Nepal | March 26, 2019

Dispute between investor, contractor hits hydel project

Himalayan News Service

Panchthar, February 7

Construction of Tallo Hewakhola Hydropower Project is nowhere near completion even though the third extension of the contract has expired. The project is based in Hewakhola in Panchthar.

Delay in completion of the project has to do with the dispute between the investor and the contractor company responsible for completing the project. Construction of the project had started four years ago with the investment of Mountain Hydro Private Limited.

Himal Hydro and General Construction Company Limited had been entrusted with the construction of the project, but as the project is nowhere near completion even after the third contract extension expired, it has resulted  in a dispute between the contractor and the investor.

Regarding the delay in project completion, the investor has blamed the contractor. “It is due to the negligence of the contractor that the project has not been complete all these years,” said project Manager Ganesh Subba.

It is due to the dispute between the investor and the contractor that the work of the project has been halted for the past one month after the investor broke the contract with the company unilaterally. Following the dispute, both sides have filed cases against each other at the court.

The project, estimated to cost some 3.66 billion rupees, is now expected to cost around Rs 4.25 billion due to delay in construction. So far, 99 per cent of its work is said to have been finished.

A version of this article appears in print on February 08, 2019 of The Himalayan Times.

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