Government Considers Canceling Contract with Chinese Company Over Melamchi Delays

The government is contemplating the termination of its contract with China’s state-owned company Sinohydro, responsible for the Melamchi water supply project. The decision is being considered following Water Supply Minister Mahendra Ray Yadav’s recent visit to Melamchi to assess the persistent water supply issues in the Kathmandu Valley.

The possible contract termination is attributed to Sinohydro’s alleged negligence in facilitating water supply to the Kathmandu Valley. Ministry of Water Supply Secretary Ram Aadhar Shah pointed out the contractor’s failure to complete necessary repairs, citing various excuses for the delays. Shah expressed concern, stating, “Sinohydro Company is displaying negligence in repairing the damaged Melamchi water supply project caused by floods. Their inconsistent responses and avoidance of work have been a significant issue.”

Minister Yadav, who has been present in Melamchi for the past two days, emphasized the urgency of addressing the water supply challenges faced by the Kathmandu Valley. The Melamchi Water Supply Development Committee, operating under the Ministry of Water Supply, is actively involved in discussions about the potential contract termination.

The Melamchi water supply project has faced additional complications due to damage from floods, intensifying the need for prompt and effective action. The Executive Director of the Melamchi Water Supply Development Committee confirmed ongoing discussions regarding the contract termination, stating, “We are currently in discussions, and a final decision will be reached in the coming days.”

The consideration of terminating the contract with Sinohydro reflects Nepal’s commitment to addressing water supply issues and ensuring the timely completion and maintenance of vital infrastructure projects.