The 5 MW Mailung Khola Hydropower Project operated by Mailung Khola Hydropower Limited has been completely shut down following severe flooding in Rasuwa.

According to the company, flooding in the Bhotekoshi River on Bhadra 10, 2083 damaged the project’s power generation structures, powerhouse, switchyard, residential facilities, access roads, transmission infrastructure and other physical assets.

A detailed technical assessment of the damage is currently underway, according to the company. The flood has affected the project’s entire 5 MW generation capacity.

Some Employees and Workers Remain Unreachable

The company has reported that some employees and workers involved in the project remain unreachable following the flood.

Employees and technical teams have been deployed to the affected area for safety management, damage assessment and other necessary response activities.

Insurance Claim Process to Follow

The project’s structures and assets are insured, and the company has already provided preliminary information about the damage to the insurance company.

The company will proceed with the insurance claim process after completing a detailed assessment of the losses.

Impact on Revenue and Debt Payments

The complete shutdown of power generation has directly affected the company’s revenue, cash flow and overall financial position.

The company has indicated that the disruption to electricity generation and income could also affect the payment of principal and interest on its bank loans.

Restart Date Yet to Be Determined

Due to the extensive damage, the company has stated that the timeline for resuming operations cannot yet be determined.

The access road has also suffered damage from the Betravati area. Technical inspections of the transmission line, switchyard and other electricity infrastructure are underway.

The company will publish further details after completing the technical assessment and is working on damage evaluation, insurance claims, repairs and rehabilitation.