: Satellite images of Melamchi bazaar on 12 January 2010 (top) and 29 January 2017 (bottom) 18Figure 15: Forest map of Melamchi Municipality, 2017 19Figure 16: Primary source of income in Melamchi Municipality 21Figure 17: The Helambu trekking circuit 22Figure 18: Road network in old Melamchi Municipality before the boundary change 24Figure 19: Level of adequacy of drinking water in Melamchi Municipality, 2016 25Figure 20: Solid waste management disposal practices – Melamchi Municipality, 2016 26

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TablesTable 1: Guiding principles of National Urban Development Strategy, Nepal (2017-2031) 5Table 2: Erstwhile VDCs and current municipal wards – Melamchi Municipality, 2011 11Table 3: Households, population and average household size – Melamchi Municipality, 2011 12Table 4: Change in population of Melamchi Municipality, 1991–2016 13Table 5: Age-wise population in Melamchi Municipality, 2011 15Table 6: Literacy status of 15 years and above population – Melamchi Municipality, 2011 16Table 7: Agricultural crops grown in Melamchi Municipality, 2016/17 22Table 8: Ownership of vehicles in Melamchi Municipality (2011–2016) 24Table 9: Main types of cooking fuel — Melamchi Municipality, 2011 25Table 10: Main source of lighting — Melamchi Municipality, 2011 25Table 11: Status of household toilet facilities — Melamchi Municipality, 2011 26Table 12: Sections within municipal office – Melamchi Municipality, 2017 30Table 13: Income of Melamchi Municipality (FY 2016/17, revised) 31Table 14: Estimated income and expenditure of Melamchi Municipality (FY 2017/18) 32Table 15: Estimated breakdown of internal revenue — Melamchi Municipality (FY 2017/18,) 32Table 16: Potential GMDP stakeholders – Melamchi Municipality 33Table 17: Opportunities and challenges for development — Melamchi Municipality, 2017 35Table 18: Municipal plans and policies needed by Melamchi Municipality 38

BoxesBox 1: The characteristics of green urban areas 6Box 2: The transformations needed to produce green urban areas 6Box 3: Melamchi Municipality criteria for prioriting projects 39Box 4: Examples of innovative waste management in Nepal 40

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AAGR average annual growth rate (exponential)

BS Bikram Sambat (Nepali calendar)

CBO Community-based organization

FY Fiscal Year

GGGI Global Green Growth Institute

GMDP Green Municipal Development Program

HH household

ICT information and communication technology

INGO International non-governmental organization

LGCDP Local Governance and Community Development Programme

LPG liquefied petroleum gas

MANK Mahila Atmanirbhar Kendra

MoFAGA Ministry of Federal Affairs and General Administration

MoFALD Ministry of Federal Affairs and Local Development

NGO non-governmental organization

NPR Nepali rupees

NUDS National Urban Development Strategy

RCC reinforced cement-concrete

SDG Sustainable Development Goal

USD United States Dollars

VDC village development committee

Abbreviations and Acronyms

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1.1 Urbanization in NepalThe rapid pace of urbanization in Nepal in recent decades and the recent declaration of many new municipalities has reinforced the need to bring sustainable urban development to the forefront of Nepal’s development agenda.

Nepal recorded an average annual urban growth rate of 3.38 percent between 2001 and 2011 (CBS 2014: 31) – one of the highest in Asia, and as of 2011 had 58 municipal governments (metropolitan cities, sub-metropolitan cities and municipalities), which covered 17.1 percent of the population. In recent years the number of municipal governments has increased five-fold with the number standing at 293 in May 2018 including 6 metropolitan cities, 11 sub-metropolitan cities and 276 municipalities (nagarpalikas). These areas now cover about 42% of Nepal’s population (MoUD 2016a).

This situation, alongside the greatly increased levels of authority and the increased funding provided to municipal governments under Nepal’s new federal constitution (2015), set the stage for the planned development of Nepal’s municipal areas.

The development of Nepal’s new municipalities presents many challenges and opportunities. On the one hand, many have neither adequate populations nor adequate economic structures to justify significant infrastructure investments. On the other hand, their early stage of development provides the opportunity to guide them along the path of sustainable development.

The Government of Nepal has committed to the sustainable development of its urban areas in its Environmentally Friendly Local Governance Framework and associated program (EFLGP) (MoFALD 2013), its Fourteenth National Plan (2016/17–2018/19) (NPC 2017), its National Urban

Development Strategy (2017–2031) (MoUD 2017) and its National Report for Habitat III (2016–2036) (MoUD 2016b).

1.2 Green Municipal Development ProgramSince 2015, the Global Green Growth Institute (GGGI) has supported the Government of Nepal to align its national development policies with the green growth paradigm. This paradigm builds on a model of economic growth that targets the key aspects of economic performance of environmental sustainability, poverty reduction and economic growth (Figure 1).

In 2017, GGGI in partnership with Nepal’s Ministry of Federal Affairs and General Administration (MoFAGA) and seven of Nepal’s new municipalities, launched the Green Municipal Development Program (GMDP). The focal point for the program is the Ministry of Forests and Environment (MoFE). Phase one of the program began in 2017 and will run to December 2018.

The goal of the program is to support the seven municipalities to identify and capture localized green growth opportunities. The program is designed to respond to the needs of federal and local governments and is founded on long-term municipal engagement. It aims to provide a range of customized technical and financial services to the municipalities as well as supporting inter-municipal learning and capacity building.

An initial program activity was the carrying out of a green municipal growth situation analysis in the seven partner municipalities of Belkotgadhi, Dakshinkali, Mahalaxmi, Melamchi, Namobuddha, Palungtar, and Thaha, which are shown in Figure 2. This report is one of a series of seven reports that present the findings of the analysis for Melamchi Municipality in Sindhupalchowk District.

1It is important to note that the recent increases in the number of municipal governments have mainly been outcomes of political decisions and many parts of the new municipalities have more rural than urban characteristics.2 See http://gggi.org/ for information on the Global Green Growth Institute.

PART 1: INTRODUCTION

1. Background

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Figure 2: Location of the seven GMDP partner municipalities

Mahalaxmi MunicipalityLalitpur District

Melamchi MunicipalitySindhupalchok District

Namobuddha MunicipalityKavrepalanchok District

Palungtar MunicipalityGorkha District

Belkotgadhi MunicipalityNuwakot District

Thaha MunicipalityMakwanpur District

Dakshinkali MunicipalityKathmandu District

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Figure 1: GGGI’s Green Growth conceptSource: GGGI 2017a

•

•

•

Economic Growth• Economic growth can only be sustained

through investment - not exploitation

• Urban competitiveness is undermined by

'unliveable' cities

• 'Going green' supports innovation in services,

technologies and systems: it moves a city

from 'old' to 'new' economies & thinking

Poverty Reduction• Social inclusion and reduced inequality

support sustainable resource use &

growth

• Green Cities should provide more

resilient livelihoods/higher quality of

life than business as usual

Environmental

Sustainability• Urban growth & prosperity

can only be based on

sustainable use of healthy

natural resources

• Environmental degradation

is costly and undermines

urban resilience

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1.3 ObjectivesThe objectives of the situation analysis of the seven new municipalities were as follows:• Analyze and assess the current baseline and trends

in the municipalities across economic, social and environmental dimensions, and understand the deeper reasons and drivers of change.

• Analyze and assess the policy and regulatory landscape in which the municipalities operate.

• Analyze and assess the institutional, technical, managerial and financial structure and capacity of the municipal administrations.

• Identify and formulate practical, operational and strategic findings based on the assessment.

• Advise on priority sectors, policy and planning interventions and possible projects that could be pursued to support green growth in the municipalities with GGGI inputs and consultations.

• Conduct a stakeholder assessment of the findings at national and municipal levels

1.4 MethodologyThis situation analysis report was prepared through the following steps and inputs:• Studied secondary information about the municipality

from authentic sources, which were verified by consulting other sources to the extent possible.

• Held discussions with the mayor Mr. Dambar Bahadur Aryal and his team on 12 October 2017 at the municipality office building. The discussion was guided by a five-point questionnaire (see Annex 1 for questions and Annex 2 for meeting minute).

• Held discussions held with local entrepreneurs (members of Sindhupalchowk Chamber of Commerce and Industries) at their Melamchi office and with representatives of social and environmental NGOs at the office of Mahila Atmanirbhar Kendra (MANK) on 17 October 2017 (see Annex 1 for questions and Annex 3 for participants).

• Shared preliminary findings at the GMDP Launch and First National Consultation Workshop, held on 14–15 November 2017 in Kathmandu in the presence of high-level officials from partner ministries, the mayors and the chief administrative officers (CAOs) of partner municipalities, and representatives from other relevant ministries.

Discussion with mayoral team, October 2017

Focus group discussion with members of Sindhupalchowk Chamber of Commerce and Industries at their Melamchi office (left) and with NGO workers at MANK’s office in Melamchi (right).

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Opening session of GMDP Launch and First National Consultation Workshop (Above); Melamchi Municipality Mayor Mr. Aryal speaking at the event (Below), November 2017

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2.1 Overview‘Green growth’ is a model of economic growth that targets the key aspects of economic performance of poverty reduction, job creation, social inclusion and environmental sustainability (see Figure 1). In other words, green municipal growth aims to ensure that investments on infrastructure and other types of physical development create socioeconomic benefits that are proportionately distributed in societies while ensuring that development does not result in environmental degradation. The green growth concept builds on the concept of sustainable development.

The commitments of the Government of Nepal to sustainable development are explained in Section 1.1.

above. Among these, Nepal’s National Report for Habitat III (MoUD 2016b) builds on the country’s commitment to Sustainable Development Goal 11 of making cities and human settlements inclusive, safe, resilient and sustainable by 2030. The sustainable development of Nepal’s urban areas is also key to enabling Nepal to achieve its aim of graduating from Least Developed Country to Middle-Income Country status by 2030, for which cities have a major role to play as engines of economic growth.

Nepal’s National Urban Development Strategy (2017–2031) has the five underlying and interconnected guiding principles of inclusivity, resilience, green development and efficiency (Table 1).

