Skip to main content

Multi-stakeholder Hydropower Disputes and Its Resolutions in Nepal

  • Chapter
  • First Online:
Water Issues in Himalayan South Asia

Abstract

The construction of hydropower projects has long been sources of protracted internal disputes in South Asia and Nepal cannot remain an exception in this regard. With the proliferation of hydroelectric industry in Nepal since 1990, disputes between the government, hydropower construction companies, civil society actors, and local communities on issues around environment protection, compensation distribution, benefit sharing and resettlement of displaced communities have been a common phenomenon. Despite occurrence of these disputes over the period of time, how hydropower disputes are emerged and resolved in Nepal is something less explored issue and this has limited our ability to understand some successful dispute resolution practices in hydropower sector. Considering this fact, this chapter focuses on assessing the dynamics of hydropower related disputes in Nepal. Drawing from the examples of three hydropower projects (proposed and ongoing), namely, Upper Tamakoshi, Arun III and West Seti, our study finds that lack of adequate information sharing among the local and national stakeholders and the violation of national and international legal and policy provisions significantly contribute to escalate the disputes between hydropower stakeholders. We also found that disputes between hydroelectric project stakeholders in Nepal are often resolved on ad hoc basis. We further found that unclear and ambiguous government policies regarding compensation, benefit sharing and resettlement issues and the lack of institutionalized dispute resolution policies and mechanisms are two highly contributing factors behind escalating hydropower disputes in Nepal.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 99.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 129.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    Hussain, I., & Giordano, M. (Eds.). (2004). Water and Poverty Linkages: Case Studies from Nepal, Pakistan and Sri Lanka (Project Report 1). Colombo, Sri Lanka: International Water Management Institute (IWMI).

  2. 2.

    Sangroula, D. P. (2009). Hydropower Development and Its Sustainability with Respect to Sedimentation in Nepal. Journal of the Institute of Engineering, 7(1), 56–64.

  3. 3.

    Government of Nepal. (2005). National Water Plan. Kathmandu: Water and Energy Commission Secretariat.

  4. 4.

    Government of Nepal. (2018). Retrieved from https://www.nepal.gov.np/NationalPortal/view-page?id=92. Accessed October 2, 2018.

  5. 5.

    Asian Development Bank. (2017). Nepal Energy Sector Assessment, Strategy and Road Map. Kathmandu: ADB.

  6. 6.

    Water and Energy Commission Secretariat. (2010). Energy Sector Synopsis Report Nepal. Kathmandu: Ministry of Energy.

  7. 7.

    Ibid.

  8. 8.

    King led government was collapsed, democracy was restored, and decade armed struggle come to an end through a peace agreement signed between the government and the Maoist rebels.

  9. 9.

    Government of Nepal. (2018). Energy, Water resources and Irrigation Sector’s Current Status and Future Roadmap (White Paper). Kathmandu: Ministry of Energy, Water Resources and Irrigation.

  10. 10.

    World Commission on Dams. (2000). The Report of the World Commission on Dams and Development. London and Sterling: Earthscan.

  11. 11.

    Koirala, S. (2015). Hydropower Induced Displacement in Nepal. Dunedin, New Zealand: University of Otago.

  12. 12.

    Rana is a clan who ruled in Nepal for 104 years until they were made tostep down through a people’s revolution in 1950.

  13. 13.

    Sharma, R. H., & Awal, R. (2013). Hydropower Development in Nepal. Renewable and Sustainable Energy Reviews, 21, 684–693.

  14. 14.

    Koirala, S. (2015). Hydropower Induced Displacement in Nepal. Dunedin, New Zealand: University of Otago.

  15. 15.

    Panchayat is another autocratic/no party regime led by King which lasted for 30 years from 1960 till 1990. End of Panchayat was made possible after the success of People’s Movement led by Nepali Congress and United Left Front.

  16. 16.

