In a surprising turn of events, the Millennium Challenge Account Nepal Development Committee (MCA-Nepal) announced the cancellation of the 400-KV transmission line contract funded under the MCC grant. This decision, revealed through a notice on October 13, has thrown the construction timeline into uncertainty. The scrapped contract, encompassing key areas like Lapsephedi-Ratmate-New Hetauda, Ratmate-New Damauli, and New Butwal-Nepal/India border, was terminated due to proposed construction costs exceeding initial estimates.
The MCA-Nepal expressed commitment to ensuring the timely construction of the 315-km transmission line but failed to provide clarity on the legal basis for contract continuation or the schedule for re-tendering. Responding to concerns, MCA-Nepal mentioned a pre-existing plan to navigate the aftermath of the contract cancellation.
“While the MCA-Nepal has assured collaboration with the market and technological experts, along with coordination with MCC and the Nepal government, uncertainties linger regarding the initiation of the 400-KV transmission line,” the statement said.
Despite claims of a streamlined process, delays in the initial contract evaluation, which was called on November 28, 2022, and took almost a year for assessment, have raised questions about the project’s completion within the stipulated five-year timeline. The announcement of the next tender remains uncertain, adding to the challenges surrounding this mega project.”