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Construction work has officially begun on the 16-megawatt Machha Khola Hydropower Project located in Ward No. 5 of Dharche Rural Municipality in Gorkha district.

The project, being developed by Water Energy Development Pvt. Ltd., is estimated to cost around Rs 3 billion. Initial construction activities have already started, with tunnel excavation currently underway at the site.

According to project officials, approximately 70 meters of tunnel has already been excavated. The project aims to complete construction within 30 months.

The project developer said that financing will be mobilized through a consortium of banks led by Agriculture Development Bank.

As per the design, the dam is being constructed at Reshe Faat, from where water will be diverted through a 3-kilometer tunnel to a powerhouse located near Machakhola Bazaar for electricity generation.

The generated electricity will then be transmitted approximately 22 kilometers to the Borang substation in Dhading, where it will be connected to the national transmission grid.

The project company has already acquired around 13 ropani of private land for construction purposes. Compensation arrangements for some government-owned land are also in process, according to the project officials.

Officials said the hydropower project is expected to contribute to local energy supply and support national grid expansion once completed.