    Koirala, S. (2015). Hydropower Induced Displacement in Nepal. Dunedin, New Zealand: University of Otago.

  17. 17.

    Upreti, B. R. (2007). Changing Political Context, New Power Relations and Hydro-Conflict in Nepal. In F. Rotberg & A. Swain (Eds.), Natural Resources Security in South Asia: Nepal’s Water (pp. 15–45). Nacka, Sweden: Institute for Security and Development Policy.

  18. 18.

    Voller, L. (2016, October 27). Hydro Boom Sparks Violent Conflicts in Nepal. https://danwatch.dk/en/hydro-boom-sparks-violent-conflicts-in-nepal/?cn-reloaded=1.

  19. 19.

    Cox, K. R. (1998). Spaces of Dependence, Spaces of Engagement and the Politics of Scale, or Looking for Local Politics. Political Geography, 17(1), 1–23; Koirala, S. (2015). Hydropower Induced Displacement in Nepal. Dunedin, New Zealand: University of Otago.

  20. 20.

    Dore, J., & Lebel, L. (2010). Deliberation and Scale in Mekong Region Water Governance. Environmental Management, 46(1), 60–80.

  21. 21.

    Molle, Francois. (2007). Scales and Power in River Basin Management: The Chao Phraya River in Thailand. The Geographical Journal, 173(4), 358–373; Sneddon, C. (2002). Water Conflicts and River Basins: The Contradictions of Comanagement and Scale in Northeast Thailand. Society &Natural Resources, 15(8), 725–741.

  22. 22.

    Government of Nepal. (2001). The Hydropower Development Policy, 2001. Kathmandu: Ministry of Water Resources.

  23. 23.

    Government of Nepal. (1990). The Constitution of the Kingdom of Nepal 2047 (1990). Kathmandu: Law Books Management Board.

  24. 24.

    Government of Nepal. (2015). The Constitution of Nepal. Kathmandu: Law Books Management Board.

  25. 25.

    Lebel, L., Garden, P., & Imamura, M. (2005). The Politics of Scale, Position, and Place in the Governance of Water Resources in the Mekong Region. Retrieved November 7, 2013 http://digitalcommons.usu.edu/unf_research/32/.

  26. 26.

    The Kathmandu Post. (2017, October 19). Upper Karnali Hydro Receives Forest Clearance. Retrieved November 19, 2018 http://kathmandupost.ekantipur.com/news/2017-10-19/upper-karnali-hydro-receives-forest-clearance.html.

  27. 27.

    Koirala, S. (2015). Hydropower Induced Displacement in Nepal. Dunedin, New Zealand: University of Otago.

  28. 28.

    Ibid.

  29. 29.

    Shrestha, R. S. (2009). Arun-III Project: Nepal’s Electricity Crisis and Its Role in Current Load Shedding and Potential Role 10 Years Hence. Hydro Nepal: Journal of Water, Energy and Environment, 4, 30–35.

  30. 30.

    Gyawali, D., & Dixit, A. (1999). Mahakali Impasse and Indo-Nepal Water Conflict. Economic and Political Weekly, 34(9), 553–564.

  31. 31.

    Harris, M. (2015). NEA Forms Committee to Mediate Workers Strike at 456 MW Upper Tamakoshi Hydropower Plant. Retrieved October 9, 2018 from Hydro World https://www.hydroworld.com/articles/2015/03/nea-forms-committee-to-mediate-worker-strike-at-456-mw-upper-tamakoshi-hydropower-plant.html.

  32. 32.

    Penz, P., Drydyk, J., & Bose, S. P. (2011). Displacement by Development: Ethics, Rights and Responsibilities. New York: Cambridge University Press.

  33. 33.

    World Commission on Dam. (2000). Dams and Development. The Report of the World Commission on Dams. London and Sterling: Earthscan.

  34. 34.

    Koirala, S. (2015). Hydropower Induced Displacement in Nepal. Dunedin, New Zealand: University of Otago.

