Prachanda asks ADB to reconsider its decision on Melamchi

Maoist chairman Prachanda has asked senior officials of Asian Development Bank (ADB) Nepal Resident Mission to reconsider its decision regarding Melamchi Water Supply Project (MWSP).

Following ADB's statement announcing its intention not to renew funding commitment to the multi-million dollar project from June 30 onwards, the Maoist leadership held a meeting on Monday with ADB country director Paul Heytens.

The ADB issued the statement after the decision of Minister for Works and Physical Planning Hisila Yami, who is also a senior Maoist leader, to refuse to award management contract for valley's water distribution to Severn Trent company - in violation of earlier agreement.

During Wednesday's meeting, Prachanda urged ADB not to pull out of the project. According to senior Maoist leader Dr. Baburam Bhattarai, they asked ADB not to cancel the whole project because of differences over a small component.

The meeting took place at Naya Bazaar residence of Prachanda. Senior officials of Ministry of Works and Physical Planning were also present at the meeting along with Minister Yami. nepalnews.com sd May 23 07