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Construction Begins on 180 MW Kaligandaki Gorge Hydropower Project in Myagdi

CEO Tab by CEO Tab
June 9, 2026
in Prime News
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Construction Begins on 180 MW Kaligandaki Gorge Hydropower Project in Myagdi
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Construction of the 180 MW Kaligandaki Gorge Hydropower Project has officially commenced in Myagdi district, marking the start of one of the largest hydropower ventures ever undertaken in the area.

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Project developer Kaligandaki Gorge Hydropower Pvt. Ltd. began tunnel excavation using explosives on Monday at Bhalebas in Annapurna Rural Municipality-4.

Project Targeted for Completion Within Four Years

According to Project Director Raman Singh, the company aims to complete the project within four years.

Preparations are underway to excavate tunnels from four separate locations, including the proposed dam site, Gadpar, and the powerhouse site at Gharap.

“A 5.6-kilometre tunnel will be constructed,” Singh said, adding that civil contractor South Asian Infrastructure has already mobilized personnel and equipment at both the powerhouse and dam sites.

Dam in Mustang, Powerhouse in Myagdi

The project’s dam will be constructed at Pahiro Thapla in Thasang Rural Municipality-4, Mustang, while the powerhouse will be located at Gharap in Annapurna Rural Municipality-4 of Myagdi.

The run-of-river project will feature:

  • A 5.6-kilometre headrace tunnel;
  • A one-kilometre penstock pipeline;
  • A gross head of 480 metres between the intake and powerhouse.

Construction of offices, residential facilities, and an explosives storage site for the developer, contractor, and the Nepal Army is nearing completion.

Infrastructure Works Progressing

An eight-kilometre access road to the project site has already been completed. Preparations are also underway to install a Bailey bridge at Gadpar to facilitate transportation and improve access.

Electricity generated by the project will be evacuated to the national grid through a one-kilometre 220-kV transmission line connecting Gharap to Dana.

Rs 40 Billion Investment Backed by Major Banks

Senior Manager Krishnadas Shrestha said the project is expected to cost around Rs 40 billion.

Financing for the project will be led by Global IME Bank, with participation from Laxmi Sunrise Bank, Himalayan Bank, and Prabhu Bank.

He also stated that local residents affected by the project will be offered a 10 percent equity stake.

Largest Hydropower Project in Myagdi

The project was formally inaugurated through a religious ceremony attended by local representatives, community leaders, company officials, contractors, and security personnel.

Ward Chairperson Lok Bahadur Phagami described the Kaligandaki Gorge project as the largest hydropower undertaking in Myagdi’s history.

Expanding Hydropower Hub

Several hydropower projects are already operating on rivers flowing through Narchyang, including:

  • 5 MW Ghalemdikhola Hydropower Project;
  • 42 MW Mristikhola Hydropower Project;
  • 38 MW Nilgiri-1 Hydropower Project;
  • 71 MW Nilgiri-2 Hydropower Project; and
  • 6 MW Relekhola Hydropower Project.

Meanwhile, the 66.3 MW Middle Kaligandaki Hydropower Project is under construction along the Kaligandaki River, and preparations are underway to begin work on the 9.14 MW Super Ghalemdi Hydropower Project.

The commencement of the 180 MW Kaligandaki Gorge Hydropower Project is expected to further strengthen Nepal’s hydropower capacity and contribute significantly to the country’s long-term energy security and economic development.

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