  35. 35.

    Dahal, D. R. (2001). Civil Society in Nepal: Opening the Ground for Questions. Kathmandu, Nepal: Center for Development & Governance.

  36. 36.

    World Commission on Dam. (2000). Dams and Development. The Report of the World Commission on Dams. London and Sterling: Earthscan.

  37. 37.

    Oliver-Smith, A. (2001). Displacement, Resistance and the Critique of Development: From the Grass Roots to the Global. In C. J. Wet (Ed.), Development Induced Displacement: Problem, Policies and People. New York: Berghahn Books.

  38. 38.

    McDowell, C., & Morrell, G. (2013). Displacement Beyond Conflict: Challenges for the 21st Century. New York: Berghahn Books.

  39. 39.

    Gyawali, D. (2001). Water in Nepal. Kathmandu: Himal Books.

  40. 40.

    The Kathmandu Post. (2018). Nepal, Bangladesh Agree to Build Hydro Projects. Retrieved December 7, 2018 from The Kathmandu Post http://kathmandupost.ekantipur.com/news/2018-12-05/nepal-bangladesh-agree-to-build-hydro-projects.html.

  41. 41.

    Koirala, S. (2015). Hydropower Induced Displacement in Nepal. Dunedin, New Zealand: University of Otago.

  42. 42.

    Forbes, A. A. (1999). The Importance of Being Local: Villagers, NGOs, and the World Bank in the Arun Valley, Nepal. Identities Global Studies in Culture and Power, 6(2–3), 319–344.

  43. 43.

    Mahat, R. S. (2005). The Loss of Arun III. In In Defence of Democracy: Dynamics and Fault Lines of Nepal’s Political Economy (p. x). New Delhi: Adroit.

  44. 44.

    Ibid.

  45. 45.

    Siwakoti, Gopal. (n.d.). Nepalma Jalshrot tatha Jalbidhut bikash aviyan: Samikshyatmak Tipadhi. Nepal.

  46. 46.

    Clark, D., Fox, J. A., & Treakle, K. (2003). Demanding Accountability: Civil Society Claims and the World Bank Inspection Panel. Lanham, MD: Rowman & Littlefield.

  47. 47.

    Ibid.

  48. 48.

    Ibid.

  49. 49.

    My Republica. (2016). Smooth Sail for Arun III Land Acquisition Process. Retrieved November 25, 2018 from My Republica https://myrepublica.nagariknetwork.com/news/smooth-sail-for-arun-iii-land-acquisition-process/.

  50. 50.

    Rai, K. (2005). Dam Development: The Dynamics of Social Inequality in a Hydropower Project in Nepal. Gottingen: Cuvillier Verlag.

  51. 51.

    WSHL. (2007). Summary Environmental Impact Assessment (Environmental Assessment Report). Kathmandu: West Seti Hydro Ltd.

  52. 52.

    Koirala. S. (2015). Hydropower Induced Displacement in Nepal. Dunedin, New Zealand: University of Otago.

  53. 53.

    Uprety, K. (2011). Nepal’s West Seti Project Imbroglio: The Supreme Court Speaks. Beijing Law Review, 2(1), 17–24.

  54. 54.

    Shrestha, H. M. (1997). Pashim Seti Smriti Patra: Girdo Manastithile Rastrako Heet Gardaina. Kathmandu: Deshantar Saptahik.

  55. 55.

    Nepal already has its new constitution which is Constitution of Nepal 2015.

  56. 56.

    Government of Nepal. (1990). The Constitution of the Kingdom of Nepal 2047 (1990). Kathmandu: Law Books Management Board.

  57. 57.

    Shrestha, R. S. (2009). West Seti Hydroelectric Project: Assessment of Its Contribution to Nepal’s Economic Development. Hydro Nepal: Journal of Water, Energy and Environment, 5, 8–17.

  58. 58.

    Ibid.

  59. 59.

