Kulekhani III work yet to resume—this time because of workers’ agitation

HETAUNDA, MAR 20 -

Even after the agreement between the Nepal Electricity Authority (NEA) and contractor Sino Hydro over compensation and cost overruns, the stalled civil work of Kulekhani III Hydroelectricity Project (KTHEP) is yet to resume.

And this time, it is due to workers’ agitation.

Following the deal, the project management had asked the Chinese company to start the work from last Tuesday. However, as Sino Hydro was preparing to begin the work, workers went on strike.

“We haven’t been able to begin the work as workers have launched strike, putting forth several demands, including provident funds,” said a Sino Hydro official, adding that they made several attempts to bring workers back to work, but to no avail.

Gyanu Lama, the leader of agitating workers, said they will not let the work begin until their demands are met. “Workers and the contractor had held talks, but the problem remained unsolved,” he said.

KTHEP Chief Uttam Lal Amatya said as the contractor hasn’t been able forge consensus with workers in some issues.

A meeting between NEA and Sino Hydro on February 22 had decided that the government would promptly provide Rs 140 million compensation to the company and would extend the construction period by 30 months. It was also agreed that Sino Hydro would withdraw its case filed against NEA in the Lalitpur Appellate Court, seeking Rs 740 million in compensation.

Seeking a revision of the contract cost, the company on January 9 had unilaterally pulled out of the contract and filed a case against the NEA in a bid to secure its security deposit.

As per the contract, Sino Hydro was supposed to complete the civil work, including tunnel construction, underground reservoir and road construction, by December 7, 2011, but failed to meet the deadline. Instead, it demanded NEA for an additional three years time for the completion of the project, and NEA granted eight month extension.

Sino Hydro was awarded the Rs 1.08-billion contract in 2008, of which is has already received Rs 300 million. The contractor has completed 45 percent of the work so far.

Source: Kantipur