The Public Account Committee of the Legislature-Parliament has issued directives to Nepal Electricity Authority (NEA) to scrap the contract for the 25-megawatt solar power system.
A meeting of the committee today directed the NEA to cancel the contract, saying the contract process itself is of mala fide intention.
The NEA, the national power utility, had decided to install solar system at Battar and Devighat of Nuwakot with the objective of developing a mixed power system in the country for ending the load-shedding.
A complaint was filed at the Parliamentary committee arguing that the contract was given to an applicant who had proposed more cost for the construction of the project instead of giving it to the lowest among the five bidders. The solar energy system is being constructed with the investment of the World Bank.
Committee president Dor Prasad Upadhyay said that the committee has directed the NEA to cancel its decision of giving the responsibility for the construction of the project to the Pidgeon and Heron JV, and call for new tenders.
However, the NEA management has argued that the lowest bidding company was technically not sound according to the assessment carried out by an independent experts group.
NEA former executive director Mukesh Raj Kafle, however, said in the meeting today that the Pingao and Heron JV itself was suitable. NEA executive director Kulman Ghising said he was ready to undergo and bear any sort of action if any kind of irregularities were proved in the bidding process for the construction of the solar power system.