The
issue of hydropower development has always been in the spotlight. Unlike in the
past, this time around the issue has not just intensified but reached its
saturation stage. Thanks to the 18 hour a day load shedding which besides
having annihilated the public life, also awakened the mind of the power holders.
It is a deep rooted behavior of Nepalese officials and leaders to take decision
at the 11th hour when the situation becomes acute. The repair of the
Koshi embankment is a burning example on this regard.
It
may not be objectionable to mention that the 10 year-10000 MW mega package is
the outcome of the aforementioned practice rather than a long term vision. “The
sun will shine from the west” was once a popular slogan waving everywhere when
the ambitious Karnali-Chisapani project was around the corner few decades ago.
The possibility of this package turning into rhetoric cannot be ignored. So a
thorough planning and homework is a must to get this job done. Analyzing the
past experience, policy and current situation, the future of this deal looks
highly uncertain. Hence we must learn from the past mistakes and take a
concrete step must be taken if we are to achieve the target.
Well,
it needs to be figured out whether the basis for such an ambitious package is
rational and realistic. For a country which has been able to produce a mere 700
MW (approx.) of electricity in the last 100 years since generating its first
hydropower, the challenge seems really high. The tenth five year plan which had
planned to produce 315 MW of power but a mere 40 MW could be installed. This
raises a big question over our policy and implementation aspect. As the saying
goes “there is no use of banyan seed until it is sowed”, our vast water
resources would bear no fruit until they are tapped.
Modi Hydropower Project. 14.8 MW, Parbat |
It
is estimated that the cost of generating 10000MW of hydropower would require
about NRs. 200 billion. Since ensuring such a huge investment is not quite
practical for a fragile economy like ours where the annual GDP increase is just
2-3%. From the local developers’ prospect, investing in hydropower is regarded
as too big a gamble. This is where attracting foreign investors comes in.
The
main challenge ahead lies in convincing the foreign investors: creating a
conducive and investor friendly environment in a country which has become
synonym of bandh/strike, lawlessness is no less than a Herculean task. The pull
out of ADB from Arun-III project is still fresh in memory although its case was
a bit different. However to attain such goal the challenges needs to be met.
The government needs to ensure that there is investment friendly policy as well
safety so that they feel secure to invest here.
In
the last decade the country has seen some landmark agreement regarding foreign
investment in the hydropower sector. SMEC for the storage type 750 MW West Seti
(10% free energy for Nepal), Satluj Jal Vidhyut Nigam for 402 MW Arun-III (22 %
free energy), GMR for Upper Karnali (12% free energy), etc. to name a few.
Another
issue hindering the development is the disturbance from local people of the
project area. It is known fact that during the implementation of any project,
winning the trust of the local residence is a must. Thus a proper coordination
with the local people needs to be established. No project could be successful
if the locals are not supportive. However there is thin line between being
supportive and getting bullied. Acquisition, compensation and resettlement poses
to be a major challenge during implementing any development projects in Nepal.
I intend to say that only genuine demands need to be addressed. For example, In
the West Seti case the management should have employed some locals in the
information Centre; at least that would have given the resident the confidence
that their role is being valued. There should be a proper guidelines &
system that evaluates the local issues. For example, some of the most
irrational and unjustified demands were made by the local people against the
Mid-Marsyangdi management. Just to mention one, the people demanded for
something like the water used in generating electricity would become unsuitable
for irrigation because the water would lose all its “power” on electricity
generation and thus would not provide “sufficient energy” to the crops.
We
must accept the fact that the investors are not here for charity or any social
service. They have clearly set business motive and would not tolerate to find
surprises to hold them back.
The
private investors within the country should be given priority in terms of
awarding the project and cutting tax on equipment and other materials if they
are to be promoted and the electricity cost is to be reduced. Another issue
that needs to be mentioned is the power purchase agreement (PPA). There is
strong dissatisfaction over the PPA and has been fiercely debated in the
private sector. Government needs to amend its perception towards private
developers in the country. It seems unjustifiable when government pay high
rates while importing power from India but not agree to pay even 50 paisa extra
to private investors. In the same time government should be aware not to repeat
the mistakes made in Khimti and Bhote Koshi projects. On the other hand,
private sectors too are not free from the flaws. The improper practice of
holding the license by private developers should be encouraged by intrusion of
strict rules and regulations.
Finally
how we deal with India in the upcoming days is the matter of concern. If we are
to set export oriented policy, it’s clear that India is our only market.
Officials from India have clearly indicated that within next 10 years, India is
looking forward to develop 50000 MW of hydropower although it’ll need 1, 40, 000
MW of power within that period. But first and foremost we need to be clear on
how much we need for ourselves and how much can we export.
IndraSarovar, the Reservoir formed by Kulekhani Dam. It is the only storage type Hydrpower project in Nepal. |
Small
and medium hydropower projects must be encouraged which are economically
attractive and suitable for a low economy country like ours. In the same time,
large dam & storage type projects are inevitable if the energy crisis is to
be checked and the self-sufficiency in energy sector is to be established but
proper planning and management of such mega projects is must. High risks of
environmental and social impacts are often associated with large projects but
proper planning & management can bring surprising results. An example can
be made of the 24000 MW Three Gorges Project where approximately 1.2 million
people were relocated successfully.
In
the meantime, capable technical manpower within the country should be motivated
and exploited carefully so that their knowledge and skill can be used for the
betterment of the country. We should not undermine the ability of technical
manpower produced within the country. If given opportunity they can accomplish
any level of task, The Chilime Hydropower project (20 MW) was completely designed,
constructed and operated by the domestic manpower and is running successfully.
Hence
realizing all the aspects and factors it can be concluded that the road ahead
is not so simple but if all the sector involved work hard with proper planning
and vision, the destination is not unreachable. A step can be taken by
declaring the year 2066-2076 as a Hydropower decade and move forward
accordingly. Strong will, determination and commitment from every related
sectors should be ensured for a smooth and progressive journey ahead.
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(Reference: Various articles on Newspaper and journals)
Published in TECHNO-CIVIL UNIVERSE, An annual Civil Engineering students society (CESS) -Nepal Publication.October, 2009
As a 4th year student of Bachelor Degree in Civil Engineering.
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