fbpx 43281-013: Tanahu Hydropower Project | Asian Development Bank

Nepal: Tanahu Hydropower Project

Sovereign (Public) Project | 43281-013 Status: Active

ADB is helping Nepal develop a 140-megawatt hydropower plant to be located on the Seti River in Tanahu district.  The project will build the medium-sized plant with water storage facilities and transmission system. It will also provide rural electrification and community development in the area, and a reform and restructuring plan for the national utility, the Nepal Electricity Authority.

Project Details

Project Officer
Shiihara, Takeshi South Asia Department Request for information
Country
  • Nepal
Modality
  • Loan
  • Technical Assistance
Sector
  • Energy
 
Project Name Tanahu Hydropower Project
Project Number 43281-013
Country Nepal
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 2990-NEP: Tanahu Hydropower Project
concessional ordinary capital resources lending / Asian Development Fund US$ 120.00 million
Loan 2991-NEP: Tanahu Hydropower Project (ADF Hard-term)
concessional ordinary capital resources lending / 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 Gender Equity and Mainstreaming
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 Review mission fielded in Jul 2018 to review the implementation progress of the project.
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 with PSC signed in Jun 2015. Consultants commenced work in July 2015.

Financial bid evaluation completed in May 2018 for headworks package; contract signing expected in Sep 2018.

Geographical Location Nation-wide, Bharatpur, Central Region, Damauli, Dharampani, Lumbini Zone, Majhkot, Mid Western, Narayani Zone, Rapti Zone, Tanahun, Western Region
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 Shiihara, Takeshi
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Ministry of Energy
[email protected]
P. O. Box 2768, G. P. O. Kathmandu, Kathmandu, Nepal
Nepal Electricity Authority (NEA)
P. O. Box 5352
Kathmandu
Nepal
Tanahu Hydropower Limited
[email protected]
NEA Training Center Kharipati, Bhaktapur, 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 22 Oct 2018

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 78.82 0.00 73%
Counterpart 71.00 Cumulative Disbursements
Cofinancing 0.00 21 Feb 2013 16.72 0.00 15%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory 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 30.00 Cumulative Contract Awards
ADB 30.00 21 Feb 2013 28.01 0.00 104%
Counterpart 0.00 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 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 2016 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 1,500,000.00 0.00 0.00 0.00 0.00 1,500,000.00 21 Feb 2013 1,433,527.37
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory - - -

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Amendment to the Loan Agreement (Special Operations/Regular-Term) for Loan 2990-NEP: Tanahu Hydropower Project Loan Agreement (Special Operations) Sep 2016
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 Agreements 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: Procurement Plan Procurement Plans Jan 2013
Tanahu Hydropower Project Project/Program Administration Manual Jan 2013

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Tanahu Hydropower Project: Social Safeguard Monitoring Report (July-December 2018) Social Monitoring Reports Jan 2019
Tanahu Hydropower Project: Environmental Monitoring Report (July-December 2018) Environmental Monitoring Reports Jan 2019
Combined Resettlement and Indigenous Peoples Plan: Tanahu Hydropower Project Combined Resettlement Plan and Indigenous Peoples Plans Nov 2018
Tanahu Hydropower Project: Environmental Monitoring Report (January-June 2018) Environmental Monitoring Reports Jul 2018
Tanahu Hydropower Project: Social Monitoring Report (January-June 2018) Social Monitoring Reports Jul 2018
Tanahu Hydropower Project: Environmental Safeguard Monitoring Report (July-December 2017) Environmental Monitoring Reports Jan 2018
Tanahu Hydropower Project: Social Monitoring Report (July-December 2017) Social Monitoring Reports Jan 2018
Tanahu Hydropower Project: Social Monitoring Report (January-June 2017) Social Monitoring Reports Nov 2017
Tanahu Hydropower Project: Environmental Monitoring Report (January-June 2017) Environmental Monitoring Reports Jul 2017
Tanahu Hydropower Project: Environmental Monitoring Report (July-December 2016) Environmental Monitoring Reports Jan 2017
Tanahu Hydropower Project: Environmental Monitoring Report (January-June 2016) Environmental Monitoring Reports Jun 2016
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

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Loan Nos.: 2990/2991-NEP: Tanahu Hydropower Project [THL/01-P1/2075/076: Package 1] REBIDDING Invitation for Bids Active 25 Apr 2019 09 Jun 2019
Loan No. 2990-NEP: Tanahu Hydropower Project [ICB-PMD-DSAEP-074/75-01-Tanahu] Invitation for Bids Closed 24 Jul 2018 07 Sep 2018
Loan No. 2990-NEP: Tanahu Hydropower Project [THL/03-P3/2074/075: Package 3] Invitation for Bids Closed 17 Jul 2018 18 Sep 2018
Environmental Expert Individual - Consulting Closed 01 Jun 2018 15 Jun 2018
Social Development Expert Individual - Consulting Closed 01 Jun 2018 15 Jun 2018
Dam Safety Expert Individual - Consulting Closed 01 Jun 2018 22 Jun 2018
Environment and Social Management Service Provider of Tanahu Hydropower Project Firm - Consulting Closed 08 Nov 2017 21 Dec 2017
Tanahu Hydropower Project Individual - Consulting Closed 22 Aug 2017 05 Sep 2017

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
HEADWORKS Loan 2990 05 Oct 2018 COOPERATIVE MURATORI & CEMENTISTI (CMC) CMC DI RAVENNA SOCIETA COOPERATIVA VIA TRIESTE 76-48122 RAVENNA ITALY Ministry of Energy CONSTRUCTION 156,711,987.00 32,821,681.00
HEADWORKS Loan 2991 05 Oct 2018 COOPERATIVE MURATORI & CEMENTISTI (CMC) CMC DI RAVENNA SOCIETA COOPERATIVE VIA TRIESTA 76-48122 RAVENNA ITALY Ministry of Energy CONSTRUCTION 156,711,987.00 27,038,813.00
LAND ACQUISITION AND RESETTLEMENT COSTS OF THL (VULNERABLE ALLOWANCES IN RESERVOIR AREA) Loan 2990 05 Jul 2018 RURAL EMPOWERMENT SOCIETY DAMAULTANAHU NEP VYAS 4 DAMAULI, TANAHU NEPAL NEPAL Ministry of Energy OTHERS 5,613,019.00 5,613,019.00
LAND ACQUISITION AND RESETTLEMENT COSTS OF THL Loan 2990 09 Nov 2017 RURAL EMPLOWERMENT SOCIETY DAMAULITANAHU NEP VYAS 4 DAMAULI, TANAHU NEPAL NEPAL Ministry of Energy OTHERS 3,853,407.00 3,853,407.00

Procurement Plan

Title Document Type Document Date
Tanahu Hydropower Project: Procurement Plan Procurement Plans Jan 2013