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Cost Overrun And Time Overrun At Mid-Marsyangdi Hydropower Project
By KTM Metro Reporter in Kathmandu
The state-run newspaper called ‘Gorkhapatra’ of February 15, 2010 has reported that the cost overrun and time overrun at the mid-Marsyangdi Hydropower Project has been incredibly high causing the cost of production of power $ 5,382 per kilowatt. The estimated cost of production of power was $ 2,748 per kilowatt
The estimated cost of the project was Rs 13.65 billion but awarded the construction contract at Rs 9.49 billion based on the feasibility report not doing detailed design of the project. However, the cost has risen to Rs 29.60 billion by the time it was completed.
The estimated time of completion of the project was four years but it took eight years and 25 days for completion.
German government has invested almost 50% of the total project cost through the bank called KWF, Nepal Electricity authority 40% and Nepal government 10% of the total cost of the project.
Complaining about the interruption of the construction of the project due to shutdowns, the construction contractor company has claimed for the additional cost but the stakeholders have to pay out Rs 10.58 billion, yet.
