KATHMANDU: The cancellation of a contract process for 400kV transmission line to be constructed under the MCC grant has created uncertainty about how and when the construction will be initiated.
Issuing a notice on October 13, the Millennium Challenge Account Nepal Development Committee (MCA-Nepal) scrapped all contract processes relating to the construction of the transmission line. The contract was called for the construction of transmission line that included the areas Lapsephedi-Ratmate-New Hetauda (first lot), Ratmate-New Damauli (second lot), New Butwal-Nepal/India border area (third lot).
The MCA-Nepal has informed that the contract process was scrapped due to the higher cost proposed for construction than the initial estimated cost. It has resulted in the uncertainty of how and when the 400kV transmission line of a total of 315km would advance.
MCA-Nepal informed that a plan was already in place on how they could move ahead after the cancellation of contract of the mega project. "With the feedback from the market, MCA-Nepal had been collaborating with the MCA for successful procurement. With the coordination among technological experts, MCC and the Nepal government, it will be carried out in an efficient and timely manner. MCA-Nepal is committed to ensuring the construction of this mega project in line with the environmental and social standards of MCA-Nepal and MCC."
Although the MCA-Nepal claims timely construction of the project, the hassles of the contract process have created uncertainty over it. The contract which is scrapped now was called on November 28, 2022.
It took nearly a year to evaluate the proposal. It is not sure when the next tender will be announced. It is however claimed that the project will be completed in five years.
