Nepal | September 26, 2020

Risen Energy seeks $27 million compensation for grid solar project

Himalayan News Service
Share Now:

Kathmandu, September 19

Risen Energy — the contractor of the 25-megawatt Grid-Tied Solar Project — has sought $27 million as compensation amount from Nepal Electricity Authority (NEA), after the state entity sent a letter stating suspension of tender awarded to the Chinese firm.

The contractor has claimed that due to the suspension of the tender, it will have to face a loss equivalent to the aforementioned amount, which should be compensated by NEA.

The World Bank is financing the $37 million project, which had landed in controversy due to breach of procurement rules during the contractor selection process.

“We have received a letter from the contractor claiming the compensation amount,” sources at NEA said. The contractor has also said that after receiving the suspension of contract letter from NEA, it has stopped all the preparatory works and halted import of construction materials too. “The contractor has said that they should be compensated for the financial loss that they would incur due to the decision to scrap the contract,” officials said.

NEA had sent a letter of suspension of tender to the contractor after Public Accounts Committee (PAC) of Legislature-Parliament directed the authority to begin the retender process of the project on August 1.

However, development partner of the project — World Bank — has shown strong reservations against retendering the contract to execute the project as that would further delay its implementation. Initially NEA had planned to instal the solar project within this winter, however the fate of the project is now in limbo following PAC’s instruction.

PAC Chairperson Dor Prasad Updhyaya refused to comment on the issue when contacted today.

NEA had called a tender for installing solar panels with a capacity to generate 25 megawatts of energy during peak hours in April of 2015. The World Bank and NEA had formed separate bid evaluation panels to expedite the project. Technical and financial proposals of the bidders were evaluated by the NEA-formed Project Management Unit and independent panel formed by the World Bank, that is, Procurement Evaluation Panel.


A version of this article appears in print on September 20, 2017 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Perfection of Wisdom: Sacred texts of 'Pragya Paramita' inscribed in gold

KATHMANDU, SEPTEMBER 25 The holy book of 'Pragya Paramita' (Perfection of Wisdom) being inscribed in golden letters by guthi members for its preservation at the Golden Temple in Lalitpur on September 24, 2020. Thursday. The holy book contains transcriptions of Buddhist scriptures and is rewritten Read More...

Europe, UEFA

De Bruyne, Lewandowski, Neuer on UEFA player of the year shortlist

Kevin De Bruyne, Robert Lewandowski and Manuel Neuer have been short-listed for the UEFA men's Player of the Year award, European football's governing body said on Wednesday. Lewandowski guided Bayern Munich to their sixth Champions League title, finishing as the competition's top scorer with Read More...

COVID-19 pushes more children into poverty

KATHMANDU, SEPTEMBER 24 The number of children living in multi-dimensional poverty has soared to approximately 1.2 billion due to the impact of the COVID-19 pandemic, according to a new analysis published by UNICEF and Save the Children today. This is a 15 per cent increase in the number of ch Read More...

One buried to death, five missing in landslides

BHAIRAHAWA, SEPTEMBER 24 One person died and five others went missing in landslides at different places in Palpa this morning. In Surangdanda, ward 2 of Rambha Rural Municipality, Motisara Gaha, 27, died when a landslide buried his home. Similarly, in Phoksingkot of the same ward, five persons Read More...

In-person classes start in Sudurpaschim

DHANGADI, SEPTEMBER 24 Schools, which had remained shut for long due to the coronavirus pandemic, have started in-person classes in different districts of Sudurpaschim Province. The schools were closed for the last six months after the government imposed nationwide lockdown to stop the virus s Read More...

Students of public schools deprived of education

KATHMANDU, SEPTEMBER 24 Hundreds of students, mostly from public schools, across the country continue to be deprived of education due to lack of their access to electronic mediums like the internet, television and radio. The Ministry of Education has been encouraging educational institutions t Read More...

SAARC Council of Ministers holds virtual meeting

KATHMANDU, SEPTEMBER 24 Minister of Foreign Affairs Pradeep Kumar Gyawali urged member states of South Asian Association for Regional Cooperation to explore all viable options to hold the 19th SAARC Summit. Delivering his opening remarks at an informal meeting of the SAARC Council of Ministers Read More...