Nepal court bans China from crucial project after protest by Indian company

Kathmandu: The Supreme Court of Nepal has imposed a ban on the Nepal Army’s invitation to award the contract of a crucial highway to a company from China.

According to a report by the Kathmandu Post, the Nepal Army had already awarded the contract for the sixth package of the Kathmandu-Nijgadh Fast Track project to a Chinese company named China First Highway Engineering Company Limited on December 12.

However, an Indian company – Afcons Infrastructure Limited – threw a spanner in the works by filing a writ petition
against the Nepal Army’s decision in the country’s Supreme Court.

After hearing the writ petition, the Nepal Supreme Court imposed an interim ban on awarding the contract to the Chinese company.

“The Indian company was one of the bidders for package 6 of the Fast Track Project whose financial bid is second lowest after that of China. The disqualification of the Chinese contractor means the Indian contractor would get
a contract,” Rojan Khadka, the advocate for Afcons Infrastructure Limited told the media.

Under the sixth package, the Nepal Army is awarding a contract to build a double lane dual carriageway standard expressway road, bridge, slope stabilisation, interchange, toll plaza, and allied works.

“Our argument is that evidence of share transfer of CCB Financial Asset Investment Company Limited from Zhnongding
International Construction Group should have been presented before the technical bid was opened,” Khadka said.

“The Public Procurement Review Committee also does not have the authority to take the evidence presented later,” he added.

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