The construction of the tunnel had halted after the Chinese firm, which had bagged the contract for the construction of tunnel, terminated its contract in September, 2012 citing problems over payment and lack of support from the board. [break]
According to a knowledgeable source at MWSDB, as many as four international companies have already submitted their technical proposals to the board. These proposals have already been forwarded to Asian Development Bank and JICA for assessment.
“The selection of a new construction company will be finalized within a month after one of the technical proposals is approved,” said MWSDB Executive Director Krishna Prasad Acharya. He added that the donor agencies would approve one of the technical proposals within a few days.
Of the companies that have applied for the contract, three are Chinese and one Italian, said the source, adding, as the Chinese companies have quoted a lower price, chances of the Chinese company bagging the contract are higher.
Though the Chinese contractor China Railway 15 Bureau Group Corporation had promised to complete the entire project by the end of 2013, it had completed only six kilometers of the 27 km diversion tunnel in the last three years.
The Chinese company had been awarded the Rs 4 billion worth contract in 2009 and the company has already taken Rs 58 million.
The board also informed that the construction cost of the tunnel may further go up.
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