Nepal Rastra Bank to collect money from Bank of Kathmandu & Himalayan Bank Limited for Melamchi Drinking Water Project

Appellate Court Patan has asked Nepal Rastra Bank to collect the due money from Bank of Kathmandu and Himalayan Bank Limited, which given counter guarantee for a Chinese contractor on the assurance of a Chinese bank for the construction work of Melamchi Drinking Water Project, but not to release the money to the project.


Melamchi project as well as the central bank have been pressurizing the two commercial banks to make the payment after the Chinese contractor, China Railway Bureau-15, breached the contract three months ago.

On the other hand, both the banks have moved the court, stating that they will release the money to Melamchi once China Construction Bank, returns the money to them.

Issuing an interim order on Wendesday, a joint bench of justices Tanka Bahadur Moktan and Ratna Bahadur Bagchan has also asked the central bank not to pressurize the two commercial banks until the case is settled.

The Appellate Court has given a high priority to the case.

The two banks have not been able to release the money after the Chinese contractor filed a lawsuit in a court in Hanan Province of China against China Construction Bank as well as Melamchi and both the commercial banks of Nepal.
-sharesansar