Construction has officially begun on the 180 MW Kaligandaki Gorge Hydropower Project in Myagdi district, marking a significant milestone for Nepal's hydropower sector.

Promoted by Kaligandaki Gorge Hydropower Pvt. Ltd., the project started tunnel excavation work using explosives on Monday at Bhalebas in Annapurna Rural Municipality-4.

Project Director Raman Singh said the project aims to be completed within the next four years. Preparations are underway to begin tunnel construction simultaneously from four different locations, including the dam site, Gadpar, and the proposed powerhouse area at Gharap.

According to Singh, the project will include a 5.6-kilometer-long tunnel, while civil construction activities have already commenced at both the dam and powerhouse sites under the supervision of contractor South Asian Infrastructure.

The dam is planned at Pahiro Thapla in Ghasa of Thasang Rural Municipality-4, Mustang, while the powerhouse will be located at Gharap in Annapurna Rural Municipality-4, Myagdi.

Designed as a run-of-the-river project, the hydropower plant will feature a one-kilometer penstock pipeline and a gross head of approximately 480 meters between the powerhouse and outlet.

Construction of offices, residential facilities for project personnel and the Nepal Army, as well as explosive storage facilities, has nearly been completed.

An eight-kilometer access road has already been built, while preparations are underway to install a Bailey bridge at Gadpar to improve access to the project site.

The generated electricity will be connected to the national transmission network through a one-kilometer 220 kV transmission line extending from Gharap to Dana.

The project is estimated to cost around Rs 40 billion. According to Senior Manager Krishna Das Shrestha, financing will be led by Global IME Bank, with participation from Laxmi Sunrise Bank, Himalayan Bank, and Prabhu Bank.

The project has also allocated 10 percent of its shares for local residents affected by the development.

The construction inauguration ceremony was conducted through traditional religious rituals in the presence of local representatives, community leaders, project promoters, contractors, and security officials.

Ward Chairperson Lok Bahadur Phagami stated that Kaligandaki Gorge is the largest hydropower project ever launched in Myagdi district.

He noted that several hydropower projects with a combined capacity of 162 MW have already been developed in rivers flowing through Narchyang, including Ghalemdikhola, Mristikhola, Nilgiri-1, Nilgiri-2, and Relekhola hydropower projects.

Additionally, the 66.3 MW Middle Kaligandaki Hydropower Project is currently under construction, while the 9.14 MW Super Ghalemdi Hydropower Project is preparing to begin construction.