After years of delay, Budhigandaki faces another change of plan
Summary
Budhigandaki Hydropower Project is facing fresh uncertainty after the government moved to replace the previously approved financing model with a new authority-based development plan. The change has renewed criticism and raised concerns about delays to one of Nepal’s national pride projects.
Key Points
- The Cabinet has approved drafting a Budhigandaki Development Authority Bill, reopening debate over how the 1,200-megawatt project will be built.
- Finance Minister Swarnim Wagle previously announced an empowered authority model, replacing an earlier PPP proposal backed by former finance minister Bishnu Paudel.
- Former energy secretary Anup Upadhyay criticized the authority plan, while project officials said ongoing contracts and work would continue.
- The project’s approved financing plan relies on a mix of government equity, concessional loans, bonds, and institutional investment, with total cost estimated at about Rs406 billion.
