|   The aim of Melamchi Water Supply Project is to solve the 
                    water crisis in Kathmandu, Nepal, for which ADB or JBIC etc. 
                    are financing the construction of a 26 km long aqueduct tunnel 
                    from Melamchi River. But the local residents and NGOs are 
                    raising their voices against the threat of destruction of 
                    the environment, and the effects on farming, fishing etc. 
                    due to mass water intake involved. To avoid or minimize environmentally 
                    and socially negative impacts arising from this project, JACSES 
                    is working to strengthen monitoring and advocacy activities.
  Melamchi Water Supply Project, latest news update 
                    (April 12, 2006)Due to concerns about the serious human rights situation of 
                    Nepal International financers withdraw one after the other.
 Feeling seriously concerned about the human rights situation 
                    in Nepal, financers are withdrawing from the project one after 
                    the other. Ever since the King dissolved the National assembly 
                    in Feb 2005 in a mandatory way, the dispute with Maoists has 
                    intensified. Restrictions have been imposed on reporting, 
                    communication and traveling. Also politicians and activists 
                    are being arrested. As a result, in July 2006, Norway withdrew 
                    its funding stating serious human rights violations. In April 
                    2006, Sweden also withdrew its funding. 
                    <Kathmandu Post> The aim of Melamchi Water Supply Project is to construct 
                    a 26 km long aqueduct tunnel and a filteration plant and to 
                    privatize Kathmandu`s water management. In the total budget 
                    of $4.64 billion, ADB is funding $1.2 billion and the Japanese 
                    Govt. is funding Yen equivalent of $52 million through JBIC. 
                    With the withdrawal of funding from Norway and Sweden, there 
                    will be budget deficit of $50 million. This project is very huge for Nepal, as its budget reaches 
                    almost half of Nepal`s national budget of $9 million. In this 
                    troubling scenario, there is another problem ? excessive concentration 
                    of investment in public works for Kathmandu. Once the construction 
                    of the aqueduct is completed, the local residents are apprehensive 
                    about the mass water intake from Melamchi River, and its effects 
                    on farming, fisheries etc. Therefore, ADB, JBIC and other 
                    financers need to withdraw their funding. Related Links Contact Person: Yuki 
                    TANABE |