Four Chinese companies have bid for construction of the 26.5 kilometer diversion tunnel of the Melamchi Water Supply Project. The companies vying for the project are China International Water and Electric Corp (CWE), China Overseas Engineering Company, Trans Tech Engineering China and China Railway 15 Bureau, said senior officials at the Melamchi Water Supply Development Board. "We expect that the bidding process will be completed by mid-July," said Purna Kadariya, Secretary at the Ministry of Physical Planning and Works at a press meet held here Wednesday. He also informed that work at the project site is in progress and hoped construction would pick up momentum in the days to come as disputes with the local communities have been resolved. So far 16 percent of work of the whole project has been completed and Rs 4.6 billion spent. Hari Ram Koirala, Executive Director of the Board, informed that they have taken several cost-saving measures. "Earlier we were spending Rs 275,000 for office rent while at present we are paying only Rs 75,000," he said. The total project cost is US $317.3 million, with the tunnel and head works costing US $96.5 million, said Koirala. The project, which began in December 2001, is expected to be complete by December 2013. Earlier in February, the Asian Development Bank (ADB) extended a loan of US $137 million (around nine billion rupees) for until 2013. The ADB took the decision during a meeting held at its headquarters in Manila. The ADB is the lead financier of the project. Other donors are the Japan Bank for International Cooperation, the Japan International Cooperation Agency, the Nordic Development Fund and the Organization of Petroleum Exporting Countries Fund for International Development. The Government of Nepal is contributing $90.6 million. With the population in Kathmandu Valley increasing rapidly, demand for water in the Valley is 200 million liters a day at present, according to the Melamchi board. But the existing system can supply only 90 million liters a day in winter and 130 million liters in the monsoon. The project was started with the aim of supplying 170 million liters of water a day to Kathmandu Valley upon completion of its first phase. Posted on: 2008-05-07 19:51:14 (Server Time)