Kathmandu Upatyaka Khanepani Ltd (KUKL) has annulled a contract with Safbon Water Service (Holding) Inc (SWSHS), Shanghai, as the construction company failed to perform according to the contract.
The KUKL had awarded the Chinese company SWSHS with a contract to construct water purification plants in Sallaghari of Bhaktapur and Balkumari and Dhobighat of Lalitpur in 2017 January. It had agreed to construct processing plants to purify 68.70 million liters of contaminated water every day in two-and-a-half years. But the Chinese company failed to complete its task despite a number of extended deadlines. As of the latest revision, the company was supposed to complete construction of the structures by last July, a press note issued by the KUKL reads.
The SWSHS has completed only 27.1 per cent of the construction work in five years and three months’ period, the press note reads, adding that the company has also not been able to deploy adequate numbers of workers at the site, failing to renew the insurance policy and ignoring the guidelines of the authority, according to Project Implementation Directorate of KUKL.
The Chinese company was awarded the contracts for an estimated cost of Rs 3.92 billion. But the company has received payment of Rs 772.70 million over the period. According to KUKL, it scrapped the deposit amount of Rs 490 million maintained by SWSHS as the company failed to comply with the signed agreement.
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