Myagdi: Construction of the long-awaited 40 MW Rahughat Hydropower Project in Myagdi has been completed. With the completion of civil works and installation of equipment, preparations are now underway to begin electricity generation from the project, which is being developed by Raghuganga Hydropower Limited, a subsidiary of the Nepal Electricity Authority (NEA).
According to Ganesh KC, Managing Director of Raghuganga Hydropower, testing of the dam, desander, headrace tunnel, and switchyard has been successfully completed. Testing of one 20 MW generating unit has also been finished, while testing of the second 20 MW unit began on Sunday.
“The dam, desander, tunnel, and switchyard tests have been completed successfully. Testing of one 20 MW unit is already finished, and testing of the other 20 MW unit started on Sunday,” said KC.
He said it is expected to take between seven and ten days to complete testing of both units. Efforts have been intensified with the goal of commencing power generation immediately after the tests are completed.
The project’s dam has been built at Dagnam in Ward No. 4 and at the foothills of Jhiin in Ward No. 5 of Raghuganga Rural Municipality. Testing of the 6.27-kilometer-long headrace tunnel and two settling ponds has also been completed. Equipment installation at the powerhouse constructed in Tilkenichaur has been finished, and testing is underway.
To connect the generated electricity to the national transmission system, the switchyard constructed within the powerhouse premises has been in operation since June 8, 2026 (Jestha 25). The project’s electricity will be connected through a loop-in-loop-out arrangement to the 220 kV double-circuit Dana–Kushma transmission line under the Kaligandaki Corridor. The required four transmission towers and transmission line infrastructure have already been completed.
Completed After Multiple Deadline Extensions
Indian civil contractor Jayprakash Associates (JP) signed a contract worth Rs 6 billion on November 22, 2017, with a target of completing the project within 45 months. However, construction was affected by the COVID-19 pandemic, floods, landslides, and shortages of riverbed construction materials.
As the contractor failed to complete the work within the stipulated timeframe, the deadline was extended multiple times. Extensions were granted twice in February 2022 and later extended for a third time until November 2025. The project was ultimately completed within the fourth extended deadline.
Harish Agrawal, Project Manager of JP, said natural disasters, the pandemic, and shortages of construction materials caused significant delays.
JP, which was selected through the latest bidding process, began construction of the access road in July 2018, and excavation of the main tunnel in July 2019.
Contract With Previous Contractor Terminated
The project was originally awarded to IVRCL in 2009. However, the contract was terminated in 2015, due to the company’s weak financial condition. The project was then re-tendered and construction resumed under a new contracting process.
For the electromechanical component, a contract worth USD 10.293 million was signed with Bharat Heavy Electricals Limited (BHEL) in November 2019.
The project has been developed under the Engineering, Procurement, and Construction (EPC) model with a concessional loan of USD 67 million from the Export-Import (EXIM) Bank of India, along with joint investment from the Nepal Electricity Authority and the Government of Nepal.
Gateway to Hydropower Development in Myagdi
Subin Shrestha, President of the Myagdi Chamber of Commerce and Industry, described the Rahughat project as the gateway to hydropower development in the district, noting that it is the first hydropower project in Myagdi developed with government investment.
“Since the Rahughat project began, ten other hydropower projects that entered Myagdi have already been completed,” he said. “Although delayed, the completion of the Rahughat Hydropower Project after two decades of waiting is a matter of great excitement for us.”
The project signed a Power Purchase Agreement (PPA) in April 2019, with a target of generating 240.593 million units of electricity annually. Following the completion of testing, preparations are now being made to begin commercial power generation.
Jalasarokar