Table 1: Guiding principles of National Urban Development Strategy, Nepal (2017-2031)

Guiding principles Explanation

Inclusivity

Urban areas should be socially inclusive in terms of ethnicity, caste, gender, and economic class. Inclusion should be reflected in the space the city provides for the nurturing and celebration of social and cultural diversity and sensitivity particularly to disadvantaged, marginalized and minority groups, and poor people and youth in general. Inclusivity promotes social justice and contributes to equity and balanced development. The increasing rates of poverty in urban areas mean that their development needs to be pro-poor in terms of addressing the poor’s basic needs for education, health, housing, livelihoods and transportation.

Resilience

Resilience refers to physical and social resilience to make urban areas safer and adaptable to environmental and economic change. The major focus should be on physical, social, economic and institutional resilience, which are pivotal for mitigating short and long-term vulnerability resulting from disasters and the regional and global impacts of climate change. Planning and urban development should enhance the capacity of urban areas to cope with different types of hazards and to absorb shocks and risks

Green development

Strategies for urban development should be guided by keeping urban areas green, cool, and wet. The main thrust should be on saving, protecting and promoting greenery including green parks, green open spaces, urban agriculture and forests. Urban areas should promote low carbon emission land use and technology and the use of green materials, increase the use of alternative energy, reduce the effects of urban heat islands and lower ambient temperatures. They should also promote and protect clean water bodies (ponds, wells, rivers and canals) that contribute to the survival of aquatic life, urban biodiversity and the recharging of ground water.

Efficiency

Urban areas need to be efficient, well governed and effectively managed to become sustainable, inclusive, resilient and green. The strategy should therefore be guided by i) enhancing the capability and technical competence of local governments, ii) the institutionalization of transparency and accountability in urban planning and development processes, and iii) the citizen-oriented delivery of services and development outcomes.

2. Green Municipal Development in Nepal

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Many of Nepal’s new municipalities are predominantly rural in character. Most have limited technical capacity and have only limited funds. Given their limited resources, a fundamental question for Nepal’s new municipalities is whether they should focus on large-scale projects or on creating livable communities.

Many of Nepal’s municipalities are rich in terms of natural resources and need to avoid a business as usual path of haphazard urbanization, which has predominantly occurred so far across most of South Asia development. The green growth concept offers an alternative approach to urban development by stressing the optimal and wise use of local resources for sustainable and inclusive economic development through public participation. There is immense scope for green urban development in Nepal, and the time is right to promote this as municipalities gear up to exercise their newly acquired executive powers following the recent establishment of a federal system of governance in Nepal.

2.2 Green Urban Growth for NepalThe characteristics and the transformations needed to produce green urban areas are listed in Boxes 1 and 2. The realization of such green urban areas will make a very large contribution to the achievement of Nepal’s national development goals, including the Sustainable Development Goals and its ‘Nationally Determined Contributions’ to reduce greenhouse gas emissions.

Box 1: The characteristics of green urban areas

In line with the green growth paradigm, green urban areas are:• innovative and smart• resource efficient and low carbon• climate smart and resilient• prosperous and bankable• healthy and livable • inclusive and pro-poor (GGGI 2017b).

Box 2: The transformations needed to produce green urban areas

• Transform the way they plan, to achieve the vision of smart, green and sustainable urban areas. Unplanned growth has negative environmental consequences that can be avoided by creating well-informed urban plans.

• Transform the way they design and operate buildings, to achieve resource efficient, low carbon and disaster-proof built environments.

• Transform the energy they produce and consume, to shift away from using polluting fossil fuels to cleaner forms of renewable energy.

• Transform waste to resources, to close the waste and resources loop and to move towards circular economies.

• Transform water resource management, to improve access to clean water and sanitation.

• Transform the way people move and connect, to achieve connected and non-motorized cities to limit the use of fossil fuel-based transportation.

• Balance expansion and growth with inclusion, to move to inclusive and pro-poor urban areas.

• Transform the way urban areas manage and account for their assets, to create bankable and creditworthy cities that attract green finance.

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As Nepal’s municipalities urbanize, they have the option to follow either the business-as-usual pathway of haphazard and environmentally damaging growth or to shift to a green growth development trajectory. The green growth pathway has the three components of environmental sustainability, economic growth and poverty reduction:

Environmental sustainabilityUrban growth and prosperity should be based on the sustainable use of natural resources. Nepal’s new municipalities have the opportunity to avoid unplanned urbanization and instead use existing tools and knowledge to better plan their development and their use of natural resources. This is very important for Nepal, which is situated in a vulnerable mountain ecosystem and is very prone to earthquakes, floods, landslides and other natural disasters and the impacts of climate change. These factors and the impacts of large scale human settlements and widespread migration are key factors in Nepal’s development trajectory. The current high rate of urbanization is leading to large-scale environmental degradation, which has high costs and undermines urban resilience. In addition, compact, coordinated and connected urbanization is challenging to achieve in Nepal because of the limited availability of land across hill and mountain areas..

Economic growthSustainable economic growth needs sustained and planned investment. Urban areas not only need to aim for sustainable economic growth by generating economic activity, but also need to focus on strengthening their financial resources. Municipal finance is one area that needs further attention in the context of financing urban infrastructure improvements. There are many challenges for developing the infrastructure of Nepal’s municipalities, which primarily rely on the state and central governments for their funding:• The devolution of power: The legal and policy barriers

to municipalities accessing other sources of financing.• Creditworthiness: Most urban areas lack

creditworthiness to raise debt in national and international markets.

• Access to international finance: Nepal’s urban areas currently have limited access to international financing.

• Own sources of revenue: Municipal bodies are responsible for providing basic public services including street lighting, water, sanitation and other services, but have limited capacity to generate funds to pay for them.

• Valuation of assets: Municipal governments are unsure how to manage and optimize increased asset values through infrastructure investments.

• Capacity building: The limited capacity and awareness of municipal bodies to design and implement revenue generation and integration tools.

• Earthquake damage: The basic services infrastructure of the areas covered by the seven municipalities was badly damaged by the April–May 2015 earthquakes.

The adoption of a green growth pathway will support innovation in municipal services, technologies and systems, especially for municipalities that are embarking on the urbanization process.

Poverty reductionAs cities develop, inclusive green urban growth becomes a vital component for achieving inclusive, sustainable and efficient urbanization. Social inclusion is an important aspect of the current municipality structure in Nepal and one of the elected positions in municipalities is for a person from a disadvantaged group. Gender equality is promoted in municipal bodies including by the stipulation in the Local Level Electoral Act (2017) that either the mayor or deputy mayor is a woman. In pursuing green growth Nepal’s municipalities should promote and facilitate resilient livelihoods and an improved quality of life.

2.3 International Policy DriversTwo major international policy instruments are particularly relevant for the promotion of green urban development in Nepal:

Nationally Determined Contributions — The following Nationally Determined Contributions (NDCs) that Nepal submitted to the United Nations Framework Convention on Climate Change (UNFCCC) under the Paris Agreement (2016) emphasize sustainable and green urbanization: • “Promote economic development through low carbon

emissions with a focus on (i) energy, (ii) agriculture, (iii) forests, (iv) industry, (v) human settlements and waste, (vi) transport and (vii) commercial sectors.”

• “Maintain 40 per cent of the total area of the country under forest cover.”

Sustainable Development Goals – SDG 11 is to “Make cities and human settlements inclusive, safe, resilient and sustainable.” The following SDG targets are most relevant to the development of Nepal’s municipalities:• Target 11.3: “By 2030, enhance inclusive and

sustainable urbanization and capacity for participatory, integrated and sustainable human settlement planning and management in all countries.”

• Target 11.B: “By 2020, substantially increase the number of cities and human settlements adopting and implementing integrated policies and plans towards inclusion, resource efficiency, mitigation and adaptation to climate change, resilience to disasters, and develop and implement, in line with the Sendai Framework for Disaster Risk Reduction 2015–2030, holistic disaster risk management at all levels.”

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3.1 Location and Formation Melamchi Municipality is located in the southwest of Sindhupalchowk District in Province 3 (Figure 3). It covers an area of 158.17 km2 plus 2.44 km2 in Shivapuri Nagarjun National Park. The municipality is bounded to the:• North by Helambu Gaunpalika (rural municipality) and

Panchpokhari Thangpal Gaunpalika• East by Indrawati Gaunpalika and Panchpokhari

Thangpal Gaunpalika• South by Kathmandu and Kavrepalanchok Districts• West by Kathmandu and Nuwakot Districts.

The municipality was formed on 2 December 2014 by amalgamating the seven village development committees (VDCs) of Jyamire, Talamarang, Melamchi, Sikharpur, Sindhukot, Bansbari and Fatakshila (Figure 4). As a part of state restructuring under the new federal constitution (2015), on 9 March 2017 Melamchi Municipality was expanded to its present form by amalgamating the four neighboring VDCs of Bhotechaur, Haibung, Thakani, Dubachaur and a part of Shivapuri National park.

PART 2: BASELINE SITUATION AND TRENDS

3. Basic Information

Melamchi Municipality is accessible from the capital city Kathmandu along the Arniko Highway via Panchkhal of Kavrepalanchok District (Figure 5). There is an alternative shorter route from the Kathmandu Valley via Sankhu, Bhotechaur and Jarke (approximately 58 km) (Figure 6).

3.2 Administrative Sub-Divisions Melamchi Municipality has 13 wards (Figure 7 and Table 2). Bhotechaur VDC and Dubachaur VDC were divided into two wards each while all the other erstwhile VDCs now represent single municipal wards. Wards 4 and 9 (erstwhile Thakani and Jyamire VDCs) are the largest wards being while Ward 2 in erstwhile Bhotechaur VDC is the smallest (Table 2). Ward 11, corresponding to the erstwhile Melamchi VDC, has the highest population density (410 persons/km2 in 2011). The largest market, Melamchi Bazaar (also known as Melamchi Pul), is situated in Ward 11.

