Dolpa. The construction of the main tunnel of the 106-megawatt Jagdulla Semi-Reservoir Hydropower Project in Dolpa district has formally begun.

Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha inaugurated the tunnel construction amidst a programme at Mudkechula Rural Municipality-4 on Thursday.

On the occasion, Minister Shrestha said that the project would be a milestone for energy and economic development of not only Dolpa but of Karnali province as a whole.

Expressing his confidence that the project would be completed on time, he stressed the need of continuous collaboration among all three tiers of government, local community and stakeholders for its successful implementation.

Secretary at the Energy Ministry, Sarita Kumari Dawadi, said cooperation and participation from the local community has helped the project move ahead and stressed the need for facilitation from all bodies to complete the project on time.

According to Jagdulla Hydropower Company Chief Executive Officer Sanjay Sapkota, the hydropower project is an important base for the economic, social and infrastructure development of Karnali Province. He said that the project is being constructed under the ‘People’s Hydropower Programme’ of the Ministry of Energy, Water Resources and Irrigation with the government’s ownership, local participation and domestic financial resources.

Currently, the work of lot one has been completed. The company is developing two semi-reservoir projects with a total capacity of 230.35 MW, Jagdulla (106 MW) and Jagdulla-A (124.35 MW) in Jagdulla and Mudkechula Rural Municipalities of Dolpa.

The project has also contributed significantly to the development of physical infrastructure in Dolpa along with power generation.

The company has already constructed a 100-meter long cemented bridge over the Bheri River, an approach road on the Tribeni-Mudkechula-Jagdulla road and 10 belly bridges. According to the company, these infrastructures have not only facilitated the construction of the project but have also directly improved the movement of people and economic activities.

With the expansion of road access, there has been a significant change in the transportation situation of Dolpa. In the past, it used to take more than three days to reach Dolpa from Nepalgunj but now the journey is possible in a single day.

The infrastructure developed from the project is expected to contribute in the long run to tourism promotion in Rara, Shey-Phoksundo, Jagadulla Lake, Upper Dolpa, Jumla and Mugu.

In terms of financial benefit, the federal government will get Rs 195 million annually while the Karnali state government and the local government will get Rs 95 million as royalty annually. This is expected to contribute significantly to strengthening the local and regional economies.

According to the company, the process of carrying out detailed engineering study, environmental impact assessment, land acquisition, power purchase agreement (PPA), financial management and necessary licenses has been completed. The physical construction work of the project has been expedited after the contract was signed with the main construction company on August 11, 2082.

Likewise, the detailed engineering study of the 124.35 MW Jagdulla-A project has been completed and the process for environmental study, PPA, financial management and license has reached the final stage.

The government bodies, the Karnali state government and local governments will together have 51 per cent share in the project while the general public will have 49 per cent stake. According to the company, 10 percent share has been reserved for the locals and an additional 3 percent share will be provided to the landowners who fall within the right of way of the transmission line.

The total loan investment of the project has been around Rs 16.66 billion from domestic banks and financial institutions. Nabil Bank, Employees Provident Fund, Hydroelectricity Investment and Development Company (HIDCL), Laxmi Sunrise Bank, Everest Bank and NIC Asia Bank have jointly managed the financing.