Water and Energy Users' Federation – Nepal (WAFED) strongly opposes the most recent instance of the Asian Development Bank's (ADB) duplicity in the continuing saga of forcing Nepal into its trap of privatising Kathmandu Valley water supply and its management, an objective it has been pursuing single-mindedly for the last many years. A press release issued by the ADB in Manila today maintained that a new private sector manager will be recruited parallel to the construction of the 26 kilometer long Melamchi River diversion tunnel to Kathmandu. It has also reaffirmed its misconceived claim that Melamchi Water Supply Project is the only available option for Kathmandu as the existing alternative water sources such as shallow wells, public taps, rainwater, tankers, or bottled water are expensive.

Earlier, the WAFED-led campaign in co-operation with the London-based World Development Movement against the award of the management contract to Severn Trent Water International had forced the British multinational company to withdraw from Kathmandu's water supply and management. Since then the civic campaign has been focusing on the need for the reform of the existing public utility, the Nepal Water Supply Corporation, with adequate financial support and autonomy. Unfortunately anti-public vested interests such as the World Bank and ADB, with mala fide agendas that include the promotion of dubious private players with crooked antecedents, have had, in collaboration with various domestic swindlers, thwarted every attempt to reform this public utility.

WAFED emphasizes that ADB's scheme to foist a private management on Kathmandu's water supply system is mischievous in intent, imprudent in conception, irresponsible in design, expensive in operation and inefficient in outcome. As with many other similar ill-conceived schemes implemented in haste across the world, the Kathmandu water privatisation scheme will inevitably encounter public hostility. It may be recalled that the ADB has a poor track record with regard to water management reforms, the most infamous instance being the mess that resulted from the privatisation of water management in its own backyard, Manila.

WAFED maintains that the best available option for Kathmandu is to plug and control the leakage in the city's water supply system, which according to some estimates accounts for 70 percent of wastage. In addition there are huge untapped potential sources of water in the Valley, such as regulated ground water use, rain water harvesting, spring water and public taps which are cheaper alternatives that are also easier and quicker to implement.

Therefore, WAFED would like to ask the ADB as well as the Seven-Party transitional government of Nepal to refrain from the privatisation of Kathmandu water supply system, reconsider the economic and technical viability of the Melamchi project and support the leakage control package together with the implementation of all locally available water supply alternatives as listed above.

WAFED calls on all Nepali campaign groups, both active in Melamchi and Kathmandu valleys, as well as international friends and networks to continue with their struggle against the privatisation of Kathmandu Valley water supply and put pressure on the ADB to respect the alternative proposals from the government of Nepal instead of adhering dogmatically to their anti-public lending conditionalities, particularly those pertaining to private sector management.

It is important to note that the Interim Constitution of Nepal has recognised water as a human right under the fundamental right to health, thus the privatisation of water services will be a brazen violation of this right.

For further updates and details, please visit our website www.wafed-nepal.org

Contact: Ratan Bhandari, Campaign Coordinator