Rahughat Hydropower Project's deadline extended for third time

By Thakur Prasad Acharya,Beni, July 20: The deadline for the construction of the 40-megawatt Rahughat Hydropower Project, located in Raghuganga Rural Municipality of Myagdi district, has been extended for the third time. The project has achieved 90 per cent physical progress to date.

The civil construction contract, overseen by Raghuganga Hydropower Ltd, a subsidiary of the Nepal Electricity Authority (NEA), has been extended for the third time. Indian civil contractor Jayprakash Associates (JP) was awarded a Rs. 6 billion contract on 22 November 2017, with an initial completion target of 45 months. The contract was previously extended for the second time in February 2022, and the latest extension expired on 27 June 2024.

According to Ganesh KC, Managing Director of Raghuganga Hydropower, the civil contract has been extended for the third time until November 27, 2025. Delays have been attributed to the contractor’s slow progress, the COVID-19 pandemic, natural disasters such as floods and landslides, and shortages of river-based construction materials.

India's Bharat Heavy Electricals Limited (BHEL), which signed an electromechanical contract worth USD 10.293 million in November 2019, has also failed to meet its target for the supply and installation of power plant equipment. BHEL’s contract is currently valid until 31 December 2025.

Project Chief Raju Bista said that efforts are being made to coordinate and facilitate timely work by both civil and electromechanical contractors. He added that if contractors adhere to the updated schedule, the Rahughat Hydropower Project could be completed by December.

Construction of the dam between Dagnam in Ward No. 4 and Jhin in Ward No. 5, a 6.27-kilometre-long main tunnel, and the power station at Tilkenichaur is approximately 90 per cent complete.

The project is being implemented under an Engineering, Procurement and Construction (EPC) model, with concessional financing of USD 67 million from the Export-Import Bank of India, and joint investment from the NEA and the Government of Nepal.

Due to financial difficulties, the previous contract with the Indian company IVRCL was terminated in 2015. The current contractor, Jayprakash Associates, began access road construction in mid-2018 and tunnel excavation in mid-2019.