Tanahu Hydro-power Company Limited (THCL) is considering to terminate its contract agreement with Italian Contractor Company Cooperativa Muratori e Cementisti di Ravenna (CMC). After failing to come to work in Melamchi, Tanahu Hydropower Company Ltd has issued 28 days to start work,

The time allocated by THL expire on last Friday. (THCL) has selected CMC) as the contractor to construct head works of its 140-megawatt hydropower plant.

THCL awarded CMC Rs 20.64 billion (including provisional sum and value added tax) worth of contract to build cofferdam and construction of dam as part of the first package of head works.

After a growing tensions and disputes, Melamchi Drinking Water Project terminated its contract agreement with CMC.

Managing Director of THCL Pradeep Kumar Thike said that the company will proceed to break contract with CMC and will issue another fresh call for contract.

Asian Development Bank (ADB) is the major financer of both Melamchi Water Supply Project and Tanahu Hydro power Project. The contractor has often been blamed for persistent delay in tunnel-digging works of the major drinking water supply project.