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NEA Cuts Ties with Chinese Builder: Upper Trishuli 3B Hydropower Project Faces Setbacks

December 18, 2023
1 min read
NEA Chinese Builder

In a significant development, the Nepal Electricity Authority (NEA) has officially terminated its contract with Shuifa ANHE Group, the Chinese construction company responsible for the Upper Trishuli 3B hydropower project. The termination comes from severe delays and alleged negligence in the construction of the 37 MW capacity project.

The decision to sever ties with Shuifa ANHE Group was made by the NEA’s Upper Trishuli 3B Hydropower Company, which oversees the progress of the project in Rasuwa and Nuwakot. While approximately 66 percent of the project has been completed, recent work stoppages have impeded further advancement.

One of the key repercussions of the contract termination is the NEA’s acquisition of both the bank guarantee and performance guarantee from the Chinese construction firm. The responsibilities entrusted to Shuifa ANHE Group included the design, construction, installation, and operation of all structures and equipment related to the hydropower project’s civil, electromechanical, and hydro-mechanical aspects.

A noteworthy aspect of the Upper Trishuli 3B project is its association with the People’s Hydropower Program, with 154,559 common people holding shares in the promoter company of the venture.

The hydropower construction faced a major setback with a 15-month hiatus when Chinese workers returned home to celebrate the New Year four years ago. The subsequent challenges posed by the COVID-19 pandemic stranded these workers and disrupted the import of essential equipment and materials from China, further contributing to project delays.

Despite the resumption of construction in 2077BS, progress has consistently lagged behind the scheduled timeline, prompting the NEA’s decisive action in terminating the contract with Shuifa ANHE Group. The move reflects the Authority’s commitment to ensuring the timely completion of crucial infrastructure projects that play a vital role in Nepal’s energy landscape.

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