Manang Moves Toward National Grid Linkage as 135 MW Marsyangdi Project Accelerates

Manang: The Himalayan district of Manang, which has so far depended on electricity generated from small hydropower projects, is set to be connected to the national transmission grid for the first time. The 135 MW Manang Marsyangdi Hydropower Project, currently under construction in Naso Rural Municipality–8 and 9 of Manang, is expected to mark a new chapter in the district’s energy sector.

The project, being built by utilizing the water resources of the Marsyangdi River, is one of the large hydropower projects developed by the private sector. Based on a “run-of-river” model, the project will generate electricity by diverting river water through a dam and transporting it via a tunnel to the powerhouse.

Compared to reservoir-based projects, run-of-river projects are preferred due to lower construction costs, relatively minimal environmental impact, and shorter construction periods.

The project has a gross head of 430.20 meters and a headrace tunnel length of 6.075 kilometers. The total estimated cost is NPR 33.38 billion, with 20 percent equity investment and 80 percent loan financing. Butwal Power Company holds a 20 percent stake, while three Chinese companies collectively hold the remaining 80 percent.

An agreement was signed on December 18, 2022, between the Government, Butwal Power Company, and Chinese investors to complete the project within four years. The project is expected to generate 750.948 million units of electricity annually.

Construction work—including access roads, tunnels, dams, powerhouse, and transmission lines—is being carried out simultaneously. Despite challenges posed by mountainous terrain, landslides, snowfall, and harsh weather conditions, construction has been accelerated, according to project officials.