Melamchi Water Project Tunnel Work: Contractor appointment process running behind schedule

KATHMANDU, MAR 17 -

Despite the government’s commitment to expedite the Melamchi Drinking Water Project (MDWP), the process of appointing a new contractor for tunnel construction is running behind schedule.

The Melamchi Water Supply Development Board (MWSDB), the project’s implementing agency, has not yet begun the financial analysis of interested companies that are competing for the tunnel contract. Fresh applications were sought after the previous contractor exited midway.

MWSDB officials said the contractor selection process delayed because the Asian Development Bank (ADB), the major donor of the project, took longer time to decide which companies among the competing ones to be shortlisted.

Although 19 companies had purchased bid documents, only four submitted their proposals to the project by Jan 21, the deadline. The four companies are China International Water and Electric Corporation, Sino Hydro Corporation, China Overseas Engineering Group from China, and CMC Cooperativa Muratori e Cementisti di Ravenna from Italy.

The board then begun technical analysis on the proposals submitted by these four companies on Jan 22. “Following the technical analysis of the four companies, the board has even shortlisted some of them,” said a high-level MWSDB official, without naming the shortlisted companies. “But the board cannot move ahead the donor’s approval.”

The board had initially planned to select a contractor by this time. “We, however, are yet to begin the financial analysis of the shortlisted companies,” said the official.

“Even after ADB’s approval of the shortlisted companies now, it will take at least a week to begin the financial analysis of their proposals. The analysis will again take some two weeks to complete.”

The official said the board had aimed to sign the final memorandum of understanding (MoU) with the new contractor in mid-April. “But with this pace of work, we fear the MoU signing deadline will be missed,” he said. The contract period for the new contractor will be 36 months.

Source: The Kathmandu Post