An update on the issue... =========== SAAPE condemns ADB precondition on Valley's water management South Asia Alliance for Poverty Eradication (SAAPE) has condemned the precondition laid down by the Asian Development Bank (ADB), imposing the Nepal Government to set up the Kathmandu Valley Drinking Water Limited in order to hand over the distribution and management contract of the Valley's drinking water to a British multinational company. “Privatization is the usual weapon of conditionality used by the ADB for releasing its funds. ADB is now threatening that if the contract is not awarded to STWI by May 15, it would terminate its loan number 1820, worth US $ 120 million, committed to the project,” a SAAPE press statement said Friday, adding, “SAAPE vehemently condemns the arm twisting tactics of the ADB on the poor Nepalese people." ADB, which is the largest donor to the multi-billion rupees Melamchi Drinking Water project, is said to have been pressuring the Ministry of Physical Planning and Works to award the water distribution and management contract to UK 's Severn Trent Water International (STWI). To ADB’s displeasure, physical planning minister Hisila Yami recently wrote to the Limited saying that the government would not sign the management contract for the time being. Saying that water is too precious and too basic a human right to be placed at the mercy of multinational companies, SAAPE further said, “Water needs to be protected from predatory capitalism promoters, like the ADB, who forces privatization as a pre-condition for loans to developing countries." "Inevitably, water then becomes more expensive and the quality drops contrary to higher quality claims by the so-called experts and promoters. It’s the common people, especially the poor who then suffer as the soaring water price makes it impossible for them to afford the otherwise widely and easily available natural resource,” the statement further said, describing the ADB’s precondition as “violation of human rights”. “SAAPE also extends its support and solidarity to Hisila Yami, Minister for Physical Planning and Works for her firm and committed stance against water privatization invading the country.” nepalnews.com mk May 011 07