MCC-backed transmission line project contracts scrapped in Nepal

KATHMANDU: All contracts related to the transmission line project under the Millennium Challenge Corporation (MCC) have been officially terminated, as announced by the Millennium Challenge Account (MCA) Nepal. The decision to cancel these contracts was communicated on Friday.

The primary reason for the contract cancellations, as cited by MCA Nepal, was the significantly higher cost proposed by the bidders in comparison to the initial cost estimates made prior to the bidding process.

Consequently, a fresh tender will need to be initiated for the transmission line project. The proposal to cancel the process was put forth by MCA Nepal after the lowest bid in the tender came in at a staggering 66% above the original cost estimate. This proposal was subsequently approved by the MCC headquarters.

MCA Nepal had previously invited bids for the construction of a 315-kilometer long transmission line project, which was divided into three distinct segments. The tender, which was officially opened on June 8th, attracted submissions from six different companies.

Out of these, only five firms were deemed technically successful. These companies included India’s Kalpataru Power Transmission Limited, Transrail Lighting Limited, Tata Projects Limited, KEC International Limited, and Larsen & Toubro Limited, all of which had submitted proposals for all three project packages.