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MCC board rejects speculative schedule for transmission line project

Transmission line project - MCC - MCA

Kathmandu, December 4

The Board of Directors meeting of the Millennium Challenge Account Nepal (MCA) has directed a reassessment of the proposed timeline for the procurement and construction of the transmission line project.

Chief Executive Officer Khadga Bahadur Bista informed that the procurement plan and schedule have been made so that it will take more than one and a half years to start the construction of the transmission line project.

However, during the board meeting, concerns were raised about what was perceived as a lack of urgency and commitment from the MCA management towards the project. The board instructed the management to revise the proposed schedule and submit a new proposal.

During the meeting, board members also issued a warning to the management, stating the importance of avoiding a lax procurement plan and work schedule that could potentially jeopardise the entire project.

Read also: MCC dispute in Nepal: Your FAQs answered

A board member told Onlinekhabar that during a meeting convened two months after the cancellation of the MCC transmission line project contract, CEO Bista acknowledged his inability to promptly inform the board about the contract’s termination. The member said Bista clarified that, by MCC regulations, he possessed the authority to cancel the contract and had made the decision following discussions with MCC.

During the MCA board meeting on September 20, the MCA management was directed to present potential solutions to address the issue arising from the tender being awarded at a price 66 per cent higher than the cost estimate.

Surprisingly, on October 13, MCA declared the contract’s cancellation without prior discussion with Finance Minister Prakash Sharan Mahat and Board Chairman Finance Secretary Krishna Hari Pushkar. This unilateral decision led to dissatisfaction within the Ministry of Finance, and coupled with the perceived indifference of the MCA management, it resulted in a delay in the board meeting.

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