By Sudheer Raj Sharma Dhakal

The well-versed 750 MW West Seti Hydroelectric Project (WSHP) is once again capturing major energy headlines in both the print and electronic media of Nepal. Looked as a porthole for the development of the Far Western Development Region (FWDR) that has received the least development privilege, this project has been lingering for more than a decade.

The reservoir-based West Seti, whose 195 m high dam affects four out of the nine districts in the far west, will also impact the Tharu-dominated Kailali district as well. Besides, issues of en-mass resettlement, downstream benefits and percentage of free energy have been major challenges in executing this project. Promoted by an Australian company, Snowy Mountains Engineering Corporation, through West Seti Hydro, the US$ 1.6 billion West Seti becomes a debatable issue especially during the increased load-shedding hours in Nepal. Also, along with frequent changes in governments, issues related to the WSHP also take twists and turns.

Renewed hope

The government-ventured China National Machinery and Equipment Import and Export (CMEC) on December 28 signed a Memorandum of Understanding (MoU) with West Seti Hydro, expressing interest to invest 51 per cent in the WSHP. Out of the US$ 400 million share investment in the project based on the previous share composition, CMEC’s investment amounts to US$ 2004 million. Furthermore, Chinese banks are providing US$ 1200 million in loans to execute the project. For the project which was unable to make any financial closure to obtain the generation license, such commitment from Chinese investors is noteworthy considering the extra hours of power cuts in Nepal.

In addition to this, the Asian Development Bank (ADB) last month assured its readiness to invest in the WSHP. Minister for Energy Dr. Prakash Sharan Mahat discussed this issue with the bank’s vice president during his official visit to Nepal. Besides providing assurances for mega projects like the West Seti, the ADB also vowed to support Nepal with other infrastructural development projects, including highways.

Energy experts have seen these developments as milestones for installing mega power projects in Nepal. However, the reluctance shown by the ADB since the last three years in making a 15 per cent share investment in the West Seti is a serious matter in trusting such forged assurances.

Doubtlessly, exploitation of rivers for generating hydroelectricity from mega projects is challenging. Such executions require not only a huge budget but also an investment-friendly environment, support from the local communities and guarantee of public benefits. The development tools applied decades back are no more instrumental when issues of en-mass resettlement, international standard compensation packages and environmental impacts receive major concerns from the investors, affected locals or stakeholders.

With the primary ground works being undertaken for the Arun-III, Upper Karnali, West Seti and Upper Tamakoshi, we Nepalese are busy building castles in the air that we are definitely going to exploit thousands of megawatts of hydropower. Such feelings are deep-rooted among the locals in the FWDR that is eyeing multipurpose mega projects like the Pancheswor and Karnali, besides the West Seti and Chameliya. If we acknowledge our financial status sincerely, such multipurpose projects are nothing except mere dreams. But, starting the West Seti in the far west means preparing for the Pancheswor and Karnali.

According to the Environment Impact Assessment report of the Pancheswor Multipurpose Project, the revenue the government receives from the project in five years will suffice to meet the construction budget of the 10,000 MW Karnali Multipurpose Project. This is how we can materialise dreams of hydropower development.

People’s project

We have developed an unhealthy culture of judging things based on the statements of the political parties and their cadres. When they say ‘yes’, we don’t look for the option to say ‘no’ since we are more used to their hearsays, which are never persistent. It is an undeniable fact that mega projects are not free of concerns and controversies. However, it is a duty of a responsible citizen to make such mega schemes people-oriented, benefiting both the people and investors.

The World Bank, which abandoned Arun-III in 1995, is presently lamenting over acquiring similar projects in the Nepali hydropower sector, and our government is preparing to offer it the 350 MW Upper Arun. We did not act responsibly when we had to bid farewell to the 402 Arun-III 15 years ago. Still, we are convinced by some political forces that Arun-III, West Seti and Upper Karnali are being conceptualised against the sentiments of the affected locals, and that they are anti-national projects.

For the sake of intensifying feelings of nationalism, leaders of the United CPN-Maoist, who well accepted these projects for immediate construction when they were in power, are now trumpeting that the West Seti is an anti-national project. This hearsay is certain to take a positive lead as soon as they seize power.

Thus, responsible citizens must rise above such illusions, make a well-judged decision and help execute such power projects for creating a congenial environment for investors. Otherwise, we must clearly say ‘No’ to development and will be repeating the fate of Arun-III in West Seti, compelling all souls awaiting development in the FWDR to lament forever.

Note:
This article was published in The Rising Nepal on the same day when West Seti management decided to lay off its more than two-third of working staffs.