Saturday, August 27, 2022

Sailung Construction blacklisted, finally

Kathmandu, Aug.  24

The Public Procurement Management Office (PPMO) has blacklisted Sailung Construction Company barring it from participating in the bidding and implementation of any public construction and development work for three years.

This is the maximum period of moratorium for a construction company, according to the Public Procurement Act, 2007.

According to a notice published by the office on Wednesday, the company was blacklisted on the recommendations of the Directorate of Road Maintenance and Development Project as it filed to fulfill the obligation under the contract and complete the projects in time with the agreed quality standard.

The projects in question this time are Bhaktapur-Nagarkot-Sipaghat Road Project and Trishuli/Chhahare-Bidur Road Project which the company, in joint venture with an Indian construction firm, Aravali Infrapower Limited, couldn't complete in time despite repeated notice and warning.

Article 63(1) of the Public Procurement Act, 2007, maintains that if it is proved that the concerned company had committed substantial defect in implementing procurement contract or had not substantially fulfilled obligation under the contract or the work carried out according to the procurement contract is not of the quality as per the said contract, the PPMO can blacklist a bidder, proponent, consultant, supplier, service provider or even the construction entrepreneur.

Such blacklisting will be active for one to three years on the basis of the seriousness of the negligence or irregularity.

Earlier in September last year, Kathmandu Valley Road Improvement Project had warned Diwa/Sailung JV along with United Builders and Engineers for blacklisting as they couldn't complete the construction work as per the contract even after extension of the completion deadline. That time, Diwa/Sailung had faltered in 3.2km long Dholahiti-Sunakothi-Chapagaun Road expansion work.

Likewise, the company couldn't complete the Balaju-Tin Piple Road – a critical infrastructure to transport solid waste of the Kathmandu Valley to Banchare Danda in Nuwakot district. The Department of Roads (DoR) had decided to cancel the contract with the company about a couple of months ago but the latter went to the court to challenge the decision and was successful to get an interim order not to cancel the contract and blacklist it. However, the court gave a new verdict last week opening a way to blacklist the company.

The company is run by Sharada Prasad Adhikari, known as the 'landlord of CPN-Maoist Centre Chairman, Pushpa Kamal Dahal Prachanda', and his son Anup Adhikari. The PPMO has mentioned Anup's name as the concerned person of the company in the notice.

Sailung has also failed to complete the Kalanki-Nagdhunga and Kamalbinayak-Nagarkot roads expansion, and construction of three roads in Kapan of Kathmandu in time as well. According to the DoR, it has got multiple extensions in deadline but couldn't complete the project.

Likewise, the PPMO has blacklisted two Chinese companies - Zhongding International Engineering Company and Changqing Wangbian Electric (Group) Corporation Limited. Both of these are blacklisted for failing to complete the projects of Nepal Electricity Authority including Hetaunda-Bharatpur-Bardaghat Transmission Line Project. Both of these companies are blacklisted for three years.

Similarly, Baliya Construction, Johnson Construction and Suppliers, Just In Time Construction, Aspial Group of Engineers, Surgimed Distributors and Tumyehang Construction Service are blacklisted for a year while Mahalaxmi Wire and Cable Industries is blacklisted for 2 years and 6 months.

The office had earlier blacklisted Pappu Construction, Rujan-Jagadamba-Bhubaneshwari and Bhairav JV, Aakash and Pawan Construction, Shivaram/Siddgadhi JV, Aman and Isha Construction, Shia Construction along with about 100 others. 

Published in The Rising Nepal daily on 25 August 2022. 

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