NEA scraps contract with Indian firm, seizes guarantee of $3.57m


Nepal Electricity Authority has terminated the contract with Icomm Teli Ltd — the Indian contractor of 220 kVA Hetauda-Bharatpur-Bardaghat transmission line project — after the company failed to carry out the designated works properly.

Moreover, NEA has also seized the performance guarantee worth $3.57 million of the Indian company and decided to penalise the company $1.6 million for delaying the transmission line project.

Kulman Ghising, managing director of NEA, informed the contract was scrapped with Icomm Teli Ltd as it completely halted construction works of the project by going against the agreement.

“There is no obstacle in the project site. However, the contractor not only stopped project works, but also ignored NEA’s frequent calls to continue project works and also did not respond to numerous letters sent by NEA,” informed Ghising, adding that the activities of Icomm Teli Ltd were not only against the pact but the contractor’s performance was also unsatisfactory since the beginning itself.

Meanwhile, Ghising also informed that NEA is finalising the process to hire new contractor for the project and a global tender for project will be announced soon.

NEA had signed an agreement with Icomm Teli Ltd in 2008 to construct the 74-kilometre-long 220 kVA Hetauda-Bharatpur-Bardaghat transmission line project at an estimated cost of $9.6 million.

Out of 226 towers that fall under this section, the Indian contractor has already developed the base for 168 towers and 119 such towers have been erected since 2008.

Following unsatisfactory performance from the Indian contractor, a year ago NEA had appointed Chinese firm Hengtong Optic-Electric to complete the works along Bharatpur-Bardighat section. The pact was signed at $5.5 million. Of the 246 towers that need to be built under this section, the Chinese firm has already fixed 137 towers.

Source : The Himalayan Times.