Jan 17, 2022

Chinese firm had to be paid $ 17 Mn. for maintaining Norochcholai

It is reported that China Machinery Engineering Corporation (CMEC) has to be paid an arrears of  US $ 17.5 million for technical consultancy services for the operation and maintenance of the Lakvijaya power plant.

It is reported that the delay in the payment of these fees for procurement of operations and maintenance consultancy services at Norochcholai Lakvijaya power plant is due to the fact that the technical service agreement was extended without the approval of the Cabinet.

CMEC had earlier sought approval for payment for the work done on the Lakvijaya power plant in accordance with the original agreement and the payment has been suspended until the formalities, including Cabinet approvals are completed.

Meanwhile, CMEC has sought payment of the longstanding dues stating that as they had completed all maintenance and operations as per the agreement, adding that delays in the internal procedure is not an acceptable excuse to suspend payment.

Accordingly, it is reported that the Power Minister has recommended that the relevant payments from January to September 2021 be paid.