NEA scraps contract with Chinese firms building Khimiti-Bahrabise transmission line

Kathmandu, December 30

Nepal Electricity Authority has scrapped its contract with two Chinese firms working on the Khimti-Bahrabise section of the Tamakoshi-Kathmandu 400 KV transmission line accusing the company of violating the deal’s terms and conditions.

Guangxi Transmission & Substation Construction Company and the Shenzhen Clou Electronics Co Ltd,  were awarded the contract for the construction work two years ago. However, the company, which was awarded Rs 616,736,000 contract, did not start work on time, the NEA has alleged.

“We annulled the contract a few days ago. We have seized the security deposit they presented during the signing of the agreement,” said project chief  Nawaraj Ojha said. The NEA will not return the Rs 205 million the companies deposited as security.
The NEA signed a contract with the two companies on September 27, 2016 and the work was expected to be completed by May 2019.

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