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Severn Trent withdrew without consulting ADB:
Asian Development Bank (ADB) has said the Severn Trent Water International withdrew its water management contract for Kathmandu without any consultation with the bank.
An ADB official in Kathmandu told Nepalnews they received only the contract withdrawal notice mail from the British company.
The official said the bank has begun discussing its strategies under the new circumstances after the government and the contracting agency made their stand clear.
"We hope to make our position clear in a day or two. We had been waiting for the position of both the sides on this issue since the business was between them," the official said.
The decision of the Severn Trent has come after the cabinet meeting on Monday failed to raise issue.
Minister for Works and Physical Planning Hisila Yami has been saying she is not opposed to ADB but to Severn Trent 'given its bad track record elsewhere.'
In a letter sent to Minister Yami on May 18, ADB Vice President Liqun Jin had said the bank might not extend any loan commitment to the Melamchi project after June if the government did not find a management contractor. The ADB has put condition that the contract of water supply in Kathmandu should be given to a foreign company.
ADB is the largest donor to Melamchi project with its initial commitment of US $120 million. It has also embarked additional US $45 million recently. nepalnews.com ia May 22 07
Severn Trent Company:
. Melamchi River