Electricity Authority scraps Dhalkebar substation construction contract with Chinese company

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    Kathmandu, October 3

    The Nepal Electricity Authority has scrapped the contract signed with Central China Power Grid for the construction of a substation in Dhalkebar of Dhanusha district citing the contractor did not obey the request to accelerate the construction.

    The Authority had been warning the company of terminating the contract upon failure to meet the expectations.

    The project chief Radhe Sharan Mahat informs that the Authority also seized s 300 million deposit of the contractor.

    Earlier, the CCPG had demanded that it be awarded contracts for construction of two new substations. It had halted the construction works at Dhalkebar time and again putting forth the demand.

    “But, we could not make any agreement except what we had agreed earlier as they could be against national interests,” Mahato says, “Instead, we chose to terminate the contract as the company disobeyed us.”

    So far, 90 per cent works have been over at the station which was supposed to come into operation as early as two years ago.

    Source : Online Khabar