KATHMANDU, June 29

The process of appointing a consultant for the 140-megawatt Tanahu Hydropower Project has finally concluded after delay of over two years.

Tanahu Hydropower Ltd (THL) today formally appointed joint venture (JV) between Lahmeyer International GmbH Germany and Manitoba Hydro International of Canada as the consultant for the $505-million reservoir-type project, which is being funded by the government, the Asian Development Bank (ADB), the Japan International Cooperation Agency and the European Investment Bank.

An agreement to this extent was signed by THL Managing Director Sunil Kumar Dhungel and Hans Dieter Miess, finance director of Lahmeyer International.

“The JV is expected to begin works from the end of July,” Dhungel said.

THL, a state-owned special purpose vehicle formed to implement the hydro project, appointed the project supervision consultant to receive support in the areas of preparing tender documents to formally build the hydro project, project administration and design, engineering services, management control and other technical aspects.

The consultant has agreed to provide these services at a cost of $26.05 million for a total of 12 years, including one year of pre-construction phase, six years of construction stage and five years of operation stage.

Although the consultant should have been selected in May 2013, the process was delayed after Commission for Investigation of Abuse of Authority launched investigation into the consultant selection process initiated by the ADB.

Then on December 17, Energy Minister Radha Kumari Gyawali scrapped the selection process. The minister’s move was severely criticised by Ministry of Finance — which had mobilised $505 million to build the project — as ‘it created uncertainty about implementation of the project’, which was crucial for country facing long hours of power outage every day.

The Cabinet on January 1, however, overturned the energy minister’s decision, paving the way for the ADB to give continuity to the project supervision consultant selection process.