A Chinese company has allegedly submitted fake documents in order to bag the Jagadulla Hydroelectric Project located in western Nepal, and the case has now landed at the Commission for the Investigation of Abuse of Authority and the Public Procurement Office for further investigation.

The 106-megawatt peaking run-of-the-river hydroelectricity project is located in Dolpa district.

The project has been dragged into a fresh round of controversy after three bidders, who were in the race to develop the project, accused the authorities of qualifying a Chinese company with zero experience in hydropower construction as “substantially responsive” during the technical bid evaluation for the EPC contract”.

The project will follow the engineering, procurement and construction (EPC) model.

The project is being developed by Jagadulla Hydropower Company Limited (JHCL), a subsidiary of Vidyut Utpadan Company Limited (VUCL). JHCL has picked Jiangxi Construction Engineering (Group) Corporation Limited, a company with allegedly no experience in hydropower development which submitted fake documents to win the contract, according to a complainant. The technical bid was opened on April 22, and the price bid ( financial bid) is set to be opened on May 7, according to information posted on JHCL website.

Two separate complaints have been registered by three other bidders—Sinohydro Corporation Limited; SIL-3HC JV, a joint venture between High Himalaya Hydro Construction Private Limited and SEW Infrastructure Limited; and 2 MG Fewa, a joint venture between Fewa Construction Limited and 2 MG Insaat Madenclick Tic AS—at the CIAA and the Public Procurement Monitoring Office requesting proper investigation.

Sinohydro, another Chinese company, which has been ranked second after Jiangxi Construction Limited, has registered the complaints along with the other two bidders.

“Jiangxi Construction Engineering (Group) Corporation Limited has no verified history or prior experience in hydropower projects, despite claiming otherwise in the bid documents. The company has never been granted a licence by the National Development and Reform Commission (NDRC) or the Ministry of Ecology and Environment of the People’s Republic of China to undertake any hydropower project within China or abroad,” reads the complaints filed at PPMO.

One of the documents Jiangxi Construction Limited submitted to JHCL claimed that it had built a 102-megawatt project in China. But the photos it submitted showed a project actually built by Sinohydro in Zambia, Africa, named Kafue Gorge Lower Hydropower Plant, which has an installed capacity of 750 megawatts.

The tender document explicitly required all bidders to submit GPS/GIS location details with UTM (universal transverse mercator) coordinates and photographic evidence of completed projects. “In light of the above concerns, the validity and authenticity of the submitted coordinates and photographs are also questionable and merit thorough verification,” reads the complaint submitted by the three bidders.

“These facts strongly indicate that the documents submitted in relation to their past experience may have been misrepresented or falsified with the intent to qualify under the technical criteria of the bid. These actions, if proven true, raise serious doubts regarding the accuracy and authenticity of the documents submitted by JCE-ANK JV, and constitute a clear breach of the Public Procurement Act and Rules, undermining the principles of fairness, transparency, and competitiveness,” reads the complaint. The ANK is Nepali company having a joint venture with Jiangxi Construction Engineering (JCE).

The website of JCE also does not mention its experience in developing hydroelectricity projects. The company is mainly into construction of buildings, highways, and other infrastructure.

“In light of the above, we respectfully request the Public Procurement Monitoring Office to thoroughly re-examine the experience-related documents submitted by JCE-ANK JV, including but not limited to licenses, work completion certificates, and claimed project credentials.”

They also demanded to verify the GPS/GIS locations and UTM coordinates, as well as the photographs of the claimed completed projects, to ensure that the works were actually executed by the JV or any of its partners.

“We urge the PPMO to undertake appropriate legal and administrative action under prevailing procurement laws and regulations, should any misrepresentation or submission of falsified documentation be substantiated. We remain committed to a fair and transparent procurement process and stand ready to cooperate with your office for any further clarification or assistance required in this matter,” the three companies said.

Sanjay Sapkota, chief executive officer of JHCL, told the Post that they are launching an investigation on the alleged submission of fake documents.

“The JEC-ANK JV has submitted the project completion report that it has completed earlier. But we have not been able to independently verify it,” he said. Officials at JHCL had used a VPN to try to locate the projects JCE claimed to have built in China but were unable to trace them.

Another complaint registered at the CIAA stated that the price bid bid of NRs 13.5 billion, along with the bid amounts of all participating bidders, has been disclosed and published globally through the e-news portal “onlinenepal.com” on April 22.

“In our case, the published bid price exactly matches our submitted bid amount. This blatant disclosure of confidential information represents a serious breach of the principles of privacy, confidentiality, and fairness that are fundamental to any transparent and competitive bidding process,” the complaint reads.

Moreover, there are widespread rumors suggesting that the Public Procurement Monitoring Office (PPMO) website may have been compromised and hacked to unlawfully access confidential bid information, according to the complaint filed at the CIAA on April 29. A copy of the complaint is with the Post.

“These alarming developments related to the bid opening outcomes/data clearly indicate that the sanctity of the procurement process has been seriously undermined, thereby putting into question the credibility of the bidding procedure,” said the complaint at the CIAA.

The complainants have also pointed out a serious discrepancy in the Muchulka (a legal fact sheet) on bid submission and modification times, as observed in the online bidding platform.

This discrepancy, they said, raises serious doubts about the integrity of the digital bidding system and strengthens suspicion of hacking or unauthorised tampering with bid records during the modification period.

“As also reflected in media reports, it appears that there is no significant gap between the two lowest bidders, further intensifying concerns regarding potential manipulation. The unauthorised disclosure of sensitive information not only violates the confidentiality obligations owed by the employer towards all bidders but also unfairly disadvantages genuine bidders who have participated in good faith, trusting that the process would be conducted with the highest standards of security, transparency, and integrity.”

Devi Prasad Thapaliya, deputy spokesperson at the CIAA, said the commission cannot reveal any information to the media about cases under investigation.

“In light of the above, we strongly urge the authority concerned to take necessary steps and maintain equal and fair treatment of all bidders,” the complainants said, demanding an independent investigation into the breach of confidentiality, the observed digital security lapses in the Muchulka document.

JHCL CEO Sapkota said, “Now the CIAA and PPMO should look into the case related to submission of the fake document and breach of confidentiality. We are in a fix and thinking about what to do next about the future of the project.”

“Both issues need careful investigations,” he said. “If the quoted price list has been leaked to the media, it is definitely a matter of concern. There is also a tendency in Nepal of disqualified bidders making such complaints, but in this case, we will also launch our own investigation and hope the PPMO and the CIAA will launch their probe so that the project can be completed on time.”