Having cancelled the contract with the Italian company Co-operativa Muratori e Cementisti CMC, Tanahun Hydropower Project has called for a new tender to construct dams and other structures under the first phase of the project.

“The tender was opened yesterday and the final deadline to submit tenders is June 9,” said the project information officer Sachin Gautam, adding, “Selected companies will be responsible to develop structures such as a concrete dam, a coffer dam, and two river diversion tunnels.”

As per sources, concession loan provided by the Asian Development Bank and the European Investment Bank will be utilised for the construction of the structures.

Project Manager Pradeep Kumar Thike said the companies wishing to participate in the tender process were required to submit technical and financial proposal simultaneously, in line with the ADB purchase guidelines.

“When it comes to selection of the company, we will first evaluate the participating companies’ technical proposals. Their financial proposals will be opened only after considering the technical proposals,” Thike clarified.

“Once selection is made, contract with the selected company will be signed by October so that work can start from December,” said Thike, adding that the deadline for the project was June 2024.

Sino Hydro Corporation Limited has already started construction works for the second phase that include construction of tunnel, power house, supply, installation and operation of hydro-mechanical and electro-mechanical equipment.

The project has signed a contract with an Indian company KEC for the construction of 220 KV double circuit transmission line that stretches from Damauli to Chitwan’s Bharatpur.

The company has already started its work.

Total cost of the project is estimated to stand somewhere around 50.50 billion rupees. ADB, Japan International Cooperation Agency and EIB will invest 150 million, 184 million and 85 million US dollar, respectively in the project.

The government and Nepal Electricity Authority together will invest some 87 million US dollar in the project that is based in Byash Municipality-7 in the district headquarters, Damauli.