Five firms vie for Upper Tamakoshi management

KATHMANDU, March 31: Five international companies have expressed interest in the management of the Upper Tamakoshi Hydropower Limited (UTKHPL).

Snowy Mountain and Engineering Corporation (SMEC), Australia, Fichtner Engineering and Consulting Services, Germany, Knight Piesold Consulting, USA, Water and Power Consultancy Services (WAPCOS) Ltd, India and SNC-Lavalin Engineering India Pvt Ltd, India have submitted their applications after the UTKHPL floated another bid reviewing the terms of reference (TOR), required qualification and experience for the applicants for management team.


“We sought applications even from teams of individuals in the first bid, but in the second bid only allowed firms to apply,” clarified Project Director and Officiating Chief Executive Officer of the UTKHPL Mrigendra Bahadur Shrestha. The UTKHPL will now shortlist applicants from among the five firms and seek technical and financial proposals from them for evaluation.

SMEC from Australia and Fichtner of Germany, who have applied again, are the only companies that had applied in the previous bidding which was annulled as the Public Procurement Act 2007 requires at least three applicants for a valid bidding process.

The German firm Fichtner had earlier worked for the 70 MW Mid-Marsyangdi Hydropower Project as consultant while SMEC is the major promoter of 750 MW West Seti Hydropower Project. SNC Lavalin and the Indian government-owned WAPCOS have also been involved in hydroelectricity sector in Nepal in the past.

The UTKHPL had published an advertisement in The Economist on January 15 making it the first public sector hydroelectricity project in the country to seek foreign management team as per the loan agreement with the Employees´ Provident Fund (EPF).

The 456 MW project to be constructed in Lamabagar, Dolakha had courted controversy after the Ministry of Energy appointed Arjun Karki as the executive chairman of UTKHPL against the loan agreement on August 6, 2010.

Then Energy Minister Dr Prakash Sharan Mahat had scrapped Karki´s appointment and the Supreme Court had later upheld the minister´s decision on September 3.

The daily peaking run-of-the-river project will be the largest hydropower project when it comes into operation and will provide 456 MW electricity for four hours a day even during the dry season.