Myagdi. Raghuganga Hydropower Project, a subsidiary of Nepal Electricity Authority (NEA), is in the final phase of construction of 40 MW Rahughat Hydropower Project.

The civil contract contract of Rahughat, which has 90 percent physical progress, has been extended for the third time till November 27, 2025. According to Raghuganga Hydropower Project manager Raj Bista, the construction of tunnel, dam and powerhouse has reached the final phase.

He said that the contractor has continued the construction by mobilizing more than 500 workers during the Dashain festival. Jayaprakash Associates (JP), an Indian civil contractor, had signed the contract for Rs 6 billion on November 17, 2017 with the target of completing the project in 45 months.

The deadline was extended for the first time in February 2022 and the second time in February 2022. The construction of the project has been delayed due to coronavirus pandemic, natural disasters like floods and landslides and shortage of river-based construction materials.

Bharat Heavy Electricals Limited (BHEL), which had signed the electromechanical contract for 102,93,222.35 US dollars in October 2019, has not been able to complete the import and installation of power house equipment as per the target. The contract with Vale is valid till December 31.

Project Manager Bista said that the construction of Rahughat would be completed by December if the contractor works as per the work plan. The construction of dam at the base of Dagnam of Raghuganga Rural Municipality-4 and Jhee of ward-5, the 6-kilometer 270-metre main tunnel and the powerhouse at Tilkenichaur has been completed by 90 percent.

The project was implemented with a concessional loan of USD 67 million from the Indian Export-Export Bank and joint investment of Nepal Electricity Authority (NEA) and the Government of Nepal.

Due to poor financial condition, the contract with the old contractor IVRCL was terminated in 2072 BS and the construction was started through a new process. The civil contractor Jaya Prakash Associates (JP) had started digging the approach road in June 2075 and tunnel in July 2076.

The project had signed Power Purchase Agreement (PPA) in April 2018 with a target of generating 240.593 million units of electricity annually. The electricity generated from Rahughat will be connected to the 220 KV Dana-Kusma transmission line under the Kaligandaki corridor through Lilo medium to connect to the central grid. Four towers and transmission lines have also been constructed.