“The board meeting has asked the management to revise the TOR and qualifications and propose it to the board for approval to float another bid,” said Project Director and Officiating Chief Executive Officer Mrigendra Bahadur Shrestha following the board meeting Wednesday morning. [break]
The board meeting has decided to annul the previous bid which had just two international companies showing expression of interest (EOI) until the deadline of February 2. Snowy Mountain and Engineering Corporation (SMEC), Australia and Fichtner Engineering and Consulting Services, Germany were the only companies to express interest for the bidding process which needs to have at least three applicants to be valid as per the Public Procurement Act 2007.
The German firm Fichtner had earlier worked for the 70 MW Mid Marsyangdi project as a consultant while SMEC is the major promoter of 750 MW West Seti Hydropower Project.
Shrestha didn´t reveal the specific points of amendment in the TOR and qualifications, but said the review would simplify them so as to attract maximum bidders. “We aim to attract at least seven-eight bidders so that we can select from them to prepare a short list and ask the short-listed ones to present their proposal,” Shrestha explained. He said the amended proposal would be presented to the board in the next couple of days to facilitate quick floating of the next bid.
The UTKHPL had published an advertisement in The Economist on January 15 making it the first public sector hydroelectricity project in the country to seek foreign management team as per the loan agreement with the EPF which set pre-condition of a competent management team comprising national/international firms or individuals appointed through global competition.
The 456 MW project to be constructed in Lamabagar, Dolakha had earlier courted controversy after the Ministry of Energy appointed Dr Arjun Karki as the executive chairman of UTKHPL on August 6, 2010 in violation of the loan agreement.
Then Energy Minister Dr Prakash Sharan Mahat had scrapped Karki´s appointment and the Supreme Court had later upheld the minister´s decision on September 3 to ensure that the loan agreement would be complied. The foundation stone laying program of the project scheduled on January 27 had also been postponed apparently due to Maoist resistance.
The daily peaking run-of-the-river project will be the largest hydropower project once it comes into operation and will provide 456 MW electricity for four hours a day even during the dry season.
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