The contract agreement was signed between contractors and Project Implementation Directorate of Kathmandu Upatyaka Khanepani Ltd for Melamchi Sub Project 2 for the establishment of Distribution Network Improvement (DNI) in Kathmandu Valley.

According to a press release issued by Project Implementation Directorate, under this agreement, the contractor will build additional new distribution system in Patan Mangal Bazar, Sanepa, Khusibu, Naya Bazar, Kalanki and Teku. Supported by Asian Development Bank’s loan, the project will add 229 Kilometer pipeline.

These new areas were not covered by the earlier extension of 670 Kilometer. After the extension of 229 Kilometer pipeline, it will supply water to 32 houses. The contract agreement was signed by Project Director of PDI Tiresh Prasad Khatri and representative of contractor Pawan Mahato.

Director Khatri said that this is a very important agreement to distribute water brought from Melamchi to people and expressed the hope that it will complete in as per the contract period.

 According to the agreement, the expansion of the network will start immediately and will complete within 30 months. The contract is granted to Joint venture of Chinese construction Company Gonjhao International Economic and Technical Cooperation (GIEETC) and Nepalese contractors Sharma and Company and Raman Construction. The cost of the project is 2.62 billion rupees