December 25: Italian contractor company CMC di Ravenna has reportedly withdrawn the termination letter of Melamchi Water Supply Project it handed over to the Ministry of Water Supply a week ago. MWSP Executive Director Surya Raj Kandel confirmed that the Italian company on December 21 took back its termination letter submitted on December 17.

“The officials and employees of the Italian company have flown to Italy on Saturday after withdrawing the termination letter a day before,” said Kandel.

“We hope they will return back as they have withdrawn the termination letter,” he added.

The company had been demanding compensation of Rs 1.65 billion from the government to make up for the loss incurred by the devastating earthquake of 2015. However, a board comprising of representatives from the government as well as the contractor company, had decided to settle the issue for a compensation of Rs 360 million.

Kandel claimed that the company tried to terminate the contract to take away its deposit of Rs 2 billion after it faced financial crisis back home.