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The contractor and project sides of the under-construction 42 MW Upper Modi ‘A’ Hydropower Project in Annapurna Rural Municipality of Kaski have objected after a local struggle committee pressured them to halt the construction work. The project management has made it clear that while solutions will be sought through dialogue, the work will not be stopped.

Construction entrepreneur Kiran Malla described the move by the local struggle committee as “anarchy.” According to Malla, chairman of High Himalaya Hydro Construction, local demands should be presented to the project promoter, Upper Modi Limited, and obstructing the contractor directly is a wrong practice.

He said that with heavy investment, equipment, and manpower already mobilized, even a one- or two-day work stoppage could cause financial losses ranging from millions to tens of millions of rupees. He also termed the committee’s actions as unlawful interference.

Project Manager Deepak Bhusal said most of the local demands had already been addressed and informed that a high-level management team would soon visit the site to discuss the remaining issues. According to him, continuous dialogue is being held with the ward chairperson and local representatives, and locals should place their demands directly with the promoter company rather than the contractor.

He stressed that construction work would not be halted under any circumstances.

Although some dissatisfaction and demands remain among locals, the project side stated it is ready to address them. However, it emphasized that direct obstruction of development works would not be acceptable and called for cooperation from all sides to complete the project on time.

Economically, the project is considered significant. The total estimated cost is Rs 10.57 billion, with 70 percent debt financing and 30 percent equity investment. The lead investor, NMB Bank, has invested around Rs 4.40 billion, while co-investor Hydroelectricity Investment and Development Company Limited has invested nearly Rs 3 billion.

In terms of physical progress, the project is said to be in a satisfactory condition. Construction began around a year ago, and the access road has already been completed. Tunnel excavation has progressed between 101 and 110 meters, while powerhouse construction is also moving ahead rapidly.

The project is being developed with a target completion period of four and a half to five years under the government’s energy policy, aiming for completion by fiscal year 2028/29.

The contract for Lot 1 of the project has been awarded to a joint venture between China’s Sichuan Shutian Construction Company and Nepal’s High Himalaya Company.

Urjasanchar