Kathmandu: The long-awaited 106 MW Jagdulla Hydropower Project in Karnali Province—considered a key initiative for the region’s economic growth and prosperity—is finally set to move ahead after a year-long delay caused by bidding disputes and procedural hurdles.
Jagdulla Hydropower Company Limited, the project’s developer, has signed a Rs 12.18 billion construction agreement with contractor JCE/ANK JV, clearing the way for works to begin. The civil and hydromechanical construction tender was first announced on 2 June 2024, but no contractor was selected in the initial round. In the second tender call, JCE/ANK JV submitted the lowest qualified bid and secured the contract.
The project’s financial closure was achieved in June 2024 under a co-financing agreement led by Nabil Bank, which will invest Rs 4.40 billion. Other financiers include Hydroelectricity Investment and Development Company Limited (HIDCL), Employees Provident Fund, Laxmi Sunrise Bank, and Everest Bank. HIDCL and the Employees Provident Fund will each invest Rs 4 billion, Laxmi Sunrise will contribute Rs 2 billion, and Everest Bank Rs 1.50 billion.
The project’s estimated total cost is Rs 23 billion, with Rs 16 billion financed through loans and Rs 7 billion from equity. Construction is expected to take five years, with electricity generation targeted thereafter. Karnali Province Government also holds an equity stake in the venture. The same company plans to develop the 120 MW Jagdulla “A” Hydropower Project.
The project site lies 238 km from Nepalgunj, with the dam location in Hurikot, Jagdulla Rural Municipality. Plans include a 23-metre-high and 38-metre-long barrage, a catchment area of 633.83 sq. km, and an underground powerhouse in Mudkechula Rural Municipality-4, measuring 77.8m in length, 14m in width, and 33.45m in height. It will house three vertical-axis Pelton turbines, each with a capacity of 35.5 MW.
After generation, water will be returned to the Jagdulla River via a 330-metre-long, 5-metre-wide, 5-metre-high tailrace. Power will be transmitted through a 132 kV line to the proposed Bafikot substation.
Jagdulla Hydropower Company, with an authorized capital of Rs 8 billion and issued capital of Rs 7.10 billion, will oversee survey, construction, generation, operation, and management. Shareholding includes: Electricity Generation Company (26 percent), HIDCL (10 percent), Nepal Electricity Authority (9 percent), Karnali Province Government (5 percent), and local governments in Jagadulla and Mudkechula (1 percent).
The project, which received its electricity generation survey license on 1 JUy 2017, and transmission line survey permit on 1 January 2020, signed a power purchase agreement on 10 May 2023. Once operational, it is expected to produce 623.32 GWh annually.
The full study and design were completed by NEA Engineering Company, ensuring the project is built entirely with domestic technology and investment.
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