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🇳🇵 Nepal /Economy & Trade

Nepal blacklists Indian joint venture for Sunkoshi-Marin project delays

From Kathmandu Post · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

News Sources not specified Outcome reported
  • The government has blacklisted Raman-Patel JV for three years due to delays in the Sunkoshi-Marin Diversion Multipurpose Project.
  • The construction company secured the contract in January 2023 for Rs14.07 billion but only achieved 11% physical progress after 60% of the contract period elapsed.
  • The project terminated the contract and is confiscating bank guarantees worth Rs3.60 billion, though the company filed a writ petition at the Supreme Court.

Nepal has blacklisted the construction company Raman-Patel JV for three years, citing significant delays in the Sunkoshi-Marin Diversion Multipurpose Project. The company was responsible for building the dam, powerhouse, and related civil structures.

the company has been blacklisted for three years.

· Public Procurement Monitoring OfficeThe Public Procurement Monitoring Office issued a notice regarding the blacklisting of the construction company.

The project awarded the contract to Raman-Patel JV in January 2023 for Rs14.07 billion, with a four-year, seven-month deadline for dam construction on the Sunkoshi River. However, after 60% of the contract period passed, the project had only achieved 11% physical progress. This led the project to issue a 15-day notice on November 11 last year to terminate the contract due to the lack of progress.

the contract for the construction of the dam, powerhouse and other civil structures, as well as the supply and installation of gates and hydro-mechanical equipment, was terminated due to poor progress.

· Sunkoshi-Marin Diversion Multipurpose ProjectThe project explained the reason for terminating the contract with Raman-Patel JV.

The project confirmed the contract termination and moved to confiscate bank guarantees totaling Rs3.60 billion, including Rs2.40 billion in performance guarantees and Rs1.20 billion in advance payment guarantees. Banks involved include Global IME Bank, Prabhu Bank, Machhapuchchhre Bank, Prime Commercial Bank, and Kumari Bank. The project has reportedly recovered the advance payment guarantee amount.

After 60 percent of the contract period had elapsed, physical progress stood at only 11 percent.

· Sunkoshi-Marin Diversion Multipurpose ProjectThe project detailed the lack of progress made by the construction company.

Despite the termination, the company filed a writ petition at the Supreme Court on November 25, naming the Energy Minister, the department, and project officials as defendants. Initially, an interim order was issued on November 26, preventing the contract termination and bank guarantee confiscation. However, the Supreme Court revoked this interim order on February 10, allowing authorities to proceed with confiscating the bank guarantees.

On November 11 last year, the project issued a 15-day notice to terminate the contract after work on the dam, powerhouse and related structures failed to move forward.

· Sunkoshi-Marin Diversion Multipurpose ProjectThe project described the steps taken leading to the contract termination.
About this summary

Originally published by Kathmandu Post in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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