Upper Tamakoshi Hydro Electricity Project: Contract hurdle to go in a week: Officials

KATHMANDU, AUG 16 -
The process of choosing contractors for the Mechanical and Electrical Equipment of the 456-MW Upper Tamakoshi Hydro Electricity Project (UTHEP) will end in a week, according to officials.
Due to the delay in the detailed evaluation process and the awarding of the contract for Lot-3 of the country’s biggest hydel project for more than one month, construction work at the UTHEP is not moving ahead as expected. This has also raised serious concerns over the project’s execution by 2015.
The Parliament’s Public Accounts Committee (PAC) on Monday directed the Upper Tamakoshi Hydropower Company Limited (UTHCL) to expedite the project work and give a go-ahead to the eligible bidder for Lot-3: Mechanical and Electrical Equipment as early as possible.
The committee has allowed the company to accelerate the construction of the project and award the contracts to bidders.
According to PAC secretary Som Bahadur Thapa, the PAC has already directed the company to start the process to award the contract for Lot-2: Hydro Mechanical Equipment and Lot-3 of the project at the earliest. “It will take more time if we evaluate the proposals again and take a decision. As such, we have directed the promoter to take the decisions. If loopholes appear in the selection process, we are here to look into it,” Thapa said.
On May 20, the UTHCL had invited tenders for Lot:3 of the project where the ANDRITZ Hydro GmbH, Austria, had bid the lowest amount among the six pre-qualified contractors.
However, when the company was evaluating the contract, the process came to a halt after other competitors lodged complaints at the Commission for Investigation of Abuse of Authority (CIAA) and the PAC. They said ANDRITZ Hydro GmbH had included its Indian subsidiary company as its partner.
According to the complaints, the Austrian company breached its earlier commitment to qualify as a single company and that the ANDRITZ has said that it would involve its India-based partner to carry the specified work once it is shortlisted.
However, UTHEP Project Manager Mrigendra Shrestha said the Austrian company, in its earlier proposal, had mentioned that if it will involve its Indian subsidiary partner it it gets a nod for the specified contract.
The Public Procurement Act has already given a nod to the evaluation process to finally approve the Austrian company.
“We are in the process of briefing the monitoring agencies concerned and other stakeholders on the ongoing differences over the decision of the contracts. We hope to sort out all the differences by next week and go for the final evaluation process,” Shrestha said. The UTHEP is being touted as the country’s cheapest project so far and is being commissioned through the mobilisation of the national capital. The project worth Rs 32 billion is expected to be complete by 2015.
Source: Kantipur
The process of choosing contractors for the Mechanical and Electrical Equipment of the 456-MW Upper Tamakoshi Hydro Electricity Project (UTHEP) will end in a week, according to officials.
Due to the delay in the detailed evaluation process and the awarding of the contract for Lot-3 of the country’s biggest hydel project for more than one month, construction work at the UTHEP is not moving ahead as expected. This has also raised serious concerns over the project’s execution by 2015.
The Parliament’s Public Accounts Committee (PAC) on Monday directed the Upper Tamakoshi Hydropower Company Limited (UTHCL) to expedite the project work and give a go-ahead to the eligible bidder for Lot-3: Mechanical and Electrical Equipment as early as possible.
The committee has allowed the company to accelerate the construction of the project and award the contracts to bidders.
According to PAC secretary Som Bahadur Thapa, the PAC has already directed the company to start the process to award the contract for Lot-2: Hydro Mechanical Equipment and Lot-3 of the project at the earliest. “It will take more time if we evaluate the proposals again and take a decision. As such, we have directed the promoter to take the decisions. If loopholes appear in the selection process, we are here to look into it,” Thapa said.
On May 20, the UTHCL had invited tenders for Lot:3 of the project where the ANDRITZ Hydro GmbH, Austria, had bid the lowest amount among the six pre-qualified contractors.
However, when the company was evaluating the contract, the process came to a halt after other competitors lodged complaints at the Commission for Investigation of Abuse of Authority (CIAA) and the PAC. They said ANDRITZ Hydro GmbH had included its Indian subsidiary company as its partner.
According to the complaints, the Austrian company breached its earlier commitment to qualify as a single company and that the ANDRITZ has said that it would involve its India-based partner to carry the specified work once it is shortlisted.
However, UTHEP Project Manager Mrigendra Shrestha said the Austrian company, in its earlier proposal, had mentioned that if it will involve its Indian subsidiary partner it it gets a nod for the specified contract.
The Public Procurement Act has already given a nod to the evaluation process to finally approve the Austrian company.
“We are in the process of briefing the monitoring agencies concerned and other stakeholders on the ongoing differences over the decision of the contracts. We hope to sort out all the differences by next week and go for the final evaluation process,” Shrestha said. The UTHEP is being touted as the country’s cheapest project so far and is being commissioned through the mobilisation of the national capital. The project worth Rs 32 billion is expected to be complete by 2015.
Source: Kantipur