Thirteen workers including a Chinese technician have been rescued by Nepal Army and Nepal police personnel from the Upper Madi hydro-power tunnel in Pokhara until now.
The whereabouts of two labourers are still unknown, according to police.
The workers were trapped inside the tunnel after a sudden landslide blocked the exit of the under-construction site on Friday.
The search for the missing labourers was underway, said Deputy Superintendent of Police Rajesh Nath Bastola.
The body of the excavator operator was recovered from under the fallen earth last evening.
Three excavators and 150 security personnel have been mobilised for the rescue operation.
"We have also dug out the excavator machine buried under the earth," said Bastola.
The hydro-power project, the first build-operate-transfer hydro-power project invested by a Chinese firm in Nepal, would generate 25 MW of power in the energy-starved country.
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