Officials of the MDWP and representatives from a group of two Chinese companies China Railway 15 Group Corporation and China CMIC Engineering Corporation signed the deal.
As per the agreement, the tunnel needs to be completed by 2013. The 26.3 kilometer long tunnel is to pump 170 million liters of water every day from Melamchi River in Sindhupalchowk district to Sundarijal in Kathmandu.
The selected Chinese companies proposed the total cost around Rs. 4.28 billion, which is 11.14 percent less than the estimated cost. Initially 20 companies applied for the contract. However, only four of the companies were qualified for the final bids.
The government also has a plan to pump additional about 350 million liters of water a day to Kathmandu from the same project in the next phase.
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