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Photo: TRN Newly constructed bridge by Jagadulla Hydropower Project in Dolpa.

The Jagadulla Hydropower Project under construction in Dolpa has made a significant contribution to the development and expansion of infrastructure, including roads, in Karnali Province.

The project is expected not only to generate electricity but also to improve the economic and social landscape of Karnali Province, strengthen infrastructure, and stimulate regional economic activities, according to Sanjay Sapkota, Chief Executive Officer of Jagdulla Hydropower Company.

The project, being developed under the 'People's Hydropower Programme' launched by the Ministry of Energy, Water Resources and Irrigation is regarded as a model initiative in Nepal, combining government ownership, local participation, and domestic financing. According to CEO Sapkota, the company is developing two semi-reservoir hydropower projects in Jagdulla and Mudkechula rural municipalities of Dolpa.

The Jagdulla Hydropower Project will generate 106 MW of electricity, while the Jagdulla-A Hydropower Project will produce 124.35 MW, taking the combined installed capacity to 230.35 MW. Beyond power generation, the project has made significant contributions to infrastructure development in Dolpa.

"As part of the project, the company has constructed a 100-metre concrete bridge over the Bheri River with its own investment, opened track along difficult cliff sections of the Tribeni-Mudkechula-Jagdulla road, and installed 10 Bailey bridges on the access road," Sapkota said. "These structures, built at a cost of hundreds of millions of rupees, have benefited not only the project but also local residents. People no longer have to walk for hours, as road access has become much easier. The project has brought remarkable improvements to transportation in Dolpa," he said.

A few years ago, it took more than three days to travel from Nepalgunj to Dolpa, and transportation was almost completely disrupted during the monsoon. Now, the journey can be completed within a day. Night bus services have even become possible between Dunai, the district headquarters of Dolpa, and Kathmandu, said Sapkota.

According to him, the infrastructure developed alongside the project is also expected to have long-term benefits for tourism. As alternative and shorter routes are being developed to destinations such as Rara Lake, Shey Phoksundo Lake, Jagdulla Lake, Upper Dolpa, Jumla, and Mugu, tourism prospects across Karnali Province are expected to expand further. Economically, the project is also projected to make a substantial contribution, he added.

Once operational, it is expected to generate annual royalties of approximately Rs.195 million for the federal government, Rs.95 million for the Karnali Provincial government, and another Rs. 95 million for local governments, thereby strengthening the local economy.

Preparatory work for the 106 MW main project has already been completed, including detailed engineering design, Environmental Impact Assessment (EIA), land acquisition, Power Purchase Agreement (PPA), financial closure, generation licence, and company registration.

Physical construction officially commenced after the signing of the Engineering, Procurement and Construction (EPC) contract on August 11, 2025. Similarly, the detailed engineering design of the 124.35 MW Jagdulla-A Hydropower Project has been completed, while environmental studies, land acquisition, PPA, financial management, and licensing processes are in their final stages, according to the company.

The project has been surveyed, designed, and cost-estimated by Nepali engineers through NEA Engineering Company, the consulting arm of the Nepal Electricity Authority.

Under the ownership structure, 51 per cent of the company's shares will be jointly held by government agencies, the Karnali Provincial government, and local governments, while the remaining 49 per cent will be owned by the general public.

In addition, 10 per cent of the shares have been reserved for local residents, and landowners whose properties fall within the transmission line right-of-way will receive an additional 3 per cent share allocation. This ownership model is believed to be the first of its kind in Nepal, according to the company.

Around Rs.16.66 billion in debt financing has been secured entirely from domestic financial institutions.

The financing consortium includes Nabil Bank, Employees Provident Fund (EPF), Hydroelectricity Investment and Development Company Limited (HIDCL), Laxmi Sunrise Bank, Everest Bank, and NIC Asia Bank.