PM asks FM to rescue Melmachi project

Government and political leaders have initiated homework to rescue uncertain future of ambitious Melamchi Drinking Water Project (MDWP) after UK firm Severn Trent Water International (STWI) announced withdrawal of its bid of managing Kathmndu valley’s drinking water.

A media report quoted Finance Minister Dr. Ram Sharan Mahat as saying that Prime Minister Girija Prasad Koirala has instructed him (Mahat) to protect the Melamchi from being landed in uncertainty. Minister Mahat said that he has been instructed to rescue Melamchi through holding talks with Asian development Bank (ADB) stating that he would hold consultations within the government and outside in this regard.

The Severn Trent Water International (STWI) had announced withdrawal of its bid on Monday, six days after the expiry of its final deadline to the government for award of the contract, which was stalled by Minister of Physical Planning and Works (MoPLW) Hisila Yami.

Issuing a press release on Tuesday, Asian Development Bank (ADB) had said that government's inability to award management contract for Kathmandu Valley's water supply landed the future of the Nepal's mammoth Melamchi project in uncertainty.

The ADB said that it regretted over the fresh wave of uncertainty surrounding the MDWP with the project landing in hot soup at its last stage.

Minister Yami has been facing criticism for her stance of not awarding contract to the STWI.

ADB is the largest donor to Melamchi project. Apart from its initial commitment of $120 million, the bank had committed an additional $45 million to Melamchi project in March this year when the project was scaled down from $464 million to $350 million owing to fund crunch.

ADB representative and Prachanda meet

Meanwhile, the talks held between ADB representative and Maoist leader on Melamchi ended inconclusively on Wednesday.

In the meeting, held at Maoist chairman Prachanda's residence Naya Bazaar, chairman Prachanda is learnt to have requested ADB representative not to pull out of Melamchi. Chairman Prachanda was accompanied by another leader Dr. Baburam Bhattarai and Minster for Physical Planning and Works Hisila Yami.