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Article

12 Feb 2021

Author:
Ramesh Bhushal, The Third Pole

Nepal: Budhi Gandaki hydro project in limbo as questions of resettlement, compensation and environmental impact remain unanswered

"Budhi Gandaki: Nepal’s mega-dam remains a mirage" 12 February 2022

Plans to build Nepal’s biggest ever hydropower project have gone through a bewildering series of politically motivated changes since 2011. Now it seems the Nepali government cannot get the Chinese contractor to say when construction might start. 

Meanwhile, the lives of some 50,000 people are being disrupted for a project Nepali energy sector experts have criticised as fast becoming financially unviable, due to the falling costs of other renewables, such as wind and solar. 

The Budhi Gandaki hydro project was meant to be finished by 2022, almost doubling Nepal’s electricity supply by adding 1200 megawatts (MW). [...] The problem? China Gezhouba Group Corporation shows no sign of starting work. It was awarded the contract without a tender in September 2018, a decision that was controversial at the time. [...]

Resettlement mirage

Many promises were made to locals to persuade them to handover their land, including the promise of resettlement. They were asked to fill in forms saying where they wanted to be resettled and what facilities they needed. [...] Botched resettlement policies are creating social problems. Some have spent money on frivolous celebrations, which means they will be homeless and landless if not resettled. Many have used payouts to meet their daily needs or pay debts, buy motorbikes or educate and marry off their children. [...]

Environmental damage ignored

According to the environmental impact assessment report, the reservoir will submerge 2,400 hectares of forest holding, 3.5 million individual trees in 38 plant species, and 19 mammal species, 9 of reptiles and 54 of birds. [...] Despite this, civil society groups in Nepal have shown negligible concern. [...]

“Even if you raise genuine and serious concerns, you are tagged as an anti-development goon. I think this has helped to instill fear at all levels and civil society has fallen prey to it,” he added. [...]