Nepal’s NEA scraps contract with two Chinese firms

State-owned power company Nepal Electricity Authority (NEA) has scrapped its contract with two Chinese firms working on the Khimti-Barhabise section of the Tamakoshi-Kathmandu 220/400 kV Transmission Line Project for violation of the terms and conditions of the contract. The project will be located in the mountainous regions of Nepal, and include the 220/400 kV Khimti-Barhabise line; the Barhabise substation and bay extension at the new Khimti substation; the 220/400 kV Barhabise-Kathmandu line; and substations at Lapsiphedi (Bojini) and Changunarayan. On September 27, 2016, a joint venture (JV) of the Guangxi Transmission and Substation Construction Company and Shenzhen Clou Electronics Company Limited won the contract for the construction of the project at a bid of NPR 616.74 million, and the work was expected to be completed by May 2019. However, the companies failed to start construction on time. Considering this, the NEA annulled the contract and seized the NPR 205 million security deposit of the Chinese companies.

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