ADB to Extend Melamchi Project Loan: Yami
The Mission of Asian Development Bank, which left Kathmandu on Wednesday after days of visits and consultations, has finally agreed to extend loan till 2013 for the Melamchi Water Supply Project. A decision to this effect will be made during its board meeting, which will be held in Manila on February 8.
Earlier, government and some non-governmental
organisations had expressed doubts over whether the
ADB will extend the loan, following the stand of the
Ministry of Physical Planning and Works to prohibit
Severn Trent Company, the single bidder for the position
of management contractor from managing water for the
Kathmandu Valley.
Minister for Physical Planning and Works Hisila Yami
said on Wednesday that the mission has been very positive
and flexible to the ministry's demands and proposes.
"I'm happy to say that the ADB mission has been
very positive towards the current development of the
project and government's steps. It has promised to extend
the loan on February 8, in the bank's board meeting,"
she said, addressing a press conference organised at
the ministry.
She said that the project to bring 170
million litres of water per day from the Melamchi valley
will be divided into two sub-projects and locals of
the valley will be mobilised to win their cooperation
for the smooth commissioning of the project.
The Manila-based bank has agreed to extend the loan
for revised detail estimated cost for Melamchi Valley
(Sub-project 1) and Kathamndu Valley (Sub-project 2).
According to new cost estimation, $195 million will
be spent on infrastructure development, which will include
$96 million for tunnel and headwork, $38 million for
access road construction and $61 million for the construction
of a water treatment plant.
Also, $9.22 million is allocated for social and environment
support programmes. This includes $6.02 million for
Social Upliftment Programme, while $45.6 million is
allocated for Project Implementation Support.
"We have convinced the ADB mission
that there will be no hike in water tariff till the
constituent assembly polls. It is another victory for
the Nepali government," she said.
Meantime, Minister Yami said the government has decided
to drastically cut project expenses. "We have decided
to move the project's Kathmandu office to the abandoned
building of Nepal Trolly Bus Service Office. The rent
for the office has been a major target for criticism,"
she said.
Currently, the Melamchi Water Supply Project has been using a
rented building at Baneshwor, which has cost the project Rs 300,000
per month. The number of project staffers has also been reduced
from 133 to 85 and two-third of them have been sent to the site
office at Melamchi, she added.
She said the idea of adding hydroelectricity and irrigation
components in the Melamchi project is not practical.
"The idea itself is not wrong. But at the present
context, we have to be more practical and do away with
available resources than looking for new additions,"
she said.
