Under the investment of Korean led company, the construction of 216 MW Upper Trishuli-1, has already begun.

According to the project, the construction began following a first blast was made on Tuesday to remove rock for the construction of a 246-meter ventilation tunnel. Construction of main entrance tunnel, cable tunnel, main tunnel and other structures has been started.

The Korean company - Doosan Heavy Industries and Construction - has been awarded the contract in engineering, procurement, and construction (EPC) model for the construction of the project.

The Upper Trishuli-1 is the largest hydropower project to be constructed with foreign direct investment and the generated power to be used for domestic consumption.

The total estimated cost of the project is USD 647.3 million (inclusive of construction period interest). Nine international financial institutions have agreed to invest USD 453.2 million in the project. The remaining amount has been raised from equity.

The project will generate 1.53 billion units of energy annually.

Out of the total annual energy generated from the project, 38.75 per cent will be generated in winter and 61.25 per cent in rainy season. The generated energy will be supplied to the national transmission system at the Trishuli-3B substation being constructed by the Nepal Electricity Authority.

The promoter of the project is Nepal Water and Energy Development Company where the Korean government-owned Korea southeast Power Company Limited (KOEN) and the International Finance Cooperation (IFC) under the World Bank Group have invested.

In addition, a maximum of 10 per cent share investment has been ensured for the project affected locals.

Financial management has been made for the project by raising 70 per cent loans and 30 per cent of equity.

The project is considered to be very attractive for the power system of the country as it is close to the Kathmandu load centre and 104 MW of electricity will be generated even in the winter season when there is high demand for electricity.

The construction of the project is targeted to be completed by November 2026