Manang: The Himalayan district of Manang, which has so far depended on electricity generated from small hydropower projects, is set to be connected to the national transmission grid for the first time. The 135 MW Manang Marsyangdi Hydropower Project, currently under construction in Naso Rural Municipality–8 and 9 of Manang, is expected to mark a new chapter in the district’s energy sector.
The project, being built by utilizing the water resources of the Marsyangdi River, is one of the large hydropower projects developed by the private sector. Based on a “run-of-river” model, the project will generate electricity by diverting river water through a dam and transporting it via a tunnel to the powerhouse.
Compared to reservoir-based projects, run-of-river projects are preferred due to lower construction costs, relatively minimal environmental impact, and shorter construction periods.
The project has a gross head of 430.20 meters and a headrace tunnel length of 6.075 kilometers. The total estimated cost is NPR 33.38 billion, with 20 percent equity investment and 80 percent loan financing. Butwal Power Company holds a 20 percent stake, while three Chinese companies collectively hold the remaining 80 percent.
An agreement was signed on December 18, 2022, between the Government, Butwal Power Company, and Chinese investors to complete the project within four years. The project is expected to generate 750.948 million units of electricity annually.
Construction work—including access roads, tunnels, dams, powerhouse, and transmission lines—is being carried out simultaneously. Despite challenges posed by mountainous terrain, landslides, snowfall, and harsh weather conditions, construction has been accelerated, according to project officials.
It has been stated that road upgrades were necessary to transport large turbines, generators, and other equipment to the site. During tunnel construction, issues such as weak rock formations, water leakage, and landslide risks have been encountered, but technical teams are continuously addressing these challenges to keep the work on track, said project director Pradhan.
The project has also begun to positively impact the local economy. Hundreds of local residents have gained employment during the construction phase, while economic activity has increased in transport, hotels, restaurants, and service sectors. Improved road access has also made it easier to bring local products to market.
Locals expect the project to further contribute to infrastructure development, education, health services, employment, and commercialization of local products. According to Chairperson Lokendra Bahadur Ghale of Chame Rural Municipality, if royalties from the project are effectively invested in education, health, agriculture, and tourism, it could significantly support long-term development.
However, stakeholders have also emphasized the need for caution regarding possible environmental impacts. According to the Annapurna Conservation Area Project (ACAP) Manang unit, changes in the river’s natural flow could affect aquatic biodiversity, and mitigation measures are being implemented as per the Environmental Impact Assessment (EIA).
With expectations of contributing to energy production, local development, and the national economy, the Manang Marsyangdi Hydropower Project is seen as an important initiative connecting Manang to the national energy grid.
Nepal Purbadhar
