KATHMANDU: The Nepal Electricity Authority (NEA) has terminated its contract with Shuifa ANHE Group, the builder of the Upper Trishuli 3B hydropower project, boasting a capacity of 37 MW.

The decision to sever ties with the Chinese company was made by the NEA’s Upper Trishuli 3B Hydropower Company, citing severe delays and negligence in the project’s construction.

Approximately 66 percent of the project, situated in Rasuwa and Nuwakot, has been completed, but recent work stoppages have halted progress.

Following the contract termination, the Authority also seized both the bank guarantee and performance guarantee.

The responsibilities of the contractor company included designing, building, installing, and operating all structures and equipment related to the civil, electromechanical, and hydro-mechanical aspects of the hydropower project.

Notably, 154,559 common people hold shares in the promoter company of the project, which falls under the People’s Hydropower Program.

The construction faced a 15-month hiatus due to Chinese workers returning home to celebrate the New Year four years ago, only to be stranded by the Covid-19 pandemic.

The subsequent inability to import necessary equipment and materials from China further contributed to delays.

Although construction resumed in 2077BS, progress continued to lag behind schedule.