The Asian Development Bank (ADB), major investor of Melamchi Water Supply Project (MWSP), has warned [that it will] cancel loan assistance for constructing [the] tunnel of the project if a [proposed] water tariff hike does not take place, [according to a local newspaper report]. Sources at Ministry of Physical Planning and Works, [said that] the ADB has written a letter to the government on December 28, [2008] and warned to cancel loan assistance if water tariff hike does not take place as per its earlier condition.
[...] The government has to give contract to the [China Railway and Construction Company (CCRC) to construct the tunnel] within January 26 [2009] as per the condition of the ADB. “If we could not give contract to the selected company, the tunnel cost will increase from Rs. 5 billion to Rs. 8 billion,” Gajendra Thakur, executive director of the Melamchi Water Supply Project, told Kantipur daily. The project officials are worried that the ADB will cancel its loan assistance if tariff hike does not take place. “If ADB’s condition is not fulfilled, Melamchi Project will not be completed,” Thakur said.
The Water Tariff Fixation Commission (WTFC) delayed a decision on the proposed hike after consumers had demanded more time than the allotted one week to comment on the proposal and air their grievances.
Source: Kantipur / NGO Forum, 05 Jan 2009 : NGO Forum, 05 Jan 2009
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