Tanahun Hydropower Project achieves over 50% physical progress in construction

KATHMANDU: The Tanahun Hydropower Project, Nepal’s second storage project, has reported a physical progress rate of 51.44% since its construction began five years ago. The 140 MW hydropower project, situated in Rishing Rural Municipality-1 of Tanahun District, is divided into three packages and has reached around 50% completion in its construction work.

Project Chief Rajbhai Shilpakar expressed satisfaction with the progress and emphasized the commitment to meet the project’s deadline in 2026. As of now, the project has achieved a financial progress rate of 46.34%.

Breaking down the progress by packages, Package-1, which involves the construction of a 140-meter-tall dam, a 626.92-meter-long tunnel, and other structures, has attained 27.75% physical progress and 23.88% financial progress.

Package-2, which includes the tunnel construction, powerhouse establishment, and installation of hydromechanical and electromechanical equipment, has achieved physical progress of 51.14% and financial progress of 44.09%. Package-3, responsible for a 220 KV double circuit transmission line from Damauli to Bharatpur in Chitwan, has witnessed 76.5% physical progress and 72.6% financial progress.

The construction of the first package is a joint venture between Song Da Corporation, Vietnam, and Kalika Construction, Nepal. The second package, covering tunnel construction, is awarded to Sinohydro, China. The third package involves the construction of a transmission line and has been contracted to KEC International, India.

The project aims to complete all construction work, including the underground powerhouse, turbine installation, and related activities, by June 2026. The electricity produced will be evacuated through a 220 kV transmission line connecting Damauli and Bharatpur. Out of the required 94 towers for the transmission line, the foundations for 74 towers have been laid.

To supply electricity locally, two 33/11 kV substations in Ghiring Rural Municipality-4 and Bandipur Rural Municipality-6 have been brought into operation. An additional 33 kV transmission line has been installed to distribute electricity generated from the project’s powerhouse to these substations.

The project, with a total cost of $505 million, receives financial support from the Asian Development Bank ($150 million), Japan International Cooperation Agency ($184 million), European Investment Bank ($80.5 million), and the government and Nepal Electricity Authority ($80.6 million).