Kathmandu: Jagdulla Hydropower Company is currently developing the Jagdulla Hydropower Project in Dolpa district. The company has accelerated construction works on the 106 MW project.
According to Sanjay Sapkota, Chief Executive Officer of Jagdulla Hydropower Company, the under-construction project is not only set to generate electricity but is also laying the foundation for socio-economic improvement, infrastructure development, and the expansion of regional economic activities in Karnali Province.
Being implemented under the Ministry of Energy, Water Resources and Irrigation’s “People’s Hydropower Program,” the project is considered a model initiative in Nepal, as it is being developed through a combination of government ownership, local participation, and domestic financial resources.
CEO Sapkota stated that the company is developing two semi-reservoir hydropower projects in the Jagdulla and Mudkechula rural municipalities of Dolpa. The company aims to generate a total of 230.35 MW of electricity, including 106 MW from the Jagdulla Hydropower Project and 124.35 MW from the Jagdulla-A Project.
Apart from power generation, the project has made significant contributions to infrastructure development in Dolpa, Sapkota said. “As part of project promotion activities, the company has already completed the construction of a 100-meter-long concrete bridge over the Bheri River at its own expense, opened track sections along difficult cliffs on the Triveni–Mudkechula–Jagdulla road corridor, and installed 10 Bailey bridges along access routes.”
CEO Sanjay Sapkota said, “These infrastructures, built at a cost of millions of rupees, have benefited not only the project but also local residents directly. The need to walk for hours has been reduced as transportation access has become easier. The transportation situation in Dolpa has changed remarkably due to the project. Until 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 season. Now, it has become possible to complete the journey within a single day. An environment has even been created for the operation of overnight bus services between Dunai, the district headquarters of Dolpa, and Kathmandu.”
According to him, the infrastructure developed alongside the project is also expected to have long-term impacts on the tourism sector. The development of alternative and shorter routes to destinations such as Rara Lake, Shey Phoksundo Lake, Jagdulla Lake, Upper Dolpa, Jumla, and Mugu is expected to further expand the tourism potential of Karnali Province.
The project is also expected to make a significant economic contribution. After completion, it is estimated that the project will generate annual royalties of approximately NPR 195 million for the federal government, NPR 95 million for the provincial government, and NPR 95 million for local governments. This is expected to strengthen the local economy.
Preparatory works for the main 106 MW project—including detailed engineering studies, Environmental Impact Assessment (EIA), land acquisition, Power Purchase Agreement (PPA), financial closure, generation license, and company registration—have already been completed. Meanwhile, the detailed engineering study for the 124.35 MW Jagdulla-A Hydropower Project has already been completed. Environmental studies, land acquisition, Power Purchase Agreement (PPA), financial closure, and licensing procedures are currently in their final stages. The project, for which survey works, design, and cost estimates were prepared by Nepali engineers through the Nepal Electricity Authority’s consultant, NEA Engineering Company, is set to become the first hydropower project in Nepal to be developed with majority ownership by government entities.
The company’s shareholding structure has been designed in such a way that government agencies, the Karnali Provincial Government, and local governments will jointly hold a 51 percent stake, while the remaining 49 percent will be owned by the general public. In addition, 10 percent of the shares have been reserved for local residents, while landowners whose properties fall within the transmission line right-of-way (RoW) corridor will be allocated 3 percent shares. This model is likely being implemented in Nepal for the first time.
Another important aspect of the project is its financial structure. The required debt financing of approximately NPR 16.66 billion has been arranged from domestic banks and financial institutions. Financial management has been carried out with the participation of Nabil Bank, Employees Provident Fund (EPF), Hydroelectricity Investment and Development Company Limited (HIDCL), Laxmi Sunrise Bank, Everest Bank, and NIC Asia Bank.
Following the signing of an agreement with the main construction contractor on Shrawan 11 August 2025, physical construction of the project formally commenced.
urjasanchar
