Asian Development Bank (ADB) officials said last week that it may increase its loan to the Melamchi Water Supply Project to $120 million-up from the $100 million it was seeking to provide. A Bank official told the daily The Rising Nepal that the money would come as one loan, and not in two packages as had been originally proposed. The additional $ 20 million is meant for waste water improvement. The Bank is expected to decide on the loan in December. Other donors expected to contribute to the project after the ADB decision are Norway's Norad and Sweden's SIDA ($ 25 million each) for a 28- km tunnel to bring water from Melamchi to Kathmandu, and Japan's Bank of International Cooperation ($55 million) for water treatment. Nepal is expected to chip in about 20 percent of the project's $430m cost.