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Severn Trent urged to withdraw Nepal water privatisation bid
11 May 2007
Anti-poverty campaigners from the World Development Movement today called for Severn Trent Water International to withdraw its water privatisation bid in Nepal.
Vicky Cann, WDM's water campaigner said: “Water privatisation has become a deeply controversial issue in Nepal. This is not surprising, as time and again, water privatisation in poor countries has failed to connect the poor to safe, affordable drinking water. We have not seen any evidence that this scheme will be any different.”
“We understand that the minister responsible in Nepal has postponed any decision to award this contract to the sole bidder Severn Trent, pending further cabinet debate. But according to media reports, Asian Development Bank officials are now threatening to terminate its multi-million dollar loan if the contract is not awarded. If these press reports are true, rarely can there have been a more blatant example of a donor trying to bully a poor country.”
“WDM urges Severn Trent to listen to the concerns of Nepalese community groups regarding this contract, and to allow the new Nepalese government the time and space to review all the options regarding the future supply of water in Kathmandu by withdrawing their bid.” ENDS
Kate Blagojevic
Press officer, World Development Movement
0207 820 4900/4913, 07711 875 345, Email:
Information for editors
[1] The Asian Development Bank has made the privatisation of the management of Kathmandu’s water supply a condition for granting two loans with a combined value of US$15 million to fund the restructuring of Nepalese water institutions and the proposed management contract.
[2] The call for Severn Trent Water International to withdraw is backed by the Water and Energy Users' Federation-Nepal (WAFED); the Nepal Federation of Drinking Water Supply & Sanitation; the Consumers Interest Protection Forum; the NGO Federation of Nepal; the National Concerns Society and others working together in a coalition.
[3] WDM’s water campaign highlights the failure of water privatisation projects to connect substantial numbers of poor people to affordable drinking water in developing countries. For more information on these issues, check out: www.wdm.org.uk/water
[4] In February 2007, Severn Trent’s water privatisation contract in Guyana was cancelled 10 months early. More information can be found at: http://www.wdm.org.uk/news/UKwastesmillionsofpoundsofaid19022007.htm
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