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Nepal: A Case Study of Kulekhani Hydropower Project and Conflict Management Through Dialogue

This document summarizes a case study on the Kulekhani Hydropower Project in Nepal and the resulting conflict over fisheries. After the project displaced local families, they took up fishing and fish farming for livelihoods. In 1997, chemical pollution killed over 46,000 fish, worth $120,000. The farmers demanded compensation from the construction company and Nepal Electricity Authority (NEA) but were denied. Through dialogue facilitated by advocacy groups, the farmers were able to get $12,000 in compensation, though the NEA remained unhappy. The NEA then issued a notice banning fishing, contradicting earlier promises. Local people continue fishing while seeking free access, electricity access, and further resolution through mediation

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Kisna Bhurtel
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192 views3 pages

Nepal: A Case Study of Kulekhani Hydropower Project and Conflict Management Through Dialogue

This document summarizes a case study on the Kulekhani Hydropower Project in Nepal and the resulting conflict over fisheries. After the project displaced local families, they took up fishing and fish farming for livelihoods. In 1997, chemical pollution killed over 46,000 fish, worth $120,000. The farmers demanded compensation from the construction company and Nepal Electricity Authority (NEA) but were denied. Through dialogue facilitated by advocacy groups, the farmers were able to get $12,000 in compensation, though the NEA remained unhappy. The NEA then issued a notice banning fishing, contradicting earlier promises. Local people continue fishing while seeking free access, electricity access, and further resolution through mediation

Uploaded by

Kisna Bhurtel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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INTERNATIONAL WATER CONFERENCE

Hanoi, Vietnam,
October 14-16, 2002

Nepal: A Case Study of Kulekhani Hydropower


Project and Conflict Management through
Dialogue

By:
Gopal Siwakoti 'Chintan'

NEPAL: A CASE STUDY OF KULEKHANI HYDROPOWER


PROJECT AND CONFLICT MANAGEMENT THROUGH
DIALOGUE
Gopal Siwakoti 'Chintan'1

KULEKHANI-1 HYDROPOWR PROJECT


Kulekhani 1, 60 MW, 114 meters high, hydropower project built in 1979 is the
World Bank's model project in Nepali hills. This rock-fill reservoir, now called Indra
Sarovar, is a collection of water from small streams and rainwater.
After the displacement of about 70 families from their fertile agricultural land by
Nepal Electricity Authority (NEA), their livelihoods mainly depended on fishing. A
Fisheries Development Centre (FDC) was formed with the assistance of IDRC in 1985
and a fish-farmers' association of affected people was also formed to promote cage-fishfarming.
After the 1993 flood wiped out the fish, about 36 families took loans from
Agricultural Development Bank of Nepal (ADB/N) for commercial fishing. However, all
the fisheries were completely destroyed in April-June 1997 due to chemical poisoning
and the lack of adequate oxygen due to the negligence of a construction company that
was repairing an intake tunnel also destroyed by the same 1993 flood. Nearly 46,000 fish
weighing approximately 1,20,000 kilograms died within a span of 12 days. When the
farmers asked for compensation from the company and/or NEA, they were simply
ignored and told that there would be no compensation since the fish-farming in itself was
illegal. The government's Fishery Department stood against this claim and took the side
of the farmers for compensation.
To put pressure on their demands, the members of Indra Sarovar Fish-Farming
Association held several meetings with the local officials of NEA and the FDC. It was
also about the time for them to pay back the first installment of their loans.
Process of Dialogue
Upon the initiative of Rastriya Sarokar Samaj (National Concerns Society), a
detailed fact-finding was done by activists and journalists on the site. News of the
disaster and the grievances of the local people were carried out in national newspapers.
1

Co-ordinator, Water and Energy Users' Federation-Nepal (WAFED), P.O. Box 2125, Kathmandu, Nepal,
Tel: 0977-1-429741, Fax: 0977-1-419610, E-mail: wafed@ntc.net.np

Demands for proper compensation for the loss of fish and interest-free loan were
demanded from the government authority. Huge public meetings and press conferences
were organized both in the project site as well as in Kathmandu by inviting the Indra
Sarovar representatives to speak. A direct approach was made to the Prime Minister to
intervene who sent a high-level delegation to discuss the matter with the fish-farmers and
arrange some compensation for them.
Outcome of the Dialogue
As a result of this process, the NEA announced to pay around US $12,000 as per
the compensation and threatened to withdraw it if the proposal was rejected. This amount
was like a peanut compared to the loss but the farmers accepted it as the only choice but
they continued their demands for more compensation and loan facilities. However on the
side of the NEA, it was not happy with the compensation deal and wanted to take revenge
against the farmers. Soon it issued a public notice stating that the fish-farmers would not
be allowed anymore to have access to the reservoir and claimed that the ownership
belongs to it so as to prove that the farmers have no legal right to fish-farming. This
notice still stands as it is in paper.
The local people have taken this notice as a betrayal of the promised made by the
project and continued their fish-farming. In addition to access to fish-farming, the local
people were also promised access to electricity and irrigation from the stream-rivers. All
of these issues still remain the same for the government and the NEA to resolve!
At present, WAFED is playing a role of mediator for the following purposes and
considering the matters to take to the court if and when necessary:
a. Free access to fish-farming, fishing and entertainment in the reservoir; and
b. Access to electricity with the implementation of "1% benefit for local
development policy" of the government.

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