Nepal: Tanahu Hydropower Project

Sovereign Project | 43281-013

Summary

The project has three main components: (i) a medium-sized hydropower plant of 140 megawatts (MW) with significant water storage facilities and associated transmission lines to evacuate the generated power; (ii) rural electrification and community development in the project area, and (iii) a reform and restructuring plan for the national utility, the Nepal Electricity Authority (NEA). The project site is in the Seti River in the Tanahu district, about 150 kilometers (km) west of Kathmandu.

Latest Project Documents

Consulting Notices

See also: CMS

No notices are currently available for this project.

Procurement Notices

See also: Operational Procurement

No notices are currently available for this project.

Procurement Documents

Title Document Date
Tanahu Hydropower Project: Procurement Plan Jan 2013

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Project Name Tanahu Hydropower Project
Project Number 43281-013
Country Nepal
Project Status Approved
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 2990-NEP: Tanahu Hydropower Project
Asian Development Fund US$ 120.00 million
Loan 2991-NEP: Tanahu Hydropower Project (ADF Hard-term)
Asian Development Fund US$ 30.00 million
Loan: Tanahu Hydropower Project (ADF Hard Term)
European Investment Bank US$ 70.00 million
Loan: Tanahu Hydropower Project (ADF Hard-term)
Japan International Cooperation Agency US$ 184.00 million
Abu Dhabi Fund US$ 30.00 million
TA 8329-NEP: Support for Sustainable Energy Management and Reforms
Japan Fund for Poverty Reduction US$ 1.50 million
Loan: Tanahu Hydropower Project
European Investment Bank US$ 15.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Private sector development
Sector / Subsector Energy - Electricity transmission and distribution - Large hydropower generation
Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project has three main components: (i) a medium-sized hydropower plant of 140 megawatts (MW) with significant water storage facilities and associated transmission lines to evacuate the generated power; (ii) rural electrification and community development in the project area, and (iii) a reform and restructuring plan for the national utility, the Nepal Electricity Authority (NEA). The project site is in the Seti River in the Tanahu district, about 150 kilometers (km) west of Kathmandu.
Project Rationale and Linkage to Country/Regional Strategy Nepal faces a mounting energy crisis. Supplies fall well short of demand, the main utility operating the system is highly inefficient, the policy environment is weak, and the role of the private sector is far too small. The supply gap is growing, especially during the dry season in winter (November April). Kathmandu, the main consumption center, has blackouts of 14 18 hours a day during this season and load shedding almost every day year-round. Supplies in the rest of the country fare even worse, although an additional problem here is a very low electrification rate. In the meantime, demand for electricity has been growing at 10% annually. This supply gap forces consumers to use diesel generators. These are expensive and very polluting. Rising diesel imports affect the balance of payments, and the doubling of diesel prices over the past 3 years also hurts the income base of people and businesses. The supply problem is becoming one of the biggest obstacles to economic growth. It curtails investment and trade, productivity, job creation, and the quality of life of most citizens. The proposed project is one of a series of similar investments to help overcome this supply problem.
Impact Expanded access to clean and sustainable energy in Nepal
Project Outcome
Description of Outcome Increased efficiency and supply of reliable hydropower energy
Progress Toward Outcome Loan effectiveness declared on 29 August 2014.
Implementation Progress
Description of Project Outputs

1. Hydropower plant and transmission system made operational

2. Rural electrification increased

3. Community development program in the project area implemented

4. NEA restructured

5. Other sector reforms undertaken

6. Equity sales scheme for hydropower development initiated

Status of Implementation Progress (Outputs, Activities, and Issues) Contract negotiation with first-ranked consultant initiated.
Geographical Location
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples A
Summary of Environmental and Social Aspects
Environmental Aspects

