Sino Hydro paid 15.7 billion rupees including value added tax and Jiangxi-ANK 13.73 billion rupees.
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The Chinese and Nepali JV company Jiangxi Construction Engineering (Group) Corporation and ANK Construction have been awarded the contract for Engineering, Procurement and Construction-1 (EPC) under the civil and hydromechanical aspects of the 106 MW Jagdulla hydropower project to be constructed by the government at Dolpa.
From technical proposal evaluation, Jiangxi Construction Engineering (Group) Corporation (China) and ANK Construction Nepal JV and Sino Hydro Corporation were selected for financial proposal.
The contract was awarded to Jiangxi Construction Engineering (Group) Corporation (China) and ANK Construction Nepal JV after accepting the lowest price from the financial proposal opened by Jagdulla Company on Wednesday. According to sources related to the company, Sino Hydro paid 15.7 billion rupees including value added tax (VAT) and Jiangxi and ANK paid 13.73 billion rupees.
"It is certain that Jiangxi and ANK will get the contract based on the low prices, but the evaluation is pending," said the source, "After the evaluation of the financial proposal, it will be decided who will get it." And, accordingly, the contract will proceed. Jagdulla Limited called for the contract process of the project for the second time on January 6.
In addition to Jiangxi and ANK JV, Sino Hydro, Siu Infrastructure and High Himalaya Hydro Construction JV, Fewa Construction and Tumg Insat Medinclack JV also applied. On May 9, the company issued a notice that Jiangxi and ANK JV and Sino Hydro Corporation qualified for the financial proposal from the technical proposal evaluation.
The Patan High Court on Tuesday issued a show cause order to the company in a writ filed against the re-invoked contract process of the 106 MW Jagdulla hydropower project to be constructed by the government in Dolpa.
The other applicant Siu Infrastructure and High Himalaya Hydro Construction JV filed a writ on Monday saying that the evaluation committee of Jagdulla Company disqualified their company's technical proposal against Rule 61, 62 of Public Procurement Rules, 2064.
The said JV has made Jagdulla Hydropower Company and the bid evaluation committee of the company an opponent. The petitioner claims that the entire procurement process is unreasonable as the amount claimed from the bidder in the financial proposal is public information during the evaluation of the technical proposal. Therefore, an interim order was sought in the writ to cancel the notice issued for the evaluation of the technical proposal and to open the financial proposal based on the same and to keep the entire procurement process as it is.
While hearing the writ, the single bench of the High Court Judge Tank Prasad Gurung ordered to show cause and also to bring it up for discussion. The court order also mentions that Jagdulla Company should submit a written reply within 15 days. The petitioner claims that the amount received from the bidders in the financial proposal has also been breached during the evaluation of the technical proposal.
``In the process of EPC-1's bid evaluation and testing, Section 32 (3), Section 34 and Rule 61 (3) of the Public Procurement Act were clearly flawed and the entire procurement process was unjustified, so the entire process and decision of the technical proposal evaluation and the opening of the financial proposal on the basis of the same process and decision were canceled by the illegal notice of 2082 Baisah 09 published by the respondent public body for re-bidding. In the name of the respondent public body, issue a mandate according to Article 144(1) (2) of the Constitution of Nepal," the writ petition states.
Siu and High Himalaya JV have also requested an interim order in the name of the opponent to keep the work related to bid evaluation, opening of financial proposal, bid acceptance and purchase agreement as is until the final decision of their case. The court has called both sides for a discussion on May 30.
Jagdullah's contract process has also been complained to Public Procurement Monitoring Office (PPMO), authority. An authority official confirmed that the complaint had been filed and said that he could not say anything immediately as it was under investigation. An official of PPMO said that the complaint was received in his office and that it was being studied.
The contract called for Engineering, Procurement and Construction (EPC) under Civil and Hydro-Mechanical on 20th May 2081 by the company was canceled after the process got into dispute. Seven companies applied for the contract namely High Himalayan Hydro and AGE Company JV, Sharma and Zhongding International JV, Rail Development Corporation, Patel Engineering and Lama Construction JV, Ramechhap Sherpa Construction and Soma Enterprises JV, Sino Hydro, Om Infra and Fewa Construction JV. But the Jagdulla company claimed that the contract was canceled on December 22 after none of the companies passed the technical proposal.
At that time, Energy Minister Deepak Khadka was accused of mediating the agreement by sidelining all the companies that applied and giving the contract to High Himalayan Hydro and AGE Company JV. The total cost of Jagdulla is estimated at Rs 23 billion. In this project, Nabil Bank will invest 4.4 billion rupees, Employees' Provident Fund 4 billion rupees, Hydro Electricity Investment and Development Company Limited (HIDCL) 4 billion rupees, Lakshmi Sunrise Bank 2 billion rupees and Everest Bank 1.55 billion rupees.
