Kathmandu, September 4

Vendors and local suppliers of the Melamchi Water Supply Project have said they will obstruct project construction until they are paid their outstanding dues owed by the project’s previous contractor.

At a time when the government is in the last stage of allowing the new contractor to complete the project, the threat from local suppliers and vendors is sure to halt project construction. Though the government has finalised to award the contract to complete the water project to the Chinese company Sinohydro, it is yet to ink construction agreement with the firm.

Local suppliers and vendors of the project have said that though Melamchi Water Supply Project had assured that it would clear their dues with the previous contractor — Co-operativa Muratori e Cementisti (CMC) di Ravenna — project is yet to issue their payments.

Local suppliers and vendors have said that the previous contractor of the project is

yet to clear almost Rs 160 million dues. “We will not allow the project development

unless our payments are cleared,” said Bishnu Mani Aryal, coordinator of the struggle committee.

Though almost 90 per cent of physical works of Melamchi water project has been

completed, a few works related to headwork and finishing are left. The government has already decided to award Sinohydro to complete the remaining works at the project.

Meanwhile, the Ministry of Water Supply today formed a committee under the coordination of head of Drinking Water Division at the ministry to study the claims regarding outstanding dues by local suppliers and vendors of the Melamchi project.

“The government will address concerns of local suppliers and vendors based on the recommendation of the committee,” reads the press statement

issued by the ministry.