Kathmandu: After years of delays caused by contract disputes and construction uncertainty, the 38.6 MW Upper Trishuli-3B Hydropower Project has set a new target for commercial operation.
Following the termination of its previous construction contract, new contractors have been mobilized for both the civil and electro-mechanical works. The project developer has announced a target to complete construction and begin electricity generation by mid-July 2027 .
According to the second-quarter financial report for FY 2025/26 published by Trishuli Jal Vidyut Company Limited (TVCL), the company is now fully focused on completing the Upper Trishuli-3B project on schedule. The report outlines the project’s construction progress, financial position, and future plans.
New Phase Begins After Contract Termination
The report states that TVCL terminated its agreement with the previous contractor on December 16, 2023. The remaining works were then divided into two packages—one for civil construction and another for electro-mechanical and hydro-mechanical works.
For the civil package, TVCL signed a contract with Fewa Construction Pvt. Ltd. on August 12, 2024, with construction commencing on August 25, 2024.
For the electro-mechanical and hydro-mechanical package, HNAC-JIANGHE JV was selected as the contractor. The contract was signed on December 8, 2025, and construction began on January 4, 2026. Both packages are scheduled for completion by mid-July 2027.
The latest developments indicate that the project, which remained in limbo for nearly two years, has regained momentum.
NPR 6.58 Billion Invested, No Revenue Yet
Although construction has resumed, the project has not yet started generating electricity. As a result, TVCL continues to report zero operating revenue.
By the end of the second quarter, the company had invested more than NPR 6.58 billion in capital work-in-progress.
With no electricity generation, the company remains without operational income while administrative expenses and foreign exchange losses continue to weigh on its financial performance.
Net Loss More Than Doubles
TVCL’s net loss increased from NPR 27.48 million in the first quarter to NPR 62.51 million by the end of the second quarter.
The report attributes the higher loss mainly to increased foreign exchange losses and rising administrative expenses.
Company Identifies Key Challenges
TVCL acknowledges that its biggest challenge is completing both the civil and electro-mechanical works on time and bringing the project into commercial operation.
The report also identifies retaining skilled personnel, managing foreign exchange risks, minimizing the impacts of floods, landslides, and other natural disasters, and securing necessary regulatory approvals without delays as major challenges.
Focus Turns to the Deadline
The primary cause of delays in the Upper Trishuli-3B project was the termination of the previous construction contract and the time required to appoint new contractors.
With contractors for both work packages now mobilized at the site, TVCL has, for the first time, publicly committed to mid-July 2027 as the project’s generation target.
Meeting this deadline will now be the company’s biggest test. If construction proceeds as planned, the long-delayed Upper Trishuli-3B Hydropower Project is expected to finally enter commercial operation. However, any renewed contractual, technical, or administrative setbacks could once again push the project beyond its revised schedule.
Jalasarokar
