Minister for Works and Physical Planning Hisila Yami has said that the government is willing to talk on all issues with the Asian Development Bank (ADB) to continue with the Melamchi project.

Minister for Works and Physical Planning Hisila Yami

Minister for Works and Physical Planning Hisila Yami (File Photo)
At a press meet on Thursday, Minister Yami said that the government was open on alternatives such as signing new management contract, floating new tenders, allowing Nepali management to handle valley’s water distribution system or even accepting Severn Trent Water International with some changes.

Yami said that the cabinet meeting, on Wednesday, had decided to request the ADB to proceed with Melamchi project based on mutual understanding with the government.

She said the government has also requested ADB to send a mission team for discussion on the project.

Earlier, ADB had warned that it could decide not to renew its funding commitment on the multi-million dollar Melamchi Water Supply Project after the commitment expires on June end unless the government abides by previous understanding to allow British company Severn Trent to manage valley’s water distribution system. Minister Yami’s decision not to let ‘discredited’ company manage valley’s water had prompted the ADB to issue the warning.

ADB is the principal donor of Melamchi where it has agreed to provide $120 million loan – of the total $500 million required for the project.