Kathmandu: The formal construction of the main tunnel for the Jagadulla Semi-Reservoir Hydroelectric Project has officially commenced in Dolpa. Minister for Energy, Water Resources, and Irrigation, Biraj Bhakta Shrestha, inaugurated the tunnel works during a ceremony held on Thursday at Mudkechula Rural Municipality-4, Ila.
This 106 MW capacity project is considered a significant addition to Nepal’s energy landscape, particularly due to its semi-reservoir design, which allows for more flexible power generation.
During the inauguration, Minister Shrestha emphasized that the project represents a collaborative investment model involving all three tiers of government and local residents. He stated that the venture is poised to become a cornerstone for the economic transformation of the Karnali Province. Developed under the national “Janata ko Jalvidyut” (People’s Hydropower) program, the project follows an inclusive ownership structure where government agencies and local bodies hold a 51 percent stake, while the remaining 49 percent is reserved for public shareholding.
The financial foundation for this massive infrastructure undertaking has been secured through domestic resources. A consortium of various national banks and financial institutions, led by Nabil Bank, has committed a loan investment of 16.66 billion rupees to bring the project to fruition. This successful financial closure highlights the growing capacity of the Nepali banking sector to fund large-scale energy projects independently.
The Jagadulla Hydropower Company is currently overseeing a broader energy portfolio in the region, consisting of two major phases. In addition to the 106 MW Jagadulla project, the company is also advancing the 124.35 MW Jagadulla-A project. Combined, these two developments will contribute a total of 230.35 MW to the national grid, significantly enhancing Nepal’s renewable energy output and providing a much-needed boost to the infrastructure of the remote Karnali region.
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