The Public Accounts Committee of the House of Representatives has directed not to proceed with the agreement until there is clarity regarding the complaints that some contractor companies associated with Jagdulla Hydropower Company submitted fake documents to be included in the bidding process.

“The committee’s decision states: ‘Since the issue of irregularities in the call for Expression of Interest (EOI) and selection process for the construction of the Jagdulla Hydropower Project — particularly the allegation that the construction companies submitting/proposing EOIs have presented fake or fraudulent documents/evidence — appears to be serious from the perspective of adherence to public law and infrastructure development, the process must be immediately halted. Furthermore, the Ministry of Energy, Water Resources and Irrigation, the Public Procurement Monitoring Office, and Jagdulla Hydropower Company are instructed to promptly verify and investigate the documents and reach a conclusion.’ A complaint regarding irregularities in this nationally significant project was filed by Lappa Sherpa of Dolpa.”

The Commission for the Investigation of Abuse of Authority (CIAA) and the Central Investigation Bureau (CIB) are also investigating a complaint filed by Sino Hydro regarding the contract for the 106-megawatt Jagdulla Hydropower Project, which the government itself is developing in Dolpa. The hearing on the writ petition filed by Siwu Infrastructure and High Himalaya Hydro Construction JV, initially scheduled for June 4 , has been postponed to June 24. Earlier, the High Court Patan had refused to issue an interim order on the writ filed by Siwu Infrastructure and High Himalaya Hydro Construction JV.

On June 5, a group led by advocate Santosh Acharya filed a writ petition against the contract of the Jagdulla Hydropower Project, naming Jagdulla Hydropower Company, ANK Construction Company, Jiangxi Construction Engineering Group Corporation, the Ministry of Energy, and the Public Procurement Monitoring Office as respondents. In response to the writ, a bench of Supreme Court Justice Hari Prasad Phuyal issued a show cause order.

On May 27, Jagdulla Hydropower Company Limited issued a Letter of Intent (LoI) for the contract called under the Engineering, Procurement, and Construction (EPC) category, covering civil and hydro-mechanical works. The company issued the LoI stating that the joint venture of Jiangxi Construction Engineering (Group) Corporation (China) and ANK Construction Nepal was qualified, as they had proposed a tax-free financial bid of NPR 12.15 billion.

If dissatisfied, Sino Hydro Corporation can file a complaint regarding the Letter of Intent with the Public Procurement Review Committee within 15 days. If no complaint is filed against the Letter of Intent, the company has stated that the process to sign the contract with the Jiangxi and ANK JV will proceed. On May 21, China’s Hezhou Shangcheng Electric Power Company informed Jagdulla Hydropower Company via email that it had not issued any certificate confirming the completion of the Shangcheng Hydropower Project and that Jiangxi Construction had used the name of their company without authorization.

The email states that although the 90-megawatt Shangcheng Hydropower Project was supposed to be built, it was canceled and never constructed due to financial reasons.

The email states, “If any contract is made or funds are taken by falsely claiming the name of ‘Shangcheng Electric Power Company’ or ‘Shangcheng Hydropower Station,’ our company is not involved in such matters. We do not take responsibility for any such activities.”

Jagdulla Hydropower Company issued a notice on April 22 stating that the Jiangxi and ANK JV and Sino Hydro were eligible and that the financial proposals would be opened. After opening the financial proposals on May 6, 2024, the contract is set to be awarded to the Jiangxi and ANK JV, who quoted the lowest price. The company had again called for the contract process for the project on January 19. Sino Hydro, Siwu Infrastructure and High Himalaya Hydro Construction JV, Jiangxi and ANK JV, Fewa Construction, and TMG Insaat Medinclak JV had all submitted applications.

Jagdulla Company had called for bids for the civil and hydro-mechanical contract on June 3. Seven companies had submitted applications for the contract: 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. However, Jagdulla Company claimed that the contract was canceled on January 6 as none of the companies passed the technical proposal evaluation.

Source: Kantipur