The construction of a diversion tunnel of the 216 MW Upper Trishuli-1 (UT-1), a run-of-the-river type hydroelectric project in Rasuwa district, has been completed. This is expected to speed up the construction of the UT-1, which is the largest hydroelectric project under construction with foreign direct investment for domestic consumption in Rasuwa district.

It has successfully constructed a full concrete lining diversion tunnel of 420 meters in length and diameter of five meters. The Trishuli River has been diverted via a diversion tunnel on Tuesday to commence the construction activities of the head works.

Tae Hak Yoon, chief executive officer of Nepal Water and Energy Development Company (NWEDC), the developer, said the river diversion is a significant achievement in constructing the UT-1. The project has made progress by completing a 4.5 km excavation of the 13.5 km tunnel, which includes the headrace, adit, and tailrace tunnel. The excavation work of the underground powerhouse has advanced by 21 percent, while the overall progress of the project is 14 percent. The project is expected to start production by December 2026. The construction of the project was started in January 2022.

A total of USD 647.34 million (including interest during construction period) of the project has been financed through 70 percent debt and 30 percent equity. The project partners will be injecting an equity investment of USD 194.20 million.

Similarly, a total loan worth USD 453.12 million is being provided by a group of international lenders, including the International Finance Corporation (IFC), Asian Development Bank (ADB), Korean Exim Bank (K-EXIM), Korean Development Bank (KDB), Asian Infrastructure Investment Bank (AIIB), FMO (The Netherlands), the British International Investment (BII), Proparco (France), and the OPEC fund for International Development (OFID).

The shareholders of NWEDC include Korea South-East Power Company Limited, Korea Overseas Infrastructure and Urban Development Corporation, International Finance Corporation, and a local Nepali partner. In the future, the project affected communities will be made available a right to apply for 10 percent shares of the project. The UT-1 is expected to generate up to 1,533 GWh of electricity.

Out of the total annual energy generated by the project, 38.75 percent will be generated during the dry season. The amount of electricity will be higher than most of the other run-of-the-river hydropower projects in Nepal, reads a press statement issued by NWEDC.