180 MW Kaligandaki Gorge Hydropower Project enters construction phase, Backed by Rs 39.5 billion investment

KATHMANDU: Construction of the 180-megawatt Kaligandaki Gorge Hydropower Project, one of Nepal’s largest private-sector hydropower investments, has officially begun in Myagdi district, marking a major milestone in the country’s expanding renewable energy sector.

Project developer Kaligandaki Gorge Hydropower on Monday started tunnel excavation using explosives at Bhalebas of Annapurna Rural Municipality-4 in Myagdi.

The run-of-river project, which has been designed as a semi-reservoir peaking hydropower scheme, aims to begin commercial electricity generation by mid-July 2029 (Asar 2086).

Four-Year Construction Target

According to Project Director Raman Singh, construction activities are being accelerated with a target of completing the project within four years.

The project will feature a 5.6-kilometer headrace tunnel, with excavation planned simultaneously from four locations, including the dam site, Gadpar, and the powerhouse area at Gharap.

“We have already mobilized the civil contractor at both the powerhouse and dam construction sites,” Singh said.

The dam will be built at Pahiro Thapla in Ghansa of Thasang Rural Municipality, while the powerhouse will be located at Gharap in Annapurna Rural Municipality.

The project will also include a one-kilometer penstock pipeline and a gross head of approximately 500 meters, enabling high-efficiency electricity generation.

Rs 39.5 Billion Project Financing Secured

The project carries an estimated investment of Rs 39.5 billion, making it one of the largest hydropower projects currently under development in western Nepal.

According to senior manager Krishnadas Shrestha, the financing structure consists of 75 percent debt and 25 percent equity.

The lending consortium includes:

• Global IME Bank – Rs 9 billion
• Laxmi Sunrise Bank – Rs 9 billion
• Siddhartha Bank – Rs 5 billion
• Himalayan Bank – Rs 3 billion
• Nepal SBI Bank – Rs 3 billion
• Everest Bank – Rs 2.5 billion

The remaining investment will be raised through equity contributions from major promoter groups and public investors.

Vishal Group, Triveni Group and Gyanendra Lal Pradhan Lead Equity Investment

The project’s ownership structure has attracted some of Nepal’s leading business houses.

The promoter shareholding has been structured with 51 percent ownership jointly held by Vishal Group and Triveni Group, while hydropower entrepreneur Gyanendra Lal Pradhan will hold a 25 percent stake.

The investment is being made through Green Ventures Limited, which recently acquired a majority stake in Kaligandaki Gorge Hydropower.

Green Ventures currently operates the 52.4 MW Likhu-IV Hydropower Project and recently brought the 82 MW Lower Solu Hydropower Project into operation.

The project’s board includes Chairman Subash Chandra Sanghai, along with directors Anuj Agrawal and Gyanendra Lal Pradhan.

Over One Billion Units of Annual Electricity Generation

Studies indicate that the semi-reservoir project will generate approximately 1.055 billion units of electricity annually.

Of the total output:

• 717.3 million units will be generated during the wet season.
• 338.1 million units will be generated during the dry season.

The plant will operate as a six-hour daily peaking project during the dry season, allowing it to supply electricity during periods of high demand.

Three turbine units of 60 MW each will be installed in the powerhouse.

The project has already secured a Power Purchase Agreement (PPA) with the Nepal Electricity Authority.

Under NEA’s peaking-run-of-river tariff structure, electricity generated by the project will be purchased at:

• Rs 4.80 per unit during the wet season,
• Rs 10.55 per unit during peak hours,
• Rs 8.40 per unit during non-peak dry-season periods.

Developers estimate annual revenue of around Rs 7 billion from electricity sales, with an expected return on investment of approximately 17 percent.

Green Ventures Plans 100% Rights Share Issue

To finance its investment in the project, listed company Green Ventures Limited has decided to issue a 100 percent rights offering worth Rs 3.44 billion.

The company plans to issue 34.375 million rights shares, which will increase its paid-up capital to approximately Rs 6.87 billion.

Hydropower Hub Emerging in Myagdi

Local representatives say Kaligandaki Gorge will become the largest hydropower project developed in Myagdi to date.

The district has already emerged as a significant hydropower corridor, with projects such as the 5 MW Ghalemdi Khola, 42 MW Mristi Khola, 38 MW Nilgiri-I, 71 MW Nilgiri-II, and 6 MW Rele Khola already in operation.

In addition, the 66.3 MW Middle Kaligandaki Hydropower Project is under construction, while the 9.14 MW Super Ghalemdi Hydropower Project is in the pipeline.

The launch of the 180 MW Kaligandaki Gorge project further strengthens Nepal’s hydropower expansion drive, supporting the country’s ambitions to increase electricity generation, boost exports to regional markets, and attract large-scale private investment into renewable energy infrastructure.