In Aamachhodingmo Rural Municipality-1, the construction of a dam and the operation of the 216 MW Upper Trishuli-1 Hydropower Project have caused the displacement of locals from Uttar Gaya Municipality-1 and Aamachhodingmo Rural Municipality-1.
The families have been forced to live in temporary shelters and areas prone to earthquake risks due to their houses being displaced. In Uttar Gaya Rural Municipality–1, due to extensive use of explosives at the powerhouse construction site located in Mailung, houses were damaged, and locals from Uttar Gaya Rural Municipality–1 have been living in temporary shelters in that same area.
Among the displaced are Chenzum Lama, 38, Ashabir Tamang, 65, Shyam Tamang, 45, Layul Tamang, 56, Purna Tamang, 66 and Barsiya Urchi Tamang, 51, who are currently living in temporary shelters at that location. Similarly, in Amachodingmo Rural Municipality–1, Phulmaya Tamang, 59, Lakpa Tamang, 51,Sarki Buti Tamang, 38, Jiban Lama, 36 and Changba Tamang have been displaced and are living in temporary shelters.
Local residents filed a petition at the District Administration Office on January 5, 2025, citing the displacement, but so far there has been no hearing, said local resident Janga Bahadur Tamang. According to him, four houses in Mailung were damaged due to permanent and temporary construction, and 17 houses in Chiru and Gogne are also at risk.
The project has affected Uttar Gaya, Kalika, Amachodingmo, and Gosaikunda Rural Municipalities. The promoter of the project, Nepal Water and Energy Development Company, is owned by the Korean government through KOIN, with share investments from the International Finance Corporation under the World Bank Group. The project’s financial management has been structured to raise 70% through loans and 30% through equity. The total estimated cost of the project is USD 64.73 million, with international financial institutions agreeing to invest USD 45.32 million.