ADB expresses loan commitment for Melamchi
The principal donor of multi-million-dollar Melamchi Water Supply Project (MWSP), the Asian Development Bank (ADB) has expressed commitment to provide loan totaling Rs 8.55 billion (around $136 million).
A mission delegation of ADB, which was in town recently, had agreed to extend the loan. The formal decision to this effect is expected to be made by ADB board meeting on February 8.
Talking with the press, Minister for Physical Planning and Works Hisila Yami said on Wednesday, that the Ministry is content with the mission's assessment, which she said had been very flexible to their concerns.
Earlier, the government's decision to cancel the selection of a British company called Severn Trent in drinking water management in the valley had endangered the future of the project.
Yami said the project has been divided into two sub projects. Reports say that as per the new cost estimation, $195 million will be spent on infrastructure development. This total cost includes $96 million for tunnel, $38 million for access road and $61 million for water treatment plant. Besides, $9.22 million will be allocated for social and environment support programs.
Furthermore, the government has also decided to hand over the assets and liabilities of Nepal Water Supply Corporation (NWSC) in its valley operations to the newly formed Kathmandu Upatyaka Khanepani Limited (KUKL). The KUKL will take over its responsibility of drinking water supply and management in the valley from mid-February. nepalnews.com sd Jan 24 08
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