NEA warns of contract termination citing unsatisfactory work progress

Published On: May 28, 2023 05:30 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, May 28: The Nepal Electricity Authority (NEA) has warned a contractor company to cancel the contract, stating that the work progress is unsatisfactory.

Kulman Ghising, the managing director of the NEA, issued this warning while inspecting the under-construction substation at Thanabharyang in Hetauda Sub-metropolitan City of Makwanpur on Saturday. He gathered information regarding the construction progress of the 400kV, 220kV, and 132kV substations that are currently being built.

During a monitoring visit in March, Ghising warned of contract cancellation due to the lack of progress in the construction of the 220 kV substation. At that time, the contractor company promised to complete the substation by June. However, contrary to their commitment, no progress has been observed at the construction site.

Ghising instructed the company's representatives to come to Kathmandu immediately for a joint meeting. If that is not possible, the contract would be terminated. Due to unsatisfactory work by the Chinese company Central China Power Grid International Economic and Trade, the NEA terminated the contract and entered into an agreement with a joint venture between Siemens Limited and Telmos Electronics on December 20, 2018, through a tender to complete the remaining work.

In this project, the construction of a 220 kV substation in Inaruwa, Sunsari, was also affected by the COVID-19 pandemic. The target was to complete it by June 2023.


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