By Our Reporter
Kathmandu, May 11: At a time when the Nepal government is seeking more foreign investments in the country, those already established foreign joint ventures are facing different problems from the locals. Hydropower is the key sector for the country’s development and the government alone cannot construct many of the hydropower projects by itself. Therefore, the government has been requesting foreign investors for their investment in this area. Unfortunately, foreign joint ventures are facing different kinds of troubles in the country. Along with requesting foreigners for foreign direct investment, the government should ensure that their investments are safe in Nepal by addressing problems faced by those already established foreign joint ventures in the country.
Of late, the Sinohydro-Sagarmatha Power Company（P）Ltd is facing threats from some locals in the project area. It is the government’s responsibility to solve the problem and allow the Company to run smoothly.
Sinohydro-Sagarmatha Power Company（P）Ltd. is funded by PowerChina Resources Ltd. It was registered in Kathmandu in 2010 and is responsible for the development, construction and operation of the Upper Marsyangdi Hydroelectric Project. The Project started construction in January 2013 and entered into commercial operation on January 1, 2017.
The Upper Marsyangdi Hydroelectric Project was implemented by fully adopting Chinese technology, Chinese solutions, Chinese funds, and Chinese equipment. During the construction period, the Company overcame difficulties such as the impact of the Nepal earthquake in 2015 and achieved timely power generation. Since the project came into operation, it has transmitted about 360 GWh of clean energy to Nepal every year, greatly alleviating the power shortage in Nepal. As of April 2024, the cumulative power generation of the project has reached 2.5 billion kWh.
Since the construction and operation period of the project, the Company has been rooted in the local area and fully giving back to society and benefits the local area. It has supported more than 200 social responsibility projects, covering vast areas such as schools, hospitals, roads, bridges, temples, community buildings, water supply, and irrigation, playing a significant role in promoting local economic and social development. The CSR projects have been implemented through a Concern and Support Committee (established by villager representatives). At the same time, the Company has donated to more than 280 local communities, the Company provides donations of varying amounts for local school celebrations, associations, club building or sports games. The company has invested more than 50 million rupees in social responsibility funds and also has paid 2100 million rupees in various taxes and fees for Nepal since its operation, making outstanding contributions to the Nepalese government’s revenue generation, promoting local economic development, tourism industry, and achieving local people’s income increase and poverty alleviation.
In March 2024, an organization, “Jalgini-Arkhalebesi Road Upgradation Struggle Committee”, was established in the local area. The organization requested unreasonable demands such as the Company providing 10% of the project shares to residents, and upgrading the road section with blacktop from Jalgini to Arkhalebesi. The organization also threatened to hold staged protests if the issue could not be resolved properly.
Regarding the issuance of 10% shares to local people, the Generation License for this project was obtained in 2012, prior to the issuance of relevant laws and regulations, there are no applicable laws or regulations requiring the Company to issue shares to local people.
For the road section from Jalgini to Arkhalebesi, the Company purchased land and built roads according to the design drawings. The road is mostly used by the locals and its condition has been significantly better than those in surrounding villages. The Company is not obligated to upgrade the road. Meanwhile, over the years, the Company has done a lot of maintenance work to ensure the functionality of the road, especially in the restoration of flood damage.
In April 2024, the Company held multiple rounds of negotiations with the Struggle Committee regarding the upgrading of the road. Out of the principles of good neighborliness and “respect and assistance”, the Company was willing to provide some funds to support the road upgrade. However, the Struggle Committee requested that the Company fully invest or reach the amount they demanded, and it could not reach a consensus.
The Struggle Committee threatened to take more aggressive actions in the next step: First, blocking the road and not allowing the vehicles to operate; second, locking the doors of the campsite; third, rushing into the Dam site, directly lifting the gates to release water, stopping power generation; fourth, holding larger events or activities to be discussed later.
People’s News Monitoring Service.
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