Please see:

http://www.adb.org/Documents/RRPs/?id=43281-013-3

Involuntary Resettlement

Please see:

http://www.adb.org/Documents/RRPs/?id=43281-013-3

Indigenous Peoples

Please see:

http://www.adb.org/Documents/RRPs/?id=43281-013-3

Stakeholder Communication, Participation, and Consultation
During Project Design

Please see:

http://www.adb.org/Documents/RRPs/?id=43281-013-3

During Project Implementation
Business Opportunities
Consulting Services At the request of the government and THL, consultants under Part D will be recruited directly by ADB under the Guidelines on the Use of Consultants (2010, as amended from time to time). The project's construction period is projected at 7 years, which includes about 1.5 years for project site development (building access roads and a bridge to reach the main construction site) and the execution of safeguard plans.
Procurement Procurement packages will be split into four parts: part A will cover main headworks; part B will procure equipment and other powerhouse facilities; part C will secure transmission and rural electrification lines; and part D will include project supervision and other technical expertise. Part B components will be procured by JICA. Parts A and C will follow international competitive bidding in line with ADB Procurement Guidelines (2010, as amended from time to time). Because of joint cofinancing, procurement under Part A will require a waiver. This is because it involves funding from ADFD and EIB and thus potentially procurement from non-ADB member countries.
Responsible ADB Officer Zhang Lei
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Ministry of EnergySPK228@HOTMAIL.COMP.O. Box 2768, G.P.O. Kathmandu
Nepal
Tanahu Hydropower LimitedUPPERSETI@WLINK.COM.NPNEA Training Center Kharipati, Bhaktapur
Nepal
Nepal Electricity Authority (NEA)P. O. Box 5352
Kathmandu
Nepal
Timetable
Concept Clearance 25 Sep 2012
Fact Finding 13 Aug 2012 to 27 Aug 2012
MRM 23 Oct 2012
Approval 21 Feb 2013
Last Review Mission -
Last PDS Update 27 Mar 2015

Loan

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 299.00 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 299.00 - 0.00 0.00 %

Loan 2990-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Feb 2013 22 Apr 2013 29 Aug 2014 30 Jun 2021 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 191.00 Cumulative Contract Awards
ADB 120.00 21 Feb 2013 16.32 0.00 15%
Counterpart 71.00 Cumulative Disbursements
Cofinancing 0.00 21 Feb 2013 0.00 0.00 0%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - Satisfactory - - -

Loan 2991-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Feb 2013 22 Apr 2013 29 Aug 2014 30 Jun 2021 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 244.00 Cumulative Contract Awards
ADB 30.00 21 Feb 2013 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 214.00 21 Feb 2013 0.00 0.00 0%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - Satisfactory - - -

TA 8329-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Feb 2013 22 Mar 2013 22 Mar 2013 31 May 2015 31 Dec 2015 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 71,500,000.00 0.00 0.00 0.00 0.00 71,500,000.00 21 Feb 2013 611,755.00
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - Satisfactory - - -
Title Document Type Document Date
Amendment to Loan Agreements for Tanahu Hydropower Project Loan Agreement (Special Operations) Aug 2014
Tanahu Hydropower Project: Project Data Sheet (Nepali Translation) Translated PDS Apr 2014
Project Agreement for Tanahu Hydropower Project Project/Program Agreement Apr 2013
Tanahu Hydropower Project Reports and Recommendations of the President Jan 2013
Tanahu Hydropower Project: Gender Equality and Social Inclusion Action Plan Gender Action Plans Jan 2013
Tanahu Hydropower Project Project/Program Administration Manual Jan 2013
Tanahu Hydropower Project: Procurement Plan Procurement Plans Jan 2013

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Tanahu Hydropower Project Combined Resettlement Plan and Indigenous Peoples Plans Dec 2012
Tanahu Hydropower Project Resettlement Frameworks Oct 2012
Tanahu Hydropower Project Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks Oct 2012
Tanahu Hydropower Project: Rural Electrification of the Village Development Committees Initial Environmental Examination Aug 2012
Tanahu (Upper Seti) Hydropower Project: Upper Seti (Damauli)-Bharatpur 220 kV Transmission Line Project Initial Environmental Examination Jun 2010
Tanahu (Upper Seti) Hydropower Project Environmental Impact Assessments Aug 2009

Evaluation Documents

See also: Independent Evaluation

No documents found.


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