Bank of Kathmandu and Himalayan Bank win lawsuit against China Construction Bank (CCB) in China

Bank of Kathmandu Limited (BOKL) and Himalayan Bank Limited (HBL) has won the lawsuit for the Performance Guarantee of Melamchi Drinking Water Project.

With this, the banks will get Rs. 1.5 Arba as Performance Guarantee and Advance Payment. China Construction Bank Corporation (CCB) will now return the guarantee to the respective banks. Both banks have submitted their claim request last Friday.

BOKL had paid an advance counter-guarantee payment of 14 lakhs Euro and 66 lakhs American dollars on Chaitra, 2065. Meanwhile, HBL had paid 66 lakhs Dollars as a Performance Guarantee. When China Railway had deserted the contract of Melamchi on 2069 Bhadra, Rastra Bank had taken the fund from Himalayan Bank and paid the amount to Melamchi.

However, CCB had delayed the procedure to the Nepali banks in one pretext after another. CCB was the guarantor of China Railway 15 Bureau Group when China Railway had taken the contract of the Melamchi Drinking Water Project. The two Nepali banks had then given counter-guarantee against CCB.