The state-owned Nepal Electricity Authority (NEA) has suspended the construction works of the 70 MW Mid-Marsyangdi hydel-project in western Nepal for an indefinite period “as per the advice of the consultant of the project—Fischner, a German company,” officials said.

According to officials, the German consultant advised the government to suspend the project as the contractor of the project, DDC JV— a German company– had suspended the construction works of the project for nearly last four months.

The project had resumed its construction works in late October after remaining closed for nearly a month following Maoist threats. But the contractor again stopped its work within a week after the Maoist rebels bombed a few vehicles belonging to the project.

The rebels had asked the project management to withdraw Royal Nepalese Army personnel deployed for the security of the under-construction project.

The officials said it was not the permanent closure of the project and hoped that the construction works of the project could start.

The construction works of the project had been launched in 2001 and was supposed to be completed by this month (Dec. 2004). But project officials said by now only 45 percent of the construction works had been completed.

The latest suspension may even make it difficult to complete the project works by an extended deadline of 2006, officials said.

German government has provided a development grant covering nearly 85 percent of the total project cost. The NEA would bear the rest of the cost.