Dolakha — Construction work on two hydropower projects being built with domestic investment has been halted for the past three months due to delays on the part of the government. The Supreme Court had ordered the Ministry of Forests and Environment to prepare procedures for allowing the construction of hydropower projects within national parks and conservation areas.
Although the Ministry of Forests instructed the Department of National Parks to prepare the necessary procedures, they have not yet been finalized. As a result, the Gaurishankar Conservation Area has obstructed the construction work of the under-construction Tamakoshi Fifth Hydropower Project, which is part of the People’s Hydropower Program.
Similarly, the Gaurishankar Conservation Area has also halted the construction work of the 20-megawatt Rolwaling Diversion Project under the Upper Tamakoshi Hydropower Center. The conservation area stopped the project’s work on 4th July, because the policy for implementing the order on tree felling—required for land acquisition and environmental impact assessment within the conservation area—has not yet been prepared.
The Supreme Court had annulled the government’s 2024 amendment to the National Parks Act, which allowed the construction of infrastructure and development structures within national parks and conservation areas. However, in its latest ruling, the Supreme Court issued a directive decision instructing the government to allow the construction of hydropower projects by formulating necessary procedures, as policies not recognized by law cannot be implemented.
Due to the Ministry of Forests’ delay in preparing the required procedures, even hydropower projects funded by the government have been affected. Although the ministry was instructed to draft the legal framework and proceed with the projects, it halted the 99.8-megawatt Tamakoshi Fifth Project and the 20-megawatt Rolwaling Project from Asar 4th July, citing the absence of the full text of the directive.
Although the audit 1 section and the powerhouse work of the Tamakoshi Fifth Project are ongoing, the main audit tunnels 2, 3, and 4 have been completely halted for the past three months. An official from the project stated that, with construction stalled for such a long time, the construction company Sino Hydro is expected to claim compensation for this period.
Binod Bhandari, Chief Executive Officer of the Tamakoshi Fifth Project, stated that the Ministry of Energy has been repeatedly informed about the obstacles to construction. “For the past three months, the conservation area has ordered work to stop because we have not received land use rights and permission for tree felling,” he said. “Since the procedures are still being prepared, we have temporarily halted work. Hopefully, the procedures will be finalized by Tihar.”
He further stated that the Ministry of Forests has already prepared the procedures and sent them to the Department of National Parks. Currently, the procedures have moved from the Ministry of Energy to the Ministry of Law. Due to the lack of coordination among government agencies overseeing the project, the construction—originally expected to be completed in four years—may take longer. An official noted that this delay will increase the project’s estimated cost of NPR 2.114 billion. Likewise, the project has stated that Sino Hydro’s claim for compensation for civil works will require an evaluation of both time and cost.
The project’s construction was tendered under the Engineer-Procurement-Construction (EPC) model. In this model, the selected company carries greater responsibility. The company is required to take charge under terms that cover detailed design, procurement, construction, and a certain period of operation.
Earlier, the project’s cost had increased to NPR 2.114 billion after Sino Hydro’s financial proposal was rejected, delaying the project by one year. The project is planned to be financed with a modality of 30% equity and 70% debt. Of this, NPR 1.3 billion is to be provided as debt by the Employees’ Provident Fund, with a memorandum of understanding already signed.
Similarly, the project will also be constructed with share investment from the general public and local residents. This project will utilize the infrastructure of the Upper Tamakoshi Project. The Tamakoshi Fifth Project is a cascade project of the Upper Tamakoshi Project. Its main work involves the construction of an 8-kilometer tunnel and an underground powerhouse.
Since the project will use water from the tailrace of the Upper Tamakoshi Project, there is no need to construct a dam site, a forebay pond (desander), or headworks for this project. The tailrace water will be directly diverted into the tunnel of the Tamakoshi Fifth Project. As the Upper Tamakoshi Project is a semi-reservoir scheme and its reservoir will be utilized, the Tamakoshi Fifth Project will also be considered a semi-reservoir project.
The Upper Tamakoshi Hydropower Center has been advancing the Rolwaling project, planning to divert water from the Rolwaling River through a tunnel to the dam site in order to extend the electricity generation period of its 456-megawatt capacity plant. While construction work is underway to generate an additional 20 megawatts from Rolwaling, the audit work at Riku has been halted for the past three months due to the lack of land use rights in the conservation area and the absence of an order for tree felling.
Kantipur