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The Upper Myagdi Hydropower Project under construction in Dhaulagiri Rural Municipality of Myagdi is progressing faster than expected. Within just 13 months of construction, the project has achieved around 50 percent physical progress. The 46.25 MW project is being developed by Hydro Empire Limited, with a target to begin electricity generation by March/April 2027.

According to project chief Ramesh Subedi, construction of the dam, tunnel, powerhouse, transmission line, and electro-mechanical structures is being carried out in parallel. Out of the total 6,425-meter main tunnel, 4,220 meters have already been completed, and the remaining work is being accelerated. The tunnel is being excavated from the dam site, adit, and outlet points, while powerhouse construction is underway in the Ghimleti area.

A 843-meter-long penstock pipeline will connect the outlet to the powerhouse. An administrative building has already been completed in Ghimleti, while most structures - except the dam, intake, and powerhouse - are being built underground. Civil, electro-mechanical, and hydro-mechanical works are being executed through different contracting companies.

The project’s capacity, previously 37 MW, has been increased to 46.25 MW, with the approval process in its final stage. During the design revision, water flow capacity was increased in a way that avoids the need for additional land acquisition or forest use.

The project, estimated to cost over NPR 8.46 billion, is being financed through a consortium of banks. Siddhartha Bank is leading the financing, along with Nepal SBI Bank, Citizens Bank, Everest Bank, and Nabil Bank. The financing structure is based on 70 percent bank loans and 30 percent equity.

The generated electricity will be connected to the national grid via the Nepal Electricity Authority’s Dandakharka substation. A 132 kV double-circuit transmission line of about 10 kilometers is being prepared. The project has also contributed to local infrastructure development by building an access road from the Shivaratri stream to the dam site and supporting road expansion in Khivang and Chechung villages.

With significant progress in a short time, the project is expected to become an important hydropower development initiative in the Myagdi region. If completed on time, it will add energy supply to the national grid and have a positive impact on both local and national economies.

Jalasarokar