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The Nepal Electricity Authority (NEA) has made a preliminary estimate that the devastating floods have caused more than Rs 600 billion in damage to Nepal’s hydropower sector, although the exact figure is yet to be established.

The NEA said detailed damage assessments are still underway, with its immediate priority focused on rescuing workers trapped inside tunnels of several hydropower projects in flood-affected areas.

According to NEA Acting Managing Director Dirghayu Shrestha, the authority has prioritized saving human lives over collecting detailed information on property and infrastructure damage.

“Our priority right now is saving lives and carrying out rescue operations, so it will take some time before the complete damage details are available,” Shrestha said.

Rescue operations have particularly focused on workers trapped inside tunnels at major projects, including Trishuli 3A and Chilime. Employees and local residents in flood- and landslide-affected areas are also being evacuated.

A senior NEA official said the preliminary assessment indicates that the damage could exceed Rs 600 billion.

“Preliminary information suggests damage of more than Rs 600 billion, but technical teams still need to conduct a comprehensive assessment to establish the exact figure,” the official said.

The NEA has mobilized its employees and technical teams to affected locations and is collecting information on the condition of its projects. It also said efforts are underway to restore electricity supply in areas where infrastructure has been damaged.

13 hydropower projects suffer major damage

The Independent Power Producers’ Association, Nepal (IPPAN) has also reported extensive damage to hydropower projects following the floods.

IPPAN Senior Vice President Uttam Bhlon Lama said damage assessments were ongoing, but at least 13 hydropower projects have suffered direct and significant physical damage so far.

Some other projects have been disconnected from the national grid because of transmission-line or technical problems, although they have not necessarily sustained physical damage, Lama said.

He said the immediate focus remains on rescuing workers trapped inside tunnels of six hydropower projects.

The projects where workers are reported to be trapped include Chilime, Rasuwagadhi, Trishuli 3A, Trishuli 3B, Upper Trishuli-1 and Langtang.

“Our main focus right now is to safely bring the people trapped inside the tunnels out,” Lama said. “The Army is working continuously, and we are hopeful of receiving good news soon.”

Tunnels filled with mud, dam structures washed away

According to preliminary information, hydropower infrastructure alone may have sustained damage estimated at Rs 30 billion to Rs 35 billion, although the figure remains unofficial and is subject to technical verification.

Floodwaters have filled several project tunnels with mud, while dam-area structures have also been damaged or washed away, Lama said.

Most underground powerhouses, however, are believed to have remained relatively safe.

The transmission network has suffered the most extensive damage, according to IPPAN, disrupting electricity transmission and potentially affecting overall power supply.

A detailed assessment will only be possible after technical teams gain full access to the affected project sites. At present, access remains difficult, with the Nepal Army and rescue teams among the few groups able to reach some of the severely affected locations.

Insurance claims and reconstruction to follow rescue operations

IPPAN said insurance assessments and reconstruction work are expected to begin only after rescue operations are completed and technical teams can safely access the damaged infrastructure.

The extent of the damage to individual projects will determine the insurance claims and reconstruction requirements.

IPPAN also said the government is preparing to assess the damage at an international level and could seek compensation or assistance related to the disaster.

Hydropower sector raises over Rs 1.1 billion for relief

Meanwhile, hydropower entrepreneurs have mobilized more than Rs 1.1 billion for relief and rescue operations in flood-affected areas.

IPPAN President Mohan Dangi said the association had initially announced support of Rs 500 million, but contributions from its office-bearers, executive committee members and member companies have pushed the total collection above Rs 1.1 billion.

“We have not taken money from outside our membership. More than Rs 1.1 billion has been contributed solely by executive committee members and our member companies,” Dangi said.

The collected amount is expected to be handed over to the government through the Energy Minister by Monday or Tuesday, according to Dangi. The Energy Minister is currently visiting flood-affected areas along the Trishuli corridor and the funds will be handed over after his return to Kathmandu.

Dangi said IPPAN is not currently focused on calculating the total economic loss suffered by the hydropower sector.

“We are not engaged in calculating the losses yet. Our first and foremost priority is saving lives and mobilizing assistance,” he said.

The actual financial impact of the disaster on Nepal’s hydropower sector is therefore expected to become clearer only after rescue operations conclude and detailed technical assessments of generation facilities, dams, tunnels, transmission lines, roads and machinery are completed.