Jagdulla Peaking Run-of-River Hydroelectric Project (JHEP) is the storage type. The capacity of JHEP is 106 MW with an estimated average annual energy generation of 635 GWh. The project is situated in Jagdulla and Mudkechula Rural Municipalities of Dolpa District. Three VDCs and two Rural Municipalities are directly affected by the project. The estimated cost of the project is US$ 220 million.

JHEP is a high head project and the main component of the project is a 23m high gated diversion dam with three gates of size 7m X 7m with side intakes and 120m X 13m wide double-chambered settling basin. The headrace tunnel is 6135m long. An underground surge shaft of height 56.9m with a restricted orifice, an underground pressure shaft of 1.4km length. Both powerhouse and transformer cavern is underground inside a sound rock mass. The powerhouse will accommodate three units of vertical shaft Pelton turbine and Gas Insulated Switch system with a transformer of single phase-type. The length of the tailrace is 266m and the transmission line length is 45km.