The implementation of the Millennium Challenge Corporation Compact has hit a roadblock in Nepal with bids for the construction of a transmission line rejected.

In a notice on Friday, the Millennium Challenge Account Nepal, (MCA-Nepal) said the bids were rejected as per the procurement guidelines due to bid prices substantially higher than the original estimate.

According to the MCA-Nepal, an estimated budget of $220.60 million covering all three lots was made public during the bidding process. But the combined quoted lowest price for three packages by bidders stood at $365.93 million, according to the details made available by the MCA Nepal. The combined lowest quote amount was nearly 66 percent of the estimated budget for all three packages.

Starting a tender process afresh will mean the project’s implementation time will be reduced. The compact implementation time spans exactly five years from the day of its commencement, after which the projects will be handed over to Nepal, according to MCA-Nepal.

With the invitation of fresh bids, it will take a few more months to select the contractors. The recent bidding process started in November last year.

The compact entered into force on August 30 and the projects should be completed within five years from that date and doubts have been raised whether meeting the project deadline would be possible.

Nepal’s Parliament ratified the much-debated MCC compact in February last year, following an agreement in 2017 between the government and the Millenium Challenge Corporation. The MCC Compact signing had opened the way for the United States to invest $500 million in Nepal’s power and transport infrastructure. The government of Nepal, on its part, contributes $197 million in support of the compact.