UK firm STWI withdraws bid from Kathmandu Valley contract By ANI Tuesday May 22, 01:53 PM Kathmandu, May 22 (ANI): Nepal Government's failure to fulfil its obligations for the proposed Kathmandu Valley's water supply management contract, finally led the UK firm Severn Trent Water International (STWI) to withdraw its bid. STWI announced the withdrawal of its bid on Monday evening, six days after expiry of its ninth and final deadline to the Government for award of contract. "Severn Trent Water International is disappointed by the failure to conclude the tender process for the proposed management contract to assist in the development and management of a new publicly owned water utility in the Kathmandu Valley," the STWI said in a statement posted on its website. "The Government of Nepal has decided to seek an alternative route to meet the water supply needs of the Kathmandu Valley, and STWI wishes them success in their endeavour," it added. The STWI Board had decided to withdraw its bid for the Kathmandu project on May 17, Kantipur online quoted high placed government sources as saying. On the Asian Development Bank's (ADB) special request, the STWI agreed to withhold the decision till Monday, to provide time to the government to take decisions on awarding the contract, sources added. The withdrawal by STWI is set to hit the Melamchi project, the biggest development project in the country. On May 18, in a letter to Nepal's Minister for Physical Planning and Work, Hisila Yami, ADB Vice President Liqun Jin had expressed the bank's inability to extend any loan commitment to the Melamchi after June-end 2007, if a management contractor was not appointed by then. ADB is the largest donor to Melamchi. ADB's funding commitment expires on June 30. Its extension depends solely on appointment of a management contractor for which STWI was sole bidder. ADB Vice President Jin had also said in his letter to Yami that overturning the Cabinet decision of the previous government to award the contract to the UK firm would not only hinder implementation of Melamchi, but also affect Nepal's status as the bank's Developing Member Country (DMC). As DMC, Nepal gets loan and assistance from the bank's Asian Development Fund window for various development projects. Half of the funding comes as grant. (ANI)