The delayed Melamchi Water Supply Project in Nepal that includes tunneling 26 kilometres through a mountain to ease chronic water shortages in Kathmandu looks set to proceed, after the Asian Development Bank (ADB) agreed to new terms for the project for which it is the lead financier. ADB initially agreed to support the Melamchi Water Supply Project in 2000, but changes since then have seen the cost lowered from US$ 464 million (EUR 309 million) to US$ 317.3 million (EUR 211 million) with careful prioritszation and phasing of the project components. Work was delayed by political circumstances and challenges engaging private sector partners.

The project is essential for Kathmandu's 1.5 million residents, most of whom receive piped water for only a couple of hours a day. ADB is providing a loan of US$ 137 million (EUR 91.1 million) equivalent for the project. Other donors are the Japan Bank for International Cooperation, the Japan International Cooperation Agency, the Nordic Development Fund and the Organization of Petroleum Exporting Countries Fund for International Development. The Government of Nepal is contributing US$ 90.6 million (EUR 60.3 million).

In a statement issued in reaction to the ADB press release of 8 February 2008, the Water and Energy Users’ Federation-Nepal (WAFED) objected to the ADB’s intention to recruit a new private sector manager parallel to the construction of the 26 kilometre long Melamchi River diversion tunnel to Kathmandu. WAFED also claims that the Melamchi Water Supply Project is unnecessary. It says the best option is to plug the leaks in the existing water system and to make use of alternative water sources such as regulated ground water use, rain water harvesting, spring water and public taps.

Other critics state the Melamchi project will not even be able to meet the short term water demand of the Kathmandu Valley. They are proposing the Multipurpose Melamchi plan, which will bring in more water and benefit more people by adding a hydropower and an irrigation component.

Contact: Mr. Leonardus Boenawan Sondjaja, Asian Development Bank, lsondjaja@adb.org ; WAFED, Nepal, wafed@ntc.net.np, http://www.wafed-nepal.org

Source: WASH news Asia & Pacific, 9 Feb 2008

Tags: water resources management, water supply