Tanahu hydro project all set to hire contractorSinohydro Corporation, the Chinese hydropower engineering and construction company, is likely to be hired as the contractor to complete hydro and electromechanical works, which include construction of waterways and powerhouse, at the Tanahu Hydroelectric Project site.
Sinohydro Corporation, the Chinese hydropower engineering and construction company, is likely to be hired as the contractor to complete hydro and electromechanical works, which include construction of waterways and powerhouse, at the Tanahu Hydroelectric Project site.
Sinohydro Corporation is one of the companies that has been shortlisted as the potential contractor to execute hydro and electromechanical works at the project site. Another company that has been shortlisted is CMC Ravena of Italy.
Tanahu Hydro Limited (THL), a wholly-owned subsidiary of Nepal Electricity Authority (NEA) and the developer of 140MW reservoir project, is currently evaluating financial proposals of both the companies.
Sinohydro has quoted “$129.1 million and Rs6 billion” to complete hydro and electromechanical works, according to a highly placed THL source. CMC Ravena, on the other hand, has quoted “$153.8 million and Rs4.33 billion”.
“Although we have opened envelopes comprising financial bid documents of both the companies, we need to verify the cost under individual headings before selecting the contractor,” said the source. “We will complete the evaluation within a couple of week and forward the name of the preferred bidder to the Japan International Cooperation Agency (Jica), one of the agencies that has provided credit for development of the project.” THL will enter into an agreement with the selected company upon getting no-objection letter from the Jica.
Although THL is all set to hire a contractor to execute hydro and electromechanical works, it is yet to select a contractor for implementation of the first package of the hydroelectric project, which includes formulation of the detailed design of the project and construction of headwork. This delay is taking place because the Asian Development Bank (ADB), another lender of the project, is taking “too much time” to evaluate the bid documents.
THL had forwarded technical proposals of three companies competing to grab the first package of the hydroelectric project to the ADB in July.
“We have requested the ADB time and again to complete the technical evaluation so that we could open envelopes containing financial proposals,” said the source. “But the ADB has not responded, which is expected to delay project development.”
THL was planning to appoint the contractor for the first package within October and start construction by December. In a recently held meeting with the Manila-based multilateral lender, NEA Managing Director and THL Chairman Kul Man Ghising had requested the ADB for early completion of bid evaluation.
So far, the project developer has almost completed pre-construction works and construction of access road in Tanahu where the project is being built. It has also provided compensation to over 80 percent of locals, who relinquished their property for development of the reservoir project.
Tanahu Hydroelectric Project will be one of the biggest reservoir projects in the country with an estimated annual energy generation capacity of 587.7 GWh in the first 10 years of operation. The project can generate energy for six hours daily during the dry season.
The project is being built using credit facility extended jointly by the ADB, the Jica and European Investment Bank (EIB).