Tanahu Hydropower Ltd (THL) has signed contract agreements with main construction companies aimed a function. With a capacity of 140 MW, Tanahu Hydropower will be largest reservoir project after completion.

Under the first package, Italian Company Cooperativa Muratori & Cementisti is awarded the contract for civil works include Dam and Coffer Dam. Managing Director of Tanahu Hydropower Ltd Pradeep Kumar Thike and representative of CMC Salvatore Casciare signed the contract agreement. CMC was chosen on the ground of lowest bidder. The amount of the agreement is Rs.20.65 billion.

Under the second package, Tanahu Hydro Ltd (THL) also signed contract agreement with Sino hydro Corporation Limited for powerhouse and water ways related equipment.

On behalf of THL, Managing director Thike and Chen Xuexiang, representative of Sino hydro signed two agreements worth of 111.41 million dollar and another 3.83 billion rupees contract excluding VAT under second package.

According to a press release issued by THL, the construction work will start within two months and the construction work will complete by 2023.

Addressing the signing ceremony, managing director Thike said that Tanahu Hydropower project is first project constructed after Kulekhani and it will immensely help in load management. He requested contractors to complete the project before schedule. He also said that THL and high representatives of contractors are planning discuss to show their commitments to complete the project in time.

Representatives of the contractors expressed their commitment to complete the project before schedule. For the third phase which include the construction of 220 kV double circuit transmission line, the evaluation of tender is under way. Nepal Electricity Authority and THL have already signed Power Purchasing Agreement.

The construction of staff quarter and office in Tanahu Rising Rural Municipality is final stage. 95 percent of land acquisition work in reservoir site has already completed.

The process for land acquisition for access road to dam site and construction of quarter for laborers is currently going in Byas Municipality.

With the total cost of $ 500.50 million which include transmission line, rural electrification and interest of construction period, main financier of the project include Asian Development Bank $ 150 Million, JICA $184 million and European Investment Bank $ 85 million. Nepal government and NEA will also bare the $ 87 million cost of the project.