Tanahu Hydropower sign contract agreement for construction of Dam


Kathmandu, 9 March 2021, A contract agreement has been signed for the construction of the first package of the 140 MW Tanahu Hydropower Project under the Tanahu Hydropower Project.

For the construction of the first package, the least valued and essentially influential Song Da Corporation, Vietnam-Kalika Construction (Pvt.) Ltd. Nepal J. The purchase agreement was signed between the two on Monday. The agreement has been signed by Managing Director Pradip Kumar Thike on behalf of Tanahu Hydropower Limited and Bikram Pandey on behalf of Song Da-Kalika JV. A contract agreement has been signed with the company for Rs 16.62 billion (excluding provisional sum and value added tax).

The contractor company has to complete the construction work within 57 months of the implementation of the purchase agreement, said Managing Director Thike.

The company had re-invited bids for the construction of Package 1 (Headworks) of the project on 12 April 2076 after the cancellation of the purchase agreement with the construction company CMC de Ravenna, Italy on 15 September 2075. The company rejected all the bids as none of the technical bids received in the bidding process were substantially effective and re-invited bids for the second time on 16 February 2076 as per the procurement guidelines of the Asian Development Bank.

The bidding deadline was repeatedly extended due to the nationwide ban imposed by the Government of Nepal and the ban on international flights to prevent and control the global Covid-19 epidemic. Finally, after the evaluation of the technical bids submitted by three international bidders, the financial bids of the two most influential bidders were opened. After the evaluation of the financial bids, the procurement agreement has been signed by approving the bids of Song Da-Kalika JV, which has the lowest value.

The construction of the second package of the project including tunnel, construction of power house and supply, connection and operation of hydromechanical and electromechanical equipment is underway. The contractor company has completed the work of digging the cable tunnel and in addition to digging the underground power house, it is constructing the access tunnel towards the search tank and the access tunnel on the right side of the Seti river towards the dam.

Under the third package of the project, construction of 220 KV double circuit transmission line from Damauli to Bharatpur of Chitwan is underway.

The total cost of the company’s capital structure and financial management project (including transmission line, rural electrification and construction period interest) is US ५० 505 million, ADB 150 million, Japan International Cooperation Agency (JICA) 184 million and European Investment Bank 80 million. 5 million and the Government of Nepal / Nepal Electricity Authority has been financed 86 million dollars.