Indian companies lead the way in bidding for Nepal’s substation construction

KATHMANDU: Seven international companies have applied for the opportunity to construct three significant substations, part of the Millennium Challenge Corporation (MCC) compact. The Millennium Challenge Account Nepal Development Committee (MCA-Nepal) revealed that seven firms have answered the call for proposals to build a 400 KV substation, in line with the public notice issued on March 24.

The competition attracted interest from companies across three different nations, with five of them hailing from India. Notably, Techno Electric and Engineering Company Limited, an Indian company, submitted applications for both Lot 1 and Lot 3, which oversee the construction of the three substation lots.

Linson India Private Limited, another Indian firm, applied for all three lots. Additionally, Tata Project Limited, also from India, entered the bidding for Lot 2.

Siemens Limited, yet another Indian company, has expressed interest in all three lots, and KIC International Limited, also from India, has submitted applications for all three lots. Furthermore, the National Contracting Company of Saudi Arabia joined the bidding process for Lot 2 and Lot 3, while the joint venture of Betas & JetNCC from Turkey and Afghanistan applied for Lot 2.

The chosen company from this competitive process will be entrusted with the design and construction of the transmission line. Initially, MCA Nepal had set a deadline of June 30, 2023, for the first tender, and the estimated budget for the substation amounts to approximately $114 million, equivalent to around NPR 15 billion.

However, it is essential to note that the contract for the construction of the transmission line under the MCC project has been canceled. Initially, the project aimed to construct 315 double circuit kilometers of transmission line at an estimated cost of $226 million.

However, the contract process was terminated due to the companies’ offers, which came in at $9,145,348,000, representing a 66 percent increase over the estimated cost. MCA Nepal communicated this decision on October 13, leading to the cancellation of all contract-related processes linked to the transmission line.

Previously, MCA Nepal had divided the 315 double circuit kilometer transmission line projects into three sections, calling for bids. The bid opening for the transmission line construction took place on May 22, with the participation of six companies. Out of these, only five firms met the technical qualifications.

The MCC’s “Entry into Force” was scheduled for August 30, and the project must be completed within five years. MCA Nepal had also invited international bids for the transmission line construction, with a deadline of November 27.