KATHMANDU, DEC 26 - 2012
Nine Chinese companies have expressed interest to resume construction of the Melamchi tunnel from where the previous contractor left off. Among the major Chinese companies purchasing bid documents are China International Water and Electric Corporation, Sino Hydro Corporation, China Civil Engineering Corporation and China Overseas Engineering Group. The previous contractor, also from China, left the job half-way over differences with the government.
The government floated a fresh tender for Headworks and Diversion Tunnel Construction on Dec 1. According to the Melamchi Water Supply Development Board (MWSDB), 18 foreign firms are vying for the contract to build the tunnel for the Melamchi Drinking Water Project (MDWP). The scheme is envisaged to bring water to parched Kathmandu from the Melamchi River 26.5 km away.
Apart from the Chinese firms, the other prospective bidders are Marti and Gammon, IVRL and KEC International from India and Gyund Yunenc, Sambu Construction and Kyeryond Construction Industrial Company from Korea. Similarly, CMC Cooperativa Muratori e Cementisti di Ravenna of Italy, Yaksel Insaat of Turkey, OTA Tunnel Squad Corporation of Malaysia and Italian Thai Development Company of Thailand have also bought tender documents. Six other companies are learnt to have made enquiries with a view to buy bid documents.
MWSDB executive director Krishna Prasad Acharya said that 13 companies bought bid documents on Dec 14 when the board had called a pre-bidding meeting. “Major companies from around the world have come as competitors to win the project,” added Acharya, “With this interest of international firms to develop the project, we believe the project will not suffer delays as in the past.”
The government had begun the new process of selecting a new contractor after the construction of the tunnel came to a halt after it ended the agreement with the previous contractor, China Railway 15 Bureau Group in September. The Chinese firm had initially pulled out of the project which led the government to formally cancel the contract as disagreements over delays and fulfilment of demands came to a head.
Out of the 27.5 km length of the planned tunnel, the Chinese company has dug only 6.5 km. After ending its contract with the Chinese contractor, the government rescheduled the completion date of the project to March 2016.
Acharya said that due to the high promotion and international publicity and the board’s readiness to review the project’s design, a larger number of companies are vying for the contract. The board has uploaded information on the project’s status on its official website and on the sites of the Asian Development Bank (ADB) and the Association of International Tunnel Constructors and had carried on direct correspondence with the world’s top companies.
The board had also called a meeting on Oct 30 to interact with foreign companies which had been showing interest in undertaking the remaining portion of the tunnel project. Officials also said that interest among potential contractors has been heightened because of the promise of a reward for early completion. A provision for a reward for early completion and penalty for delays has been inserted in the full bid document, according to which the contractor will be provided 0.5 percent of the total bid amount as bonus for early completion, while the same amount will be charged as penalty in case of late completion.
Acharya said that Jan 21, 2013 would be the last date for submission of the tender document and evaluation of the documents would begin on the very day.
“First, we will go through the technical documents which will take about a month,” added Acharya, “In the second phase, the financial documents of the short-listed companies will be evaluated within a week.” He said that the final memorandum of understanding (MoU) would be signed with the new contractor in mid-April. The contract period will be 36 months.
The project had earlier been targeted for completion by 2015. The new contract will further delay the project with cost overruns amounting to as much as US$ 100 million.
Source: The Kathmandu Post
Nine Chinese companies have expressed interest to resume construction of the Melamchi tunnel from where the previous contractor left off. Among the major Chinese companies purchasing bid documents are China International Water and Electric Corporation, Sino Hydro Corporation, China Civil Engineering Corporation and China Overseas Engineering Group. The previous contractor, also from China, left the job half-way over differences with the government.
The government floated a fresh tender for Headworks and Diversion Tunnel Construction on Dec 1. According to the Melamchi Water Supply Development Board (MWSDB), 18 foreign firms are vying for the contract to build the tunnel for the Melamchi Drinking Water Project (MDWP). The scheme is envisaged to bring water to parched Kathmandu from the Melamchi River 26.5 km away.
Apart from the Chinese firms, the other prospective bidders are Marti and Gammon, IVRL and KEC International from India and Gyund Yunenc, Sambu Construction and Kyeryond Construction Industrial Company from Korea. Similarly, CMC Cooperativa Muratori e Cementisti di Ravenna of Italy, Yaksel Insaat of Turkey, OTA Tunnel Squad Corporation of Malaysia and Italian Thai Development Company of Thailand have also bought tender documents. Six other companies are learnt to have made enquiries with a view to buy bid documents.
MWSDB executive director Krishna Prasad Acharya said that 13 companies bought bid documents on Dec 14 when the board had called a pre-bidding meeting. “Major companies from around the world have come as competitors to win the project,” added Acharya, “With this interest of international firms to develop the project, we believe the project will not suffer delays as in the past.”
The government had begun the new process of selecting a new contractor after the construction of the tunnel came to a halt after it ended the agreement with the previous contractor, China Railway 15 Bureau Group in September. The Chinese firm had initially pulled out of the project which led the government to formally cancel the contract as disagreements over delays and fulfilment of demands came to a head.
Out of the 27.5 km length of the planned tunnel, the Chinese company has dug only 6.5 km. After ending its contract with the Chinese contractor, the government rescheduled the completion date of the project to March 2016.
Acharya said that due to the high promotion and international publicity and the board’s readiness to review the project’s design, a larger number of companies are vying for the contract. The board has uploaded information on the project’s status on its official website and on the sites of the Asian Development Bank (ADB) and the Association of International Tunnel Constructors and had carried on direct correspondence with the world’s top companies.
The board had also called a meeting on Oct 30 to interact with foreign companies which had been showing interest in undertaking the remaining portion of the tunnel project. Officials also said that interest among potential contractors has been heightened because of the promise of a reward for early completion. A provision for a reward for early completion and penalty for delays has been inserted in the full bid document, according to which the contractor will be provided 0.5 percent of the total bid amount as bonus for early completion, while the same amount will be charged as penalty in case of late completion.
Acharya said that Jan 21, 2013 would be the last date for submission of the tender document and evaluation of the documents would begin on the very day.
“First, we will go through the technical documents which will take about a month,” added Acharya, “In the second phase, the financial documents of the short-listed companies will be evaluated within a week.” He said that the final memorandum of understanding (MoU) would be signed with the new contractor in mid-April. The contract period will be 36 months.
The project had earlier been targeted for completion by 2015. The new contract will further delay the project with cost overruns amounting to as much as US$ 100 million.
Source: The Kathmandu Post
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