The state-owned telecom operator has also seized ZTE´s bid bond of Rs 420 million after the Chinese telecom systems and equipment supplier kept on deferring the day for final agreement for delivery and installation of equipment for 5.2 GSM lines. [break]
According to NT officials, officials of ZTE were requesting the NT to raise contract amount saying that it was not in a position to execute the project at the previously agreed cost.
Another Chinese vendor Huawei has already signed final agreement with NT. It has already started works to install 4.8 million GSM lines. Huawei had bagged the contract at around Rs 6.74 billion. ZTE had initially agreed to install 5.2 GSM lines at the price quoted by Huawei.
“We have issued Letter of Intent the letter to Ericsson as it had quoted the third lowest bid for the project,” an NT official said.
After Huawei bagged the contract for 4.8 GSM lines, NT had awarded contract for remaining lines to ZTE which had quoted the second lowest bid.
According to the official, NT has given Ericsson a week to respond to its letter of intent. Although the rate quoted by Ericsson is more than double the rate quoted by Huawei, NT is planning to award the tender only if it agrees to execute the project in the rate quoted by Huawei.
“If Ericsson cold-shouldered our call, we will ask Huawei to implement the second phase of the project as well,” the official said. “We will go for re-tender if none of the vendors showed interest in the project.”
The first phase of project covers urban areas, including Kathmandu and Pokhara. The second phase requires the vendor to install and deliver the service in hilly and rural areas of the country. Although the first phase of the project will address the demand in urban areas, the uncertainty of the second phase is likely to hit rural areas.
“We will not be in a position to deliver services in all parts of the country if the second phase of the project is delayed further,” the official added.
If NT fails to complete the project in time, it might lose business in rural areas as private operators, including Hello Nepal, are already focusing on rural areas.
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