Figure 3: Location of Melamchi Municipality in Sindhupalchowk District Source: CDNDoGM 2016/17

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NEPAL

Sindhupalchowk District

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Figure 4: boundary of Melamchi Municipality, 2017Source: Based on CDNDoGM 2016/17 and maps published by MoFALD

Figure 5: Main route from Kathmandu to Melamchi via Panchkhal

Figure 6: Route from Kathmandu to Melamchi via Sankhu

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Figure 7: Figure 7: Wards of Melamchi MunicipalitySource CDNDoGM 2016/17

Table 2: Erstwhile VDCs and current municipal wards – Melamchi Municipality, 2011

Erstwhile VDCs Current ward No. Population (2011) Area (km2) Density (2011) (persons/km2)

Bhotechaur1 3,171 9.33 339.9

2 1,581 4.40 359.3

Haibung 3 2,484 14.53 171.0

Thakani 4 3,439 19.13 179.8

Sindhukot 5 3,125 9.62 324.8

Talamarang 6 3,141 12.70 247.3

Dubachour7 3,631 12.92 281.0

8 2,082 7.45 279.5

Jyamire 9 5,553 18.90 293.8

Sikharpur 10 2,564 9.70 264.3

Melamchi 11 5,230 12.75 410.2

Bansbari 12 5,056 14.87 340.0

Fatakshila 13 4,286 11.87 361.1

Total 45,343 158.17 286.7

Data source: CDNDoGM 2016/17 for area; CBS 2012 for population

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3.3 DemographyThe following data is derived from the 1991, 2001 and 2011 national population and housing censuses (CBS 1992, 2002, 2012).

Population growth and trends In 2011, the population of the current municipal area stood at 45,343 persons (Table 3). Bansbari, Dubachour, Jyamire and Melamchi VDCs had the largest populations.

In 1991, the population of the current municipal area stood at 40,385. Between 1991 and 2001, 6,095 persons were added representing a growth rate of 1.58% per annum. The population decreased by 1,947 persons in the next decade (2001–2011) (Table 4 and Figure 8). A 2016 survey indicated a dramatic increase in the

VDC(current ward no.)

HHPopulation

Average HH size

Sex ratio M:F

Population (%)

Total Male Female

Bansbari (12) 1,102 5,056 2,395 2,661 4.59 90.00 11.15

Bhotechaur (1,2) 1,074 4,752 2,266 2,486 4.42 91.15 10.48

Dubachour (7,8) 1,375 5,713 2,773 2,940 4.15 94.32 12.60

Fatakshila (13) 894 4,286 2,138 2,148 4.79 99.53 9.45

Haibung (3) 576 2,484 1,174 1,310 4.31 89.62 5.48

Jyamire (9) 1,199 5,553 2,670 2,883 4.63 92.61 12.25

Melamchi (11) 1,179 5,230 2,531 2,699 4.44 93.78 11.53

Sikharpur (10) 583 2,564 1,242 1,322 4.40 93.95 5.65

Sindhukot (5) 681 3,125 1,490 1,635 4.59 91.13 6.89

Talamarang (6) 716 3,141 1,487 1,654 4.39 89.90 6.93

Thakani (4) 718 3,439 1,563 1,876 4.79 83.32 7.58

Total 10,097 45,343 21,729 23,614 4.49 92.02 100.00

Sources: CBS 2012

Table 3: Households, population and average household size – Melamchi Municipality, 2011

population at an annual growth rate of 5.2% since 2011 (Melamchi Municipality 2016) (Figure 9). However, possible differences in methodology mean that the 2016 population estimates should be treated with caution awaiting the results of the next census.

Of the 11 erstwhile VDCs, only Bansbari VDC and Melamchi VDC recorded positive population growth between 1991 and 2011 while the growth of Sikharpur was positive between 1991 and 2001 and stagnant between 2001 and 2011 (Figure 9). The southern-most VDC of Fatakshila was the only VDC that lost population between 1991 and 2001, but it recorded the highest growth rate (2.07% per annum) between 2001 and 2011 with a population gain of about 800. This could be due to it lying adjacent to the most populous and prosperous part of Kavrepalanchok District (Figure 7). Eight of the 11 erstwhile VDCs lost population between 2001 and 2011.

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Erstwhile VDC (current ward)

Population 1991–2001 2001–2011 2011–2016*

1991 2001 2011 2016* Change in pop.

AAGR (%)

Change in pop.

AAGR (%)

Change in pop.

AAGR (%)

Bansbari (12) 4,474 4,811 5,056 6,203 337 0.73 245 0.50 1,147 4.09

Bhotechaur (1,2) 5,000 5,660 4,752 6,272 660 1.24 -908 -1.75 1,520 5.55

Dubachaur (7,8) 5,087 6,044 5,713 7,795 957 1.72 -331 -0.56 2,082 6.21

Fatakshila (13) 3,631 3,484 4,286 5,164 -147 -0.41 802 2.07 878 3.73

Haibung (3) 2,419 2,857 2,484 3,886 438 1.66 -373 -1.40 1,402 8.95

Jyamire (9) 4,862 5,844 5,553 6,182 982 1.84 -291 -0.51 629 2.15

Melamchi (11) 3,835 4,901 5,230 6,417 1066 2.45 329 0.65 1,187 4.09

Sikharpur (10) 2,130 2,560 2,564 4,848 430 1.84 4 0.02 2,284 12.74

Sindhukot (5) 3,162 3,807 3,125 3,026 645 1.86 -682 -1.97 -99 -0.64

Talamarang (6) 2,857 3,534 3,141 4,163 677 2.13 -393 -1.18 1,022 5.63

Thakani (4) 2,928 3,788 3,439 4,858 860 2.58 -349 -0.97 1,419 6.91

Total 40385 47,290 45,343 58,814 6905 1.58 -1947 -0.42 13471 5.20

Sources: CBS 1992, 2002, 2012. * Melamchi Municipality 2016). AAGR = average annual growth rate (exponential)

Table 4: Change in population of Melamchi Municipality, 1991–2016

Figure 8: Population growth in Melamchi Municipality, 1991–2015

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Figure 9: Population change in erstwhile VDCs of Melamchi MunicipalitySources: CBS 1992, 2002, 2012; * Melamchi Municipality 2016

Age of populationIn 2011, 57% of the population was in the economically active age-group of 15–59 years, which is not a high proportion (Table 5 and Figure 10). Note that all persons in this age-group are not necessarily economically active.

Caste, ethnicity and mother tongue – In 2011, the largest social group in Melamchi were Tamangs (37.1%) followed by hill Brahmans (20.4%) and Chhetris (15.4%). Tamangs were the majority in Thakani (74.7%), Haibung (64.3%) and Dubachour (50.3%) and made up a sizeable part of Talamarang (43.7%), Melamchi (31.9%), Bhotechaur (30.6%), Jyamire (28.8%), Sindhukot (27.8%) and Fatakshila (22.6%). Hill Brahmans were the majority group in Bhotechaur (51.7%) and made up a sizeable part of the populations of Melamchi (36.9%), Fatakshila (34.0%), Sindhukot (30.8%), Bansbari (28.0%) and Sikharpur (22.0%). Chhetris were the largest group in Jyamire (41.3%) and Sikharpur (32.61%).

Sanyasis/Dashnamis and Gurungs were the second largest groups in Dubachour (29%) and Haibung (17.4%) respectively. Sanyasi/Dashnami also had a sizeable

presence in Jyamire (10.9%). Sarkis, Danuwars, and Newars were the third largest group in Sindhukot (22.5%), Fatakshila (22.1%) and Melamchi (11.6%) respectively.

All the erstwhile VDCs except for Bhotechaur (dominated by hill Brahmans), and Dubachaur, Haibung, and Thakani (dominated by Tamangs) had a relatively heterogenous ethnic mix.

In 2011, Nepali was the mother tongue of most people in the municipality with the Tamang language being the second most popular language.

People with disabilities – In 2011, about 2% of the population (917 people) were living with different types of disability among which physical disability (40.8%) was the most common (Figure 11). The share of the population with a disability was highest in Sindhukot (3.7%) and Talamarang (2.9%).

Literacy – In 2011, the adult literacy rate in Melamchi was only 59.7% with 69.1% of males and 51.1% of females literate (Table 6).

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Age Group Total Share (%) Male Female Sex ratio M:F

0 to 14 14,968 33.01 7,494 7,474 100.27

15 to 59 25,792 56.88 11,954 13,838 86.39

60 or above 4,583 10.11 2,281 2,302 99.09

Total 45,343 100 21,729 23,614 92.02

Source: CBS 2012

Table 5: Age-wise population in Melamchi Municipality, 2011

Figure 10: Age-wise population distribution in Melamchi Municipality, 2011Data source: CBS 2012. Note: The black rectangle contains the economically active age-group.

