Kathmandu: In a significant milestone for Nepal's energy sector, a groundbreaking ceremony was held for the development of the country's largest hydropower project with foreign direct investment (FDI). Energy Minister Shakti Bahadur Basnet presided over the foundation stone-laying event for this 216-megawatt hydropower project, which is being developed for domestic consumption through FDI from a Korean company.

The project's dam and physical structures are situated in Haku village, Amachhodingmo Rural Municipality-1, while the underground powerhouse is located in Uttargaya Rural Municipality in Rasuwa district.

Minister Basnet emphasized the government's commitment to creating an investment-friendly environment to attract both international and domestic investors. This approach is seen as pivotal in achieving economic prosperity in Nepal through the development of hydropower projects.

South-East Power of Korea is the primary investor in this project. Hau Chun Kim, President and Chief Executive Officer of South-East Power, expressed the belief that the project's development will contribute significantly to Nepal's economic prosperity by exporting surplus power to neighboring countries while helping to mitigate the impacts of climate change.

The project's development commenced in 2020, with the overall physical progress reaching 22% thus far. The construction of the dam is scheduled to commence after the monsoon season.

The total estimated cost of the project is $647.3 million USD, with nine international financial institutions committed to investing $453.2 million USD. The remaining amount will be funded through equity.

This groundbreaking ceremony marks a significant step toward Nepal's goal of harnessing its hydropower potential for sustainable development and energy self-sufficiency.