Budhigandaki Hydropower Project: A Decade of Stagnation and the Path to Realization
Summary
The Budhigandaki Hydropower Project has faced over a decade of delays due to financial and political challenges, but recent government focus and funding frameworks aim to advance this crucial 1200 MW reservoir project in Nepal.
Key Points
- The Budhigandaki Hydropower Project has been delayed for over ten years despite significant land acquisition and compensation.
- The project costs approximately $2.77 billion with a total estimated expense of 406 billion rupees including interest during construction.
- Investment challenges stem from lack of immediate profitability, requiring government 'viability gap funding' and public-private partnership models.
- Beyond electricity, the project offers broad benefits like energy security, tourism potential, flood control, and irrigation improvements.
