The company entered into a purchase order settlement of 78 crores within the contract of settlement

November 2, Kathmandu. Nepal Oil Corporation has entered into a purchase order settlement for the development of a petroleum storage tank in Amlekhganj, which has turn out to be controversial. In the midst of controversy, the corporation entered into an settlement with the Religare Construction Company to proceed with the mission.

Pradeep Kumar Yadav, head of the Amlekhganj-based mission and head of Madhesh province of the company, mentioned that the contract has been signed. “A contract was signed with Religare Construction Company to finish the work in a single 12 months,” mentioned Yadav, “We are making ready for the inspiration stone laying quickly.” Yadav mentioned that though there’s a scenario the place different firms can even are available for the contract, solely Parallel and Religare, which have been getting contracts up to now, are taking part.

On October 5, the Corporation had invited tenders for the development of a storage tank with a capability of 50-50 lakh liters at an estimated value of Rs 80 crore. However, on this contract, experience and {qualifications} had been requested in order that no different firm besides two Nepali firms may very well be eligible.

Depot Chief Yadav

In the contract awarded on October 5, Parallel Construction Services had submitted a proposal to assemble the mission for Rs 88 crore and Religare for Rs 78 crore. Religare Company, the bottom bidder, was chosen for the development of the mission.

At the identical time, the 2 contracting firms have additionally reached an settlement on the contract for the petrol storage tank in Amlekhanj and the air gasoline depot in Pokhara, the place the contract has been superior, in response to company sources.

Samantar has been entrusted with the development of Pokhara airport depot price Rs 68 crore. Soon after, Religare took the contract of 78 crores to construct storage in Amlekhganj.

Only Parallel Construction Services and Religare Construction had been in a position to fulfill the circumstances stipulated within the bid made on 5 October. Accordingly, solely two development firms participated within the contract. After the acquisition settlement, the company’s plan to award the contract by making a faux competition between them has been dissolved.

According to the settlement, the contract has been awarded for a complete of two million rupees lower than the fee estimate. The board of administrators of the company ignored the contract at a low worth of solely 2.5 % of the estimated value.

‘National Competitive Bidding’ (NCB) was executed when solely a restricted variety of Nepalese firms had the expertise of constructing giant gasoline storage amenities in Nepal. On high of that, the circumstances set by the company to scale back competitors closed the door for different firms to purchase bids.

The company requested Nepali firms for expertise in making gasoline tanks price 30 million rupees within the final 10 years. After 2068 until 2073, the company was always in losses, so no new tanks had been constructed. After 2073, some kerosene tanks had been transformed into petrol tanks, however since then the contracts weren’t greater than 5 to 10 million crores.

On high of that, the company didn’t solely ask for development expertise within the tender, it was mentioned that they need to have gained expertise within the ‘Engineering, Procurement and Contract’ (EPC) mannequin. In this mannequin, the engineering work together with the design of the mission ought to be executed by the contracting firm. Even in Nepal, it has been solely about 2 years since this mannequin began being contracted in Nepal. Therefore, there are solely a handful of firms in Nepal which have labored in such a mannequin.

According to company sources, the one firms in Nepal that had the expertise and {qualifications} required within the tender had been Religare and Parallel. They are working in a JV with the Indian firm Bharat Tank, a storage depot in Pokhara with a capability of 45-45 million liters. The development value of which is round 878 million.

Since they’ve executed greater than 90 % of the work in Pokhara, primarily based on their expertise there, they set the contract for the storage tank of Amlekhganj. In Pokhara, the tender was issued solely to point out a faux competitors between Parallel and Religare, which had a JV with an Indian firm in EPC.

The contract made by the company in order that solely they might be eligible primarily based on the expertise of uncompleted tasks was in opposition to the which means and guidelines of competitors of public procurement rules.

In the ‘setting’ of the company management, board of administrators and the ministry, each firms are being chosen one after the opposite for the company’s huge contract. Parallel Construction Service has received the contract for the central workplace of the company costing practically one billion Babarmahal constructing, whereas Parallel-Religare and Bharat Tank are engaged on the contract for storing 10 million liters of gasoline within the Gandaki regional workplace in Pokhara.

Only final Saturday, the Corporation had additionally signed an settlement with the identical firm for the contract of Pokhara Regional Airport Air Fuel Depot price 68 crore rupees to be labored by Parallel-Religare and BHN.