Hydro Support Company has begun construction of the 66.3 MW Middle Kaligandaki Hydropower Project.

Hydro Support Director Chandra Dhakal stated that civil contractor Rasuwa-Multi JV has started construction of the 4,319-meter-long tunnel using explosives since last week at Annapurna Rural Municipality-2, Nagdhunga.

The plan is to construct a 12-meter-high and 35-meter-long dam at Sukebagar in Annapurna Rural Municipality-3, channel the water, and drop it from a height of 151 meters into an underground powerhouse to be built at Naunibagar in Annapurna-2 to generate electricity.

The powerhouse, switchyard, and control room of this run-of-the-river project will be built underground. Phanindra Raj Pandey, CEO of Rasuwa-Multi JV, stated that advanced equipment, including a state-of-the-art Boomer robotic shotcrete machine, has been brought in for tunnel construction.

Electricity from the Middle Kaligandaki project will be connected to the national grid through the 220 kV substation located at Dana, seven kilometers upstream from Naunibagar. Hydro Support Director Dhakal stated that the project aims to be completed within the next three years. With a total estimated cost of Rs. 12.93 billion, 75 percent of the funding will be arranged through six commercial banks led by Nabil Bank Limited, and the remaining 25 percent will be raised through promoters and share investors.

In the power purchase agreement with the Nepal Electricity Authority, the electricity purchase rate has been set at Rs. 8.40 per unit for the winter season and Rs. 4.80 per unit for the rainy season. The project is projected to generate an income of Rs. 1.09 billion from 130 GWh in winter and Rs. 1.33 billion from 277 GWh in the rainy season.

Including the Middle Kaligandaki, three hydropower projects with a combined capacity of over 300 megawatts have obtained construction permits in the Kaligandaki River basin.

Chairperson of Annapurna Rural Municipality, Bharat Kumar Pun, stated that the 65 MW Upper Kaligandaki and the 180 MW Kaligandaki Gorge projects are also preparing for construction.