Three companies bid for civil contract 140MW Tanahu hydroelectric project


    May 19, 2017-

    Three foreign companies have submitted their bids for the civil contract of 140MW Tanahu Hydroelectric Project, being developed by Tanahu Hydro Limited (THL), a wholly-owned subsidiary of the Nepal Electricity Authority (NEA).

    Out of the five prequalified companies, only three China Gezhouba Group Corporation of China, CMC Ravenna of Italy and Jay Prakash Associated of India–submitted their bids in the final bidding process the deadline of which ended on May 17, according to the THL.

    The winning contractor will undertake the construction of first package which includes a detailed design and construction of headwork of the project.

    The THL, in conjunction with the project consultant Lahmeyer International, will evaluate the technical proposal of the bidders before forwarding it to the Asian Development Bank (ADB)–the lending agency for the development of the project.

    It will take around two months to complete the technical evaluation, according to the THL. “As per the ADB’s guidelines, the THL have to forward the technical evaluation to the ADB for approval within 45 days, whereas the latter will take up to 25 days for approval,” said Sachen Gautam, communications expert at the project office.

    After the evaluation of the technical proposal, the THL will evaluate the financial proposal of the bidders before awarding the contract.

    Likewise, the deadline to submit the final bids on second package, which includes construction of waterway, powerhouse and related equipment, ends on May 31. The THL has already prequalified three companies to participate in the bidding process for the second package.

    The project is planning to award both the contract soon in order to start the construction work in October.

    Currently, the THL is extending compensation to the private landowners in Tanahu district. It has already distributed more than 50 percent of the land compensation amount to the locals against the property acquired to build the 140 MW storage type project.

    The project has so far distributed Rs350 million to more than 160 households whose land and houses will be inundated by the hydropower plant. The Finance Ministry has allotted Rs420 million for land compensation in the budget for this fiscal year. The hydropower project plans to complete the distribution of compensation within this fiscal year.

    The project, according to Gautam, is also preparing to write to the Finance Ministry to ask for Rs 200 million in additional funding for land compensation as it plans to acquire all the land required for the project by this fiscal year. According to an estimate made by the project, it will cost around Rs600 million to acquire 1,200 ropanis of land.

    It will be one of the biggest storage-type projects in the country with an estimated annual energy generation capacity of 587.7 GWh for the first 10 years of its operation.

    The project can generate energy for six hours daily during the dry season. The project is being co-funded by the ADB, the Japan International Cooperation Agency (Jica) and European Investment Bank (EIB).

    Source: The Kathmandu Post