Government of Nepal
Ministry of Finance
AID MANAGEMENT INFORMATION SYSTEM FOR NEPAL
EOT 1: 26 months (i.e. June 30, 2016)
Reason of EOT1: Land Acquisition issue, Delay in Decision for Surface and Underground Powerhouse, Power Augmentation issue
EOT 2: 34 months (i.e. April 30, 2019)
Reason of EOT2: Earthquake (2072, Baisakh), Landslide and complete washout on the different sections of Access Road to Headworks and Landslide on the Right and left Bank of Headworks due to Earthquake
EOT 3: 4 months (i.e. August 30, 2019)
Reason of EOT3: Delay in works due to various reason
Problem faced due to type of Contract
1) Have to Rely on Contractor’s Design Change and variations.
2) As there is more responsibility on Contractor on EPC Contract, the control degree to
Contractor is less from the Owner.
3)Difficulty to estimate on Design change
This is a run of river type of the power generation project identified by NEA in 2004/05. This Project is located in Rasuwa and Nuwakot districts. This has an installed capacity of 60 MW and will generate 460 GWh of annual energy. Major structures comprise of a 25 m high diversion weir, intake, desander, 4.1 km headrace tunnel, surge shaft, inclined shaft, underground powerhouse, tailrace, switchyard, 48 km long 220 Kv transmission line, 4 circuit 1 km 220 Kv underground cabling and ancillary structure.
For the implementation of the Project, the Government of Nepal had requested the Government of People’s Republic of China for a financial (Soft Loan) assistance of US$ 120 million on July 31, 2006. Memorandum of Understanding (MoU) to this effect was signed between Nepal and the Export-Import Bank of China on November 04, 2009 for US$ 200 million (US$ 120 million for this project and the remaining portion for other projects).
As per decision of BOD/NEA on Oct. 11, 2009, China Gezhouba Group Company Ltd (CGGC) was selected as the EPC Contractor with a bidding amount of US$ 89.231692 million (exclusive of VAT). The MoU and Contract Agreement between the Contractor and NEA was concluded on December 29, 2009 and May 28, 2010, respectively. The agreed contract price, excluding VAT, for foreign portion and local portion are US$ 81.639498 million and NRs. 606.464468, respectively.
Similarly, Financial Proposal of the North West Hydro Consulting Engineers was selected on June 29, 2010 to carry out the construction Supervision works with a sum not exceeding US$ 4.443926 million.
EIA Report has been approved by the Ministry of Environment on August 26, 2010 and forwarded to China Exim Bank on August 31, 2010.
Commercial Contract Agreement for the construction Supervision works was signed between UT3A HEP and NWH, China on 21.09.2010.
For EPC and Supervision works, the Framework Agreement between the Government of Nepal and the Government the People’s Republic of China, and the Government Concessional Loan Agreement between the Government of Nepal and the Export-Import Bank of China were concluded on February 28, 2011. Similarly, a MOU on Transmission Line and Bay Extension was also signed between the Government of Nepal and the Export-Bank of China on May 10, 2011.
Note: As per request made by the Exim Bank of China and recommendation made by the implementing and executing agencies, the Government of Nepal, on May 24, 2010, decided to request the Bank to provide upto the amount of US$ 8.917790 (10 percent of the Commercial Contract) as contingency in unallocated heading on the Loan Agreement to be concluded, if not, the said amount will be made available by the Government of Nepal in case of requirement. The Bank vide letter August 11, 2010, informed that they are not providing the said contingency amount so requested. 20/09/2010
Additional 60MW made available for the socio-economic development of Nepal.
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