KATHMANDU, July 27: Tanahu Hydropower Company Ltd (THCL) has selected Cooperativa Muratori & Cementisti (CMC) as the contractor to construct head works of its 140-megawatt hydropower plant. 

Issuing a statement, the hydropower company said the Italian contractor will be awarded Rs 20.64 billion (including provisional sum and value added tax) worth of contract to build cofferdam and construction of dam as part of the first package of head works. 

CMC is also the contractor for tunnel digging work of Melamchi Water Supply Project.

The Asian Development Bank (ADB) is the major financer of both Melamchi Water Supply Project and Tanahu Hydropower Project. The contractor has often been blamed for persistent delay in tunnel-digging works of the major drinking water supply project.

Similarly, the hydropower company has chosen Sinohydro Corporation Ltd for supply, installation and operation of hydro mechanical and electromechanical equipment as well as the powerhouse, waterway and related equipment as part of the second package. The Chinese company has been awarded the contract worth US$ 114.19 million plus Rs 3.83 billion (excluding value added tax), according to a statement issued by Tanahu Hydropower Company Ltd. 

Both the contractors received the letters of acceptance on Tuesday. Now, they are required to present performance guarantee for signing the contract within 28 days, according to the statement. The Italian contractor CMC was selected from among five pre-qualified companies while the Sinohydro Corporation was picked from three pre-qualified companies.

The storage-type project will generate 587.7 GWh of energy annually in the first 10 years of operation and 489.9 GWh from 11th year onward. It is situated on Seti River in Vyas Municipality near Damauli -- the district headquarters of Tanahun. Eight VDCs and Vyas Municipality of Tanahun district are directly affected by the project.

Tanahu Hydropower Company Ltd is in the process of selecting the contractor to construct 220-KV double circuit transmission line from Damauli to Bharatpur of Chitwan in the third package to evacuate energy generated by the plant.

The hydropower company which has already signed power purchase agreement (PPA) with the Nepal Electricity Authority (NEA) plans to bring the Tanahu Hydropower Project into commercial operation by April 2024.

The project with an estimated cost of $505 million (including transmission line, rural electrification and interest payment of construction period) is being developed with the funding of the Asian Development Bank, JICA and European Investment Bank. ADB is investing $150 million in the project while JICA is chipping in $184 million. Similarly, EIB is providing loan financing of $85 million, while the government is investing $87 million in the project.

 
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