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Budhi Gandaki HEP Proposed Dam Site

Former Prime Minister Baburam Bhattarai has described the current government’s renewed initiative to move forward the Budhi Gandaki Hydropower Project - after a long period of uncertainty and speculation - as a positive signal, urging that it be advanced in a way that is linked to the country’s broader economic transformation.

He stressed that the project should not be viewed merely as a conventional hydropower scheme generating 1,200 MW of electricity, but rather as a center for Nepal’s multidimensional economic transformation. According to Bhattarai, its location between major cities like Kathmandu, Pokhara, and Bharatpur gives it the potential to become a “take-off point” for transitioning the country toward an industrial economy.

Citing global examples, he recalled how projects such as India’s Bhakra Dam, China’s Three Gorges Dam, the U.S.’s Tennessee Valley Authority, and Ethiopia’s Grand Ethiopian Renaissance Dam significantly transformed the economic structures of their respective countries.

Bhattarai also noted that during his tenure as prime minister, the Budhi Gandaki project was given high priority as part of a regional development strategy. He recalled proposing the establishment of a “Budhi Gandaki Corridor Development Authority,” and, due to the inability to enact a separate law at the time, forming the “Budhi Gandaki Development Committee” through an executive order.

He explained that the project, which would create a reservoir about 15 times larger than Phewa Lake, could bring multidimensional benefits. These include the development of new urban settlements in the plains of Gorkha, Dhading, and Chitwan, expansion of hydropower, promotion of tourism, establishment of industries and businesses, and resettlement opportunities. He claimed that such impacts could transform Nepal’s overall socio-economic structure.

He added that the project has failed to gain expected momentum due to unstable policies and delays by past governments, noting that history will judge this seriously.

Calling it a “historic opportunity to correct past mistakes,” Bhattarai urged the current government to prioritize the project. He also expressed confidence that key stakeholders - including the Speaker, Finance Minister, and Prime Minister - will understand its significance, given their connection to the region.

He emphasized that the Budhi Gandaki project must be treated not as a conventional hydropower scheme but as a long-term transformative national project.

In conclusion, Bhattarai warned that if the project is implemented merely through a regular company under the Nepal Electricity Authority, it risks ending up as another unfulfilled promise. He recommended executing it through a separate, empowered “Budhi Gandaki Watershed Development Authority” established by a dedicated law to ensure its multidimensional development.

Jalasarokar