FM terms ADB's decision as 'unfortunate'
Finance Minister Dr. Ram Sharan Mahat has termed as 'unfortunate' the decision of the Asian Development Bank (ADB) stating its intention not to renew the funding commitment for Melamchi project.
"Today, the ADB issued a statement. It is very unfortunate. We had suspicions that such decision could be made and now our worst fears have come true," Dr. Mahat said.
Dr. Mahat said that although the government will still try hard to persuade ADB to reconsider its decision, 'chances are now very dim (for project's revival).'
After Minister for Works and Physical Planning Hisila Yami refused to honour the agreement (approved by previous cabinet led by incumbent Prime Minister GP Koirala) to award management contract of valley's water distribution system to Severn Trent Water International – claiming that it has bad track record elsewhere – the ADB, on Tuesday, issued the statement stating that "the inability of the Government to authorise the signing of the duly negotiated management contract at this very late stage creates considerable uncertainty on the way forward."
On this issue, Dr. Mahat had publicly differed with Minister Yami – who is a senior Maoist leader. Dr. Mahat had advised Yami to honour the previous agreement with the ADB. Yami, on the other hand, said that valley's water distribution system should be managed in public-private partnership model. nepalnews.com sd May 22 07
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