KATHMANDU, Dec 18: Italian firm Cooperativa Muratori e Cementisti (CMC) di Ravenna has won two other major contracts in the last 18 months, probably due to a good track record in the tunnel work in Melamchi. But the apparent attempt to abscond by key staff and also poor financial health back in Italy have put at risk one major independent power producer in Nepal.
Tanahu Hydropower Limited (THL), a subsidiary of Nepal Electricity Authority, picked the contractor recently for dam work at the 140 MW Tanahu Hydropower Project. But it has not yet mobilized the contractor and no advance payment has been made. The contract is worth Rs 18 billion.
NEA Managing Director Kulman Ghising informed that they were close to becoming a liability but are safe till now as no payment has been made. The project however may take some time to select another contractor.
“The company has been asked in Italy to pay all its debts within 60 days,” said Ghising. But Sahas Urja Limited (SUL), which is building the 86 MW Solukhola Dudhkoshi Hydropower Project, is believed to have landed in major trouble. It has awarded the Rs 11.86 billion project on an Engineering Procurement and Contract (EPC) model.
The contract price has not yet been made public but it is estimated that the company has already made a sizable payment.
SUL signed an agreement with CMC in June last year. Company Chairman Him Prasad Pathak did not receive calls or respond to SMS. Kumar Pandey, vice president of Independent Power Producers Association Nepal, confirmed that the project has landed in trouble as the contractor is in trouble.
Source: My Republica