Hydropower projects with a combined capacity of 40,000 MW, including operational, under-construction, and those in various stages of planning, located within national parks, protected areas, reserves, buffer zones, and their boundaries, are at risk.

The Supreme Court nullified the amendment to the National Parks and Wildlife Conservation Act, 2029 (1973), which was introduced through an ordinance during the third investment summit on January 15 (Magh 2). As a result, the future of projects located within national parks, protected areas, reserves, buffer zones, and their boundaries has become uncertain.

The Independent Power Producers’ Association, Nepal (IPPAN), held a press conference on Sunday, stating that the constitutional decision of the Supreme Court has put the future of 19,736 MW hydropower projects, both operational and under construction, in uncertainty.

The government had amended Section 5 by adding Subsection 5(a) and Section 6 by adding Subsection (1a) to the National Parks and Wildlife Conservation Act, 2029 (1973) through an ordinance. According to the private sector, this amendment opened doors to utilizing the natural resources and potential along the Himalayan and hilly regions from Mechi in the east to Mahakali in the west for Nepal’s economic interests and national prosperity.

The government amended the National Parks and Wildlife Conservation Act, 2029 (1973) by adding Section 5(a), which allows certain areas within national parks, reserves, or conservation areas to be designated as highly sensitive zones. Similarly, Section 6 (1a) states that, except for highly sensitive zones, the government of Nepal can grant approval to operate nationally prioritized projects, projects approved by the Investment Board, or projects of national pride in a manner that maintains coexistence between nature and humans. Additionally, it permits projects to be implemented in buffer zones and allows for the operation of eco-tourism and other industries or businesses with proper approval.

Among them, according to Section 3 of the Nepal Laws Amendment Act, 2081, the provisions added to the National Parks and Wildlife Conservation Act, 2029, such as “Section 5 Ka” and “Section 6 (1 Ka),” were argued by advocates like Dilraj Khanal and Prakashmani Sharma to be in violation of Subsection (3) of Article 30 of the Constitution of Nepal. They filed a writ petition on Shrawan 13, seeking to declare these provisions invalid and void. Subsequently, the constitutional bench, including then-Chief Justice Bishwambhar Prasad Shrestha, issued a short-term interim order on Shrawan 30.

January 15, during the final hearing, the constitutional bench annulled the law as per the petitioner’s request. The order from the Supreme Court states: “As the provisions added in Section 5 Ka and Section 6 (1 Ka) of the National Parks and Wildlife Conservation Act, 1973, conflict with the constitutional provisions, the amendments made under Section 3 of the Nepal Laws Amendment Act, 2081, regarding investment facilitation, are declared invalid and void from the very beginning, in accordance with Article 133 (1) of the Constitution of Nepal.”

With the Supreme Court’s annulment of the amendment act, IPPAN claims that 267 hydropower projects, with a total capacity of 19,736 MW, which had already invested billions, paid the required fees, royalties, and taxes, and obtained permits for electricity production and surveys under the prevailing laws, now face a situation where they have to endure further complications.

According to IPPAN, the 267 hydropower projects include 14 projects with a capacity of 1,324.52 MW in the Kanchenjunga Conservation Area, 27 projects with a capacity of 5,561.86 MW in the Makalu-Barun National Park, 4 projects with a capacity of 214.6 MW in the Sagarmatha National Park, 41 projects with a capacity of 2,075.613 MW in the Gaurishankar Conservation Area, 26 projects with a capacity of 1,322.631 MW in the Langtang National Park, 11 projects with a capacity of 2,024.5 MW in the Manaslu Conservation Area, 78 projects with a capacity of 2,554.631 MW in the Annapurna Conservation Area, 3 projects with a capacity of 909.36 MW in the Dhorpatan Hunting Reserve, 2 projects with a capacity of 241 MW in the Shey-Phoksundo National Park, 10 projects with a capacity of 272.5 MW in the Api Nampa Conservation Area, and 51 projects with a capacity of 3,000.433 MW in the buffer zone and its boundaries.

The president of IPPAN, Ganesh Karki, stated that the future of 267 projects with a total capacity of 19,736 MW, both operational and under construction, is now uncertain. Among these 267 projects located in national parks, protected areas, reserves, buffer zones, and their boundaries, IPPAN mentioned that several projects, including Upper Tamakoshi, Khare, Sipring Khola, Khani Khola, Singti, Upper Chaku A, Chaku Khola, Bhotekoshi-1, Balefi A, Indrawati, Nigiri-1, Nilgiri-2, Langtang, Chilime, Rasuwagadhi, Sardi Khola, Khimti Khola, Upper Khimti, Sikles, Midim Khola, Bhujung, Supermadi, and others, have already been constructed.

“Dozens of projects are under construction, and dozens of projects have received approval for Environmental Impact Assessment (EIA) reports and are in preparation for construction,” stated a press release issued by IPPAN. “They are waiting for land tenure rights. Hundreds of projects are conducting EIA studies.”

In addition to the 267 hydropower projects, more than three dozen projects are still awaiting agreement for studies, Karki stated. “Dozens of projects are in process at the Department of Electricity Development and the Ministry of Energy. When all of these are considered, there are high-potential projects with a total capacity of 40,000 MW within protected areas,” Karki said. Although the Supreme Court’s constitutional bench has made a decision to annul, he urged for reconsideration as the full text of the ruling is still pending. “The court’s decision forces the investment already made to be wasted,” he added. “Such decisions not only affect the people but also impact the development of the entire country.”

IPPAN stated that the maximum capacity of projects that Nepalese can build and sell electricity competitively to other countries is only 72,000 MW. “If an environment is not created for hydropower projects within protected areas, we will become dependent on electricity imports,” the release mentioned. “Out of the 72,000 MW, only 32,000 MW can be developed outside protected areas. Among these are projects beyond our capacity, such as the Karnali Chisapani Multipurpose Project, West Seti, Upper Karnali, the Sapta Koshi High Dam Project, Tanakpur, the Pancheshwar Multipurpose Project, Sun Koshi 1, Sun Koshi 2, Sun Koshi 3, and others.”

IPPAN stated that if the projects, which have already received permits to be constructed within protected areas, are not built without hindrance, the government’s target will not be achieved. “If the projects permitted for construction within protected areas are not developed, there is little possibility of meeting the government’s goal of generating 28,500 MW of electricity by the year 2091, as outlined in the recently released Energy Development Roadmap 2081. The country will also face the risk of load shedding,” the release stated.

Source: Kantipur