Melamchi Water Supply Project | Unmet Demands | Agreement

Melamchi stakeholders, government reach agreement: Water supply to Kathmandu set to resume

Late Tuesday evening, the government and local stakeholders signed an agreement to address long-standing issues in the Melamchi Water Project. The accord ensures the release of pending payments, the establishment of a relief committee, and the continuation of key infrastructure projects.

-the_farsight | Nov. 12, 2025, 5:28 p.m.

The government reached an agreement with representatives of local stakeholders late Tuesday evening, committing to address long-standing issues and concerns while paving the way for the resumption of water diversion to Kathmandu.

The stakeholders included local governments in the project-affected area, flood-affected groups, social uplift committees, and local vendors and tenants. Earlier on Thursday, they had stopped the water supply to Kathmandu citing unmet demands.

On the government side, the Ministry of Energy, Water Resources and Irrigation, the Ministry of Physical Infrastructure and Transport, and the Melamchi Water Supply Development Board signed the agreement.

Key points of the agreement:

Amendment to the Melamchi Water Supply Development Committee (Formation) Order, 2023, to resolve technical issues that have delayed capital fund release from the Ministry of Finance since FY 2022/23.
A three-member committee, chaired by the Chief District Officer of Sindhupalchok, will oversee relief and compensation processes, to be completed within three months. The committee will collect factual data on damages caused by past floods and assess the impacts on livelihoods, industries, agriculture, and property in the Melamchi-affected areas.
Pending payments to local vendors, previously delayed by the Ministry of Finance, will be disbursed within 15 days.
Proposals for water supply distribution from the project will be coordinated with the National Natural Resources and Fiscal Commission and the Ministry of Law, Justice, and Parliamentary Affairs, and submitted to the Cabinet within 45 days.
With NRs 250 million allocated for the Melamchi–Ambathan–Melamchighyang road already handed over to the Department of Roads, the multi-year NRs 1 billion construction tender to begin immediately.
NRs 40 million already allocated for local social uplift programs, along with an additional NRs 190 million, will be requested for disbursement from the Ministry of Finance.
The Melamchi–Helambu Integrated Development Corridor Program will be proposed in the next fiscal year’s budget.