Melamchi tunnel contract terminated

Melamchi Water Supply Development Board (MWSDB) has terminated the contract with China Railway 15 Bureau Group Corporation, assigned to construct the diversion tunnel of the Melamchi Drinking Water Project (MDWP).

The MWSDB on Tuesday issued the notice of termination citing the company has been putting pressure to increase the amount bid which was not possible for the MWSDB.

The Chinese firm had also issued the notice of termination on September 12 citing problems over the payments among others.

According to the board, the Chinese firm's demand to increase the amount bid is against the contract deal signed in 2009. It has breached the contract, said the board.

The board also said that new bidding process will start soon.

The Chinese company was assigned to construct the 26.3 km diversion tunnel at Rs. 4.28 billion in 2009. However, the company has just completed around 6.5 km construction of the tunnel so far.

After the construction of tunnel, Melamchi project is expected to bring 170 million litres of water every day to Kathmandu Valley.

The Melamchi project was expected to be completed by September 2013 but the deadline extended to 2015 due to locals protest for some six months. nepalnews.com