Figure 11: Population living with a disability in Melamchi Municipality, 2011Source: CBS 2012

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Erstwhile VDC (current ward)

Sex Population aged 15 years & above

Population who Literacy not stated

Literacy rate

Could read & write

Could read only

Couldn’t read & write

Bansbari (12) Total 4,673 2,906 150 1,617 0 62.2

Male 2,194 1,603 68 523 0 73.1

Female 2,479 1,303 82 1,094 0 52.6

Bhotechaur (1,2) Total 4,400 2,966 118 1,314 2 67.4

Male 2,094 1,617 61 415 1 77.2

Female 2,306 1,349 57 899 1 58.5

Dubachour (7,8) Total 5,226 2,467 109 2,648 2 47.2

Male 2,539 1,384 51 1,103 1 54.5

Female 2,687 1,083 58 1,545 1 40.3

Fatakshila (13) Total 3,956 2,612 50 1,289 5 66.0

Male 1,963 1,487 20 456 0 75.8

Female 1,993 1,125 30 833 5 56.5

Haibung (3) Total 2,291 1,398 81 805 7 61.0

Male 1,073 752 38 280 3 70.1

Female 1,218 646 43 525 4 53.0

Jyamire (9) Total 5,083 2,630 113 2,334 6 51.7

Male 2,427 1,438 53 934 2 59.3

Female 2,656 1,192 60 1,400 4 44.9

Melamchi (11) Total 4,829 3,031 257 1,539 2 62.8

Male 2,341 1,694 121 526 0 72.4

Female 2,488 1,337 136 1,013 2 53.7

Sikharpur (10) Total 2,330 1,445 32 853 0 62.0

Male 1,125 805 17 303 0 71.6

Female 1,205 640 15 550 0 53.1

Sindhukot (5) Total 2,841 1,743 49 1,048 1 61.4

Male 1,351 963 21 367 0 71.3

Female 1,490 780 28 681 1 52.4

Talamarang (6) Total 2,876 1,833 41 988 14 63.7

Male 1,361 1,005 24 327 5 73.8

Female 1,515 828 17 661 9 54.7

Thakani (4) Total 3,084 1,779 43 1,262 0 57.7

Male 1,386 962 23 401 0 69.4

Female 1,698 817 20 861 0 48.1

Municipality total Total 41,589 24,810 1,043 15,697 39 59.7

Male 19,854 13,710 497 5,635 12 69.1

Female 21,735 11,100 546 10,062 27 51.1

Source: CBS 2012

Table 6: Literacy status of 15 years and above population – Melamchi Municipality, 2011

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Figure 12: Satellite image of Melamchi Municipality and vicinity (17 January 2017)Source: Google Earth

Figure 13: Land use map of Melamchi Municipality, 1994Source: DoS 1994

3.4 Market CentersMelamchi bazaar is the main market center where people from the surrounding areas come to sell their agricultural produce and buy food and household goods. Many shops, hotels, and restaurants operate in Melamchi bazaar. Bahunepati in the erstwhile Bansbari VDC is another emerging market.

3.5 Land Use and Urban Growth PatternMelamchi Municipality lies in a hilly region with large areas of steep terrain (Figure 12). In 1994, 68% of the

current area was cultivated land, 11% forests (including the national park area), and 17% bushes (Figure 13). In 1994 settlements were mostly scattered across the area.

The increasing population across all VDCs indicates that settlement growth is taking place in both the market centers and in the higher altitude hilly areas of the municipality. The existing market areas of Melamchi and Bahunepati are running out of flat or gently sloping land to build on and further residential development in market areas can only take place on farmlands (see Figure 14).

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Figure 14: Satellite images of Melamchi bazaar on 12 January 2010 (top) and 29 January 2017 (bottom)Source: Google Earth

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Forests – Thirty seven percent or 60.2 km2 of the municipality was forested in 2017 (DoFRS 2017) (Figure 15) including part of Shivapuri National Park. Most of the area’s forests are community forests. The main tree species are sal, asna, khayar, katus, chilaune, gobre salla, thigre salla and gurans. The herbs found in Melamchi’s forest areas including chutro, dampatey, gyukumari, kancho paat, datiwan, lauth salla, sugandhawal, chiraito, jatamasi, dhasingarey, kutaki, pakhanwed, kurilo, satiwayar, nundhiki, jhyau, padamchaal, gurans, lapsi, bel, thingre salla, bishwama, lokta, arghouli and majitho.

4. Environment and Natural Resources

Environmental problems – The haphazard construction of roads and the expansion of settlements is degrading the environment. Frequent mudslides and landslides wipe away poorly designed roads each monsoon season and many new roads disturb natural water sources such as springs. In recent years, the number and scale of operation of stone crushers and sand mining has increased dramatically along the Indrawati River. This has a negative impact on the environment and the ecology of the river. It is yet to be seen what impact the Melamchi Water Supply Project will have on the Indrawati river. The scheme will go on line in 2018/19 to pump large amounts of water from the headwaters of the Indrawati through a tunnel to the Kathmandu Valley.

Figure 15: Forest map of Melamchi Municipality, 2017Source: DoFRS 2017

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5.1 Sources of IncomeIn 2016, the main occupation and source of income was agriculture (Melamchi Municipality 2016) being the primary source of income of 70% of respondents (Figure 16). Salaried jobs were the next most important source of income everywhere except in the erstwhile Melamchi VDC where business was the second most important source. Melamchi is well-known for its vegetable production, which is sold locally and exported to Kavrepalanchok and the Kathmandu Valley. The major crops are listed in Table 7.

Everest Tea Estate Pvt. Ltd. is producing tea in the southwest of the municipality in Bhotechaur, which has favorable climatic condition for growing tea. Melamchi has potential for producing medicinal and other types of herbs. However, there been no large-scale investment except by Dabur Nepal in Ugratara forest. Households in more rural areas engage in cattle farming, mainly for dairy production. Cows and yak-cattle hybrids (chauri) are raised in northern areas, while goats and buffaloes are raised in southern areas.

5. Economy

5.2 CooperativesCooperatives are important local institutions that support local people and businesses with loans and other support. In 2014, 127 cooperatives existed in Melamchi Municipality focusing on dairy production (51), savings and loans (42), agriculture (20) and other (14) (Sindhupalchowk DDC 2014). Most were based in the erstwhile Bhotechaur, Melamchi, and Bansbari VDCs.

5.3 TourismThe large tourism potential of Melamchi has yet to be harnessed. The area’s topography, scenic views, the Indrawati river and its fertile farmlands are attractions for domestic and international tourists. And the tea plantations in Bhotechaur (nicknamed ‘mini Ilam’) and its scenic views and equitable climate are gaining popularity among domestic tourists. Melamchi is the end point of the Helambu circuit trek which begins in Sundarijal in the Kathmandu Valley goes up to Tharepati at 3650m and returns around the Sherpa villages in the north of Helambu and ends in Melamchi Municipality (Figure 17).

Figure 16: Primary source of income in Melamchi Municipality Data source: 2016

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Erstwhile VDC (current wards)

Main agricultural crops Vegetables

First Second

Bansbari (12) Rice Maize Fruit, greens, herbs

Bhotechaur (1, 2) Maize Rice Greens, tomatoes, cauliflowers, cabbages, cowpeas, cucumbers, bitter gourd

Dubachaur (7, 8) Maize Buckwheat

Fatakshila (13) Rice Maize Bananas, potatoes, soybeans

Haibung (3) Maize Rice Greens, tomatoes, cauliflowers, cabbages, cowpeas, cucumbers, bitter gourds

Jyamire (9) Maize Buckwheat

Melamchi (11) Rice Maize Lentils, potatoes, greens, seasonal fruits

Sikharpur (10) Maize Rice

Sindhukot (5) Maize Greens, seasonal fruits, black gram, soybeans, mustard

Talamarang (6) Maize Greens, tomatoes, cauliflowers, cabbages, cowpeas, cucumbers, bitter gourd, mangoes, soybeans, lentils, buckwheat, ginger, potatoes

Thakani (4) Maize Rice Greens, tomatoes, cauliflowers, cabbages, cowpeas, cucumbers, bitter gourd

Source: District Agriculture Office, Sindhupalchowk as cited in Municipal Profile 2073 BS.

Everest Tea Estate Pvt. Ltd. is producing tea in the southwest of the municipality in Bhotechaur, which has favorable climatic condition for growing tea. Melamchi has potential for producing medicinal and other types of herbs. However, there been no large-scale investment except by Dabur Nepal in Ugratara forest. Households in more rural areas engage in cattle farming, mainly for dairy production. Cows and yak-cattle hybrids (chauri) are raised in northern areas, while goats and buffaloes are raised in southern areas.

5.2 CooperativesCooperatives are important local institutions that support local people and businesses with loans and other support. In 2014, 127 cooperatives existed in Melamchi Municipality focusing on dairy production (51),

savings and loans (42), agriculture (20) and other (14) (Sindhupalchowk DDC 2014). Most were based in the erstwhile Bhotechaur, Melamchi, and Bansbari VDCs.

5.3 TourismThe large tourism potential of Melamchi has yet to be harnessed. The area’s topography, scenic views, the Indrawati river and its fertile farmlands are attractions for domestic and international tourists. And the tea plantations in Bhotechaur (nicknamed ‘mini Ilam’) and its scenic views and equitable climate are gaining popularity among domestic tourists. Melamchi is the end point of the Helambu circuit trek which begins in Sundarijal in the Kathmandu Valley goes up to Tharepati at 3650m and returns around the Sherpa villages in the north of Helambu and ends in Melamchi Municipality (Figure 17).

Figure 17: The Helambu trekking circuit source: http://setohimal.com

Table 7: Agricultural crops grown in Melamchi Municipality, 2016/17

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6.1 HousingOwnership – In 2011, 95.4% of the 10,097 households in the current Melamchi municipal area lived in their own houses while 4% lived in rented accommodation (CBS 2011). The share of renters was the highest in the erstwhile Melamchi VDC (17.9%), which is the main market place of the municipality.

Foundations — In 2011, most households lived in houses with foundations of mud-bonded bricks or stones. Only in the erstwhile Melamchi VDC were reinforced concrete (RCC) foundations gaining ground.

Rooves – In 2011, most households lived in houses with galvanized iron rooves. About 12% of households in the erstwhile Melamchi VDC lived in houses with RCC rooves while about 10% of households in Bhotechaur had houses with thatched rooves.

6.2 Roads and TransportMelamchi is accessible by road from the neighboring district of Kavrepalanchok via the Melamchi–Helambu road. Although not fully functional for all vehicular traffic due to bad condition, the Sankhu-Jarke road provides an alternative route to link Melamchi with the Kathmandu Valley.

Because of the difficult terrain, motorable roads within the municipality are limited in terms of number and length. The main roads that connect the municipality with surrounding areas are:• The Melamchi–Helambu road connects Panchkhal of

Kavre District with Helambu via Melamchi• The Sankhu–Jarke Road connects Sankhu in

Kathmandu with Melamchi• The Melamchi–Bhotang road connects Melamchi

Bazaar with Nawalpur via Sikharpur• The Chisapani road connects Bahunepati with

Thakani.

