Rasuwagadhi Hydropower Plant Remains Shut After Devastating Bhotekoshi Flood; 92 People Still Unaccounted For

The 111-MW Rasuwagadhi Hydropower Project in Rasuwa has suffered extensive damage following the devastating flood in the Bhotekoshi River on August 26, 2026, forcing the complete shutdown of electricity generation.

According to Rasuwagadhi Hydropower Company Limited, the flood severely damaged the project’s dam-site structures, site office, staff quarters, vehicles, heavy equipment, construction materials, access roads and bridges. The underground powerhouse has been filled with debris, while its electromechanical equipment has also been damaged. Three transmission-line towers have been completely destroyed.

The disaster has also caused a major human loss. The company said the whereabouts of 92 people, including 50 contract employees, two daily-wage workers, 39 workers employed through contractors and company director Sunau Tamang, remain unknown. The body of one contract employee has been identified so far.

The company has been conducting search and rescue operations in coordination with the Nepal Army, Nepal Police, Armed Police Force and other agencies. Engineers, geologists, tunnel experts and eight experienced mountaineers have also been mobilized for search operations around the project site.

The company said the disaster could affect its cash flow and debt-servicing capacity as electricity generation has stopped and rehabilitation is expected to take considerable time. Rasuwagadhi Hydropower currently has approximately Rs 17.70 billion in long- and short-term loans from various banks and financial institutions.

The project’s physical structures, machinery, vehicles and employees were insured, with the relevant policies active at the time of the disaster. The company has notified the insurers and initiated the claim process, while the final claim amount will be determined after a detailed damage assessment.

The project is located about 16 kilometers from Syabrubesi, and the connecting road and four concrete bridges have been completely damaged. With no alternative access route currently available, reconstruction of the road and bridges will be necessary before project activities can fully resume.

The company said it is currently conducting a detailed technical assessment of the damage. Therefore, the financial loss and estimated time required to resume the 111-MW project have not yet been determined. Further details will be disclosed after the assessment is completed.