KATHMANDU,
Feb. 20 (Xinhua) -- Melamchi Water Supply Development Board (MWSP) has
signed a contract with a Chinese team of contractors for the
construction of the first phase of the Melamchi Water Supply Project in
central Nepal, The Himalayan Times reported on Friday.

    The Chinese team, China Railway 15
Bureau Group Corporation, was assigned the task of constructing roads
and tunnels for the first phase of the project by 2013.

    According to the daily, the group
will undertake the construction of 26.3 km long diversion tunnel and
temporary cofferdams on Melamchi and Ribarma River for the first phase
of the project.

    The estimated budget for the
completion of the first phase is 317.3 million U.S. dollars, including
contingencies, interest during construction, taxes and duties.

    Of the total budget, 249.4 million
dollars has been allocated for Melamchi Valley related activities,
which includes the construction of main access roads, head works and
tunnels and water treatment plants, along with social uplift programs.

    Meanwhile, 67.9 million dollars has
been allocated for the valley for the bulk distribution system,
distribution network improvement and waste water management.

    The MWSP is designed to be
completed in three phases by 2031 to meet the increasing water demand
of the capital Kathmandu Valley.