Policy and practice of hydropower development in Nepal: an ethnographic study of Budhigandaki hydroelectric project

Abstract

This study examines hydropower development policy and practice in Nepal through an ethnographic study of the Budhigandaki hydroelectric project (BGHEP), addressing an unexplored gap in understanding how international and national policies are implemented, the gaps in implementation, and their eventual consequences. While large dam projects are considered fundamental to national development, they entail substantial social, cultural, economic, psychological and environmental hazards. They pose major challenges, including involuntary displacement, livelihood disruption and the trauma of separation from the place of origin. Using a mixed-methods design integrating quantitative and qualitative approaches and guided by modernization and practice theories, this study analyzes macro and micro dynamics and perspectives through in-depth interviews with locals to capture the conditions, sufferings, expectations and lived experiences of people during a prolonged pre-implementation phase in which the project has remained on hold for nearly a decade. The problem faced by the poor and landless is central to this study. Due to a lack of coordination among the government, the project, and the local administration, as well as the vested interests of local elites, the standard policy gets diluted at the operational stage. The noncompliance with the policy and the extended duration of the project have created chaos among the people regarding their current living conditions and insecurity about their resettlement when construction begins. This study advocates establishing a proper policy on the resettlement and rehabilitation of the poor and needy, beyond paying compensation for land and entitlements, as impacts are unjustly endured by poor, landless, and vulnerable groups who cannot resettle without additional assistance, while benefits appear to be accumulated by elites and the rich. This research provides an insight into the anthropology of policy concerning hydropower development in Nepal. It contributes to the situation of people, compensation and displacement issues during the pre-implementation phase of BGHEP, which has lingered for a long time. This study concludes that timely project completion, synchronized resettlement and rehabilitation policy beyond compensation are essential to minimize prolonged suffering and trauma and associated uncertainty to improve accountability in hydropower governance of Nepal.