In recent years,
it’s hard to find any project in Nepal that hasn’t been affected by corruption
or a leader free from controversy. The Melamchi Water Supply Project, designed
to provide drinking water to the Kathmandu Valley, has been undermined by the
greed of both politicians and bureaucrats.
During the
monsoon season, the Kathmandu Valley often faces flooding from swollen rivers.
Ironically, while the valley experiences inundation, the household water taps
remain dry due to the suspension of regular water supply from the ambitious
Melamchi Water Supply Project. Authorities attribute this suspension to
excessive slurry overload at the project's water headworks during the monsoon.
However, another critical issue lies beneath the surface—the pervasive
corruption that has plagued the project over its prolonged three-decade span.
The Melamchi
Water Supply Project, heralded as a panacea for Kathmandu’s chronic water
shortages, stands today as a stark symbol of mismanagement, corruption, and
unfulfilled promises. Initiated with grand ambitions in the early 2000s, this
ambitious endeavor quickly unraveled amidst a series of contractual disputes
and administrative failures.
One of the
largest and most significant infrastructure projects in Nepal, the Melamchi
Water Supply Project, has been marred by corruption allegations. Initially
conceived to alleviate water shortages in the Kathmandu Valley, the project has
faced delays and cost overruns due to alleged kickbacks and financial
mismanagement. Public outrage peaked when investigations revealed that funds
intended for construction were siphoned off through fraudulent means,
highlighting deep-seated issues within the public procurement system.
Initially
entrusted to a reputable Chinese firm, the project encountered early setbacks
due to sluggish progress in critical construction phases. As frustrations
mounted among the populace grappling with water scarcity, the government took
the drastic step of terminating the contract, plunging the project into
uncertainty.
In 2013, hopes
were reignited with an Italian company tasked with reviving the project’s
fortunes. However, what followed was a saga of alleged financial misconduct and
corruption. Reports surfaced of illegal payments made to the contractor without
proper adherence to legal protocols, resulting in significant financial losses
to the state coffers.
The fallout was
swift and severe. The Commission for Investigation of Abuse of Authority (CIAA)
intervened, unearthing a web of embezzlement and favoritism implicating former
Ministry of Water Supply secretaries and other officials. This legal debacle underscored
deep-rooted governance flaws and a lack of oversight that plagued the project
from its inception.
As delays
mounted and costs soared, public outcry intensified. The project, envisioned to
bolster Kathmandu’s water supply by millions of liters daily, instead became a
testament to bureaucratic inertia and broken promises. Residents, weary of
unreliable water sources and inadequate infrastructure, were left disillusioned
by successive failures to deliver on essential public services.
The Melamchi
debacle serves as a poignant reminder of the perils of unchecked corruption in
infrastructure projects. It underscores the urgent need for stringent
regulatory oversight, transparent contract management, and accountability at
every stage of implementation. Without these safeguards, ambitious projects
risk becoming breeding grounds for malfeasance, squandering public funds meant
for critical development.
Looking ahead,
Nepal’s government must heed the hard-earned lessons of Melamchi. Reforms are
imperative to restore public trust and ensure future projects uphold integrity
and efficiency. Only through robust governance reforms and a commitment to
transparency can Nepal achieve its sustainable development goals and deliver
essential services equitably to its citizens.
While Melamchi
was conceived with noble intentions, its journey epitomizes systemic failures
in governance and project management. Addressing these shortcomings is not just
advisable but essential to forging a path towards a more accountable and
resilient infrastructure framework in Nepal.
The Commission
for Investigation of Abuse of Authority (CIAA) has filed a corruption case
against 17 individuals and entities, including three former secretaries, in
connection with alleged irregularities in the Melamchi Water Supply Project.
The case was lodged at the Special Court.
High profiles
officials including former secretaries of the Government of Nepal, who
previously chaired the Melamchi Water Supply Development Board during their
tenures as Ministry of Water Supply secretaries, are named as defendants in the
chargesheet. Other defendants include board members, and executive directors
and the Under-secretaries at the board at different times. According to the CIAA, these individuals and
entities are accused of involvement in illegal payments from government
resources. The charges against them range from Rs890 million to Rs. 41.13
million each, pertaining to alleged losses caused to the government.
The Melamchi
Water Supply Project initially hired the Italian company in July 2013 after
terminating a contract with a Chinese company. However, the contract with the
Italian firm was also terminated in January 2019 due to unsatisfactory
progress. Subsequently, another construction company took over to complete the
remaining works, but the project was affected by floods in June 2021.
The CIAA alleges
that the Italian contractor received illegal payments on multiple occasions,
with advance payments not properly deducted from later payments, resulting in
losses for the state. The interest on these illegal payments, amounting to Rs.
110.91 million, was reportedly not recovered after the contractor's bank
guarantee was seized upon contract termination.
Additionally,
the government is said to have incurred further losses by failing to deduct Rs.
100 million from provisional payments to the Italian contractor and not
recovering Rs. 276.64 million for equipment and structures left by the previous
Chinese contractor. The CIAA also highlighted payments made without proper
approval and full payments for incomplete work, leading to additional losses
for the state. Overall, the corruption case filed by the CIAA focuses on these
allegations of financial misconduct and mismanagement within the Melamchi Water
Supply Project.
(Views are personal. Email: vidhukayastha@gmail.com)
