Kathmandu, December 20
Minister for Water Supply Bina Magar says that the Italian contractor’s decision to pull out of the project will not add any financial burden to Nepal.
Speaking at a meeting of Parliament’s Public Accounts Committee on Thursday, the minister shared that the government still had to pay the Italians for their work. Since they have abandoned the project, the government will not release the funds, added Magar.
“We won’t incur any loss because we will seize the Rs 2.5 billion in performance bonds issued by the CMC (the Italian contractor),” said Magar. The minister added that the government was shocked at the way the CMC handled the case.
CMC decided to pull out of the project citing that the company was on the verge of bankruptcy and it didn’t have enough funds to finish the project.
