Benefit Sharing in Hydropower Projects in Nepal

This book discusses one of the major challenges being faced in Nepal’s hydropower sector– sharing benefits with locals.

Over the past decade, many hydropower projects in Nepal have faced obstructions in construction and operation owing to benefit sharing demands from locals.

The demands range from equity ownership in the company to building of infrastructure (such as roads, schools, etc.) to employment.

As the paper discusses, not having adequate legal provisions defining the scope and basis of benefit sharing is the root of the problem. Based on a survey with hydropower developers, the paper quantifies the cost of not having set clear rules of the game for benefit sharing.

The study also provides a set of policy recommendations based on the observations and findings.

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