Rasuwagadhi Hydropower Plant Remains Shut After Devastating Bhotekoshi Flood
The 111-MW Rasuwagadhi Hydropower Project remains shut after severe flooding in the Bhotekoshi River caused extensive damage.
The 111-MW Rasuwagadhi Hydropower Project in Rasuwa remains completely shut following the devastating flood in the Bhotekoshi River on August 26, 2026. The flood caused extensive damage to the project’s dam-site structures, site office, staff quarters, vehicles, heavy equipment, construction materials, access roads and bridges.
The underground powerhouse has been filled with debris, while electromechanical equipment has also been damaged. Three transmission-line towers were completely destroyed in the disaster.
The flood has also resulted in major human losses. According to the company, 92 people remain unaccounted for, including 50 contract employees, two daily-wage workers, 39 workers employed through contractors and company director Sunau Tamang. The body of one contract employee has been identified so far.
Search and rescue operations are being carried out in coordination with the Nepal Army, Nepal Police, Armed Police Force and other agencies. Engineers, geologists, tunnel experts and eight experienced mountaineers have also been mobilized around the project site.
The company has warned that the shutdown could affect its cash flow and debt-servicing capacity, while rehabilitation is expected to take considerable time. Rasuwagadhi Hydropower currently has approximately Rs. 17.70 billion in long- and short-term loans from various banks and financial institutions.
The project’s structures, machinery, vehicles and employees were insured, and the company has notified insurers and initiated the claim process. The final insurance claim amount will be determined after a detailed assessment of the damage.
The project is located around 16 kilometers from Syabrubesi. The connecting road and four concrete bridges have been completely damaged, and there is currently no alternative access route. Reconstruction of the road and bridges will therefore be necessary before project activities can fully resume.
The company is conducting a detailed technical assessment of the damage. As a result, the total financial loss and the time required to resume operation of the 111-MW project have not yet been determined.