The Nepal Electricity Authority (NEA) has scrapped a contract for the first section – of the New Khimiti-Bahrabise – under the Tamakoshi-Kathmandu 400 KV transmission line, citing the violation of the terms and conditions.
The Authority – issuing a press note claimed that – took the move for not meeting the conditions and failing to start works on time by the contractors. The contract to construct the New Khimti-Barhabise section of the transmission line project had been jointly awarded to China-based Guangxi Transmission and Substation Construction Company and the Shenzhen Clou Electronics.
The contract was terminated few days ago, seizing the 10 per cent of the works executions securities, project chief Nawaraj Ojha said, adding that the companies failed to begin the works of initial phase despite the completion of the 74 per cent of contract time. "The Chinese contractors that were responsible for construction of the project have violated the terms and conditions that govern the agreement."
According to the statement by the power utility, the NEA had terminated the contract a few days ago and also seized the 10 per cent of the works executions securities.
"We have seized $1.45 million, which is 10 per cent of the total construction cost, and also the performance guarantee amount of Rs 61.67 million that the contractors had submitted,” Ojha said, adding that the NEA has also seized $1.45 million that the contractors had deposited as advance payment and Rs 61.67 million that had been deposited as bank guarantee. "NEA had signed the contract with the two companies on September 27, 2016 and the transmission line project was expected to be completed by May 2019. The contract was awarded at a cost of $14.54 million and Rs 616 million."
NEA managing director Kul Man Ghising, said that the Tamakoshi-Kathmandu transmission line project is a strategic one for the country but the Chinese contractors had failed to perform.
Meanwhile, the same Chinese companies had also won the bid to construct the 220/132 kV substation in Bahrabise. According to Ojha, the works of the substation are also not satisfactory and NEA may terminate the contract, if the contractors fail to do works as per schedule.
The Authority – issuing a press note claimed that – took the move for not meeting the conditions and failing to start works on time by the contractors. The contract to construct the New Khimti-Barhabise section of the transmission line project had been jointly awarded to China-based Guangxi Transmission and Substation Construction Company and the Shenzhen Clou Electronics.
The contract was terminated few days ago, seizing the 10 per cent of the works executions securities, project chief Nawaraj Ojha said, adding that the companies failed to begin the works of initial phase despite the completion of the 74 per cent of contract time. "The Chinese contractors that were responsible for construction of the project have violated the terms and conditions that govern the agreement."
According to the statement by the power utility, the NEA had terminated the contract a few days ago and also seized the 10 per cent of the works executions securities.
"We have seized $1.45 million, which is 10 per cent of the total construction cost, and also the performance guarantee amount of Rs 61.67 million that the contractors had submitted,” Ojha said, adding that the NEA has also seized $1.45 million that the contractors had deposited as advance payment and Rs 61.67 million that had been deposited as bank guarantee. "NEA had signed the contract with the two companies on September 27, 2016 and the transmission line project was expected to be completed by May 2019. The contract was awarded at a cost of $14.54 million and Rs 616 million."
NEA managing director Kul Man Ghising, said that the Tamakoshi-Kathmandu transmission line project is a strategic one for the country but the Chinese contractors had failed to perform.
Meanwhile, the same Chinese companies had also won the bid to construct the 220/132 kV substation in Bahrabise. According to Ojha, the works of the substation are also not satisfactory and NEA may terminate the contract, if the contractors fail to do works as per schedule.
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