Kathmandu. Bank of Kathmandu (BOK) and Himalayan Bank have received back the amount provided in connection with the start of Melamchi drinking water project due to counter guarantee. BOK and Himalayan Bank have received Rs 900 crore and Rs 660 crore as counter guarantee today.

An advance payment guarantee was issued against the counter guarantee of China Construction Bank, with the Melamchi water supply project being the beneficiary for the sponsorship to provide the necessary funds for the project operation to the China Railway-15 Group. As the contractor company left the project in the middle without completing it according to the contract, Melamchi Water Project claimed on the guarantee, so the guarantee amount was paid from BOK.

China Construction Bank, the Chinese bank that has secured the contract for the Melamchi water supply project from China Railway, gave a counter guarantee to BOK. 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 payment amount due to this bank was not received from the China Construction Bank.

In order to comply with international practices and guarantee conditions, the case was decided in favor of the bank in the People's Intermediate Court and Henan People's High Court located in Henan Province, China.

Shravan Mask, CEO of BOK, said that the payment amount of US$ 6,625,010 and Euro 1,411,453 for the advance payment guarantee issued by the bank to Melamchi water supply project was returned to the bank today.