Two months after cancellation of contract, progress stalls on MCC's Transmission line new process

Published On: December 12, 2023 09:15 PM NPT By: Republica | @RepublicaNepal

KATHMANDU, Dec 12: Two months after the cancellation of the transmission line construction contract under the popular US aid project Millennium Challenge Corporation (MCC) project, the new contract process has not yet started.

The contract was canceled after the Millennium Challenge Account Nepal (MCA-Nepal) Development Committee submitted proposals that were almost 66 percent higher than the estimated cost on October 13.

Under the project, US $ 226 million was estimated for the construction of 315 double circuit kilometers of transmission line. Two months after the cancellation of the contract, there are still doubts that the MCC project will be stalled if the new process continues.

The MCC project has been implemented for five years since last August 30. There is a mandatory condition that the construction of the MCC project should be completed within five years. If the new contract process does not go ahead, there is still a suspicion that the construction of the MCC project will not be completed within the specified time, just like other projects.

The MCA-Nepal Development Committee recently issued a press release to the Ministry of Finance, MCC and its management to successfully re-bid the transmission line infrastructure construction work under the power transmission project of the MCC Nepal Compact Program.

“In line with its commitment to transparency and financial responsibility, MCA-Nepal has published detailed guidelines for its procurement process and criteria as well as the results of the recent transmission line procurement process,” said in a statement issued by MCA-Nepal, “And it is working closely with the Ministry of Finance, its Board of Directors and MCC to address the complex technical, social responsibility and legal aspects of retendering as well as find all possible ways to speed up the procurement process.”

MCA-Nepal has stated that it is committed to ensure that the electricity transmission line is built within the stipulated time and budget according to MCC's environmental and social standards and to notify the public about the next step as soon as the decision is made.