NEA and ADB conduct site visit to Tanahun Hydropower Project

TANAHUN: A high-level delegation from the Asian Development Bank (ADB) and the Nepal Electricity Authority (NEA) recently conducted an on-site inspection of the 140 MW reservoir-based Tanahun Hydropower Project under construction on the Seti River in Tanahun district.

The team, led by ADB Nepal Resident Mission Director Arnaud Cugshois and NEA Managing Director Kulman Ghising, who also chairs the Tanahun Hydropower Ltd. Board of Directors, visited the site on Monday to assess the project’s progress.

The inspection covered the 140-meter-high main dam (Package-1), the underground powerhouse, and hydro-mechanical and electro-mechanical facilities (Package-2), including the main tunnel construction site. The delegation held extensive discussions with project management, consultants, and contractors to understand construction progress, challenges, and timelines.

Managing Director Kiran Kumar Shrestha and Project Chief Shyamji Bhandari of Tanahun Hydropower Ltd. briefed the team on progress and challenges, including land acquisition and the resolution of issues related to public lands. The delegation also engaged with local authorities, including Tanahun’s Chief District Officer Shyam Krishna Thapa, to address land-related concerns.

ADB’s Director emphasized the importance of timely resolution of existing challenges to ensure the project’s completion on schedule and with quality. NEA’s Kulman Ghising stressed the project’s critical role in addressing the dry-season electricity supply-demand gap and called for collective responsibility to achieve the construction targets.

Project Progress Overview

The project, divided into three major packages, has achieved 63% overall progress, with a targeted completion date of June 2026. Key developments include:

1. Main Dam (Package-1): Construction of the 140-meter-high dam has reached 36% progress. Grouting in the lower section is underway, with Song Da Corporation (Vietnam) and Kalika Construction (Nepal) JV handling the work.

2. Underground Powerhouse and Tunnels (Package-2): A 1,493-meter headrace tunnel has been concreted, and penstock pipe installation is nearing completion. The Sinohydro Corporation (China) is executing this package, which is 62% complete.

3. Transmission Line (Package-3): A 220 kV double-circuit line from Damauli to Bharatpur is 74% complete, with 69 of 94 towers erected. KEC International Ltd. (India) is responsible for this package.

Community Development and Electrification

As part of its social initiatives, the project has electrified rural areas in Tanahun through the NEA’s rural electrification program. Two substations at Ghiring and Bandipur have been operationalized, supported by 33 kV transmission lines.

Financial and Future Plans

The project’s $505 million cost is financed by ADB ($150M), JICA ($184M), the European Investment Bank ($85M), and the Nepal Government/NEA ($86M). Additionally, the company plans to develop the 126 MW Lower Seti Hydropower Project downstream using water from the Tanahun project and the Madi River.

The project has also implemented 63 community development projects, focusing on education, health, water supply, roads, and livelihood programs, with 10 more ongoing.