Hydropower Collaboration with India, China, and Bangladesh: PM Prachanda’s Strategy

In a groundbreaking address marking the first anniversary of his government, Prime Minister Pushpa Kamal Dahal ‘Prachanda,’ outlined a transformative shift in Nepal’s energy landscape by prioritizing large hydropower projects and fostering collaboration with neighboring giants India, China, and Bangladesh.

Prime Minister Dahal affirmed the enthusiastic participation of India, Bangladesh, and China in Nepal’s ambitious electricity trade ventures. This collaboration underscores the government’s commitment to revolutionizing major hydropower initiatives, aligning with the nation’s broader vision for sustainable development.

Addressing concerns regarding resource allocation, Prime Minister Dahal assured the public that funds designated for the Budhi Gandaki Hydropower Project’s infrastructure tax would be exclusively directed back into the same project. This decision aims to establish a robust financial foundation for the pivotal initiative.

Providing insight into ongoing efforts, Prime Minister Dahal revealed that the Nepal Electricity Authority (NEA) has initiated a comprehensive study of the 10,800 MW Karnali Chisapani Hydropower Project, slated for completion within three years.

Highlighting recent achievements, he announced the successful conclusion of the study for the 1,902 MW capacity Mugu Karnali Hydropower Project, marking a significant milestone in Nepal’s journey towards energy self-sufficiency.

Prime Minister Dahal expressed direct involvement in expediting the 900 MW capacity Arun 3rd Hydropower Project, currently in implementation, and announced the imminent closure of investment raising efforts for the 1,063 MW capacity Upper Arun Project.

Anticipating a substantial boost in energy production, he projected an additional 564 megawatts from projects undergoing testing commissioning within the next two to three months.

Emphasizing collaboration with the private sector, Prime Minister Dahal disclosed the completion of power purchase agreements for a substantial 9,164 megawatts of hydropower projects, with approximately 2,200 megawatts finalized in the current year alone.

Underlining the government’s commitment to irrigation projects, he designated the 678-megawatt Sunkoshi Third Hydropower Project as a priority. This initiative, according to Dahal, holds the potential to significantly enhance water supply to the Sunkoshi Marine Diversion and Kamala Diversion irrigation schemes.

Furthermore, Prime Minister Dahal affirmed his personal involvement in the regular monitoring of pivotal projects from the Action Room in the Prime Minister’s Office, showcasing a hands-on approach to driving Nepal’s hydropower ambitions forward. The collaborative efforts and strategic initiatives unveiled by Prime Minister Prachanda signal a new era for Nepal’s hydropower sector, positioning the country as a regional leader in sustainable energy production.