Important local roads include:• Bansbari: Helambu road, Dhakal–Khahare–Thakle–

Dadhuwa road, Nepalthok–Thakle–Sindhukot road,

6. Infrastructure, Facilities and Basic Services

Giranchaur–Bhotechour road, Dhakal–Khahare Bhanjhyang road, Bahunepati–Thakle road

• Fatakshila: Bhanjhyang–Thanti–Padherachaur–Fatkeshwor road, Padherachaur–Sipaghat road, Bhanjhyang Public–Fatkeshwor road, Dhunganathok–Chandeni–Thanti road, Bhanjhyang–Kaleje–Sipaghat road

• Melamchi: Helambu road, Helambu–Dhusini road• Sikharpur: Baguwa road (Figure 18).

Melamchi bazaar is the main terminus for buses to Kathmandu via Kavrepalanchok and via the Jarke-Sankhu road. Buses also take passengers north up the Helambu Valley.

No data was available on vehicular traffic along the municipality’s roads. In 2011, 210 households owned motorcycles and 29 owned cars (Table 8). The number of private vehicles has increased dramatically in the last few years with five times more cars and three times more motorbikes in 2016 (Melamchi Municipality 2016). This could be due to the lack of public transport services for short trips. Vehicles are mainly used for business purposes rather than personal commuting.

6.3 Other servicesThe following data is from the 2011 national census (CBS 2012):

Drinking water – In 2011, 71% of households depended on taps or piped water for their drinking water although a sizeable proportion depended on water spouts in Sindhukot (36.9%), Bhotechaur (32.3%) and Melamchi (28.5%). In 2016, a large proportion of households in the erstwhile VDCs, except for Bhotechaur, suffered from high levels of inadequacy of drinking water (Figure 19).

Cooking fuel – In 2011, 94.9% of households depended on firewood for cooking (Table 9). More than 90% of households in all the erstwhile VDCs except Melamchi VDC relied on firewood for cooking. LPG was only used by many households (17.5%) in the erstwhile Melamchi VDC.

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Toilets – In 2011 40.4% of households did not have their own toilet facilities (Table 11). The situation was worse in Fatakshila and Thakani where more than half of households had no toilet facility in their houses.

Solid waste management – There are several ways to get rid of solid waste. Almost a half of respondent households in Haibung, Thakani, and Dubachaur burned their waste thus

causing air pollution (Melamchi Municipality 2016) (Figure 20). Most households composted some of their waste.

Schools and health facilities – There are 22 government schools in Melamchi Municipality with 10 in Bhotechaur. There are also three private schools and two colleges. There is a lack of health institutions in Melamchi. Each erstwhile VDC has one health post.

Figure 18: Road network in old Melamchi Municipality before the boundary change source: Draft Municipal Transport Master Plan for Melamchi Municipality (prepared by Raj Consultancy)

Erstwhile VDC (current wards)

Total HHs 2011 Households with: 2016 Households with:

Cars Motorcycles Cars Motorcycles

Bansbari (12) 1,102 2 43 21 35

Bhotechaur (1,2) 1,074 3 35 2 133

Dubachour (7,8) 1,375 4 8 17 42

Fatakshila (13) 894 4 21 4 36

Haibung (3) 576 2 3 3 24

Jyamire (9) 1,199 1 11 13 47

Melamchi (11) 1,179 10 61 21 85

Sikharpur (10) 583 0 2 14 49

Sindhukot (5) 681 2 9 0 60

Talamarang (6) 716 0 14 70 107

Thakani (4) 718 1 3 1 15

Total 10,097 29 210 166 633

Source: Source: CBS 2012, Melamchi Municipality 2016

Table 8: Ownership of vehicles in Melamchi Municipality (2011–2016)

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Erstwhile VDC (current wards)

Total HHs

Fuel mostly used for cooking (%)

Firewood Kerosene LPG Cow dung Biogas Electricity Other Not stated

Bansbari (12) 1,102 92.5 0.7 4.6 0.0 1.9 0.0 0.0 0.3

Bhotechaur (1,2) 1,074 96.5 0.2 2.0 0.0 0.0 0.0 0.0 1.4

Dubachour (7,8) 1,375 97.7 0.3 1.2 0.0 0.0 0.0 0.0 0.8

Fatakshila (13) 894 97.3 0.2 0.8 0.0 0.9 0.0 0.0 0.8

Haibung (3) 576 98.3 0.9 0.2 0.0 0.0 0.0 0.0 0.7

Jyamire (9) 1,199 99.0 0.1 0.3 0.0 0.2 0.3 0.0 0.2

Melamchi (11) 1,179 80.1 0.3 17.5 0.1 1.3 0.0 0.3 0.5

Sikharpur (10) 583 97.6 0.2 1.4 0.0 0.2 0.0 0.0 0.7

Sindhukot (5) 681 98.7 0.3 0.1 0.0 0.1 0.0 0.0 0.7

Talamarang (6) 716 94.4 0.1 4.9 0.0 0.3 0.0 0.0 0.3

Thakani (4) 718 97.2 1.1 1.7 0.0 0.0 0.0 0.0 0.0

Total 10,097 94.9 0.4 3.6 0.0 0.5 0.0 0.0 0.6

Source: Source: CBS 2012, Melamchi Municipality 2016

Table 9: Main types of cooking fuel — Melamchi Municipality, 2011

Erstwhile VDC (current wards) Total HHs Fuel mostly used for lighting (%)

Electricity Kerosene Solar Other Not stated

Bansbari (12) 1,102 96.0 3.6 0.1 0.0 0.3

Bhotechaur (1,2) 1,074 97.8 0.8 0.0 0.0 1.4

Dubachour (7,8) 1,375 92.6 6.2 0.3 0.1 0.8

Fatakshila (13) 894 96.8 2.5 0.0 0.0 0.8

Haibung (3) 576 86.3 11.8 1.2 0.0 0.7

Jyamire (9) 1,199 83.4 16.3 0.1 0.1 0.2

Melamchi (11) 1,179 91.9 7.5 0.1 0.1 0.5

Sikharpur (10) 583 96.2 2.4 0.0 0.7 0.7

Sindhukot (5) 681 76.5 22.8 0.1 0.0 0.6

Talamarang (6) 716 92.9 6.4 0.4 0.0 0.3

Thakani (4) 718 49.7 36.4 13.9 0.0 0.0

Total 10,097 88.4 9.7 1.2 0.1 0.6

Source: Source: CBS 2012,

Table 10: Main source of lighting — Melamchi Municipality, 2011

Figure 19: Level of adequacy of drinking water in Melamchi Municipality, 2016Source: Melamchi Municipality 2016.

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Erstwhile VDC (current ward)

Total HHs Without toilet facility

Flush toilet Non-flushing toilet

Not stated

Bansbari (12) 1,102 42.6 35.3 21.9 0.3

Bhotechaur (1,2) 1,074 30.9 27.6 40.4 1.1

Dubachour (7,8) 1,375 45.8 14.6 39.1 0.4

Fatakshila (13) 894 54.0 22.3 22.9 0.8

Haibung (3) 576 48.8 15.3 35.2 0.7

Jyamire (9) 1,199 31.5 28.9 39.4 0.2

Melamchi (11) 1,179 30.2 47.8 21.5 0.4

Sikharpur (10) 583 46.1 37.7 15.8 0.3

Sindhukot (5) 681 32.9 23.5 42.9 0.7

Talamarang (6) 716 31.3 39.5 28.9 0.3

Thakani (4) 718 61.0 24.7 14.3 0.0

Total 10,097 40.4 28.9 30.1 0.5

Source: National Census 2011.

Table 11: Status of household toilet facilities — Melamchi Municipality, 2011

Figure 20: Solid waste management disposal practices – Melamchi Municipality, 2016 source: Field survey by Office of Melamchi Municipality, 2016.

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The municipal vision is “Agriculture, tourism, water resources and trade as the basis for Melamchi’s prosperity.”

Local Level Governance Act – The basis for the functioning of local governments (municipalities and rural municipalities [gaunpalika]) was established with the promulgation of the Local Level Governance Act, 2017. The act, formulated in accordance with the Constitution of Nepal, 2015, grants local governments significant legislative, executive and judicial rights. The act gives them the power to formulate local laws in line with federal level legislation, while local judiciaries can decide cases related to irrigation, daily wages, pastures and other issues.

The act gives local governments the authority to manage teachers, staff and education up to the basic level (Grade 8) and to oversee basic health care. They can set up their own police forces, issue land ownership certificates, collect revenue on property, and register births, deaths and marriages. They can also levy taxes on house rent, entertainment, property and tourism.

7. Policy, Regulation and Planning

Before the act was passed, Melamchi Municipality had already formulated the following legal provisions:• The Finance Act of Melamchi Municipality 2074 BS

(2016/17) legislates for the collection of local taxes and fees, the provision of subsidies and the administration of revenue collection. The act is formulated as per Article 228, Clause 2 of the Constitution of Nepal, 2015: “Local governments may levy taxes by law on matters falling within their domain without prejudice to national economic policies, carriage of goods and services, capital and labor market, and neighboring provinces or local governments.”

• The Municipal Executive (Work Division) Rules 2074 BS (2016/17) define responsibilities and duties of (i) the mayor, deputy mayor, ward chairpersons and other members, (ii) thematic sections, sub-sections, and units of the municipal executive office, and (iii) ward committees.

• The Municipal Executive (Work Performance) Rules 2074 BS (2016/17) define the processes for executing tasks to be performed by the mayor, deputy mayor, other elected representatives and the Municipal Executive Office.

The municipality has also prepared building byelaws and determined the minimum distance of setbacks from rivers and streams.

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8.1 Organizational SetupThe previous VDC-wise setup became redundant following state restructuring under the new federal system. Although the municipality is waiting for clarity regarding legal provisions for running local level government, several organizational arrangements have been made for the smooth operation of the municipal office. The municipality has formed the following six thematic committees:• Public Service and Capacity Development Committee• Economic Development Committee• Social Development Committee• Infrastructure Development Committee• Environment and Disaster Management Committee• Legal Committee.

