LocationsFrom trash into treasure: UNDP supports waste management for a greener Nepal
January 26, 2026
DHANGADHI, Jan 27: For many cities in Nepal, municipal waste remains a persistent development challenge with limited returns despite high public spending.
Through the Green Transition Portfolio, the Dhangadhi Sub-Metropolitan City (DSMC) in far-western Nepal, is turning waste into opportunity by creating green jobs, empowering young women, strengthening public-private partnerships, and advancing a circular economy that benefits people and the planet.
At the core of this shift is an integrated waste processing system that enables source segregation, recovery and circular use of materials.
Today, more than 90 percent of municipal waste in Dhangadhi is segregated at source, allowing waste streams to be converted into commercially viable products and reducing the volume sent to landfills.
Green transition portfolio: A partnership for sustainable change
Since April 2025, UNDP Nepal has partnered with DSMC under the Green Transition Portfolio to co-design locally led interventions that integrate economic growth with social inclusion, community ownership, and strengthened institutional capacity for long-term service delivery.
The integration of plastic waste recovery and recycling under the Green Transition Portfolio has generated NPR 7.2 million this year, and according to DSMC, revenues will grow by approximately 10 percent annually as recovery rates and processing capacity expand.
DSMC is upgrading infrastructure to convert plastic into higher-value products, including blocks, pellets, and furniture, demonstrating how municipalities can move up the waste value chain.
Public–private partnerships improving efficiency and sustainability
A key institutional innovation has been the transition of the waste processing facility to a Public–Private Partnership (PPP) model, under which the municipality provides land and infrastructure while private operator Nanda Devi Sewa Kendra manages daily operations.
Funded through household service fees and the sale of recyclable materials, the model introduced through the Material Waste Recovery facility last year has improved efficiency, accountability and resource recovery, while reducing municipal costs.
Households contribute NPR 70–100 per month depending on service frequency, while commercial and institutional users are charged based on waste volume and type.
Effective source segregation ensures that only non-biodegradable waste reaches the facility, while organic waste is diverted to the city’s biogas plant.
At the processing centre, materials are micro-segregated, compacted and sold to third-party buyers, turning waste into economic assets.
Biogas production also offers future potential for conversion to Compressed Natural Gas (CNG), subject to enabling regulatory frameworks.
Inclusive green jobs and women’s empowerment
The system has created 145 local jobs, with women making up over half the workforce, mainly in waste segregation and processing.
Daily wages of NPR 500–600 boost household incomes and economic participation among traditionally marginalized groups.
"We are happy to be employed in our own neighbourhood. This initiative has made us financially independent and strengthened our role in the community.”Chanda Shahi, Waste management worker
By linking local hiring with environmental services, the model demonstrates how green transition investments can deliver social and economic co-benefits.
Behavioural change as a system enabler
Sustained behaviour-change campaigns led by DSMC and UNDP have strengthened household-level segregation and responsible disposal practices.
“This effort has become a movement in Dhangadhi, turning waste management from a municipal service into a shared civic responsibility.” Mayor Gopal Hamal.Gopal Hamal, Mayor, Dhangadhi
UNDP Resident Representative Kyoko Yokosuka describes the Green Transition Portfolio as a practical model for aligning livelihoods, environmental sustainability and institutional resilience.
“It’s just the beginning, but this is a strong start with real potential to improve people’s lives and the city’s environmental footprint.” she said.”Kyoko Yokosuka, Resident Representative, UNDP
A scalable model for Nepal’s cities
Dhangadhi’s experience shows how locally led waste management can generate economic, social and environmental benefits.
By combining source segregation, public–private partnerships, and community engagement, the city has created a replicable model that advances local employment, women’s participation, and behaviour change.
With continued investment, policy alignment and technological upgrades, initiatives under UNDP’s Green Transition Portfolio show how everyday urban challenges can be transformed into scalable, inclusive and resilient solutions—positioning local governments as catalysts of Nepal’s green economy.
