HYDRO Nepal Journal – Issue 2 (January 2008)

Table of Contents
Articles Authors PDF Pages
Hydropower Development in Nepal: Lessons from Past Models

In the last six decades since the 1951 overthrow of Rana regime, hydropower development in
Nepal was implemented under various models depending on the donors. The 1950s and ‘60s were the era of bilateralism to be subsumed by multilateralism of the 1970s and ‘80s only to be trodden over by liberalization and privatization of the 1990s and 2000. If one were to scrutinize these bilateral, multilateral and liberalized models in the hydropower sector closely, certain interesting patterns emerge. Nepal could well learn lessons from them.

Santa Bahadur Pun View PDF 5-8
Banker’s Perspectives on Hydropower Development in Nepal:Problems & Prospects

Nepal is currently facing a power shortage that, it is feared, will get worse if we do not start working to enhance our capacity for energy generation. Hydropower, as a clean and renewable source of
energy, is the right solution for our country, with its topographical advantage and the availability of more than 6,000 rivers. In addition to local demand, there is ample scope for export of electricity to India. The process has already begun for infrastructure development to pave the way for export. This is the right time to move forward for the development of this sector by all involved stakeholders; viz., investors, financiers, government, the local public, political parties, etc. This combined effort will give momentum for further developing the hydropower sector.
The financial sector must work on building in-house expertise as well as developing coalitions with other experienced international financial institutions to enhance the knowledge base and the lending capacity for project financing. Several tools for financing, including debentures, bonds and mutual fund, etc., can be introduced. We must now move forward to enhance our strength and mitigate the risks involved to realize: Nepal ko pani, pragati ko khani (literally: ‘Nepal’s water, source of national development’).

Keywords: Hydropower development, hydropower financing

Anil K. Shah View PDF 9-12
A Decade of Legally Practicing the Environmental Assessment Tool

. Two and half-decades of experience in implementing environmental assessment (EA) tools through policies and legislations have contributed to integrating environmental aspects into development projects in Nepal. The Enforcement of Environment Protection Act (EPA) of 1996 and the Environment Protection Rules (EPR) of 1997 have expanded the application of EA tools for the prescribed proposals.After the enforcement of EPA and EPR, the government has approved the EIA reports of 72 projects. In
2006 alone, EIA reports of 22 projects were approved. In general, however, approval of EIA reports has no meaning unless they are effectively implemented. The benefits of EA could be realised after environmental monitoring and auditing that helps to know the level of compliance and effectiveness of mitigation measures. This article outlines the causes of delay decision and major initiatives taken to make the EA more effective, realistic and practical.

Batu Krishna Uprety View PDF 13-16
Policy Level Improvement in Hydropower Development

Mother Nature has given Nepal a vast opportunity for hydro energy production, but still the country is reeling under painful load shedding due to an electric power production deficit of 70MW. The
main challenge for the country now is to harness the hydropower potentiality, which contributes for its economic development. In Nepal, policy deficiencies and the slow decision making process in electricity sector has resulted in the increased project costs and has reduced the involvement of private sectors and the entrepreneurs. Thus, restructuring and improvements at all policy level is required to overcome various hurdles, and then only will hydropower develop in Nepal.

Bikash Thapa View PDF 17-18
Dams, Environment and Local People

Dams, environment and local people are interrelated. Large dams have several large scale advantages in irrigation, flood control, power generation, inland navigation etc. It is equally true that it has also many large scale adverse impacts inducing controversy and disputes. For example, despite enormous benefits to Canada from large scale dams, the local people of the Basin are still feeling deep resentment at the way they were treated. Hence, it is utmost necessary to thoroughly examine all the important aspects of the project particularly the environment side regarding the implementation of large dams.

A.B. Thapa View PDF 19-21
Environmental Impact from River Damming for Hydroelectric Power Generation and Means of Mitigation

Nepal is rich with inland water resources and has great potential for electricity power generation. Hydropower is one of the most sustainable national income sources to increase the nation’s GNP. Relatively few water resources are under utilization, however, although some lakes in Pokhara valley and the Kulekhani storage type hydropower reservoir are successful in supporting multipurpose usage, combining electric power generation, irrigation and aquaculture. The Kaligandaki hydropower system is run of river, thus not feasible for cage fisheries; instead, it produces fingerlings of indigenous riverine fish for release into the river.
The impoundments after damming the rivers adversely impact both fish biodiversity and local fishing communities. Ecosystem change destroys feeding as well as breeding grounds, with a resultant loss of fish species. Where the movement of migratory fish up and down river is affected by hydropower development, fish hatcheries near the dam sites or fish ladders for fish movement should be considered as mitigation options. Local user groups and other stakeholders should be involved in decision-making, to keep good relations concerning peoples’ livelihoods and the sustainability of aquatic resources. River systems should be thoroughly studied jointly with concerned agencies (e.g., electricity, irrigation and fisheries authorities; and local authorities) during formulation and application stages of hydroelectric power development projects.

Keywords: River damming, power generation, biodiversity, fisheries, impact adversely, mitigation

Ash Kumar Rai View PDF 22-25
Harnessing of Mini Scale Hydropower for Rural Electrification in Nepal

This paper provides insight on hydropower development in general and mini-scale hydropower in particular, for rural electrification in Nepal. It also analyses the opportunities and challenges in the development of mini-scale hydropower to supply reliable electricity in remote rural areas of the country as an aid to poverty reduction and economic progress.

Keywords: Mini-scale hydropower, rural electrification, poverty alleviation

Hari Krishna Ghimire View PDF 26-28
Pioneering the Hydropower Development

The Clean Energy Development Bank (CEDB) has done a pioneering work to provide the loan for hydro projects without collateral under the “project financing” concept. However, a rigorous project processing regime is required to protect from any risk along with strong and continuous monitoring by the Bank. This paper highlights the requirement of technical due diligence of candidate hydro projects looking for financing. CEDB has developed and adopted a systematic hydropower project processing process Operational Policy and Guidelines. Cost-over run or time overrun due to any reason is the two major concerns for Financier as well as Developer. Rigorous screening is needed to ensure virtual risk proof lending.

Janak Lal Karmacharya View PDF 29-30
Topics PDF Pages
Review Article
View PDF 31-33