Melamchi Water Supply Project

KATHMANDU, NOV 01 -

The government on Wednesday barred China Railway 15 Bureau Group, former contractor of the Melamchi Water Supply Project (MWSP), from taking its possession from the project site at Sundarijal, Kathmandu after the Chinese company made an attempt of getting hold of its construction equipments and materials.

A team from the Metropolitan Police Circle Boudha intervened as the Chinese company was preparing to take away the dozers, excavators, 554 sacks of cement and other construction materials. Chief of the MWSP Krishna Acharya said that the contractor’s move was illegal as it had no right to collect its property. “No materials from the site can be collected until the work evaluation of the Chinese company and its financial assessment is made,” he said.

The Chinese company entered the project site unlawfully at a time when the government is preparing to claim compensation and fines from it for the breach of contract. The government had ended the contract with the company one and a half months ago after it could not carry out its task satisfactorily despite repeated notices from the government.

The Chinese company was awarded the contract worth Rs 4.28 billion three years ago on the condition that it would construct 700-800m of tunnel each month and start work from four points simultaneously. However, the company has dug only 6.5 km of tunnel so far instead of 20 km it was supposed to complete.

According to the MWSP, the company has already received 35 percent of the contract amount—11 percent more than the works it has completed.

After terminating the contract with China Railway 15 Bureau Group, the government has rescheduled the project completion date to March 2016. And the Melamchi Water Supply Development Board (MWSDB), the project implementing agency, is now planning to resume the stalled tunnel construction works from January 2013.

Source: The Kathmandu Post