June 18, Kathmandu – The main tunnel construction of the under-construction 106 megawatt (MW) Jagadulla semi-reservoir hydropower project in Dolpa has officially commenced. Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha inaugurated the tunnel construction at an event held on Thursday in Ilama, Mudkechula Rural Municipality-4. At the program, Minister Shrestha emphasized that this project, jointly owned and invested in by the federal, provincial, and local governments, is significant for the energy and economic development of Dolpa and the entire Karnali Province. He stressed the need for collaboration among all three levels of government, local communities, and stakeholders to complete the project on schedule.
Sarita Kumari Dawadi, Secretary of the Ministry of Energy, highlighted that with the support of the local community, the project is progressing smoothly. She underlined the importance of facilitation from all relevant agencies to ensure timely completion of the construction work. Sanjay Sapkota, CEO of Jagadulla Hydropower Company, stated that the project is one of the model initiatives under the “People’s Hydropower Program”, combining government ownership, local participation, and domestic financial resources. The company is developing two semi-reservoir projects in Dolpa: the 106 MW Jagadulla and the 124.35 MW Jagadulla-A, totaling 230.35 MW installed capacity.
The company confirmed that detailed project studies, environmental impact assessments, power purchase agreements (PPA), financial arrangements, and required permits for the main project have all been completed. It is claimed that in addition to electricity generation, the project has contributed to infrastructure development in Dolpa. For instance, the company has constructed a 100-meter-long permanent bridge over the Bheri River, access roads, and 10 Bailey bridges. The expansion of road access has improved transportation in Dolpa and is expected to promote tourism. Once operational, the federal government is projected to receive an annual royalty of approximately 195 million Nepalese rupees, while Karnali Province and the respective local governments are anticipated to earn around 95 million rupees annually.
The project’s ownership will predominantly remain with government bodies, holding 51% of shares distributed among the federal government, Karnali Province, and local levels, with the remaining 49% owned by the public. The company clarified that 10% of shares are reserved for local residents and an additional 3% for landowners affected by the transmission line’s right of way. The company further reported that approximately NPR 16.66 billion in loan investments has been mobilized through co-investments from Nabil Bank, Employees Provident Fund, HIDCL, Laxmi Sunrise Bank, Everest Bank, and NIC Asia Bank.
