KATHMANDU, JAN 22 - The Nepal Electricity Authority (NEA) and the main civil works contractor of Mid-Marsyangdi hydroelectric project, DDC-JV, today came to an understanding to resume construction works from February 1.
The 70-MW project will now go into commissioning by December 2006. This was decided at the end of the two-day talks between the state power utility and the contractor. The cost of the project too has gone up in view of the extension of the time frame and the fact that payment have to be made at the current rate of euro.
The memorandum to this effect was signed today by Executive Director of NEA and Managing Director of DDC-JV. Although the contractor had demanded Rs1 billion over and above what was initially agreed before resuming the work, the same had to agree to resume the work since the NEA refused to oblige.
A highly placed NEA source said that the cost of the project would go up by Rs14 billion. The initial cost was Rs13.65 billion.
Citing security reasons, DDC-JV suspended all project works on October 10 and later took a unilateral decision to terminate the contract claiming ‘violation of contractual obligations’ by the NEA.Posted on: 2004-01-23 03:34

Post Your Comment

Please note that all the fields marked * are mandatory.

* Full Name

* Address

* Email Address

* Comment
[Some of the HTML tags you can use : <b>, <i>, <a>]

* Captcha

Get another CAPTCHA code