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After facing numerous challenges, including natural calamities and administrative delays over more than a decade, the 216 MW Upper Trishuli-1 (UT-1) Hydropower Project - a joint venture involving the Nepali and Korean private sectors and the International Finance Corporation (IFC) - has entered the final stage before electricity generation.

Located close to the Kathmandu load center, the project has already completed several community development initiatives benefiting residents of three local municipalities within the project area. It is expected to significantly improve the quality of power supply in the Kathmandu Valley and across the country. The project will generate more than 100 MW during the dry season, equivalent to the output of Kulekhani.

The installation of the first of three weir gates on Thursday (May 28) marks another important step toward power generation and project completion. Construction teams are working around the clock in three shifts, while tunnel finishing works and the installation of electro-mechanical components are currently underway.

Speaking during the inauguration of the tunnel construction works, Korean Ambassador Park Taeyoung, who has been actively strengthening Korea-Nepal relations through meaningful economic support, expressed great satisfaction over the successful installation of the first gate.

The Ambassador attended the ceremony as a special guest in Rasuwa District, alongside Mohan Kumar Acharya, Member of Parliament from the district; Sagar Gautam, Joint Secretary at the Ministry of Energy, Water Resources and Irrigation; and other senior officials from Korea and Nepal, to mark the successful operation of the newly installed weir gate for the 216 MW UT-1 Hydropower Project.

The project is being developed by Nepal Water and Energy Development Company Pvt. Ltd. (NWEDC), with major sponsors including two Korean companies - Korea South-East Power Co. (KOEN) and the Korea Overseas Infrastructure & Urban Development Corporation (KIND) - alongside the International Finance Corporation (IFC) and a local Nepali partner. The UT-1 Hydroelectric Project will generate approximately 1,456 GWh of electricity annually and supply it to Nepal’s national grid.

As Nepal’s largest hydropower project funded through foreign direct investment, the run-of-river project is scheduled for completion by mid-2027. The Embassy of the Republic of Korea in Nepal stated that the successful installation and operation of the weir gate marks a significant milestone, signaling the final stage of construction.

Addressing the gathering at the project site in Rasuwa, Ambassador Park stated that the Korean government has been a reliable development partner of Nepal for the past 52 years, consistently supporting the country’s sustainable economic growth and prosperity.

He highlighted Korea’s contributions to Nepal’s energy infrastructure, including the construction of three hydropower plants and the provision of essential financial support. He also emphasized the immense potential for future cooperation in the energy sector between the two countries.

Ambassador Park noted that this achievement reflects the successful collaboration and dedication of all project stakeholders, describing UT-1 as a landmark example of long-term energy cooperation between Nepal and Korea.

The project is financed through a mix of 70 percent debt and 30 percent equity. Major international financial institutions providing loan financing include the IFC, the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), and the Export-Import Bank of Korea (K-EXIM).

During a program held at the project site in Mailung, Rasuwa, Member of the House of Representatives Mohan Acharya, Joint Secretary of the Ministry of Energy, Water Resources and Irrigation Sagar Raj Gautam, Executive Vice President of Korea South-East Power Company Young Ki Lee, Korean Ambassador to Nepal Park Taeyoung, Director General of the Department of Electricity Development Manadevi Shrestha, along with other officials, local leaders, and community members, were present.

Standing shoulder to shoulder with Korean partners in implementing the project, Nepali partner Brindaban Man Pradhanang was represented at the function by his son, Bikesh Pradhanang. The gate, one of the three weir gates that form a critical hydro-mechanical structure, was successfully installed and test-operated.

The installation and operation of the weir gate were completed through close coordination and continuous efforts among the project management team, technical experts, contractors, and other stakeholders. High priority was given to quality, safety, and environmental standards throughout the construction process.

Speaking at the program, MP Acharya stated that he would provide full support and cooperation to ensure the timely completion of the project, which is being developed through foreign direct investment.

He also appreciated the various programs implemented under community support initiatives, corporate social responsibility activities, and indigenous community development plans aimed at improving the lives of project-affected communities and households. He suggested further expanding and strengthening these initiatives alongside construction activities.

Joint Secretary Sagar Raj Gautam stated that the successful installation of the weir gate represents an important technical achievement for the project and assured that the ministry would provide the necessary facilitation to complete the project within the targeted timeframe.

KOEN Executive Vice President Young Ki Lee stated that the company is giving special attention to completing the project within the estimated budget and schedule. Referring to Korea’s growing investment in renewable energy, he said the company is prepared to further invest in Nepal’s hydropower sector, which possesses immense green energy potential.

Korean Ambassador to Nepal Park Tae-young expressed confidence that, once completed, the project - being developed under the leadership of a Korean government-owned company - would usher Nepal–Korea energy cooperation into a new phase. He added that the project would significantly contribute to Nepal’s electricity generation growth, energy security, and economic development.

Seonung Kim, Chief Executive Officer of Nepal Water & Energy Development Company Pvt. Ltd. (NWEDC), the project developer, stated that the completion of the weir gate installation and operation marks a major milestone for the project. He reaffirmed the company’s commitment to completing the project within the designated timeframe.

The dam and related structures of the project, being developed under the leadership of Korean companies, are located in the Haku area of Aamachhodingmo Rural Municipality–1, Rasuwa, while the underground powerhouse is being constructed in Uttargaya Rural Municipality–1.

The electricity generated by the Upper Trishuli-1 Project will be used for domestic consumption. It is the largest hydropower project currently under construction in Nepal through foreign direct investment.

