Kathmandu: The long-standing disputes surrounding the Melamchi Drinking Water Project’s water diversion have been resolved following a comprehensive agreement reached late Tuesday at the Ministry of Energy, Water Resources and Irrigation.

The agreement addresses the concerns raised by various stakeholders, including local governments in affected areas, social upliftment program committees, flood victims’ struggle committees, and local vendors and tenants, whose demands had remained pending for months.

According to the agreement, a draft proposal will be prepared to resolve the technical complications seen in the disbursement of capital funds under the Melamchi Drinking Water Development Committee Formation Order, 2079, and submitted to the concerned bodies for necessary revision.

For relief and compensation, the District Disaster Management Committee, chaired by the Chief District Officer of Sindhupalchowk, will collect data and submit it to the Ministry of Home Affairs. The committee will include three representatives from the Melamchi Drinking Water Development Committee and local victims, and will complete the process within three months.

The agreement also stipulates that the Ministry of Finance will release the outstanding payments to local vendors within 15 days. Likewise, compensation for drinking water distributed by the project will be determined based on earlier reports, in coordination with the National Natural Resources and Finance Commission and the Ministry of Law, and submitted to the Council of Ministers within 45 days.

Additionally, the Rs 250 million allocated for the construction of the Melamchi Ambathan–Melamchi Ghyang road has been handed over to the Department of Roads, which will initiate the contract process immediately. The Division Road Office, Dolakha, will also proceed with bidding under a multi-year plan worth Rs 1 billion, following approval of the source agreement.

A request will be made to the Ministry of Finance to release Rs 190 million remaining under the Local Social Upliftment Program Committee. It has also been agreed to propose the Melamchi–Helambu Integrated Development Corridor Development Program in the next fiscal year’s budget.

The Memorandum of Understanding (MoU) was signed in the presence of Urban Development Minister, Energy, Water Resources and Irrigation Minister Kulman Ghising, and the Minister for Physical Infrastructure and Transport. Signatories included Pramila Devi Shakya Bajracharya, Secretary at the Ministry of Drinking Water, Keshav Kumar Sharma, Secretary at the Ministry of Physical Infrastructure and Transport, and representatives of local residents and stakeholder groups.

Officials said the agreement has temporarily resolved the key problems affecting the project, paving the way for smoother implementation in the coming months.