Kathmandu Post urges Nepal to revive the Budhigandaki dam and stay committed

In its 27 October editorial, The Kathmandu Post recalls that the 1,200 MW Budhigandaki, Nepal's largest reservoir hydropower project, was declared a 'national pride project' in fiscal 2012-13. It was due for completion in 2026-27, yet construction has still not begun. According to the paper, the Dahal government awarded the work to China Gezhouba Group without tender in May 2017. The Deuba government cancelled the deal 6 months later, and the Oli government handed it back to the same company in September 2018. In 2022 the state decided to build the project itself. Last year's budget proposed a public-private partnership, and this year Finance Minister Swarnim Wagle announced that a dedicated authority would be set up.

The editorial puts the base cost estimate at 374 billion Nepali rupees, approaching 406 billion with interest during construction. Some 42.65 billion rupees have already been paid in compensation for land, buildings and crops. More than 8,000 households will be affected, 3,560 of which will be fully submerged. The paper sees the core rationale in seasonal imbalance. Apart from Kulekhani, Nepal's run-of-river plants overproduce in the monsoon and underproduce in the dry winter, forcing Nepal to buy electricity from India. The editorial calls for the financing model to be settled, a realistic timetable to be published and costs to be independently monitored.