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ECONOMY

MCA-Nepal calls for fresh bid to construct 440 kV transmission line

The tender process was completely canceled on October 12 after the lowest bid submitted by the companies was 66 percent higher than the cost estimate provided by the MCE. 
By REPUBLICA

KATHMANDU, Nov 27: MCA-Nepal has called for detailed procurement proposals for 400 KV power transmission lines under Millennium Challenge Corporation (MCC).


MCA-Nepal has issued a notice today inviting purchase proposals for plant design, supply, distribution, installation and testing.


The contract was canceled because the bidders offered a higher cost proposal compared to the estimated cost in the earlier bid. A new tender for the transmission line project has been called again. MCA Nepal is advancing the construction process by dividing the 315 km long transmission line project into three parts.


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The first lot of the transmission line includes the Lapsiphedi-Ratmate-New Hetauda section. The second lot includes Ratmate-New Damauli section and New Damauli-New Butwal-India border under the third lot.


The cost of construction of the new Ratmate substation is over Rs 6.88 billion. The electricity transmission lines, substations and road improvement projects are being implemented with the grant of $500 million from MCC and the contribution of $195 million from the Government of Nepal.


Among them, a 315 km long 400 KV transmission line, 400 KV three substations and a 77 km road upgrading project from Bhalubang in Dang to Shivkhola in Banke will be implemented.


Earlier on June 8 of last year, the transmission line was divided into three lots and the tenders were called, and five of the companies that proposed the construction were deemed technically qualified.


The tender process was completely canceled on October 12 after the lowest bid submitted by the companies was 66 percent higher than the cost estimate provided by the MCE. The New Butwal-Gorakhpur 18 km cross-border section of the transmission line has already been awarded a contract.


The MCA project, which must be completed in five years, or the American subsidy will be withdrawn, was implemented on August 29 last year.


Although the MCC agreement was signed between Nepal and America on August, 30, 2017, the implementation was delayed due to political obstacles. The government established MCA-Nepal in April, 2018 as the responsible body for the implementation of this project.


 

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