With the opening of the rebidding notice for the first package, three months of speculations and uncertainty over whether the project will complete on its schedule have come to an end.

With a generation capacity of 140 MW, Tanahu Hydro Ltd has canceled the agreement with Italian Company CMC after the company did not start the work as per the agreement.

Thanks to mishandling of Melamchi Project and Ministry of Water Supply, CMC pulled out from all the projects in Nepal questioning security of foreign staffs and governance issue.

Tanahu Hydropower Ltd (THL) announced retender notice for construction of first package infrastructures. The construction works under first package includes dam sites.

According to the tender notice, the last date for submission of tender is June 9, 2019. Under this rebidding, the contractor has to build 140 meter height concrete dam, two tunnels to turn the rivers and temporary dams. For this construction, the concessional loan of Asian Development Bank and European Investment Bank (EIB) will be mobilized. According to managing director of THL Pradeep Kumar Thike, those bidders willing to take part in bidding has to submit Technical and Financial proposal simultaneously as the ADB's Single Stage to envelop bidding procedure.

"After evaluation of technical proposal, the price bid of the only technically responsive and qualified bidders shall be opened after technical bid evaluation whereas the price bid of those bidders whose technical bid are not responsive and qualified shall be returned on open after the award of the contract," MD Thike.

The target of THL is to sign agreement with contractors on second week of October and mobilize successful bidders in the project site by second week of December. The project will be be completed by second week of June 2024.

THL cancelled the agreement with Italian company CMC after it did not start work as per its bid agreement.

Chinese company Sino Hydro Corporation, which won the second package including electro mechanic and hydromechanics component supply, has already started work in the project sites. The company is currently constructing office building, labor quarters, access road of the projects and other structural designing work.

Under the third package, 220 KV double circuit Transmission line will be constructed. THL has already signed the agreement with Indian Company KEC as part of the bid and the company has already mobilized its workers and is now conducting check survey. Rural electrification and work for environmental safeguard are part of of it.

The total cost of the project is US$ 505 million. Out of this ADB will lend $150 million, JICA $184 milllion, EIB $ 80.5 Million concessional loan. Similarly, NEA and Nepal government will invest $ 80.7 million.

The contract agreement has already been signed for financial arrangements with different stake holders. After Kulekhani, Tanahu Hydropower project is the largest storage project to contribute power during the peak supply.