Tanahun Hydropower Project Achieves 67% Physical Progress ahead of May 2026 Deadline

Though construction across all three packages has gained momentum recently, the 140 MW Tanahun Hydropower Project has achieved only two-thirds of its physical progress as the deadline nears. Scheduled for completion by May 2026, the project has gained 67 percent physical progress, according to project communication expert Sachin Gautam.

Package 1 covers the headworks, Package 2 comprises the waterway, powerhouse and related equipment, while Package 3 involves construction of the Damauli–Bharatpur 220 kV transmission line.

Under Package 1, construction of the dam and associated structures is being carried out by Song Da–Kalika JV, with overall progress reaching 47 percent, Project Manager Shyamji Bhandari told the state-owned RSS news agency. Major works, including slope cutting for the main dam, construction of access roads, installation of temporary cofferdams to divert the Seti River, and excavation of two diversion tunnels, have already been completed. The Seti River was diverted on November 6, 2023, to facilitate dam construction, while temporary cofferdams on both the upstream and downstream sides of the dam were completed 19 months ago. Concreting of the 140-metre-high dam began on March 20, 2025, and concrete works, core drilling and grouting are currently underway.

Construction of the powerhouse and related equipment under Package 2 is being undertaken by China’s Sinohydro Corporation. According to Bhandari, excavation of underground structures has been completed and most civil works have also been finished. Main concreting of key structures, including the powerhouse, cable tunnel, surge tank and tailrace, has been completed, bringing overall progress under this package to 72.5 percent. Civil works at the powerhouse are nearing completion, while electromechanical works are ongoing, along with roof installation and water discharge works.

Under Package 3, India’s KEC International Limited has completed foundation works for 78 of the 94 towers along the 33-kilometre Damauli–Bharatpur 220 kV transmission line, with overall progress under this package reaching 74.5 percent. 

Bhandari said coordination is ongoing with the Ministry of Energy, Water Resources and Irrigation, and the Ministry of Finance to secure approvals for forest land use and tree clearance required for the remaining sections.

Located on the right bank of the Seti River, about 150 km west of Kathmandu near Damauli, the district headquarters of Tanahun, the storage-type project is expected to generate 502.58 GWh of electricity annually, according to Tanahun Hydropower Limited, a subsidiary of the Nepal Electricity Authority established to develop the project. Designed to provide at least six hours of peaking power during the driest months of the year, the project is considered critical to reducing Nepal’s reliance on electricity imports during the dry season.

Including rural electrification and interest during construction, the total cost of the project is estimated at $505 million. Financing includes $150 million from the Asian Development Bank, $184 million from the Japan International Cooperation Agency, $85 million from the European Investment Bank, and $86 million from the Government of Nepal and the Nepal Electricity Authority.

(With inputs from RSS)