Contractor for Rahughat hydro project demands more money
MYAGDI, JAN 02 -
IVRCL Infrastructure, the India-based contractor building the Rahughat Hydroelectricity Project, has stopped work for the last one month demanding a revision of the contract amount. IVRCL has been carrying out the civil engineering work at the 32 MW project located in western Nepal for the last two years. The company has been contracted by the Nepal Electricity Authority (NEA) to construct a 12-km access route, a 7-km tunnel, powerhouse, dam and search tank, among other structures. The Rahughat Hydroelectricity Project is funded by a grant and soft loan from the Indian government.
Raj Bista, a civil engineer who is also the site in-charge, said that the contractor had created hassles at a time when the main engineering work was supposed to start. According to him, the project has already acquired a resident quarter, crusher plant and land as per their agreement. “We have sent a letter requesting the contractor to start the construction work soon,” he added.
IVRCL has stopped work on the project demanding a review of the price. The contract for the Rahughat Hydroelectricity Project is worth Rs 2.5 billion. According to the NEA’s site office, the contractor has asked for a review of the workers’ wages, transport charges and cost of construction materials saying that almost all of them have become dearer compared to the rate agreed in 2010 when the contract was signed.
Meanwhile, IVRCL has denied halting work on the project. “The work is going on at a slower pace, but it has not been stopped completely,” said the company’s administrative manager Udaya Bindu Sharma. He declined to comment on the talks going on at the higher levels. “We have not received any information on stopping the construction work,” he said.
As per the agreement, a crusher has already been installed at Piple, Chamere. Likewise, the track road from Piple-Mauwafaat has been constructed. IVRCL, however, has blamed the stakeholders for hindering the company’s work. The dispute has reached the high-level committee that includes the contractor’s representative, NEA chief, chief secretary, finance secretary and energy secretary. Although the Rahughat Hydroelectricity Project is a highly anticipated project by the locals, political parties, civil society and entrepreneurs, the dispute between the NEA and the contractor has delayed completion of the project.
Pramod Shrestha, central member of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said a solution to the disagreement is being worked out at the central level. “It will be unfortunate if the project were to be discontinued under any pretext,” he said.
Source: The Kathmandu Post
