December 31: Nepal Electricity Authority (NEA) has terminated a contract for construction of a transmission line from Tamakoshi citing violation of the terms and conditions by the contractors.
According to Rastriya Samachar Samiti (RSS), the NEA cancelled the contract for the first section of transmission line from Khimti to Bahrabise under the 400 KV Tamakoshi-Kathmandu transmission line after the Chinese companies entrusted with the responsibility failed to start the work on time.
The Chinese contractor companies Guangxi Transmission & Substation Construction Company and Shenzhen Clou Electronics Co Ltd were jointly awarded the contract for the construction of the transmission line in Khimti-Barhabise section. 

The contract was terminated a few days ago, freezing the 10 percent of the works execution securities, RSS quoted project chief Nawaraj Ojha as saying. 

The NEA had signed the contract with the two companies on September 27, 2016 and it was expected to be completed by the fourth week of upcoming May. The contract was awarded at the cost of USD 14.54 million and Rs 616.73 million respectively. 
With the confiscation of securities, the NEA has received Rs 145 million and Rs 60 million. According to the NEA, despite the completion of 74 percent of contract time, the companies failed to begin the works of the initial phase.