8. Municipal Institutions and Capacity

The Office of the Municipal Executive has been divided into the sections, sub-sections and units shown in Table 12. The municipality’s website is at http://www.melamchimun.gov.np/en

8.2 Technical and Physical CapacityThe municipal office operates in two adjoining new buildings on the edge of Melamchi Bazaar. The office suffers from a lack of space and technical staff in line with the workload that increased greatly following the assimilation of four more VDCs into the municipality in 2017.

Melamchi municipality office buildings, October 2017 (Photo: K.K. Joshi)

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Section Sub-sections, units and offices

1. General Administration Section

• Local Services and Human Resource Development Sub-Section• Public Procurement and Assets Management Sub-Section• Section for Coordination and Cooperation between the Local Level, the

Province and the Federal State, and for Coordination with Wards• Meeting Management Sub-Section• Market Monitoring, Standard, Measurement, Food Security and

Consumer Welfare Protection Sub-Section• Internal Auditing Sub-Section• Holidays, Festivals, Awards, and Decoration Unit

2. Revenue and Financial Administration Section

• Revenue Policy and Administration Sub-section• Financial Administration Sub-section

3. Urban Infrastructure Development Section

• Road and Transport Management Sub-section• Hydropower, Energy, Street Light Sub-section• Irrigation and Water-induced Disaster Prevention Sub-Section• Information and Communication Technology Development and Extension,

and FM (Radio) Operation Sub-section• Drinking Water Supply Management Sub-section• Public Private Partnership Unit

4. Economic Development Section

• Agriculture, Livestock, and Cooperatives Office• Industries and Entrepreneurship Development Sub-section• Employment Promotion and Poverty Reduction Sub-section

5. Social Development Section

• Basic and Secondary Education Office• Sports and Extra-Curricular Activities Unit• Basic Health and Sanitation Office• Gender Equality and Social Security Sub-section:• Gender Equality Unit• Children, Adolescent, and Youth Unit• Persons with Disability, and Senior Citizens Unit• Culture, Heritage, Fine Arts and Tourism Promotion Unit• NGO Mobilization, Coordination and Regulation Unit• Social Security Program and Vital Statistics Unit

6. Forest, Environment, Solid Waste and Disaster Management Section

• Forest, Wildlife, and Soil Conservation Office• Environment and Watershed Protection Sub-section• Waste Management Sub-section• Disaster Management Sub-section

7. Land Management and Building Regulation Section

• Land Use and Settlement Development Sub-section• Cadastral and Land Ownership Certification Sub-section• Building Byelaws and Permit Sub-section

8. Justice, Law and Human Rights Promotion Section

• Municipal Police Management Sub-section• Justice, Law and Human Rights Promotion Sub-section• Legislation Sub-section

9. Planning, Monitoring, and Statistics Section

• Plan Formulation and Consumer Committee Mobilization Unit• Monitoring and Evaluation Unit• Statistics Management Unit

Table 12: Sections within municipal office – Melamchi Municipality, 2017

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The income of Melamchi Municipality was NPR 167.3 million in FY 2016/17 of which intergovernmental fiscal transfers and other grants made up more than a third (Table 13). NPR 58 million of revenue was received in 2016/17.The total income including intergovernmental fiscal transfers and grants is estimated at NPR 630.86 million in

9. Municipal Finances and Revenue

Source: Policy and Program FY 2074/75 BS. Note: 1 USD = NPR 103.

Particulars Amount (NPR)

1. Intergovernmental Fiscal Transfers (IGFT):

1.1 Central budget grant 4,600,000

1.2 Capital unconditional grant 26,424,000

1.3 Conditional grant 31,488,000

Total IGFT 62,512,000

2. Revenue

2.1 Internal revenue (of municipality)

2.2 Revenue distribution

2.3 Sand, aggregates, wood swept by rivers, etc.

Total revenue 58,000,000

3. Social security conditional grant 36,424,000

4. Local Governance and Community Development Program (LGCDP) 2,772,000

5. Not specified 1,780,000

6. Cash balance 5,834,358

Total 167,322,358

Table 13: Income of Melamchi Municipality (FY 2016/17, revised)

Source: Melamchi Municipality Office

FY 2017/18 (Table 14), which will be 3.7 times the income in the previous fiscal year. Revenue is estimated at NPR 65 million of which internal revenue is an estimated NPR 7 million. The breakdown of the expected internal revenue in 2017/18 is shown in Table 15 with the highest share expected to come from service fees (35%).

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Type of revenue NPR

Property taxes 200,000

Rent taxes 130,000

House and land registration taxes 5,000

Vehicle taxes 75,000

Service fees (for use of local infrastructure and services) 2,400,000

Fees (including for recommendations by local governments) 1,500,000

Tourism fees 1,000

Advertisement taxest 300,000

Business taxes 1,000,000

Land revenue taxes 1,000

Penalties 5,000

Entertainment taxes 10,000

Land revenue collection 1,313,000

Rent and Tenancy (Bitauri) Taxes 50,000

Taxes on bones, horns, feathers and skins of dead and killed animals

5,000

Natural resources utilization tax 5,000

Dividend from share investments 0

Interest from loan investments 0

Total 7,000,000

Table 15: Estimated breakdown of internal revenue — Melamchi Municipality (FY 2017/18,)

Income Amount (NPR) Expenditure Amount (NPR)

1. Intergovernmental fiscal transfer (IGFT): 1. Current 42,450,500

1.1 Fiscal equalization grant 252,105,000 2. Capital 311,654,500

1.2 Conditional grant 181,471,000 3. Conditional grant 181,471,000

Total IGFT 433,576,000 535,576,000

2. Revenue

2.1 Internal revenue (of municipality) 7,000,000*

2.2 Revenue distribution 3,000,000

2.3 Sand, aggregates, wood swept by rivers, etc. 55,000,000

Total of (2) 65,000,000

3. Social security conditional grant 90,000,000 4. Social security conditional grant

90,000,000

4. LGCDP 2,000,000 5. LGCDP 2,000,000

5.Affected Area Development Program (Fatakshila)

3,250,000 6. Affected Area Development Program (Fatakshila)

3,250,000

Cash balance 37,000,000

Total 630,826,000 Total 630,826,000

Table 14: Estimated income and expenditure of Melamchi Municipality (FY 2017/18)

Source: Municipality Office.

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Sindhupalchowk District was one of the worst affected districts by the 2015 earthquakes. Many donor organizations, INGOs, NGOs, and community-based organizations (CBOs) have been active in Melamchi Municipality providing relief and reconstruction support.

Category Stakeholders

Government organizations

Federal level: Ministry of Federal Affairs and General Administration, Ministry of Forests and Environment, Ministry of Urban DevelopmentProvincial level: Province 3 government Local level: Sindhupalchowk District Coordination Committee

Business communitySindhupalchowk Chamber of Commerce and Industries – Melamchi Branch

Local NGOsMahila Atmanirbharta Kendra (MANK), Tuki Sangh, CDECF, Child Nepal, Rural Health Service Trust, Nayayuva Pratibha Club, CSRC.

INGOs, National NGOsCARE Nepal, Caritas, Helvetas, OXFAM, UNDP, JICA, Plan International Nepal, Save the Children, Nepal Red Cross Society, Maiti Nepal.

Table 16: Potential GMDP stakeholders – Melamchi Municipality

Source: Melamchi Municipality Office and focus group discussions, 2017

3Mid-July 2017 to mid-July 2018

10. Municipal Stakeholders and Groups

A number of local organizations work for general socioeconomic development with groups addressing children, youth and women issues. The organisations listed in Table 16 are the main potential stakeholders and partners for the Green Municipal Development Program in Melamchi Municipality.

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PART 3: SECTORAL, POLICY AND PROJECT FINDINGS

11.1 Priority Sectors Melamchi Municipality has adopted the vision for its development of “Agriculture, tourism, water resources and trade as the basis for Melamchi’s prosperity.” The municipality has set its priorities as follows towards realizing its vision:• Promote and develop education, agriculture, tourism,

water resources, health and trade for Melamchi’s prosperity

• Formulate a policy for safe housing• Ensure the delivery of basic urban services by

expanding and upgrading the road transport network, urban transport services, water supply, sanitation and sewerage system while maintaining an environmental balance.

• Promote the development of women, children, persons with disabilities, Dalits, indigenous and deprived

groups and poor and marginalized communities.• Ensure public participation in formulating plans,

implementation, monitoring and evaluation.• Formulate an integrated town development plan for

strengthening the capacity of the municipality and its stakeholders.

• Promote planned urbanization.• Build collaboration and partnership with non-

governmental actors and the private sector for municipal development.

11.2 Opportunities and Challenges The opportunities and challenges associated with the four priority sectors of agriculture, tourism, water resources and trade are listed in Table 17.

11. Priority Sectors and Strategic Themes

Priority sectors Potentials & opportunities Challenges

Agriculture Easily irrigated fertile farmlands along the Indrawati river, topographic and climatic variations for producing different crops, scope for organic farming and branding.

Limited agricultural lands suitable for intensive farming technologies, declining interest in farming, haphazard urban growth with premature conversion of farmlands into urban use.

Tourism Is part of the Helambu trekking circuit, topographic variations offering scenic views, increasing popularity of Bhotechaur as ‘mini Ilam’, scope for river-based adventures and recreational activities.

Melamchi unable to gain from Helambu circuit trekkers due to lack of quality hotels and restaurants and activities for engaging tourists.

Water resources

Potential for hydropower projects. Investment in hydropower projects.

Trade Proximity to large markets in Kavrepalanchok and the Kathmandu valley, opportunity to act as strategic market center supplying agricultural products from rural hinterlands to these markets and to supply goods to rural hinterlands.

Poor roads, lack of proper collection and processing center for agricultural produce, lack of entrepreneurship skills to develop agro-based industries.

Table 17: Estimated breakdown of internal revenue — Melamchi Municipality (FY 2017/18,)

Source: Discussions with mayor and his team and with entrepreneurs and social and environment activists.