The Project Site

The project’s main construction work began in December 2021/January 2022 (Poush 2078 BS). Currently, excavation of the 9.5-kilometer-long main tunnel has been completed, and concrete lining work is underway. Excavation of the technically challenging 292-meter vertical shaft has also been successfully completed. Civil construction of the powerhouse has been completed, and installation of electro-mechanical equipment, including turbines and generators, is ongoing.

“The project aims to complete the installation of transmission equipment by December 2026, and its overall physical progress has currently reached 82 percent,” said Giriraj Adhikari, Technical Director of NWEDC.

“The weir gate is used to regulate river water flow, divert water toward the tunnel for electricity generation, maintain the water level at the dam, and safely discharge excess water back into the river. With the successful installation and operation completed according to prescribed technical standards, construction activities are expected to gain further momentum and help complete the project within the targeted timeline,” Adhikari added.

Although construction work was affected by floods in the Trishuli River in 2024 and 2025, work is continuing with a target completion date of mid-2027. The project is being constructed under the Engineering, Procurement, and Construction (EPC) model by Doosan Enerbility.

Electricity Generation

The project is expected to generate 1.5331 billion units of electricity annually. Of the total electricity produced, 38.75 percent will be generated during the winter season and 61.25 percent during the monsoon season.

The electricity generated by the project will be integrated into the national transmission system through the Nepal Electricity Authority’s Trishuli–3B Hub Substation. A Power Purchase Agreement (PPA) between the company and the Nepal Electricity Authority has already been completed.

“Since the Upper Trishuli-1 Project is located near the Kathmandu load center and will produce 104 megawatts of firm energy even during winter, it is considered a highly important project for Nepal’s power system,” said Adhikari.

Supporting the Community

Two of the most important components of the project are its social and environmental safeguard programs. These initiatives are unique and are being implemented in Nepal with rigorous supervision from the International Finance Corporation (IFC).

From the construction of a fish ladder to the management of excavated tunnel material and tree plantation activities, the project has adopted environmentally responsible practices. Similarly, the project has built roads, school buildings, health posts, and provided ambulances to local health facilities.

Under its community support programs, corporate social responsibility initiatives, and Indigenous Peoples Programs (IPP), the project has supported sectors including education, health, drinking water, road infrastructure, cultural preservation, relief distribution, livelihood enhancement, and income generation.

More than NPR 236 million has been spent on these programs so far, and support will continue in the future. In addition, skill-development training programs are being conducted to create self-employment and employment opportunities for local residents in project-affected areas.

“The project construction is in an advanced stage. The 9.5-km-long Head Race Tunnel was successfully excavated in October 2025. The powerhouse construction has also made excellent progress. Progress across all civil, electrical, and mechanical works is highly encouraging,” said Adhikari.

NWEDC’s parent partner, Korea South-East Power Company (KOEN), operates more than 10,000 MW of power generation capacity in South Korea, bringing world-class expertise to Nepal. The company is certified under MODIS, AA2, and SNP, global benchmarks for quality and safety.

Beyond electricity generation, the project has created hundreds of local jobs in construction, logistics, and related sectors, directly benefiting the people of Rasuwa. Through its Community Support Program (CSP) and Indigenous Peoples Program (IPP), the project has contributed to agriculture, health, education, and road construction in local communities.

The project is also boosting Nepal’s economy by mobilizing local contractors, suppliers, and labor, helping keep investment and revenue within the country. In short, Upper Trishuli-1 is more than a hydropower plant - it represents roads, jobs, rural development, and energy security combined.

“With the installation of the weir gate, we mark a major milestone toward completion,” said Adhikari.

Young Ki Lee, Executive Vice President of Korea South-East Power Company (KOEN); Park Tae-Young, Ambassador of the Republic of Korea to Nepal; Sagar Raj Gautam, Joint Secretary of the Ministry of Energy, Water Resources and Irrigation; Seonung Kim, CEO of Nepal Water and Energy Development Company Private Limited (NWEDC); Seonkyom Kim, Vice President of Doosan Enerbility; Pei Limin, Senior Manager of Power China Construction Corporation; and G. Ravindra, Managing Director and CEO of Andritz Hydro India, attended the event.

In his welcome remarks, Seonung Kim, CEO of Nepal Water and Energy Development Company Private Limited (NWEDC), highlighted the importance of the project in Nepal’s energy sector. He described it as a remarkable story of terrain, technology, and teamwork.

NWEDC has already constructed a 9.5 km tunnel and a 292 m vertical pressure shaft. All project structures, except the dam, are fully underground. The project is financed by nine international banks, including IFC, ADB, the Export-Import Bank of Korea (Korean Exim Bank), and others. Doosan Enerbility, a Korean company, is the EPC contractor, while Power China and Andritz Hydro are subcontractors. Lahmeyer, a German company, serves as the Owner’s Engineer (OE). These international stakeholders are actively involved in the UT-1 project.

The project is the result of close collaboration with Nepalese government institutions and serves as an excellent example of the Project Development Agreement (PDA) framework.

MP Acharya, in his congratulatory speech, highlighted the project's contribution to Nepal’s energy development. He stated, “This project is about local employment and local pride - it has directly benefited our communities.”

For its outstanding work, NWEDC received the Asian Power Award 2024 for Hydropower Project of the Year. The project will generate 39% dry-season energy, helping to address the country’s seasonal variations in energy demand and supply.

The installation of the weir gate is not merely the construction of concrete and steel structures; it is the first step toward generating electricity for homes, improving connectivity through roads, creating jobs for youth, and bringing hope to the nation.

By Keshab Poudel