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How did a controversial Chinese company get a contract to construct Fast Track?


14 November 2022  

Time taken to read : 4 Minute


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KATHMANDU: In what can be termed as yet another foul play, the Nepal Army (NA) has awarded the contract of the sixth package of the Kathmandu-Tarai-Madhesh Expressway (Fast Track) being constructed by the NA to China First Highway Engineering, a controversial Chinese contractor company.

On November 11, the Nepal Army issued a Letter of Intent (LoI) to China First Highway Engineering, which was disqualified in the global tender.

In the LoI, it has been said, “This is to notify you that it is our intent to award the contract for execution of the “Construction of Double Lane Dual Carriageway Standard Expressway Road, Bridge, Slope, Stabilization, Interchange, Toll Plaza, and Allied Works….to you as your bid price NPR 18,080,627,975.67 as corrected and modified in accordance with to instructions to Bidders is hereby is selected as substantially responsive lowest evaluated bid.”

Earlier, when the global tender was called under Package 6, and out of the total 12 construction companies submitting their proposals, five companies were selected of which China First Highway Engineering was not on the list.

Since the tender was called on 18th May, the Nepali Army had written a letter to the five companies that had passed the technical proposal on 16th August, asking them to open the financial proposal on August 31.

Meanwhile, the China First Highway Engineering Company, despite being rejected, filed a complaint with the Public Procurement Review Committee saying that it was unfair that it was not allowed to participate in the tender.

This led to the postponement of the financial proposal on August 31 because of what has been termed “manipulation of power centers” on the side of the Chinese company.

It also has been revealed that the Public Procurement Review Committee sent a letter to the NA asking it to allow the China First Highway Engineering Company to participate in the tender.

Sources also claim that after the company filed an appeal in the Public Procurement Review Committee, the NA gave the LoI to the controversial Chinese company under pressure from the chairman of the committee, Mohan Krishna Sapkota.

The companies, which were rejected, are, meanwhile, preparing to appeal at the court against the Public Procurement Review Committee’s decision.

The controversial China First Highway Engineering Company submitted a financing proposal of Rs 18 billion 786 million, while secondly, India’s Afcons Infrastructure Limited submitted a proposal of Rs 19 billion 99 million 49 million.

Similarly, China Overseas Engineering Company Limited, China Railway No. 2 Engineering Group Company submitted a proposal of Rs 20 billion 46 million 86 million and Sino Hydro Corporation Limited, Power China Chengdu Engineering Corporation Limited offered Rs 22 billion 16 million 84 million.

Similarly, China State Construction Engineering Company offered Rs 27.58 billion and Polichangda Engineering Company Rs 42.8 billion 14 million rupees.

The Chinese, which was not even competent technically, was asked to submit an application for review to the Public Procurement Review Committee, and the tender was awarded on the basis of influence or pressure.

Also Read:

NA suspends Chinese contractors for failing to expedite Fast Track construction

Nepali Army approves designs of tunnels to be built along Kathmandu-Terai Fast Track

Parliamentary committee directs line ministries to complete ‘fast track ‘ on time

Publish Date : 14 November 2022 06:12 AM

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