ADB to pull out from Melamchi; Minister Yami says she is not against the project

In response to the news reports that the Asian Development Bank (ADB) is set to pull out from Melamchi Drinking Water Project, Minister for Works and Physical Planning Hisila Yami has said that she is not against the project or the ADB.

"We are not against ADB or Melamchi project. We know that Melamchi is important for the long term," she told Kantipur FM on Thursday morning. "Our only concern is that the government and the people should have the hold on the management of basic things like water," she added.

Following Minister Yami's decision to review the earlier agreement of awarding the contract of managing valley's drinking water to UK's Severn Trent company, the ADB headquarters has written an email to the Finance Minister Dr. Ram Sharan Mahat announcing its intention to pull out from the multi-million dollar project.

Citing its internationally discredited image and need to maintain government/public hold on water management, Minister Yami had made the decision to review the agreement – which has already been approved by the previous cabinet. This agreement (to award the foreign company the contract to manage valley's water distribution) was a precondition for the ADB to invest in the US$ 340 million project.

The ADB is the leading donor of the project and has agreed to provide loan of US$ 140 million for the purpose.

The Melamchi project aims to bring in 170 million litres a day (MLD) water to the Kathmandu valley. The valley has been suffering from acute shortage of drinking water – while its demands have shot up to 240 MLD, the supplies have stagnated at 90 MLD. nepalnews.com sd May 17 07