Tanahu Hydro selects contractors

Kathmandu, July 26

Tanahu Hydropower Company has selected the contractors for major construction works of the 140-megawatt Tanahu hydropower project.

For the first package, the Tanahu Hydropower Company has selected Cooperativa Muratori and Cementisti (CMC) of Italy for works related to diverting the flow of the river, construction of the dam of the reservoir and for head works. CMC had placed the lowest bid of Rs 20.64 billion, which includes the provisional sum and value added tax.

For the construction works of the tunnel, power house, and import of hydro-mechanical and electro-mechanical equipment, and their assembly and operation, a Chinese firm, Sinohydro Corporation Ltd, has been selected under the second package. Sinohydro had placed the lowest bid for this second package, which is worth Rs 3.83 billion excluding value added tax..

On June 29, Nepal Electricity Authority (NEA) - the state-owned power utility - had signed the power purchase agreement (PPA) with Tanahu Hydropower Project.

Tanahu Hydropower has forwarded a letter to the aforementioned companies asking them to come with performance guarantee for the agreement.

“We have sent out letters to the respective companies and we plan to start those works within two months from today. We plan to complete the project by 2023,” said Pradeep Kumar Thike, managing director of Tanahu Hydropower.

Tanahu Hydropower has already paid land compensation to the locals. The project has nearly completed constructing physical infrastructure like buildings and access road.

The total cost of the project is estimated at $506 million, of which Asian Development Bank will provide $150 million, Japan International Cooperation Agency will contribute $184 million, European Investment Bank will give $85 million and NEA will chip in $87 million.