Civil Insight: A Technical Magazine Volume 2 | Page 61

CIVIL INSIGHT 2018
Another challenge then was the lack of public and
even government confi dence in private hydropower
sector. There was a fi xed Power Purchase Agreement
(PPA) for small hydropower with capacity up to 5
MW. There were no predefi ned proceedings and
many logistical aspects were uncertain. We could
be considered pioneers for private hydropower in
Nepal. We were learning by doing while cooperating
with the government.
There have been shortages of human resource, and
construction and consultation companies too. To
this day construction and consultation companies
are not enough but the problem is not as severe as
they used to be.
The lack of funding has limited fi eld studies. In 2071
B.S at Jure,a huge landslide occurred that could have
been predicted if we had enough funding. These
were some typical problems we faced and still face.
There was also the problem of interest rates and
fi nances. The interest rate fl uctuated which led to
volatility and unstable rates of return. PPA required
longer time then; to acquire a PPA it could take a
company a year or more. However, the paper work
has now picked up pace and roughly 3000 MW of
project is under construction.
If we look back to 20 years ago, the state of
hydropower in Nepal then and compare it to today’s
prospects, we must say that Nepal’s hydropower
sector has grown exponentially. The scale of projects
has grown and continues to grow.
The exponential growth in hydropower, however,
does not preclude challenges. Currently we face
unforeseen technical challenges like natural disasters;
earthquakes and fl oods have taught us valuable
lessons. As the capacity of project increases, the
challenges also increase. The large scale of projects,
huge costs and tiny error margins has decreased the
overall risk bearing capacity of hydropower projects.
Time also imposes a daunting challenge upon us,
if we fail to fi nish a project within time our interest
rates shoot up and with it the costs are compounded.
Another issue is the huge capital requirement for
mega projects. Everything must be completed
within a specifi ed period; however, administrative
ineffi ciency is a major hindrance in doing so. As I
mentioned before, the lack of government authority
distribution and no clear boundary of rights of bodies
of government also poses a challenge. Nevertheless,
we expect the government to fully understand our
problem and provide the right platform for our
sector’s growth.
INTERVIEW
61
Q. What are the challenges from local people
while implementing hydropower projects? How
much co-operation is there among the locals?
In the beginning, we faced a lot of problems
and arguments from the locals due to the lack of
information about hydropower. We have faced
different sets of problems in Ramechhap and Ilam.
But now, it has become easier since almost everyone
is aware of the benefi ts and disadvantages of
hydropower. Nonetheless, the relationship is mutual;
if we as an outsider listen to their qualms and
curiosities, they fully cooperate with us. However, I
believe we have a social responsibility towards the
local people. We educate people about hydropower
and disseminate information as they are. We also
provide solution or measures of mitigation of the
problems caused by our hydropower projects.
Similarly, we provide employment to the local people.
This ensures cooperation, I believe.
Q. What according to you are the major reasons
why the hydropower projects in Nepal don’t
see completion or suddenly stop in the middle
of construction?
Few factors delay the completion of projects. One is
natural disaster: they are unpredictable and do lots
of damage on their wake. Take Upper Tamakoshi for
example; the 2015 earthquake ruined its structure
and hence was delayed. However, the earthquake
was not the sole reason for its delay. It was embroiled
in share distribution issues. The labor force wanted
some of its equity and they protested which halted
construction. In majority of projects, delays occur
for land acquisition and its reimbursement. Some
of the projects fall victim to corruption rampant
throughout the nation. Misunderstanding among
various stakeholders is another cause for a mid-
construction stop. These types of problems are
inevitable, so one must not panic but keep a calm
mind and analyze the problem and come up with a
good solution. Delay of a project increases its cost
and subsequently its risk of commercial failure.
To stop these mishaps and ensure smooth
construction of hydropower, I believe security should
be provided at construction sites.
Q. Do you still believe that there is a lack of
hydropower in Nepal?