Minister for Works and Physical Planning Hisila Yami has said that the Asian Development Bank (ADB) has given a ‘green signal’ to proceed with the multi-million-dollar Melamchi Water Supply Project (MWSP).

Following the meeting between visiting ADB delegation and Ministry officials on Sunday, Yami told Nepal FM that the project will now proceed.

“They have urged us to move forward in a new framework,” she said. Yami added that the delegation assessed the physical and institutional reform measures, which are required before starting the construction of tunnel of the project.

“They have given us good message and asked us to work in a new framework,” she said.

The ADB headquarters had dispatched the delegation led by its deputy director general of South Asia Division Sultan Hafeez Rahman following request made by the government of Nepal to proceed with the MWSP.

Earlier, after Yami refused to honour the previous government’s agreement to allow UK’s Severn Trent to handle the management of valley’s water distribution system, the ADB had warned it might not renew the funding commitment for the project. However, later it agreed to hold further talks with the government. ADB is the principal donor for the project and has agreed to finance the construction of 26 km long tunnel – said to be the costliest component of the project – to bring water from Melamchi river to Kathmandu valley.