KATHMANDU, July 10 - After years of delay, construction of the tunnel that will bring 170 million litres of water per day   to the Capital is set to begin in the first week of August. Prime Minister Madhav Kumar Nepal will lay the foundation stone of the diversion tunnel on August 3.
 
The much-anticipated project, which promises to end the drinking water woes of Kathmandu Valley is expected to be completed in September 2013. The key feature of the Rs. 17 billion Melamchi Water Supply Project (MWSP) is the 26.5 kilometres long diversion tunnel.

Tunnel construction will start simultaneously from four different places. China Railway 15 Bureau Group Corporation has been awarded the contract to build the tunnel in 56 months.

Resettlement of those displaced by the project and compensation for land acquisition had caused the delay. “We have paid for this,” said Gajendra Kumar Thakur, executive director of Melamchi Water Supply Development Board on Friday.

An 18-kilometre long access road from Melamchi Pul Bazaar to Timbu and ten bridges have been constructed till date to transport construction materials for the tunnel. The  Waste Water Treatment Plant, a component of MWSP is under construction at Sundarijal.

So far, Rs. 4.74 billion has been spent on the project.

Political instability and social and political conflicts had halted development of the project, resulting in lack of interest among potential international bidders, who found the project too risky.

The World Bank withdrew from the project in 2005 following the delays. After the royal takeover in 2005, Norwegian Agency for Development Cooperation and Swedish Development Agency also withdrew their funding commitments. After this, the Asian Development Bank stepped in with a loan covering 80 percent of the pro-ject cost. Nepal government is funding the shortfall.