With the agreement, the implementation of the largest state-owned operator has begun nearly 15 months after invited the tender.[break]
NT had initially decided to awarded the project in different phases -- Package A (5.2 million lines) and Package B (4.8 million lines) -- to different vendors. However, it had not option but to award the entire project to Huawei after another Chinese vendor ZTE cold-shouldered the project, citing lower costs.
As per the agreement, Huawei will supply, install and commission the 5.2 million GSM lines within two years at the cost of Rs 9.89 billion. NT and Huawei had signed the pact worth Rs 6.74 billion for Package B about eight months ago.
Amar Nath Singh, managing director of NT and Huawei´s solution manager Huang Aihuwa and account manager Roshendra Khadka jointly signed the agreement on behalf of their respective organizations on Thursday.
Speaking at a media briefing on Friday, Singh termed signing of the agreement as historic and said it would help NT be more competitive in the market. He also said the new GSM lines would help the state-owned operator increase its market share and retain No. 1 position in country´s GSM market.
David Huang, acting CEO of Huawei, Nepal said the firm was very happy to be associated with NT´s largest project. “We are one of the oldest vendors of NT and are very glad to be working in this project,” he added.
The bid for the ´Package A´ was originally won by another Chinese vendor ZTE. But it later pulled out after NT turned down its request to raise the cost for implementing the project. After seizing ZTE´s bid bond worth Rs 420 million, NT had offered the project to Ericsson. But the Swedish vendor, which had quoted the highest price among the three bidders, also cold-shouldered the NT´s request.
Under Package A, NT plans to start distribute 2G, 3G and 4G lines in rural and hilly areas of central, eastern, far-western and mid-western development regions.
Singh said the distribution of new lines would begin within eight months.
Likewise, NT is targeting to distribute lines under Package B by the end of current fiscal year.
As per the agreement, Huawei will also provide maintenance facility for five years once the new line becomes operational.
Related story
Empowering digital Nepal through connectivity and data
