The under-construction Jagadulla Hydropower Project in Dolpa district is paving the way for economic and social improvement, infrastructure development, and regional economic expansion in Karnali Province alongside generating electricity, according to Sanjay Sapkota, Chief Executive Officer of Jagadulla Hydropower Company.
Developed under the People’s Hydropower Program of the Ministry of Energy, Water Resources and Irrigation, this project serves as a model initiative in the country, combining government ownership, local participation, and domestic financial resources. The developer company is constructing two semi-reservoir projects in the Jagadulla and Mudkechula rural municipality areas of Dolpa. The company aims to generate a total of 230.35 megawatts of electricity, with 106 megawatts from the main Jagadulla Hydropower Project and 124.35 megawatts from the Jagadulla-A project.
Infrastructure and Transport Transformation in Dolpa
Beyond electricity generation, the project has made a remarkable contribution to the physical infrastructure of Dolpa, according to CEO Sapkota. The company has completed the construction of a 100-meter-long concrete bridge over the Bheri River, opened tracks through extremely difficult rocky terrain along the Triveni-Mudkechula-Jagadulla road section, and installed 10 belly bridges along the access road using its own funds.
These structures, built at the cost of crores of rupees, have directly benefited local residents in addition to supporting the project. The physical isolation of the past has ended, replacing hours of walking with convenient road transport. Travel conditions in Dolpa have undergone a massive shift because of this project. A few years ago, traveling from Nepalgunj to Dolpa took more than three days, and movement was almost entirely blocked during the rainy season. Today, the journey can be completed in a single day, and direct night bus services have even started running from Dunai, the district headquarters of Dolpa, to Kathmandu.
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The infrastructure built alongside the project is also expected to have a long-term positive impact on local tourism. With the development of alternative and shorter routes connecting to Rara Lake, Shey Phoksundo Lake, Jagadulla Lake, Upper Dolpa, Jumla, and Mugu, the tourism potential of Karnali Province is expected to expand. The project is also projected to make a major economic contribution. Once operational, the project will generate annual royalties of approximately 19 crore 50 lakh rupees for the federal government, 9 crore 50 lakh rupees for the provincial government, and 9 crore 50 lakh rupees for the local levels, bolstering the local economy.
Progress and Share Ownership Structure
Preparation work for the main 106-megawatt project, including the detailed engineering study, environmental impact assessment, land acquisition, power purchase agreement, financial management, generation license, and industry registration, has already been completed. Physical construction officially moved forward after the agreement with the main construction company was signed on 26 Shrawan 2082.
Meanwhile, the detailed engineering study for the 124.35-megawatt Jagadulla-A project has been completed, and the environmental studies, land acquisition, power purchase agreement, financial management, and licensing processes are in their final stages. Surveyed, designed, and cost-estimated by Nepali engineers through NEA Engineering Company, a consulting arm of the Nepal Electricity Authority, this is the first hydropower project to be built with majority ownership held by government entities.
The ownership model of the company allocates 51 percent shares jointly to government entities, the Karnali provincial government, and local levels, while 49 percent of the shares are reserved for the general public. Additionally, 10 percent of the shares are secured for local residents, and 3 percent shares are allocated to landowners whose properties fall within the right of way of the transmission line. This specific ownership structure is being implemented for the first time in Nepal.
Financial Structure and Domestic Investment
Another major aspect of the project is its financial structure. A loan of approximately 16 arba 66 crore rupees required for the project has been managed entirely through domestic banks and financial institutions. Financial closure has been secured with the participation of Nabil Bank, Employees Provident Fund, HIDCL, Laxmi Sunrise Bank, Everest Bank, and NIC Asia Bank.