Simkot, June 30: The Jagdulla Hydropower Project, currently under construction in Dolpa, is making a significant contribution to the development of infrastructure, particularly road connectivity, in Karnali Province.
According to Sanjay Sapkota, Chief Executive Officer of Jagdulla Hydropower Company, the project is expected not only to increase electricity generation but also to improve the province’s economic and social landscape by strengthening infrastructure and stimulating regional economic activities.
The project is being developed under the People’s Hydropower Programme launched by the Ministry of Energy, Water Resources and Irrigation. It is regarded as a model initiative that combines 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, bringing the combined installed capacity to 230.35 MW.
Major Infrastructure Improvements
Beyond electricity generation, the project has significantly improved transportation infrastructure across Dolpa.
“As part of the project, the company has constructed a 100-metre concrete bridge over the Bheri River, opened road tracks through difficult cliff sections along the Tribeni–Mudkechula–Jagdulla road, and installed 10 Bailey bridges on the access route,” Sapkota said.
He added that these structures, built at a cost of hundreds of millions of rupees, have benefited not only the hydropower project but also local communities.
“People no longer have to walk for hours to reach their destinations. Improved road access has transformed transportation in Dolpa,” he said.
Only a few years ago, travelling from Nepalgunj to Dolpa took more than three days, and transport was frequently disrupted during the monsoon season. Today, the journey can be completed within a single day, while night bus services now operate between Dunai, the district headquarters of Dolpa, and Kathmandu.
Expanding Tourism and Local Economy
According to Sapkota, the infrastructure developed through the project is also expected to boost tourism across Karnali Province.
Improved road networks are creating shorter and more convenient routes to popular destinations, including Rara Lake, Shey Phoksundo Lake, Jagdulla Lake, Upper Dolpa, Jumla, and Mugu, increasing the region’s tourism potential.
The project is also expected to provide substantial long-term economic benefits. Once operational, it is projected to generate annual royalties of approximately:
- Rs. 195 million for the federal government,
- Rs. 95 million for the Karnali Provincial Government, and
- Rs. 95 million for local governments.
These revenues are expected to strengthen local economies and support regional development.
Construction Progress
Preparatory work for the 106 MW Jagdulla Hydropower Project has already been completed. This includes the detailed engineering design, Environmental Impact Assessment (EIA), land acquisition, Power Purchase Agreement (PPA), financial closure, generation licence, and company registration.
Physical construction officially began following the signing of the Engineering, Procurement and Construction (EPC) contract on 11 August 2025.
Meanwhile, the detailed engineering design for the 124.35 MW Jagdulla-A Hydropower Project has also been completed. Environmental studies, land acquisition, financial arrangements, licensing, and the Power Purchase Agreement are currently in their final stages.
The project has been surveyed, designed, and cost-estimated by Nepali engineers through NEA Engineering Company, the consulting arm of the Nepal Electricity Authority (NEA).
Unique Ownership Model
The Jagdulla Hydropower Project has adopted a unique ownership structure designed to promote public participation.
Under the model, 51 percent of the company’s shares will be jointly owned by government agencies, the Karnali Provincial Government, and local governments, while the remaining 49 percent will be offered to the general public.
In addition, 10 percent of the shares have been reserved for local residents. Landowners whose properties fall within the transmission line right-of-way will receive an additional 3 percent share allocation.
According to the company, this is the first ownership model of its kind in Nepal.
Domestic Financing
The project has secured approximately Rs. 16.66 billion in debt financing 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.
The company believes that, once completed, the Jagdulla Hydropower Project will not only strengthen Nepal’s energy sector but also serve as a catalyst for infrastructure development, tourism promotion, employment generation, and sustainable economic growth across Karnali Province. #nepal #hydropower
