Thursday, January 22nd, 2026

NEA warns Chinese contractors of canceling contracts following sluggish performance



KATHMANDU: Nepal Electricity Authority (NEA) has warned of canceling contracts awarded to Chinese contractors upon finding their work unsatisfactory in the construction of 220 KV substation in Barhabise, Sindhupalchowk.

Stating that there was negligence and delay in the construction of the 220 KV substation, NEA Managing Director Kulman Ghising warned the Chinese contractors to void the contract if the contractors did not improve their performance immediately.

After inspecting the construction site Sunday, Ghising said that the work of Chinese companies Guangxi Transmission & Substation Construction Company (GTSCC) and Shenzhen CLOU Electronics was not satisfactory. He also gave a four-month ultimatum to the contractors to improve performance.

Progress on the construction of Tamakoshi-Kathmandu high capacity transmission line and substation has been sluggish and is hampering efforts to supply electricity from the hydropower projects based in Khimti, Tamakoshi and Bhotekoshi river areas to Kathmandu.

NEA is also constructing 400 KV substations at New Khimti of Ramechhap, Barhabise and Lapsiphedi of Kathmandu under the project. The substation will have 220/132 KV, 160 MVA and 132/11 KV, five MVA power transformers.

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