Large Storage Dams: Balancing Progress with Future Generations’ Inheritance

Nepal can easily meet the country’s demand for electricity for a very long time by implementing medium-sized hydropower projects in conjunction with solar and other sources of inexpensive energy generation. This can be done without resorting to costly large storage dam projects, like the Budhi-Gandaki, West Seti etc, which are often embroiled during construction in various types of disputes resulting in indefinite delay and unexpected heavy cost overrun.

Unfortunately, we all, including policymakers, planners, politicians, and the intelligentsia, among others, are not seen showing even the slightest concern over the devastation of the economic potential of our water resources that are consequent upon our failure to understand the full value of these precious natural resources. In contrast, foreign experts on water resources are surprised at our ignorance, while an expert has even straightforwardly cautioned us, “Nepal should beware of unintentional giveaways in hydro development.”

The present institutions should be wary of giving away Nepali children’s rightful inheritance.

Submergence and Taking Away Livelihood

Paul D. Terrell from Bechtel International, who was chief advisor to the Government of Nepal for the World Bank-financed Karnali Project, has expressed his concerns in an article published in the magazine HIMAL a long time ago in May 1991 about the negative impact of large storage dams on environment and economy of our country. His opinion has now become even more pertinent. The following are his opinions.

-Nepal does not have too much land. Snowfields and glaciers are not habitable, and much of the country is too steep and mountainous for terracing by the hill farmers.

-On the one hand,reservoir space is needed to harness the water, on the other, land covered by the most economic reservoirs, in terms of large storage volume is the same precious flat land needed for agriculture.

-It is impossible to create a reservoir in Nepal without inundating people’s homes and taking away their agricultural livelihood.

Domestic Demand for Energy

Having huge potential in hydroelectricity, our country can easily meet demand for energy for a very long time by implementing medium-sized hydropower projects in conjunction with solar and other sources of inexpensive energy generation without resorting to costly large storage dam projects, like the Budhi-Gandaki, West Seti, etc. We shouldn’t have to rely just on construction of such projects which invite various types of disputes resulting into indefinite delay and unexpected heavy cost overrun. This is the view echoed by foreign experts from internationally renowned institutions like the Bechtel International of the USA.

Justification for Large Dams

Nepal’s economy would greatly suffer as a consequence of the implementation of large storage dam projects earmarked exclusively for power generation at the cost of sacrificing our valuable lands and valleys in the hills and overlooking engineering, economic and environmental aspects. However, such projects could still be justified if we can reap non-power benefits.

Our country is now planning to implement large storage dam projects, like the Budhi-Gandaki storage dam project, West Seti storage projects, etc., exclusively for power generation whereas these types of projects would automatically provide India downstream benefits (irrigation, flood control, etc.), which might far exceed the power benefit. Unfortunately, our country would be deprived of our right to a legitimate share in downstream benefits from such projects accruing to India if we failed to reach an agreement on downstream benefit sharing before making final decision on implementation.

Irrigation Benefit Compared with Power Benefit

The detailed feasibility study of the Multipurpose Kankai storage dam project carried out under the assistance of the then Government of West Germany and completed in the 1980s shows that the annual irrigation benefit would be more than four times greater than the power benefit and such irrigation benefit would accrue entirely to Nepal. Unlike the case of the Multipurpose Kankai Project, the vast downstream benefits accruing from the proposed West Seti, Budhi-Gandaki, Karnali Chisapani, and Tamor storage dam projects would automatically be passed on to India.

India’s Growing Demand for Water

The world population grew enormously in the 20th century. According to United Nations estimates, 1.65 billion people lived on Earth in 1900. By 1999, the world population passed 6 billion, while the UN estimates it will reach 9 billion people by 2050. However, the annual supply of renewable freshwater will remain constant.

In India, the demand for agricultural water dominates the total water demand. India has the second-largest population in the world. There are plentiful rains over most of the country’s area, but they are received only for a few months. As a result, India has already been experiencing severe water scarcity. According to Mr Chaturbedi M.C., even by 2005, the total ground and surface water had already been assigned to users, and irrigation expansions witnessed restrictions.

Wisdom of Lesotho

It is quite hurting that in sharp contrast to our country’s irresponsible dealings on water resources, even the most backward country in Africa, Lesotho is wise to protect its national interest to reap full benefits from its multipurpose project by reaching an agreement with South Africa on sale of regulated water flowing down after power generation to downstream country South Africa. Currently, Lesotho is receiving 56% royalty of the net benefit accruing to South Africa from using the regulated water discharged into the river after power generation.

Conclusion

Demand for water worldwide and also in India is rapidly growing, as a result, it is becoming increasingly scarce. Water has already become a valuable export item. However, Nepal is unaware of this vast economic potential. Needless to say, our proposed large storage dam projects would hurt the environment and economy of the hill region of our country. Fortunately, Nepal might not have to implement such large storage dam projects for a very long time to meet our own country’s demand for electricity.

We should shelve the idea of implementing large storage dam projects providing large non-power benefits exclusively to India until we reach an agreement with our southern neighbor on downstream benefit sharing. India has already built Sarada Shahayak and Saryu canals in anticipation that Nepal would implement Karnali Chisapani or West Seti storage dam projects that would automatically provide abundant water to those canals. It has been clearly explained in the feasibility reports of those canals.

Dr. AB Thapa passed away recently on June 2024. This article was first published by the fortnightly magazine Spotlight, December 20 2019–January 2 2020 and it has been reprinted with the kind permission of Spotlight. This article is taken from the 6th issue of urja khabar, a bi-annual magazine. Which was published on 15 june, 2024.