Energy Minister Shrestha inspects Nepal’s first Hydro-Tourism Project, Calls it a model for green development

KATHMANDU: Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha has inspected the under-construction 47.7-megawatt Maulakalika Hydropower Project, describing it as an innovative project that combines clean energy generation with tourism infrastructure and has the potential to become a new model for sustainable development in Nepal.

Located on the Kali Gandaki River between Tanahun and Nawalpur districts, near Devghat’s Sandhe Bagar, the project is being developed under a unique hydro-tourism concept that integrates hydropower production with hospitality, recreation, and eco-tourism.

During the site visit, Minister Shrestha reviewed the construction progress and received updates from project officials on engineering works, tourism infrastructure, and the overall development timeline.

Construction advances rapidly

Project developer Maulakalika Hydropower Company said the project has already achieved more than 30 percent physical progress within just six months of the start of construction, reflecting what it described as an accelerated implementation schedule.

Company Chairman Krishna Prasad Subedi said the developer is working with the objective of completing the project within the next two years.

Once commissioned, electricity generated by the project will be evacuated through the New Bharatpur Substation in Chitwan and integrated into Nepal’s national transmission grid, contributing to the country’s growing clean energy capacity.

Hydropower meets tourism

Unlike conventional run-of-river hydropower plants, the Maulakalika project has been designed under a “Dam-to-Toe” concept that seeks to maximize both energy production and tourism potential.

A key feature of the project is an 18-meter-high dam, which will create an approximately 15-kilometre-long reservoir upstream along the Kali Gandaki River.

The artificial lake is planned to become a major tourism attraction, with the developer preparing to introduce a luxury cruise service that will allow visitors to experience the scenic river corridor from the water.

According to the company, the project also includes the construction of a five-star hotel overlooking the reservoir.

The hotel is being designed to offer panoramic views of water cascading nearly 30 metres below the dam crest, creating a waterfall-like landscape intended to become one of the project’s signature attractions.

A new model for Nepal’s hydropower sector

Developers believe the project represents a significant shift in the way hydropower investments are planned in Nepal.

Rather than focusing solely on electricity generation, the hydro-tourism model aims to generate multiple economic benefits by combining renewable energy with tourism, hospitality, local employment, and regional business opportunities.

If completed as planned, the Maulakalika project is expected to become one of Nepal’s first large-scale examples of integrating hydropower, tourism, and sustainable infrastructure into a single investment.

The concept is also expected to enhance the economic value of hydropower projects by creating new revenue streams beyond electricity sales, including cruise tourism, hospitality services, recreational activities, and destination-based investments.

Supporting Nepal’s green growth agenda

The project aligns with Nepal’s broader ambition to diversify the economic benefits of its vast hydropower resources while promoting environmentally sustainable tourism.

With global interest growing in renewable energy destinations and eco-tourism, projects that combine clean electricity generation with tourism infrastructure are increasingly being viewed as opportunities to attract both domestic and international visitors.

Upon completion, the Maulakalika Hydropower Project is expected to stand as a flagship example of Nepal’s evolving hydropower sector—demonstrating how renewable energy infrastructure can simultaneously support electricity production, tourism development, private investment, and local economic transformation.