Kathmandu, August 2:

Minister for Physical Planning and Works Hishila Yami today said donor agencies, including the Asian Development Bank (ADB), are “positive” on speeding up work on the Melamchi project.

“The work of digging the tunnel will start this fiscal,” Yami told the Parliament today. She said the ministry is holding discussions in this regard with the ADB and other donors.

Yami also informed that the government has set aside budget for the proposed outer Ring Road project. The Kathmandu-Bhaktapur road will be widened in the next fiscal to ease traffic congestion, she said.

Minister of State for Water Resources, Gyanendra Karki, told the House that the issue of Khurdalautan and Laxmanpur barrages will be settled through “joint initiatives” of Nepal and India.

Responding to a query of an MP, Karki said the proposed Koshi High Dam project was still at its initial phase. “Nepal and India are jointly conducting a study on it,” he added.

Minister of State for General Administration Ram Chandra Yadav said the government was drafting an act to decide the fate of Royal Palace employees. Yadav was answering queries coming from the MPs related to the Ministry of General Administration under the Appropriation Bill, 2007-08. He informed that the government has “managed” the budget to bring the Royal Palace staff under the Ministry of General Administration. Yadav said that this session of the Parliament will pass the Civil Service Act.