Chinese contractor China Railway 15 Bureau Group Corporation (CR15BG) had informed MWSDB earlier this month that it would withdraw from the contract citing problems with over payment and lack of support from the board. However, after three days of submission of its withdrawal letter, the Chinese company had sought support from the government to resume work, saying it was ready to do so if its demands were fulfilled.
MWSDB stated that it rejects all accusations and added that there was not any problem with payments. The board decided to terminate the contract.
CR15BG was contracted to construct the 26.3km tunnel to divert 170 million liters of water per day from Melamchi to Sundarijal, where the water would undergo treatment before going into the bulk distribution system. The company has constructed 6.5km of tunnel over the last three years. The project was supposed to be completed by the end of 2013.
