KATHMANDU: Tanahu Hydropower Co has selected contractors for major construction works of 140-megawatt Tanahu hydropower project on Monday.

Tanahu Hydropower has awarded contract related to diverting the flow of the river, construction of the dam of the reservoir and head works to Cooperativa Muratori and Cementisti (CMC) of Italy.

CMC had placed lowest bid of Rs 20.64 billion for the works. Also, works related to tunnel, powerhouse and import of hydro- mechanical and electro-mechanical equipment, and their assembly and operation have been awarded to a Chinese firm, Sinohydro Corporation Ltd.

Sinohydro had placed lowest bid of Rs 3.83 billion.