Kathmandu: Although it has not been able to spend the allocated budget of Rs. 48 million meant for improving water supply infrastructure, valley water utility Kathmandu Upatyaka Khanepani Limited (KUKL) still knows how to spend the money. It has asked the government to ‘readjust’ the unspent amount. The remaining budget has been asked to be re-adjusted in other areas such as voluntary retirement schemes.

"As per the proposal, we had allocated Rs. 48 million to KUKL last fiscal but it has only spent Rs. 29 million," said Hari Prasad Sharma, spokesperson at the Ministry of Physical Planning and Works. "Now, with hardly any signs of improvement seen, the utility has asked us to adjust the budget in other areas such as voluntary retirement schemes or such."
The government in the last fiscal had disbursed Rs. 48 million to KUKL to improve the water supply situation in the valley, but despite a perpetual water crisis in the valley, the utility has not been able to spend the money in increasing the water supply inside the valley.  The valley requires 280 million liters of water per day but at present, KUKL has been able to supply only 90 million litres per day — just one third of the total demand. But KUKL officials still harp about the fund crunch. "The gap between demand and supply is huge. Improvement works are underway but lack of budget has constrained our programmes," said Gyanesh Bajracharya, deputy general manager.
Though he conceded the budget allocation, his numbers don't match with that of the government. "It's not entirely true that KUKL failed to utilize the money allocated. KUKL had proposed Rs. 39 million which was later increased by the ADB and the government to Rs. 48 million," he added. Bajracharya also maintained that he was "unaware" of the fact that KUKL approached the government asking for re-adjustment of the unspent budget.
KUKL since its inception has drawn flak for one reason or other. Earlier, Kathmandu Metropolitan City (KMC), which holds 30 per cent shares in KUKL, had raised questions about the utility's extravagance on monthly "meeting allowances" and failure in delivery.
"KUKL is a total mess and is serving as a playground for donor agencies," said Prakash Amatya, executive director of NGO Forum for Urban Water and Sanitation, which has been advocating transparency, accountability and integrity in KUKL. "It is no wonder if most of the budget is spent on consultants' salaries."
KUKL, a private-partnership company, was conceived in February last year by dissolving Nepal Water Supply Corporation, as per the pre-requisite of the Asian Development Bank (ADB), the major donor for the Melamchi Water Supply Project.

Source: The Kathmandu Post, June 5, 2009