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Infrastructure development often tops development agendas putting pressure on elected representatives to invest in roads and water supply schemes. However, development cannot be sustainable without addressing the social, economic, and environmental dimensions of development. The main challenges faced by Melamchi Municipality on these three fronts were identified as the following through discussions with local entrepreneurs, social activists and environment activists:

Social challenges — The trafficking of women and children has long been a social evil in the Melamchi area. Women and children from poor families and remote areas of Melamchi and nearby areas are most vulnerable. The long engagement of many groups and activists has seen human trafficking decrease. However, activists say that although trafficking from Nepali villages to India for the sex trade has decreased brokers now lure rural women to Gulf countries, and in many cases, victims collaborate with brokers and hide information from activists and police because of false promises of prosperity made to them.

Lack of awareness about this problem is largely due to the lack of development in deprived communities. One cause of this underdevelopment the building of roads at the whim of local influential leaders without any consideration for environmental factors or the distribution of benefits to disadvantaged social groups. Many roads are built, washed away and then reconstructed after each monsoon season.

Roads have benefited many households though increments in business and land prices; but the benefits of roads have not been distributed equitably to people of different socioeconomic backgrounds. The new roads have snatched away livelihood options from poor households, many of whom relied on carrying loads for their livelihoods.

Economic challenges – The people of Melamchi produce milk, vegetables, and other agricultural produce, which are sold locally and exported to Kavre and the Kathmandu Valley. However, there is no systematic practice of using unsold agricultural produce such as milk in times of excess production by producing by-products. Many locals also lack entrepreneurship skills.

Insufficient entrepreneurial skills have limited local people from reaping the benefits of the popular Helambu circuit trek. Another factor has been the replacement of the charming old footpaths with the roads and jeep tracks that are much less suitable for trekking. Also, there is a lack of adequate accommodation for tourists in Melamchi. Many tourists have days to spare from the normal 7-day Helambu trip but pass straight through the end point of Melamchi bazaar and move on to Kathmandu and other places.

Environmental challenges – The haphazard construction of roads and the expansion of settlements takes a toll on the environment. Frequent mudslides and landslides wipe away poorly designed roads each year while the unwise construction of roads disturbs natural water sources.

A visible but less recognized environmental problem is the increasing number of stone crushers along the banks of the Indrawati river. Although the municipality receives revenue from them the cost to benefit ratio has not been properly assessed. The involvement of influential people in the crusher businesse has discouraged open discussions about their impact on the environment. They also contribute to the deterioration of the Melamchi-Kavre road as the tipper trucks carry heavy loads of sand and gravel along this road.

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Melamchi Municipality needs to invest in soft initiatives such as plans and policies as well as hard initiatives such as projects to foster the area’s development. These initiatives are an opportunity to integrate the green growth concept and principles into the area’s planned development. The municipality needs to prepare the plans and byelaws listed in Table 18 to underpin and regulate its development.

Technical and logistic support to municipal staff – As a new municipality with limited human resources and rapid growth of its market centers, the workload of the municipality is far greater than the available technical human resources can handle. The technical and logistic support needed by the municipality, which could be provided under GMDP, at least in the short run, is as follows:• Supplementary technical human resources: Although

the municipal office plans to create additional positions for technical human resources, external support in the form of short or mid-term engineering or planning staff would go a long way to build the municipality’s capacity for sustainable urbanization based on green growth principles. As engineers are not usually trained to address urbanization issues, the municipality’s technical team should have an urban planner.

12. Policy and Planning Recommendations

• Trainings and exposure visits for the mayoral team on urban management: The mayor and other elected representatives are not necessarily skilled as managers but need managerial skills to carry out their jobs. They also need to keep updated about current urban challenges and practices to be able to address them. Likewise, the municipality’s chief administrative officer (formerly executive officers) have important roles as they are advisors to the mayor, and as urban area managers.

• Trainings and exposure visits for municipal staff: Municipal staff need to update their skills and knowledge from time to time to learn about ways to address emerging issues – particularly about sustainable urbanization and green growth.

• ICT support: Improved service delivery through information and communication technology (ICT)-based applications including interconnectivity between municipal office and ward offices would promote time-saving and environment-friendly ways of doing business and managing urban areas. An IT-based platform could be created whereby municipal officials could respond to problems posted online or reported through mobile apps by residents.

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Plans Objectives Components

(1) Comprehensive town development plan

To realize the municipal vision and priorities by promoting infrastructure development that proceeds with green growth potentials and concerns, and to promote planned urbanization.

a. Baseline mappingb. Twenty-year perspective plan guided by structural land use plan considering the

trend of urban growth and land use changec. A Multi-sector Investment Plan of short to mid-term infrastructure and socio-

economic projects (5–7 years)d. Measures to integrate the following companion plans that will be prepared

separately:i. Risk sensitive land use planii. Municipal transport master plan iii. Tourism master planiv. Environment preservation master plan including natural resource management

planv. Municipal finance plan

(2) Risk sensitive land use plan

To ensure safe housing while promoting local architecture; to ensure safety from floods, landslides, and climatic risks; and to prevent river pollution

a. Multi-hazard risk assessment (including climate risks) and zoningb. Slope and watershed analysisc. Byelaws on setbacks from rivers and streams

(3) Building byelaws

To control population density, ensure space for mobility, and preserve traditional architecture

a. Setback, ground coverage, height, and floor area ratiob. Guidelines for promoting climate resilient local architecture

(4) Municipal transport master plan

To ensure efficient and effective mobility within the municipality and to and from neighboring areas

a. Twenty-year road construction and connectivity planb. Integrated land usec. Transport optionsd. Traffic management including road safetye. Parking management

(5) Tourism master plan

To harness the municipality’s tourism potential, attract private investment and address poverty in underserved areas (e.g., through homestay programs)

a. List potential investment projects b. Identify sites, activities and costs for homestay programs, ecotourism and other

community-based tourism programsc. Map tourism potential areas and activitiesd. Market and promote the area’s tourist attractions

(6) Environment

To protect environmentally sensitive areas and promote environment-friendly practices

a. An inventory of natural resources including forests and public landsb. An inventory of flora and faunac. Mapping of environmentally sensitive areasd. The zoning of natural resources and lande. The management of river miningf. Solid waste managementg. Landslide and soil erosion prevention and reductionh. The prevention of air, water, soil and noise pollutioni. The management of urban parks and recreational areas and activities

(7) Municipal finance plan

To improve and increase revenue collection, explore new avenues for revenue generation and optimize investment and expenditures ensuring value for money

a. Long-term planning and budgetingb. Review tax rates and service feesc. Identify revenue sourcesd. A procurement plane. Asset managementf. A GIS-based information system documenting firms, businesses and other tax

paying entities in the municipalityg. A GIS-based land information system (with data on land ownership, area, plot

number and size, land price and location)

Table 18: Municipal plans and policies needed by Melamchi Municipality

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The Green Municipal Development Program is identifying potential infrastructure projects for prioritization and support based on their economic, social and environmental worth. In discussions with local stakeholders the project identified 13 types of projects that would benefit the municipality (see Annex 4). Further discussions with local stakeholders identified the following four projects as the ones with the greatest potential. Note that the municipality has already developed the criteria in Box 3 for prioritizing investments in projects:

Activities1. Identify pocket areas for crops as per climatic

conditions.2. Expand the tea plantations in Bhotechaur and

establish them in Chankhu, Dhaule 3. Expand irrigation facilities through improved water

management such as by building retention ponds.4. Establish cold storage facilities for potatoes and other

vegetables.5. Promote organic farming.6. Establish markets (physical structures) in each ward7. Train farmers and agro-entrepreneurs on business

operations.8. Develop a brand for local agro-products.9. Run business development and promotion activities.

Project 2: Integrated solid waste managementDescription: Several places in the municipality are beginning to urbanize leading to an increase in solid waste. Transporting waste to faraway landfill sites is not sustainable. The need is to decrease the volume by converting waste into manure and energy alongside the extraction of recyclable materials (see example in Box 4). A solid waste management master plan has already been prepared by a local environmental group and submitted to the municipal office.

Objective: Manage solid waste in a sustainable and environment-friendly way while turning it into resources.

Activities• Build a recycling center with a material recovery

facility • Build a composting plant to produce organic manure• Support waste separation at source• Establish a waste collection system that collects and

processes different kinds of waste separately• Run awareness campaigns through NGOs on

household solid waste management• Train and support farmers on the use of organic

manure.

13. Ideas for Projects

Box 3: Melamchi Municipality criteria for prioriting projects

• directly contribute to economic development and poverty reduction

• support post-earthquake reconstruction and recovery

• ensure productivity and quick returns on investments

• contribute to revenue generation• contribute to in service delivery, institutional

development and good governance• promote public participation and use local

resources• contribute to gender balance, environmental

protection and disaster management• promote local culture and identity.

Project 1. The commercialization of agriculture Description: The municipality is known for its vegetable production with crops sold locally and supplied to neighboring urban centers. New markets and consumers need to be identified. The municipality would like to promote vegetable farming on river banks. The mayor has proposed to support free delivery to markets in Kathmandu and Kavre for 2 years.

Objective: Increase the commercial viability of agriculture and develop market opportunities for local agricultural produce.

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Project 2: The Integrated management of waste waterDescription: With increasing urbanization, the management of waste water is becoming a thorny issue. Presently, septic tanks are the only active component of fecal sludge management and only in the more urbanized areas. Encouraging the large-scale adoption of on-site treatment systems, such as septic tanks, would relieve pressure on future centralized wastewater treatment systems, and would lower associated construction costs including the cost of large-scale sewer systems. Septic tanks are funded by house owners at no cost to municipalities. However, it is difficult to achieve economies of scale when building individual septic tanks in households. And most septic tanks are not properly designed or constructed. The best way is to opt for both short-run (e.g. septic tanks) and long-run solutions (wastewater treatment plants). There is the need for a wastewater treatment plant that would also produce biogas and compost fertilizer, as is happening in a plant in Dhulikhel near Kathmandu (Box 4).

Objective: Manage fecal sludge at household and municipality level in an environmentally-friendly and integrated way.

Activities1. Build a wastewater treatment plant with a biogas

reactor at a suitable location in the municipality.2. Provide technical support for the design and

construction of septic tanks via a help-desk in the municipal office.

