Kathmandu, Feb.3:The fourth donors’ meeting of Melamchi Water Supply Project (MWSP) will take place on February 9, the Melamchi Drinking Water Development Committee stated here today.
All major donors including World Bank, Asian Development Bank, Japan International Co-operation Bank, Swiss International Development Association, Norwegian Development Fund, Nordic Development Fund, among others, are scheduled to take part in the meeting.
The fate of the US$ 400 million MWSP, expected to supply 17 million litres of water a day into Kathmandu valley, remains undecided since the project is still short of fund. Officials at the Ministry of Housing and Physical Planning had revealed late last year that the diversification component of the project still needed US $ 17 million. This despite the fact that donors have assured they would fund different components of the project – either in the form of loan or grant.
For the two days just before the donors meeting beginning next week, local and foreign experts will also meet to discuss on the hydropower component in the MWSP, according to Dinesh Chandra Pyakurel, Director of MWSP. The central theme of the discussion will be what will be the contribution of the hydropower component in the entire project expected to begin by the end of this year and be over by 2004.
“During the meeting of the expert, the hydropower component will be evaluated on merit basis,” said Pyakurel. “The discussion will focus on how much has the hydropower added cost to the project and how much will be its benefit. Whatever conclusion is reached will be put up during the donors meeting.”
Knowledgeable sources say the planned hydropower has added around 40 million US Dollars to the Melamchi water diversification component. “Though the power plant itself adds the cost of US $ 18 million, there are other additional costs like bigger tunnel and increased quantity of water for the hydropower,” they say.
The hydropower is initially expected to generate electricity between five to 25 MW. Once the waters of Yangri and Larke are also piped in the Melamchi tunnel afterwards, the power plant is supposed to produce as high as 50 MW.
A 28 kilometres long tunnel is designed to divert the Melamchi waters at the end of which the power plant, if approved, will be installed. The Norwegian Government has committed US $ 24 million grant for the tunnel component while other donors like Swiss International Development Association, Norwegian Development Fund, among others, have assured assistance for the same.
Interkraft, a consortium of Norwegian companies and Nepalese investors, had earlier stated its willingness to build the hydropower at the end of Melamchi tunnel provided that it gets the privatised shares of Butwal Power Company. Interkraft and Independent Power Corporation based in London had reached the final bidding round of the BPC late last year when the latter pulled out of the bid as the government was yet to decide on the privatisation process.
Apart from its tunnelling part, donors have also assured funding MWSP’s other components. The Japanese Government has assured of funding the water treatment plant, Asian Development Bank for the bulk distribution and the World Bank for the water distribution network rehabilitation in the capital. During summer, Kathmandu Valley hardly gets half the supply of its 14 million litres of water demand every day.