Kathmandu. In order to start the work of Melamchi water supply project, an advance payment guarantee was issued against the counter guarantee of China Construction Bank as the beneficiary of the Melamchi water supply project for the sponsorship of China Railway-15 Group to provide the necessary funds for the operation of the project.

As the contractor company left the project in the middle without completing it as per the contract, the Melamchi water supply project claimed on the guarantee, so the guarantee amount was paid from the Bank of Kathmandu. Bank of Kathmandu Ltd. was given a counter-guarantee by the Chinese bank China Construction Bank, which has a guarantee on behalf of China Railway, which has won the contract for the Melamchi water supply project. However, due to the dispute between the Melamchi Water Project Development Committee and the contractor company China Railway Group-15, an interim order was issued from the case filed in the Chinese court to stop the payment of the bank guarantee, and the case went to the People's Intermediate Court and the Henan People's High Court in Henan Province, China. The judgment was given in favor of the bank on July 25, 2022.

Shravan Maske, Chief Executive Officer of Byhora Bank, informed that the amount of advance payment guarantee issued by the bank to the Melamchi water supply project is USD 6,625,010 and Euro 1,411,453 returned to the Bank of Kathmandu Limited today on 7th Bhadra 2079.