Kathmandu, Jan. 15 -- Chinese firm Shenzhen Farad Electric Company lost a $16 million contract it held to build two substations at Matatirtha, Kathmandu and Markichok, Tanahu for being a no-show.

The high capacity substations are part of a $56 million Marsyangdi-Kathmandu transmission line project to bring electricity from the Marsyangdi basin to Kathmandu to meet its ever-rising energy demand. Shenzhen Farad received the contract in December 2017.

"The contractor deserted the project sites one month ago, and we sent a letter asking it to resume work. But it did not show up despite a pledge to do so leading to the termination of the contract," said Tara Pradhan, project chief. "We are determining the amount to be seized from the contrac...