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Victory for campaigners as Severn Trent pull out of Nepal water privatisation bid
24 May 2007
Anti-poverty campaigners from the World Development Movement (WDM) today welcomed the decision of the Nepalese government to resist international pressure to sign a water privatisation contract with UK-based company Severn Trent Water International (STWI) for Kathmandu’s water supply. STWI, the sole bidder for the contract, formally pulled out of the bidding process on Monday, citing the decision of the government of Nepal to ‘seek an alternative route’ as the cause.
Vicky Cann, WDM’s water campaigner said:
“Time and again water privatisation has failed to connect the poor in the developing world to affordable drinking water. That’s why the WDM joined campaigners from Nepal in calling for Severn Trent to withdraw from this contract.
“It is shocking to now learn, from media reports, that the Asian Development Bank (ADB) is threatening to terminate its multi-million dollar loan if the privatisation element of the project is not fulfilled. It is yet another blatant example of a donor trying to bully a poor country into doing what it wants. It is good to see that the minister in charge will not be railroaded by the ADB into privatising Kathmandu’s water supply before reviewing more options.”
Gopal Chintan, coordinator of the Water and Energy Users' Federation-Nepal said:
"People in Nepal are against multinational companies taking over Nepal's drinking water supply and we are pleased that Severn Trent has withdrawn its bid. What Kathmandu needs is public investment in its water supply and management - to cut the 40 per cent plus leakage rate and upgrade the water supply network served by the many small local rivers, springs and ponds,"
Kate Blagojevic
Press officer, World Development Movement
0207 820 4900/4913, 07711 875 345, Email:
ENDS
Information for editors
[1] Images of a recent media stunt outside Severn Trent headquarters, in Birmingham, including Nepalese campaigners are available.
[2] The Asian Development Bank made the privatisation of the management of Kathmandu's water supply a condition for the granting of two loans with a combined value of US$15 million to fund the restructuring of Nepalese water institutions and the proposed management contract.
[3] The original call for Severn Trent Water International to withdraw was backed by the Water and Energy Users' Federation-Nepal (WAFED); Federation of Drinking Water and Sanitation Users-Nepal (FEDWASUN); the Consumers Rights Protection Forum; the NGO Federation of Nepal; the National Concerns Society and many others working together in a coalition.
[4] WDM's Dirty Aid, Dirty 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: http://www.wdm.org.uk/water
[5] Severn Trent does not have a good track record. Earlier this year, for example, the government of Guyana terminated its water privatisation contract with Severn Trent ten months early citing its failure to deliver on its promises.
[6] Link to Severn Trent statement http://www.severntrentservices.com/UserFiles/STWI%20Statement.pdf
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