Kathmandu, May 22, 2007

Prime Minister Girija Prasad Koirala today made clear his stance before the Maoist leaders that he would not call an eight-party meeting until the Young Communist League mended its “violent and unruly” ways and the Maoists returned the seized property.

Sources at Baluwatar said the PM today showed concern about the activities of the YCL, a youth organisation of the CPN-Maoists, with Maoist supremo Prachanda, his deputy Dr Baburam Bhattarai and government spokesperson Krishna Bahadur Mahara, who is also a central leader of the CPN-Maoist. “The PM also asked the Maoist leadership to effect the return of seized properties as per the previous agreements,” Nepali Congress central leader Laxman Ghimire, who is a close confidante of the PM told this daily.

Ghimire said the PM asked the Maoist leaders to sincerely abide by the previous accords. Prachanda and other Maoist leaders asked the PM to convene an eight-party meeting at the earliest to “pave way” for ending the current political deadlock and to conduct elections to constituent assembly. They were, however, told that the YCL “must mend” their ways and “stop terrorising” people.

Maoist leaders also asked the PM to release the budget for the PLA fighters camping in cantonments at the earliest. Though Monday’s cabinet had decided to allocate the budget for the cantonments, Krishna Hari Baskota, joint secretary at the ministry of finance, told this daily that he had not received any formal information on the issue.

DB washes its hands of Melamchi project

Asian Development Bank today finally said it would not be possible to carry on with the project activities of $ 500-million Melamchi Water Supply Project because the government has not given the contract to manage water supply to the Severn Trent Water International Limited (ST) as suggested by the bank. ADB had agreed to lend $ 120 million for the construction of the tunnel and for improving water distribution network.

The Manila-based bank had been pressing the government to accept ST’s bid for the management of water distribution. “As it stands now, it would not be possible to carry on with the project activities, with the project due to close on June 30.

In such difficult circumstances, it is now for the government to decide how it wishes to proceed,” the statement reads. It says the inability of the government to authorise the signing of the duly negotiated management contract at this late stage creates considerable uncertainty on the way forward.

New Minister for Physical Planning and Works Hisila Yami had stood up against the ADB’s pressure to accept ST’s bid unconditionally.