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Melamchi delay: Govt plans to annul CMC agreement

File: Construction works are underway at Melamchi Water Supply Project construction site

Kathmandu, January 20

The government of Nepal is preparing to terminate a contract it signed with the Italian company, CMC, for the pending construction works of Melamchi Water Supply Project after the contractor did not show up at a meeting called to plan next steps.

Earlier in December 2018, staff of the company had gone to Italy on a New Year leave without completing the assignment. The government had tried to stop them as they had already warned of leaving the project halfway.

However, they were allowed to go on leave after the Italian Embassy assured their return.

But, no one from the company came back till now. Hence, the Ministry of Water Supply has already begun preparations to write a termination letter, according to sources.

The same company has been assigned to construct Tanahun Hydropower Project. With the termination of Melamchi contract, the hydro project has also been pushed into limbo.

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