The Melamchi Water Supply Project says it will file a case against the contractor company of the project, CMC, at a court in Singapore.
The Secretary at Ministry of Water Supply and Sanitation, who also heads the project’s board of directors, has already given their approval for the same.
The company had started the construction in 2013. The Italian company, however, halted works time and again while asking for compensations frequently.
Talking to Onlinekhabar, Secretary at the Ministry, Krishna Raj BC said, “The note of dissent we have has given us the approval with an agreement in principle to file the case at Singapore court.”
The contractor company has been claiming of high cost and delay in construction due to the 2015 Gorkha earthquake. The company said that they had to cut through a hill in Sindhupalchok claiming a compensation of Rs 1.65 billion including fine in various other topics.
Besides these, the Italian construction company had also demanded that its term be extended by 570 days to complete the construction.
The project officers have rejected the claims.
Meanwhile, the committee formed to resolve the issue between both the parties, Dispute Adjudication Board, had discussed the same on Friday. But, no conclusion has been made yet.