The TA will prepare a project that is suitable for ADB financing. The Project will be designed to provide sustainable and safe water supply and sanitation facilities in selected district towns to (i) improve health conditions and introduce public health and hygiene concepts, (ii) enhance the standard of living and quality of life of households, and (iii) accelerate industrial and commercial development. The improvements in physical facilities will be complemented with institutional development, focused on improving operational efficiencies, reducing wastage, strengthening cost recovery and financial management, and institutionalising the community participation approach to water supply facilities to ensure the long-term sustainability of the benefits. The TA will critically review the performance of the earlier phase of the Project and incorporate the lessons learned in the ensuing Project. Following that integrated approach, the project will improve water supply services in two phases: (i) rehabilitate the existing water supply facilities, and (ii) expand the service coverage to meet the future water demand. This will ensure that the investments are cost effective. The control of wastage will be an important feature of the design, and include bulk metering to monitor the production and distribution process. Environmental sanitation services, such as solid waste management, public latrines, and wastewater management under the responsibility of pourashabhas/municipalities, will be complemented by a Household Environmental Sanitation Program covering latrines, hygiene education, and wastewater and solid waste management. The Project (tentatively) will have three parts: Part A: Water Supply Services; Part B: Environmental Sanitation Services; and Part C: Project Management and Institutional Development.

• Consult with the Government to determine the nature, extend and location of the water supply components to be included in the Project based on eligibility and selection criteria which provides rewards for those towns who introduce sector reforms. Particular emphasis is placed on providing piped water through house connections.
• Assist in policy formulation based on facts from the field and to ensure that civil society task forces (to monitor the implementation of policy) are mobilized in Project towns.
• Review the design of the Water Supply Program Project of the World Bank, which aims to pilot test and promote piped water systems in rural areas with significant private sector participation. Under the urban water supply component, which promotes the similar approach, looking into the possibility of public-private partnership and prepare respective recommendations.
• Review the Pourashabhas' and the DPHE's mission statement, objectives, human and financial resources, management capability, autonomy, scope of work and public reporting.
• Evaluate for the Project towns the respective Pourashabhas as local government institutions capable of implementing the Project components and operating ann maintaining existing and new water supply and sanitation facilities and services.
• In cooperation with the respective Pourashabha Chairmen prepare terms of reference for consultants to undertake organization development in each of the Project Pourashabhas following the structured approach contained in “Challenging Experiences in Organization Development” by Nancy Barnes and GTZ or such other appropriate reference manual.
• Undertake a financial management assessment of DPHE as an executing agency and of the four representative Pourashabhas as implementing agencies. Also undertake financial analysis of the Project and propose audit requirements.
• Organize and analyze the results of a socio-economic survey in each of the proposed Project towns, that must include all slum, squatter and underserved areas. REeview the impact of the proposed Project on women and poor people and identify all possible options to enhance the participation of beneficiaries, particularly women, in the identification, planning, design and implementation phases. Establish contact with CBOs or NGOs in each of the Project towns.