Jun 7, 2007

Govt. seeks new relation with ADB for Melamchi

Nepal is to write official letter to Asian Development Bank (ADB) requesting not to pull out from Melamchi Drinking Water Project (MDWP). Minister for Physical Planning and Works Hisila Yami on Thursday informed that the government was sending a letter to ADB for the continuation of Melamchi as per the cabinet decision to proceed MDWP in cooperation between the government and ADB.

At a press conference, Minister Yami said the government agreed to the proposal of handing over responsibility of distributing water in Kathmandu valley to Kathmandu Valley Drinking Water Company. She also urged ADB to give continuity to MDWP. Minister Yami also expressed her hope that ADB would respond the request of Nepal government till Thursday evening stating that she thought ADB would not pull out from MDWP.

Minister Yami had decided to review the earlier agreement of awarding the contract of managing valley's drinking water to UK's Severn Trent company stating that the company was internationally discredited. In response to Minster Yami’s move, the ADB had announced that it would pull out from Mlamchi.

ADB is a leading donor of the project and had agreed to provide loan of US$ 140 million for the purpose.

Melamchi project is designed to supply 170 million liters of water daily from Melamchi River in Sindhupalchowk district to Kathmandu where supply is currently less than half the demand of 250 million liters daily.

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