TANAHU, Dec 23: The ripples of the latest scandal of CMC, the Italian construction contractor of Melamchi Water Supply Project, are being seen in Tanahu Hydropower Project, another project undertaken by the same company.
The company had won the contract to construct dam-site for the 240-megawatt project, through a tender bid.
The company had got the contract for Rs 20.64 billion, with responsibility to develop an alternative pathway for the river and construct first package of buildings for the mega project.
However, the recent scandal involving the company has stirred up distrust among the involved parties.
Bidur Adhikari, site in-charge for the project, said: “The activities of the CMC have created confusion about the project. We are closely watching the next move of the company. But we don't know if the company will back out from the deal or not."
"The project will move forward in a different manner if the rumor that the company has gone bankrupt comes out to be true," Adhikari said.
Locals are not sure whether the company will finish its work on time. Bikas Ale, a resident from Krishing 1, said: "The current status of the hydro project and the scandals about CMC have left us worried."
Adhikari also said that the preparation to start the first phase of the project was complete that included the completion of access roads and temporary worker's residence. "The process of giving compensation to the affected people is also in the last stage," he added.
Out of a total investment of US$ 505 million, Asian Development Bank has contributed $ 250 million; Japan International Cooperation Agency $ 284 million, and Nepal Electricity Authority $ 87 million.