The Nation · Megaproject · Water
Melamchi Water Supply Project
मेलम्ची खानेपानी आयोजना
23 years from approval to first drop of water. 14 years past the original deadline.
Original cost
USD 464.00M
as of 2000
Current cost
USD 700.00M
+51% overrun
Approved
2000-12
Deadline 2007
Delivered
2021-03
14 years late
How we got here
Approved by ADB in December 2000 with a USD 464M envelope and a 2007 delivery target, Melamchi became Nepal's longest-running megaproject failure. The original Italian contractor CMC di Ravenna walked off site in December 2018 citing security and payment disputes, leaving the 26.5km tunnel ~93% complete. China Railway 15 Bureau picked up the work in 2019 and water finally reached Sundarijal on 28 March 2021 — only for the June 2021 Helambu flood to destroy the headworks, suspending supply for over a year. Supply is now seasonal: dry-season only, with monsoon-season shutdowns ongoing.
The short version
Nepal started building a tunnel to bring water to Kathmandu in 2000. It was supposed to be done in 2007. Water finally arrived in 2021 — then a flood broke it three months later. It still only works half the year.
Who paid for it
Asian Development Bank
multilateral
USD 120 million (original); supplementary USD 25M (2010), USD 60M (2017)
Concessional loan
Government of Nepal
domestic
Counterpart funding
JICA / OPEC Fund / Nordic Development Fund
multilateral
Co-financing
Who built it
CMC di Ravenna
Italy · Main tunnel contractor
2013–2018
withdrawn
China Railway 15 Bureau Group
China · Tunnel completion contractor
2019–2021
completed
Implementing authority: Melamchi Water Supply Development Board (MWSDB)
Timeline
1973
First feasibility study commissioned
2000-12
ADB approves Loan 1820-NEP, USD 120M
Source: ADB
2007
Original delivery target — missed
2013
CMC di Ravenna awarded main tunnel contract
2018-12
CMC walks off site, tunnel ~93% complete
Source: MWSDB
2019-04
China Railway 15 Bureau awarded completion contract
2021-03-28
First water reaches Sundarijal treatment plant
Source: MWSDB
2021-06-15
Helambu flood destroys headworks; supply suspended
Source: MWSDB
2022-03
Dry-season supply resumes
Delivered
Tunnel built. 170 million litres/day delivered to Kathmandu in dry season.
Failed to deliver
Monsoon-season operation. Cost discipline (51% over budget). Schedule (14 years late).
Sources · cited verbatim
Asian Development Bank — Melamchi Water Supply Project — Completion Report (Loan 1820-NEP)
Open release checked 2024-12-31Office of the Auditor General Nepal (OAGN) — Annual Report — Melamchi Water Supply Development Board
Open release checked 2024-08-15Melamchi Water Supply Development Board — Project chronology and status updates
Open release checked 2025-01-10
Every value on this page traces back to one of these documents. If you find a discrepancy with the publisher's current dataset, please report it via contact.