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Melamchi talks fail


By Biz Correspondent on May 24,2007
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The Maoists and Asian Development Bank (ADB) talks to rescue the Melamchi Water Supply Project is failed.

In the last initiative to rescue the much-hyped water supply project of the nation, CPN (Maoist) Chairman Prachanda had met with ADB Country Director Paul Heytens at the former's residence on Wednesday.

In the meeting, Prachanda had asked ADB to review its decision of withdrawing from Melamchi. Heytens explained Tuesday's ADB statement to the Maoist chairman and reiterated that the bank would be unable to extend its loan commitment now that a management contractor cannot be appointed for the Valley's water supply.

According to the sources, senior Maoist leader Dr. Baburam Bhattarai had tried to ‘convince’ the multilateral donor about the stance of the CPN (M) to find an alternative of Seven Trent Water International.

ADB is learnt to have said that it couldn’t change the decision once it decided to pull out of the project. Maoist side had insisted of seeking alternatives while ADB set condition that water management contract of valley should be handed over to foreign private company.

During the meet, Dr. Bhattarai clarified in details about the stance of his party on Melamchi contract. According to source, Dr. Bhattarai requested ADB representative to take into account the political situation of the country.

The Maoist side is reported to have admired the efforts of Kathmandu Valley Drinking Water Ltd. And water management board. However, they insisted that there was no need of management contract in the project.


 


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