First Business News Portal in English from Nepal
KATHMANDU: In a momentous event on Tuesday, Energy Minister Shakti Bahadur Basnet initiated the construction of the nation’s largest hydropower project, which is set to harness 216 megawatts of power through foreign direct investment (FDI) from a Korean company. The foundation stone for this ambitious project was laid during the ceremony.
Situated in Haku village, Amachhodingmo Rural Municipality-1, the project boasts a remarkable dam and physical infrastructure, while the underground powerhouse finds its location in Uttargaya Rural Municipality within Rasuwa district.
Minister Basnet, addressing the gathering at the groundbreaking ceremony, emphasized the government’s commitment to cultivating an investor-friendly atmosphere, both for international and domestic investors. The overarching goal is to bolster economic prosperity within the nation through the expansion of hydropower initiatives.
The principal investor behind this visionary project is South-East Power of Korea. Hau Chun Kim, the President and Chief Executive Officer of South-East Power, underscored the project’s pivotal role in driving economic growth by exporting surplus power to neighboring countries and mitigating the impacts of climate change.
The project’s development journey commenced in 2020, with an impressive overall physical progress standing at 22 percent thus far. The construction of the dam is slated to commence post-monsoon season.
With an estimated total cost of $647.3 million, nine international financial institutions have committed to investing $453.2 million, while the remaining funds will be secured through equity. This project not only marks a significant milestone in the country’s energy sector but also represents a substantial leap towards sustainable economic development.
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