Nepal | July 06, 2020

Disputes stall Chameliya project

Himalayan News Service
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  • 96pc of works at hydro site completed

Kathmandu, August 15

China Gezhouba Group Corporation (CGGC), the Chinese contractor of 30-megawatt Chameliya hydroelectric project, has said civil works of Chameliya project would be complete once all ‘disputes are settled’.

Around 96 per cent of civil works at the Chameliya hydro project site has been complete, says a statement issued today by CGGC.

“The remaining work would be complete once disputes are settled,” adds the statement.

CGGC halted construction of the project after it was denied payment of over Rs one billion in variation costs. Because of this and other cost overruns, Chameliya project is likely to be the most expensive one in the country in terms of installed capacity, with per MW construction cost likely to hover around Rs 500 million.

“Project cost of Chameliya went up as the tunnel was hit by mud slide. But delay in release of payments
related to deployment of additional human resources and equipment has deferred project completion,” says the statement.

CGGC, which has also won contract for construction of 60MW Upper Trishuli-3A project, has said works at the site of Trishuli-3A project have been stalled because of damage caused to access road by devastating earthquakes of last year. Around 65 per cent of the works of Trishuli-3A project have been complete, says the statement.

A version of this article appears in print on August 16, 2016 of The Himalayan Times.

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