    Shrestha, H. M. (1997). Pashim Seti Smriti Patra: Girdo Manastithile Rastrako Heet Gardaina. Kathmandu: Deshantar Saptahik.

  60. 60.

    Shrestha, R. S. (2009). West Seti Hydroelectric Project: Assessment of Its Contribution to Nepal’s Economic Development. Hydro Nepal: Journal of Water, Energy and Environment, 5, 8–17.

  61. 61.

    Rai, D. (2012). In Search of Light. Retrieved October 19, 2018 from http://archive.nepalitimes.com/blogs/thebrief/2012/03/08/in-search-of-light/.

  62. 62.

    Koirala. S. (2015). Hydropower Induced Displacement in Nepal. Dunedin, New Zealand: University of Otago.

  63. 63.

    Ghimire Y. (2018). China Eyes Exit, Nepal’s West Seti Hydropower Project in Jeopardy. South China Morning Post. https://www.scmp.com/week-asia/geopolitics/article/2161968/nepals-west-seti-hydropower-project-jeopardy-china-eyes-exit.

  64. 64.

    UTKHL. (2011). Upper Tamakoshi Hydroelectric Project Introduction and Present Status. Upper Tamakoshi Hydroelectric Project Limited, Kathmandu, Nepal.

  65. 65.

    The Kathmandu Post. (2016). Upper Tamakoshi Project: Completion Deadline Pushed Back Again. Retrieved December 1, 2016 http://kathmandupost.ekantipur.com/news/2016-12-22/completion-deadline-pushed-back-again.html.

  66. 66.

    Neupane, S. (2016). Project, People and Consent Managing Local Expectation in Hydropower Development. Kathmandu: Center Department of Public Administration.

  67. 67.

    MoEST. (2005). EIA Report of Upper Tamakoshi Hydroelectric Project. Kathmandu: Department of Electricity Development.

  68. 68.

    Neupane, S. (2016). Project, People and Consent Managing Local Expectation in Hydropower Development. Kathmandu: Center Department of Public Administration.

  69. 69.

    Neupane, S. (2016). Project, People and Consent Managing Local Expectation in Hydropower Development. Kathmandu: Center Department of Public Administration.

  70. 70.

    IFC. (2018). Local Shares: An In-Depth Examination of the Opportunities and Risks For Local Communities Seeking to Invest In Nepal’s Hydropower Projects. Washington, DC: International Finance Corporation.

  71. 71.

    Sinohydro Cooperation had appointed both Chinese and Nepali workers for the construction of the project.

  72. 72.

    The Kathmandu Post. (2016). Upper Tamakoshi Project: Completion Deadline Pushed Back Again. Retrieved on December 1, 2016 from http://kathmandupost.ekantipur.com/news/2016-12-22/completion-deadline-pushed-back-again.html.

  73. 73.

    The project suffered the loss of 10 m per day due to the obstruction of work by the project workers.

  74. 74.

    Neupane, S. (2016). Project, People and Consent Managing Local Expectation in Hydropower Development. Kathmandu: Center Department of Public Administration.

  75. 75.

    Koirala, S. (2015). Hydropower Induced Displacement in Nepal. Dunedin, New Zealand, University of Otago.

  76. 76.

    Land Acquisition Act 1977 has some provisions for giving compensation to the confiscated land. Other than that no compensation policy is in place.

  77. 77.

    Shrestha, A. (2017). Impediments to Hydropower Development in Nepal. Retrieved from The Himalayan Times on January 8, 2017 from http://samriddhi.org/news-and-updates/impediments-to-hydropower-development-in-nepal/.

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2020 The Author(s)

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Koirala, S., Bhattarai, P., Barma, S. (2020). Multi-stakeholder Hydropower Disputes and Its Resolutions in Nepal. In: Ranjan, A. (eds) Water Issues in Himalayan South Asia. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-32-9614-5_6

Download citation

Publish with us

Policies and ethics