Deadly flood in Nepal threatens $647 million Korea-led hydropower project
More than 90 percent of the upper dam of the Upper Trishuli-1 hydropower facility has been destroyed, with construction around 84 percent complete before the disaster struck.
Doosan Enerbility Vice Chairman Jung Yeon-in talks to the press while he enters Incheon International Airport to leave for Nepal for emergency assistance on Aug. 27.YONHAP
A catastrophic flood in Nepal has jeopardized the nearly complete Upper Trishuli-1 hydropower project, a $647 million venture led by two Korean firms, just as the plant approached the final stage of construction.
More than 90 percent of the upper dam has been destroyed, along with roughly 90 percent of the base camp housing construction workers. The 216-megawatt facility, being built on the Trishuli River about 70 kilometers (43 miles) north of Kathmandu with Korea South-East Power and Doosan Enerbility taking the lead, was around 84 percent complete.
Being Nepal's largest hydropower plant and a critical piece of national infrastructure set to supply more than 10 percent of the country's electricity, completion was targeted for the end of this year, with commercial operations slated to begin in July 2027.
"There will likely be some losses or delays, but as of now, our full effort is focused on locating the missing," a Doosan Enerbility spokesperson said.
The flooding has left six Doosan Enerbility employees missing — five dispatched from Korea and one locally hired staff member who was born in Nepal but later became a Korean citizen. Of the seven construction management personnel sent by Korea South-East Power, three remain unaccounted for.
Korea South-East Power holds a 50 percent stake in the project, and investors include the Export-Import Bank of Korea and Korea Overseas Infrastructure & Urban Development Corporation.
Korea South-East Power leads the investment and local development, while Doosan Enerbility oversees the plant's build-out and the supply of key equipment including turbines.
Houses lie partially submerged in muddy water along a riverside after flash floods at Trishuli Bazar in Nepal's Nuwakot district on August 26.AFP/YONHAP
Korea South-East Power has the right to operate the plant for 30 years, selling 1,456 gigawatt-hours of electricity annually to the Nepali government for distribution to local communities.
This isn’t the first time a natural disaster has struck the project.
After development began in 2011 under the joint leadership of Korea South-East Power and the International Finance Corporation, the project suffered delays in 2015 from a devastating earthquake. At the time, landslides damaged access routes to the site, injuring a Korean employee.
The project regained momentum with a government guarantee agreement in 2016 and a power purchase agreement in 2018, leading to the start of construction in 2021. But it again faced delays due to flooding on the Trishuli River in both 2024 and 2025.
Doosan Enerbility Vice Chairman Jung Yeon-in and senior executives from Korea South-East Power departed for Nepal on Thursday afternoon on an emergency trip to assist with the response and rescue efforts.
Doosan has established a roughly 40-person emergency task force in Korea, led by executive vice president Lee Dong-soo, head of the Environment, Health, and Safety division at Doosan Enerbility.
Korea South-East Power has also activated a 24-hour emergency response system under acting CEO Cho Young-hyuk.
