Contractor evaluation of upper tamakoshi resumes

Sun, Aug 28, 2011 12:00 AM on Others, Others,
KATHMANDU, AUG 28 -
Upper Tamakoshi Hydropower Limited (UTHL) has decided to resume the process of evaluation of contractors for Mechanical and Electrical Equipment (Lot 3) of the 456 MW Upper Tamakoshi Hydro Electricity Project.

The UTHL board meeting on Friday took the decision after the Commission for the Investigation of Abuse of Authority (CIAA) and Public Procurement Monitoring Office (PPMO) gave the go ahead. The Lot 3 includes design, manufacture, supply, erection, testing and commissioning of turbine, generators, transformers, and switchgear.

Touted as the project of national importance, Upper Tamakoshi’s Lot 3 bidding was embroiled in controversy after Austria’s ANDRITZ Hydro GmbH, which had bid the lowest among the six pre-qualified contractors, included its Indian subsidiary as its partner.

Sources at the Ministry of Energy (MoE) said UTHL decided to move ahead with contract awarding process after CIAA on Wednesday directed it to carry out the process as per the law. “The evaluation process has been resumed after the nod of PPMO and CIAA,” said a ministry source.

Although the evaluation process of the pre-qualified bidders for the LoT 3 contract was supposed to start much earlier, it was halted soon after UTHCL announced the name of six the pre-qualified companies on the third week of May. Competing pre-qualified companies had filed a complaint at CIAA against ANDRITZ Hydro GmbH over the inclusion of its Indian subsidiary Andritz Hydro Pvt Ltd. According to them, the Austrian company breached its earlier commitment to qualify as a single company.

The competing companies say Andritz did not inform about its joint venture with Andritz Hydro Pvt Ltd India at the time of submission of application. But UTHCL said ANDRITZ had mentioned that it would involve its Indian subsidiary after it gets a nod for the contract.

The Austrian company has quoted Rs 6.46 billion for the import of mechanical and electrical equipment, while the second lowest bidder—ALSTOM India—has quoted Rs 6.74 billion.

With resumption of the evaluation process, UTHL will examine technical and financial proposal of the pre-qualified companies. “It is not that the contract has been awarded,” said the source. “Only the evaluation process of the pre-qualified companies has begun.”

The UTHL board has also decided to award the contract of Lot 2. According to MoE sources, there was only one company—Texmaco India—for the Lot 2, so it won the contract.

Sources say work on UTHL is three months behind the schedule. And, its civil contractor has already applied for the time extension. However, the consultant hasn’t agreed the civil contractor’s proposal. The construction of Upper Tamakoshi project, the country’s largest hydel project till date, had formally started on May 18 with Prime Minister Jhala Nath Khanal laying the foundation stone.

The estimated cost of the project located in Dolakha is Rs 35.29 billion and it is expected to be completed by 2015. The project is the first to be commissioned through the mobilisation of national capital. The government, public enterprises and financial institutions, including Nepal Telecom (NT), Employees Provident Fund (EPF), Rastriya Beema Sansthan (RBB), and Citizen Investment Trust (CIT), have invested in the project. EPF has given a loan of Rs 10 billion and NT Rs 6 billion, while EPF and CIT are lending Rs 2 billion each.

Meanwhile, the company has also made public the names of shortlisted companies for the management team of UTHL and has asked the companies to submit technical and financial proposal in this regard by September 27, 2011. The two shortlisted companies are SNC Lavlin Inc, Canada, and SMEC International Pty, Australia.

Source: Kantipur