Budhigandaki Hydropower Project

​The Budhigandaki Hydropower Project is a proposed 1,200 MW storage-type hydroelectric facility located on the Budhi Gandaki River in Nepal's Gorkha and Dhading districts, approximately 55 km west of Kathmandu. Envisioned as Nepal's largest reservoir-based hydropower initiative, it aims to generate around 3,383 GWh of electricity annually, significantly enhancing the nation's energy self-reliance, particularly during dry seasons when power imports are prevalent .​

The project's design includes a 263-meter-high dam creating a 45 km long reservoir with a surface area of 49.8 km² and a total capacity of 3.3 billion cubic meters . It will feature six turbines, each rated at 200 MW, and a hydraulic head of 185 meters . Beyond electricity generation, the project is anticipated to offer multifaceted benefits such as irrigation, drinking water supply, fisheries development, water transportation, flood control, and tourism opportunities .​

However, the project faces significant challenges, notably the displacement of approximately 45,000 residents due to the reservoir's creation . As of 2019, the Nepalese government had allocated Rs 37 billion (about $300 million) for land acquisition and compensation, primarily funded through an infrastructure tax on petroleum imports . Environmental concerns have also been raised, including potential impacts on fish migration, erosion of unstable hillsides, and risks to downstream communities in the event of dam failure .​

Initially, the project was to be developed by China's Gezhouba Group under an Engineering, Procurement, Construction, and Financing (EPC+F) model . However, due to financial and social challenges, the Nepal Electricity Authority has shifted focus to alternative projects like the 635 MW Dudh Koshi Hydropower Project, which presents fewer resettlement issues and a lower estimated cost of $1.5 billion .​

Despite these hurdles, the Budhigandaki Hydropower Project remains a strategic priority for Nepal, with construction expected to commence in 2028 and commercial operations targeted for 2082