KATHMANDU, Oct 31: Seven international companies have submitted applications to undertake the construction of three substantial substations planned under the Millennium Challenge Corporation (MCC) compact. The Millennium Challenge Account Nepal Development Committee (MCA-Nepal) announced that seven companies have responded to the call for bids to construct a 400 KV substation, as outlined in a public notice issued on March 24.
The competition attracted companies from three countries, including five from India. Notably, the Indian company Techno Electric and Engineering Company Limited has applied for both Lot 1 and Lot 3, responsible for the construction of three substation lots. Linson India Private Limited, also an Indian firm, has submitted applications for all three lots. Additionally, India's Tata Project Limited has entered the tender for Lot 2.
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Siemens Limited, another Indian company, has expressed interest in all three lots, and KIC International Limited from India has also applied for all three lots. Furthermore, the National Contracting Company of Saudi Arabia has participated in the bidding process for Lot 2 and Lot 3, while the joint venture of Betas & JetNCC from Turkey and Afghanistan has applied for Lot 2.
The company selected through this competitive process will be tasked with designing and constructing the transmission line. MCA Nepal had initially set a deadline of June 30, 2023, for the first tender, and the estimated budget for the substation is approximately $114 million, equivalent to around NPR 15 billion.
However, it's worth noting that the transmission line construction contract under the MCC project has been canceled. Initially, the project envisioned the construction of 315 double circuit kilometers of transmission line at an estimated cost of $226 million. The contract process was terminated due to the companies' offers, which came in at $9,145,348,000, representing a 66 percent increase over the estimated cost. This decision was communicated by MCA Nepal on October 13, leading to the cancellation of all contract-related processes associated with the transmission line.
Previously, MCA Nepal had divided the 315 double circuit kilometer transmission line projects into three sections, soliciting bids. The bid opening for transmission line construction occurred on May 22, with six companies participating. Out of these, only five firms met the technical qualifications. The MCC's "Entry into Force" was set for August 30, and the project must be completed within five years. MCA Nepal had also invited international bids for the construction of the transmission line, with a November 27 deadline.
