Butwal Power Company (BPC) is developing the project, which was left in half way since the agreement was not signed.
However, BPC said it would begin project’s electricity supply though national transmission line from 2017, reports the Himalayan Times.
Lamjung Electricity Development Committee adviser Ram Bahadur Gurung said: "It has also constructed a motorable bridge, roadway and purchased land among others. But, the construction was not going ahead smoothly due to lack of PPA."
The dam is scheduled to be constructed at Bahundanda while the power house will be built at Bhulbhule, near Tarachowk Bridge, 4km away from the dam.
Lamjung Electricity Development Company completed the project’s feasibility study in 1993 while the environmental impact assessment was approved in 2000.
The project is estimated to be completed in four years.
BPC holds 97% stake in the project while the remaining is owned by Lamjung Electricity Development Company.
