The Nepali experience in hydropower sector has not been visibly bold, and makes an onlooker wonder how the sector is surviving despite various challenges. Especially after Arun III, Nepal’s journey in hydropower development has been a tumultuous one. Had the project been of unanimous interest to all political parties, it could have been saved from failing. But instead, the project was derailed, and with it, we too sailed into the dark age of load shedding and the real development of the sector came to a halt.
After Khimti Hydropower developed by a private sector company began generating electricity in 2000, there was no load-shedding in Nepal up to 2005. However, full justice is yet to be done to our feasible hydropower potential of 42,000 MW, and the ratio of our achievements to the total potential is stubbornly stuck at less than 1:42. Until now, hydropower sector has not contributed enough to boost the country’s economy.[break]
SETBACKS
Accusing others for our own failure to perform is foolhardy, especially when there are still inconsistencies in our thoughts and actions that can be altered to achieve improvement. Nevertheless, we must also acknowledge the presence of some external setbacks that hinder Nepal’s hydropower sector. For a long time, there have been rumors that India is responsible for turning this sector into a lame duck. Of course, the rumors are not necessarily true, but they certainly demand India’s attention.
Though many Indian power companies have licenses to develop hydropower projects in Nepal, they have not executed the licenses. This has encouraged bitter sentiments against India for allegedly withholding licenses and not being keenly interested in developing Nepal’s hydropower. India should do its best to counter such sentiments through positive actions, and strengthen people’s trust in it. This can be done if India encourages its private sector companies to develop hydropower projects in Nepal at the earliest, so that they would contribute in alleviating Nepal’s ongoing energy crisis.
At present, most ongoing hydropower projects in Nepal involve Chinese companies. In this situation, it is quite natural to doubt if India is really serious about supporing the hydropower sector in Nepal. Unless India takes specific measures to remedy this, there is little chance of erasing the shadows of suspicions between the two countries. It is expected from every nook and cranny of the country that Indo-Nepal issues will get better attention in near future. Nepalis have every right to be optimistic that all existing bilateral mechanisms like JMCWR, JCWR and JSTC between the two countries will hopefully function in more realistic and fruitful ways in the days to come.
UNHEALTHY CAMPAIGNS
Generating sufficient electricity from our rivers not only fulfills the need of Nepal, but also provides enough for export. Export of electrical energy has the potential to heal our lame economy which currently has little investment potential and huge trade deficits.
Ironically, in our country, there are some interest groups who want the hydropower sector developed not for the benefit of the country, but for something else. Though it may sound bitter, it is the truth. It happened in Arun III, and is repeating in Upper Karnali. This sentiment has destroyed the working environment for genuine hydropower developers in Nepal. Without any delay, the government and civil societies need to make efforts to communicate to them that the destiny of the nation depends on hydropower.
Hydropower projects are highly capital intensive and investors have to wait for a long time to get their returns from it. It is not comparable to other easy businesses, and also involves many potential risks. Temporary appeasements cannot heal the chronic problems of this sector caused by various unhealthy campaigns, conspiracies and assaults. Though the Government has decided to use police force or military outfits at the sites of hydroelectric projects, this cannot be a long-term solution as long as there is no awareness among the people. Also, all stakeholders should reach a consensus for the development of this sector. Consensuses at local, regional and national levels are urgently needed to tear apart malicious plots. Political parties of this country can do this effectively if their respective leaders are really committed to developing this country.
UPPER KARNALI SYNDROME
There are some misconceptions about the Upper Karnali Hydroelectric Project located in Far Western zone of Nepal. The project is to be developed on BOOT (Build-own-operate-transfer) basis by a consortium led by an Indian company, GMR, which signed a MoU with Nepal government four years ago. However, the project has received continuous opposition since 2009, and some radical groups are still attempting to capsize it.
CHALLENGES OF HYDROPOWER
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Some rumors have interpreted clause 37 of the MoU as a ban on any upstream or downstream construction projects on the Karnali River, such as a proposed new irrigation project on its tributary Teela River in Jumla. However, the truth is that any such projects will not be detrimental to the Upper Karnali Project, and the MoU does not impose any bans on them. The spirit of the clause suggests that other projects may be developed without harming the project in focus. The parties involved should understand that no company is willing to invest a tremendous capital in a project without being assured by the concerned government that it can be executed smoothly.
Protest campaigns have also raised questions about the project’s capacity. The MoU has stated that the Government of Nepal solicited the Expression of Interest (EOI) to select a developer to implement the Upper Karnali Hydropower Project with a minimum installed capacity of 300 MW. There is no upper limit on the installed capacity.
It is an irony that in the country with such abundant hydropower potential, the hydropower sector is under fire due to many flip-flops in policies, thoughts and actions. The sector continuously faces colossal hurdles, though they may vary in scope and severity depending on the tides of the time. The important question is how we defeat these hurdles in future and taste the fruits of success.
The author is an Electrical Engineer prabaladhikari@hotmail.com
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