KATHMANDU: The cancellation of a contract process for a 400 KV transmission line to be constructed under the MCC grant has created uncertainty about how and when the construction will initiate.

Issuing a notice on October 13, the Millennium Challenge Account Nepal Development Committee (MCA-Nepal) scrapped all contract processes relating to the construction of the transmission line. The contract called for the construction of a transmission line that included the areas Lapsephedi-Ratmate-New Hetauda (first lot), Ratmate-New Damauli (second lot), New Butwal-Nepal/India border area (third lot).

The MCA-Nepal has shared that the contract process was scrapped due to the higher cost proposed for construction than the initial estimated cost. It has resulted in the uncertainty of how and when the 400-KV transmission line of a total 315 km would advance.

What are the legal bases to take ahead of the contract and when the re-tendering would be made are not scheduled.

Responding to these queries, MCA-Nepal informed that a plan was already in place on how they could move ahead after the cancel cancellation of the contract of the mega project. “With the feedback from the market, MCA-Nepal has been collaborating with the MCA for the successful procurement. With the coordination among technological experts, MCC, and the Nepal government, it will be carried out in an efficient and timely manner. MCA-Nepal is committed to ensuring the construction of this mega project in line with the environmental and social standards of MCA-Nepal and MCC.”

Although the MCA-Nepal claims timely construction of the project, the hassles of the contract process have created uncertainty over it. The contract which is scrapped now was called on November 28, 2022.

It took nearly a year to evaluate the proposal. It is not sure when the next tender will be announced. It is however claimed that the project will be completed in five years.

RSS