The Jagdulla Hydropower Project, currently being built in Dolpa, is set to boost power production and significantly improve the socio-economic landscape and infrastructure development of Karnali Province.
Project Overview and Impact
Jagdulla Hydropower Company CEO Sanjay Sapkota stated that the Jagdulla Hydropower Project, under construction in Dolpa district, is not only generating electricity but also laying the groundwork for socio-economic improvement, infrastructure development, and expanded regional economic activities in Karnali Province.
This project, moving forward under the Ministry of Energy, Water Resources and Irrigation’s ‘Janatako Jalavidyut Karyakram’ (People’s Hydropower Program), stands as a model initiative. It combines government ownership, local community involvement, and domestic financial resources for its construction.
According to CEO Sapkota, the company is developing two semi-reservoir projects in the Jagdulla and Mudkechula Rural Municipalities areas of Dolpa. The company aims to generate a total of 230.35 megawatts (MW) of electricity, with 106 MW coming from the Jagdulla Hydropower Project and 124.35 MW from the Jagdulla-A Project.
Infrastructure Development and Local Benefits
Sapkota highlighted that the project has significantly contributed to Dolpa’s infrastructure development, beyond just power generation. He mentioned that the company, while promoting the project, has completed several works with its own investment. These include building a 100-meter long concrete bridge over the Bheri River, carving tracks through difficult cliffs on the Triveni-Mudkechula-Jagdulla road section, and installing ten Bailey bridges on access routes. Sapkota explained that these structures, built at a cost of crores of rupees, directly benefit local residents, not just the project. The past necessity of walking for hours has been replaced with easy transport access. Due to the project, Dolpa’s transportation situation have also changed remarkably. A few years ago, it took more than three days to reach Dolpa from Nepalgunj, and movement was almost impossible during the rainy season. Now, the journey is possible in a single day. An environment for night bus services from Dunai, Dolpa’s district headquarters, to Kathmandu, has even been created.
Tourism and Economic Contribution
He also expects that the infrastructure developed alongside the project construction will have a long-term impact on the tourism sector. With the development of alternative and shorter routes to places like Rara Lake, Shey-Phoksundo Lake, Jagdulla Lake, Upper Dolpa, Jumla, and Mugu, the tourism potential of Karnali Province is expected to grow further. Financially, the project’s contribution is also estimated to be significant. After the project’s completion, the federal government is estimated to receive about 19.50 crore rupees annually, the provincial government 9.50 crore rupees, and local levels 9.50 crore rupees in royalties. This is expected to help strengthen the local economy.
Project Progress and Ownership Model
For the main 106 MW project, preparatory works such as detailed engineering study, environmental impact assessment (EIA), land acquisition, power purchase agreement (PPA), financial management, generation license, and industry registration have all been completed. Physical construction of the project formally began after a contract was signed with the main construction company on Shrawan 26, 2082 B.S.
Meanwhile, the detailed engineering study for the 124.35 MW Jagdulla-A Project is also complete. Processes related to environmental study, land acquisition, PPA, financial management, and licensing are in their final stages. This project, where survey, design, and cost estimates were prepared by Nepali engineers through NEA Engineering Company, a consultant to Nepal Electricity Authority, is the first hydropower project to be built with majority ownership from government bodies.
The company’s shareholding structure provides for a combined 51 percent ownership by government bodies, Karnali Province Government, and local levels, with 49 percent for the general public. Additionally, a separate 10 percent share is reserved for local residents, and a provision grants 3 percent shares to landowners whose property falls within the transmission line’s ‘right of way.’ This model is possibly implemented for the first time in Nepal. Another significant aspect of the project is its financial structure.
Financial Structure
The necessary loan investment of approximately 16.66 arba rupees for the project has been secured from domestic banks and financial institutions. This financial arrangement includes participation from Nabil Bank, Employees’ Provident Fund, HIDCL, Laxmi Sunrise Bank, Everest Bank, and NIC Asia Bank.
This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
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