Hydrogeological and economic analysis of a groundwater-based water supply system in rural Nepal

Abstract: Access to safe drinking water and sanitation is a given standard and considered as basic human rights in urban areas and industrialized countries. However, 40 % of the world's population living in rural areas in developing countries lack access to safe drinking water. Many ongoing projects are focused on providing safe drinking water and sanitation in rural areas, including Hamro Paani. Hamro Paani is a pilot project that aims to establish an efficient and sustainable water system in Madi, Nepal, by constructing a new pumping well. The goal of this degree project is to carry out hydrogeological and economic analyses of the water supply system in Madi. The hydrogeological analysis aims to evaluate groundwater quality, aquifer characteristics, and well performance through water sample collection and conducting a hydraulic test. The economic analysis aims to present costs and incomes for the water system and generates an economic model for rural water supply systems based on Hamro Paani. It also examines whether similar projects can be implemented without 100% charity-based funding by determining total project costs, monthly water tariffs, and forming different investment alternatives with varying interest rates. The hydrogeological analysis indicates that the groundwater in Madi meets national and international standards. The major processes controlling the quality and chemistry of the groundwater are silicate weathering, carbonate dissolution, cation-exchange, and rock-water interaction. It is also evident that the aquifer of interest is unconfined with high permeability and storativity, making it suitable for groundwater extraction. However, regular monitoring is necessary to prevent contamination and overexploitation. The economic analysis reveals that the water supply system in Madi costs 7.8 million nepali rupees (NPR) ($1=132.53 NPR), with households paying 214 NPR/month for maintenance and operation. However, if funded by loans, the water tariff would become too high for Nepal at 1044-1438 NPR/month. Additionally, the low Return On Equity (ROE) makes the water supply project unattractive from an investment point of view. Yet, parameters such as poverty impact and health benefits that are not included in this analysis could add economic value. It's challenging to determine whether the project is financially viable or not. Nonetheless, the challenge of providing safe drinking water to people in developing countries is not only due to a lack of funds or low ROE, but also a lack of political will and interest.