BY PRABESH PAUDYAL Budhi Gandaki is one of the most favored hydropower projects due to its high potential benefits and its location near the capital and main load growth center. The geology looks promising. As stated in the 1994 report, construction of the Budhi Gandaki Hydro Power Project (BGHPP) will have negligible impact on the environment. It is a storage-type project which is now being seen as a necessity for Nepal. The feasibility study was done in the early 1980s.

One may ask why the project has remained in cold storage if it was so attractive. Part of the reason is the height of the dam, which is 225 meters high or as tall as a 75-story building. Such mega hydropower projects have not been attempted in Nepal, and it is a big challenge for the government.

Kulekhani, which is a government-owned storage-type project, has a capacity of 92 MW between its two components Kulekhani I and II. The SMEC is building a 750 MW project on the West Seti. Many people are wondering what kind of deal the government will arrange with regard to the Budhi Gandaki project, besides holding out for free energy and free shares.

The storage-type hydropower project has various advantages like storage of water and energy, year-round energy production, instant generating capacity, flexibility in providing base-load and peak-load services and terrific employment opportunities. The Budhi Gandaki is centrally located and can supply power to Kathmandu easily when the load factor is high. Besides, this project can also provide employment to capital-based experts. At the same time, the project also has a number of negative impacts like dislocation of people, undesirable social effects and destruction of wildlife habitats that will result from inundation and change in the course of the river.

It is obvious that big projects have massive disruptive effects; but without such projects, there can be no economic security, employment and adequate energy. The reservoir of the Budhi Gandaki will cover about 50 square kilometers and displace about 10,000 people. The project will affect the residents of 18 VDCs – eight in Dhading and 10 in Gorkha. About 1,240 hectares of cultivated land will be submerged. The challenge Nepal faces at present is constructing such giant projects as employment and the economy are declining at an alarming rate. A recent survey shows that the 92 percent of the respondents believe that hydropower development is absolutely essential to propel the country’s economy forward.

Regarding the environmental impact, it is worth quoting what UNEP has said, “UNEP is not concerned by small or large, but well-planned and well-managed.” Therefore, good management, not size, is what needs to be looked into. Increasing numbers of jobless young people are rushing out of the country to find work. In order to keep them here, the motto of New Nepal must be to boost the economy and employment opportunities with massive investments.

The Budhi Gandaki project alone will create jobs for thousands of people. Such projects also enhance employment opportunities for varied skills. The government, therefore, should not stick to its policy of free energy and free shares stubbornly. It should negotiate the best deal possible and concentrate on getting the show on the road as soon as possible. Otherwise, the middleman will be holding on to the license for a long time preventing potential investors who are keen to build the project from coming aboard.

More importantly, the government must consider how these projects will benefit the people residing in the area besides driving the economic development of the country.

Another matter is how to involve Nepali investors in large hydropower projects so that they do not become entirely foreign enterprises providing few benefits for the country. Also, the government should participate in the construction so that it can check whether the company has been following the rules and regulations. The Budhi Gandaki project will a test case that will show the light for the implementation of large storage-type projects like the Koshi High Dam, Karnali Chisapani and Mahakali Pancheswar.

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Source: The Kathmandu Post, 2 April 2008