3. Run awareness programs on the design and construction of septic tanks.

Project 4 – Tourism developmentDescription: The area needs to attract more domestic and international tourists including by attracting trekkers to stay in the area for a few days at the end of the Helambu Circuit trek and to enjoy the area’s tea gardens.

Objective: To attract tourists to stay in the area.

Activities: • Improve footpaths and tourist facilities in the tea

plantation areas• Develop environmentally benign tourist facilities and

activities in the Melamchi bazaar area.

Box 4: Examples of innovative waste management in Nepal

Wastewater treatment – Nepal’s first large-scale community-based wastewater treatment plant and biogas reactor has recently been set up at Shreekhandapur in Dhulikhel Municipality. It treats the wastewater of 200 households and produces biogas for cooking for 60 families. Solid waste is separated and sent to two biogas reactors. Liquid waste is sent to reed bed treatment plants and the digested sludge can be used as compost fertilizer.

Waste into energy – Kathmandu Metropolitan City has launched a pilot project to convert waste into energy with a sample production of 14 KWs of electricity from a biomethanation plant at Teku, Kathmandu. The Alternative Energy Promotion Centre has also initiated large scale biogas projects including one in Bhairahawa with a capacity of 3,700 cubic meters that produces one large tanker of LPG per day. This conversion of waste to energy could be replicated in Mahalaxmi Municipality.

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This report presents a situation analysis of Melamchi Municipality based on secondary information and discussions with the mayoral team and other stakeholders. Five potential projects have been identified building on discussions and consultations with the mayoral team. Additional inputs came from discussions with stakeholders that helped explore and understand additional dimensions to make the project concepts more socioeconomically attractive and environmentally responsible. The project concepts will be shortlisted and developed for implementation in close consultation with stakeholders.

14. Conclusions

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CBS (1992) National Population and Housing Census 1991. Kathmandu: Central Bureau of Statistics.

CBS (2002) National Population and Housing Census 2001. Kathmandu: Central Bureau of Statistics.

CBS (2012) National Population and Housing Census 2011. Kathmandu: Central Bureau of Statistics.

CBS (2014). Population Monograph of Nepal: Volume 1, Population Dynamics. Available at <http://cbs.gov.np/image/data/Population/Population%20Monograph%20of%20Nepal%202014/Population%20Monograph%20of%20Nepal%202014%20Volume%20I%20FinalPrintReady1.pdf> accessed 6 June 2018.

CDNDoGM (2016/17). Commission for Determining the Number and Demarcation of Gaunpalika, Municipality and Special, Protected or Autonomous Region. Kathmandu.

DoFRS (2017). Forest map. Department of Forest Research and Survey, 2017.

DoS (1994) Topographic map, 1994. Kathmandu: Department of Survey

GGGI (2017a). Presentation at launch and first national coordination meeting of the Green Municipal Development Program, Kathmandu, 14–15 November 2017. Global Green Growth Institute.

GGGI (2017b). GGGI Refreshed Strategic Plan 2015-2020: Accelerating a Transition to a New Model of Economic Growth. Seoul, Korea: Global Green Growth Institute. Seoul: Global Green Growth Institute. Available at <http://gggi.org/report/gggi-refreshed-strategic-plan-2015-2020/> accessed 6 June 2018.

References

Melamchi Municipality (2016). Field Survey (cited in Municipal Profile).

MoFALD (2013). Environment-friendly Local Governance Framework, 2013. Kathmandu: Ministry of Federal Affairs and Local Government. Available at <http://mofald.gov.np/sites/default/files/Resources/EFLG-2013.pdf>, accessed 5 June 2018.

MoUD (2016a) About the Conference (National Conference on Municipal Finance). Kathmandu: Ministry of Urban Development. Available at <http://moud.gov.np/wp-content/uploads/2016/12/About-the-Conferece.pdf>, accessed 6 June 2018.

MoUD (2016b). Third United Nations Conference on Housing and Sustainable Urban Development (Habitat III) – Nepal National Report. Kathmandu: Ministry of Urban Development. Available at <http://habitat3.org/wp-content/uploads/Nepal-HII-National-Report_email.pdf> accessed 5 June 2018.

MoUD (2017). National Urban Development Strategy, 2017. Kathmandu: Ministry of Urban Development. Available at <http://moud.gov.np/wp-content/uploads/2017/02/NUDS_cabinet-document_approved-on-2073-10-9.pdf> accessed 5 June 2018.

NPC (2017). Fourteenth Periodic Development Plan (2016/17–2018/19). Kathmandu: National Planning Commission.

Sindhupalchowk DDC (2014). Sindhupalchowk District Profile 2014. Chautara, Sindhupalchowk District Development Committee.

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Note: Green growth is defined as a model of economic growth that targets key aspects of economic performance including poverty reduction, job creation, social inclusion and environmental sustainability.

Annex 1.1 Meeting with the mayor and his or her team1. You lead a new municipality. What is your vision for

the municipality, and the priorities for your tenure? What are the technical (e.g., staff) and physical barriers (e.g., office space) faced by your office?

2. In terms of infrastructure development, how do you evaluate the status of the municipality? Where do your priorities lie and why?

3. Although infrastructure development generally tops the list of municipal priorities (and this is because the majority of public demands are related to infrastructure), there are now equally important concerns about economic development, social inclusion and environmental sustainability.

3.1 What are the economic potentials in the municipality, and to what extent have these been harnessed? What are the challenges?

3.2 Socially and economically diverse groups live in the municipality. How does such diversity reflect in terms of public demands you receive, and how do you (plan to) ensure social inclusion in the planning and delivery of municipal services?

3.3 Infrastructure development often takes place at the cost of environmental losses. To what extent have you been successful in balancing the use of natural resources while implementing infrastructure projects? What are the key challenges?

4. The Green Municipality Development Program (GMDP) aims to promote green growth. How would you define the scope of GMDP in this municipality? What should be the priority projects?

5. Would you share your top 5 project ideas for your tenure in terms of priority? Why are these the priorities?

Annex 1 – Research Questions

Annex 1.2 Focus group discussion with business community/private sector 1. Please explain your work and engagement in this

municipality.2. What are the business and economic opportunities

you see in the municipality? What are the challenges or barriers?

3. What are the opportunities for public-private partnerships, and what has been the response of the municipality and government agencies to the possibility of partnering with your organization?

4. There are limited examples where the private sector works on green growth. How do you plan to change this? What related support do you expect from the municipality?

5. What are your key projects and initiatives for the next 5 years with or without collaboration with the municipalities?

6. The Green Municipality Development Program (GMDP) promotes green growth. How would you define the scope of the program in this municipality? What should be priority projects?

Annex 1.3: Focus group discussion with NGO and CBO leaders1. Please explain your work and engagement in this

municipality.2. What are the major social development gaps in

this municipality? What were some past initiatives to address them, and to what extent were they successful?

3. Do you think the existing (infrastructure) projects have helped to reduce social disparities (including economic disparities)? Please give examples of successful projects as well as failures.

4. How do you judge the role of the municipality in promoting social inclusion in the municipality? What do you expect from the municipality?

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5. What are your key projects and initiatives for the next 5 years with or without collaboration with the municipalities?

6. The Green Municipality Development Program (GMDP) promotes green growth. How would you define the scope of GMDP in this municipality from the perspective of working with the NGO and CBO sector? What should be priority projects?

Annex 1.4 Focus group discussion with environmental organizations and activists 1. Please explain your work and engagement in this

municipality.2. What are the major environmental problems and

issues in this municipality? What are the past initiatives to address them, and to what extent have these been successful?

3. Do you think that existing infrastructure projects have been effective in taking care of the environment? Can you give examples of successful projects as well as failures?

4. How do you judge the role of the municipality in promoting environmental sustainability in the municipality? What related support for this do you expect from the municipality?

5. What are your key projects and initiatives for the next 5 years with or without collaboration with the municipalities?

6. Have any of your environment concerns been mainstreamed into the municipality’s planning? Where do you see the opportunities to do this?

7. The Green Municipality Development Program (GMDP) promotes green growth. How would you define the scope of GMDP in this municipality from the perspective of working with environmental organizations and communities in this municipality? What should be priority projects?

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Annex 2 – Minutes of Meetings with Mayoral Team (12 October 2017)

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Annex 3 – Participants in Focus Group Discussions (17 October 2017)

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Annex 4 – Project Ideas from Municipal Consultations (October 2017)

Project Concepts Notes*

1.Upgrade road links from the municipality office to all 13 ward offices

Besides road connectivity, ICT connectivity between and among municipality office and ward offices is important

2. Roads passing through the midhills The objective is to reduce migration from the hills to foothills to decrease residential development pressure

3. Vegetable farming on river banksThe mayor aims to propose free delivery to markets in Kathmandu and Kavre for 2 years

4. The development of tea plantations in Chankhu (Ward 9), and construction of footpaths for morning and evening walks

5. The development of tea plantations in Dhaule and expansion in Bhotechaur along with the construction of roads, footpaths and hotels

This concept received a warm response from local entrepreneurs during focus group discussions

6. Build an eco-friendly 3-star hotel in any part of Melamchi

The municipality office will provide land. This concept received a warm response from local entrepreneurs during focus group discussion

7. Upgrade the Jarke–Sankhu road Financial support is being sought from the government

8. Build a public city parkThe project is underway but the municipality office would welcome additional support

9. Build a ring road around Melamchi bazaar

10. Expand transport services to rural areas

11. Build city-level water supply schemes

12. Solid waste management

Emphasize reducing waste at source such as through composting or segregation and recovery. A solid waste management master plan has been prepared by a local environmental group and submitted to the municipal office.

13. Upgrade roads in urban areas

Note:*Partially based on focus group discussions.

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This report is one of a set of seven situation analyses of the Nepalese

municipalities of Belkotgadhi, Dakshinkali, Mahalaxmi,

Melamchi, Namobuddha, Palungtar and Thaha.

All seven reports are available at www.gggi.org/country/nepal/