Nepal Police have launched a formal investigation into allegations that a Chinese construction company submitted forged documents to win the contract for the Jagdulla Hydropower Project, a 106 MW initiative in Karnali Province’s Dolpa district.
On April 22, Jagdulla Hydropower Company announced that technical proposals from two Chinese firms—Jiangxi Construction Engineering (JCE) and Sinohydro Corporation Limited—had cleared the evaluation phase for the project’s civil and hydro-mechanical works. The final contractor was to be selected based on their financial proposals.
The peaking run-of-the-river (PROR) hydropower project is being implemented under the Engineering, Procurement, and Construction (EPC) model. However, the selection process took a turn after Sinohydro filed a complaint with Nepal Police’s Central Investigation Bureau (CIB), accusing rival bidder JCE of submitting fraudulent credentials to strengthen its bid.
CIB spokesperson Superintendent of Police Yubaraj Khadka confirmed that an investigation is underway. “Sinohydro has formally alleged that JCE submitted fake documents in an attempt to win the contract. Based on the complaint, we have initiated an investigation,” Khadka said.
Read: Fresh Tender Issued for Jagdulla Hydropower Project
According to a senior Jagdulla Hydropower Company official, JCE and its joint venture partner, ANK Construction Nepal JV, had emerged as the front-runners due to their lowest bid of Rs 13.73 billion, compared to Sinohydro’s offer of Rs 15.07 billion, including VAT. But the authenticity of JCE’s documents has now put the tendering process under scrutiny.
JCE claimed experience from constructing a 90 MW hydropower project in China for Hezhou Shangcheng Electric Power Company, presenting this as evidence of its technical capability. However, the legitimacy of this claim is being challenged.
Last Thursday, Jagdulla Hydropower received an anonymous email—allegedly from Hezhou itself—asserting that the documents submitted by JCE were fabricated. The letter, seen by Aarthik Abhiyan, a sister publication of New Business Age, stated that JCE had never worked with Hezhou, and the claimed 90 MW Shangcheng Hydropower Project was cancelled years ago due to financial constraints.
The letter further alleges that JCE misused Hezhou’s identity, creating fake email addresses, phone numbers, and even forging the company’s official seal to support its bid.
Sanjay Sapkota, CEO of Jagdulla Hydropower Company Ltd, confirmed receiving the digital communication and expressed concern. “JCE submitted documents citing collaboration with Hezhou, including contact details. However, the email and phone numbers provided in the recent message do not match those in JCE’s bid submission,” he said.
Sapkota also confirmed that both the CIB and the Commission for the Investigation of Abuse of Authority (CIAA), the constitutional anti-graft body, are now probing the matter. “If the investigations confirm the use of fake documents, both JCE and ANK Construction could face blacklisting and legal consequences under Nepalese law,” he added.
