Government of Nepal, Italian firm sign agreement for Melamchi

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KATHMANDU, Nepal-The government of Nepal signed a contract agreement with Italy’s CMC Cooperativa Muratori e Cementisti di Ravenna to formulate diversion tunnel and headwork of the rest of the works of Melamchi Drinking Water Project (MDWP).

Krishna Prasad Acharya, executive director of Melamchi Water Supply Development Board (MWSDB), and Salvatore Casciarro, special representative of the Italian firm, signed the agreement, under which the contractor must accomplish the construction work within three years of the contract signing.  With this contract, the highly expected Melamchi Project is anticipated to complete by June-July 2016, according to MWSDB.

The MWSDB had decided to award the contract to CMC which had quoted Rs 7.72 billion on Monday. The government of Nepal has also allocated Rs 5.24 billion for project through new fiscal year budget for 2013/14.

Previous contractor China Railway 15 Bureau Group has only dug 6.5 km out of the planned 26.5 km tunnel. The work was interrupted ever since after the Chinese contractor drew back its involvement in September 2012.

After signing the contract, CMC representative Cassciarro expressed his company’s commitment to complete the construction work within the scheduled date keeping in mind the contractor responsibilities as well as international criteria.

“During a century long history, our company has no record of quitting the work mid-way,” Casciarro said, adding it was a milestone in his company’s profile to get an opportunity to spread its construction service to Nepal.

On the occasion, Achary from MWSDB said the Italian firm was picked up for the tunnel work since the firm demonstrated its and financial and technical proficiency during the bid selection process.

ADB Country Director Kenichi Yokoyama, addressing the signing ceremony,  assured that ADB would extend all necessary support for the project’s implementation in the coming days.

Founded in Ravenna in 1901, Cooperativa Muratori e Cementisti – Cmc di Ravenna is an Italian leading construction company.

Operating in Italy and overseas, Cmc realizes 90% of its consolidated annual turnover, of about 700 million Euro in 2008, in construction works.

Cmc has a permanent staff of about 500 people, 377 of which are also members of the cooperative, and currently employs over 5.700 people worldwide.

Ex- Prime Minster Madhav Nepal had opened the building of a 26.5 Km long tunnel to bring water from the Melamchi River to the capital Kathmandu on August 3, 2009.


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