The Ministry of Finance has approved the investment structure for the 1,200 MW Budhigandaki reservoir hydropower project in Dhading and Gorkha, allowing the Ministry of Energy, Water Resources, and Irrigation to move forward. The project’s base cost is estimated at $277 million (around Rs 374 billion), with total construction costs—including interest—reaching Rs 406 billion over an eight-year timeline. Financing will follow a 70:30 debt-to-equity model, with the government holding 80 percent equity and the Nepal Electricity Authority 20 percent. The project will create a 63-square-kilometer reservoir, generate 3.38 billion units of electricity annually, and play a key role in strengthening Nepal’s energy security and regional development.
