ADB to continue to support Melamchhi project

The Kathmanduites will have to wait again for two more years to drink water from Melamchhi river as the much awaited water supply project is going to be delayed from its original schedule to complete. The failure of contractor to complete tunnel construction — the major component of the project — that will divert raw water from Melamchi River to Sundarijal outlet in Kathmandu has also added cost to the project that has become a ‘prestige project’ for the Asian Development Bank (ADB).

However, ADB – the key financier of the project – neither wants to abandon nor indulge into any 'blame game for the failure' of earlier contractor to complete its task to construct tunnel and move ahead with the Melamchhi Water Supply Project that will pump 170 MLD water to the valley that has been waiting to quench its thirst since 2002.

"The ADB will neither blame anyone nor blacklist the contractor that has failed to complete its task, rather will bring in more money, if necessary, to complete the project," said director-general of ADB’s South Asia department Juan Miranda.

With ADB pumping more money, the government might also have to jack up its matching fund adding financial burden. "However, it is not finalised, yet," according to finance secretary Krishnahari Baskota.

"The earlier price quoted by the contractor was not right," Miranda said, adding that the project will select the new contractor — learning from past experience — on the basis of quality and cost both, unlike earlier process that was more concentrated on price only.

"We have prepared the specific actions to move forward, including the smooth settlement with the outgoing contractor, and swift selection of an internationally reputed, committed and dedicated contractor, who can deliver high quality infrastructure in a timely and efficient way," he added.

Melamchha Water Supply Project witnessed a big setback last week after the contractor 'China Railway 15 Bureau Group Corporation' that was constructing the 22.5-km long tunnel — the most expensive part — left only completing 6.5-km.

Chinese contractor claimed that it was withdrawing from the contract due to financial reason and lack of support from the board.

The project has three parts; the tunnel, tripping plant, and the treatment and distribution network in the Valley.

Originally projected to cost $464 million in 2000, ADB had to restructure the project due to withdrawal of other development partners in February 2008. After the restructuring, the project has been revised to cost $317.3 million and the ADB shouldered the largest financing share of $120 million.

"We will not let the Kathmanduites down," Miranda said, adding that the project will be completed by early 2016. "ADB is committed to alleviate acute water supply shortages for the 2.6 million people in the Kathmandu Valley."

However, the project was initially projected to complete by 2013 and with the latest turn of the events, Kathmanduites have to wait for two more years.