The 101 MW Tamor-Mewa Hydroelectric Project (TMHP) in Taplejung district has seen as much debate as the West Seti, Arun-III and Upper Karnali. Geographically, the TMHP falls in Khokling and Phongling village development committees, both in the self-declared Limbuwan Autonomous State. The project has been an issue of power debate since a year when the Ministry of Water Resources (MoWR) refused to renew the survey licence issued with a validity of 18 months. The ministry on January 22 last year decided not to extend the term of the licence stating that the promoting company, Spark Hydroelectric Company Limited (SHCL), did not make significant and qualitative progress on the project as per the conditions mentioned in the licence.

Tamor-Mewa

An interesting aspect of this project is that water from the Tamor River and Mewa River will be technically merged to generate 11 MW additional power than the individual potentiality of the rivers. Preliminary studies have shown that 18 MW of electricity can be feasibly exploited from the Mewa River while 72 MW from the Tamor River is technically feasible. Bringing the water from both the rivers will add 11 MW to the generation capacity of the Tamor River.

Unlike in other projects, the TMHP will have two powerhouses, one having a net capacity of 18 MW and another with 83 MW capacity. Water from the 18 MW powerhouse will be diverted through a 5.5 kilometre long diversion tunnel into the Tamor River.

Chairperson and director of the SHCL Bhanendra Kumar Limbu says that the company has so far spent around Rs. 80 million on the project, of the total investment of Rs. 15 billion. The SHCL is seeking a 55 per cent foreign direct investment and 45 per cent domestic investment. The project has also promised to extend 10 per cent of the shares to the affected locals.

The MoWR issued the survey license to Spark Hydroelectric Company Limited on March 20, 2006 for a period of 18 months. According to the SHCL, of the 540 days granted for the survey, some 333 days constituted Nepal Bandhs and other strikes. Thus the company could work only for 207 days, which is not even seven months. Even during such harsh timings, the company updated its progress to the Department of Electricity Development (DoED) as required by the terms and conditions in the survey licence.

However, on January 22, 2008, the MoWR refused to renew the survey license despite the deposition of Rs. 1 million as renewal charge and the required documents. According to the company’s statement, which appeared after the rejection from the ministry, Imex International applied for a licence for the same project on September 7, 2007.

The company claims that the progress on the project could not be achieved due to the continuous bandhs in the eastern region of Nepal. One of the provisions, 7(d), in the survey licence requires the company to furnish appropriate reasons in case the licence period needs to be extended. The company has been trying to convince the ministry to renew the licence. On September 29 last year, it even submitted an application along with 3,620 signatures of the affected locals, lawmakers and civil society representatives from the district to the MoWR and officially met the Minister for Water Resources.

Such public pressure to allow the hydropower project to go ahead must be a lesson to project-affected locals of such power projects as the 750 MW West Seti in the Far Western Development Region, 402 MW Arun-III in Sankhuwasabha district and the GMR promoted 300 MW Upper Karnali. Several groups are quite active in these areas and do not want the hydel projects to kick-start.

The Electricity Act 2049 has set enough provisions for renewing project licences for power projects like the Tamor-Mewa, viewing its inescapable situations that cripple Nepal, especially in the Eastern Development Region and the Terai districts, parlaying everything for months.

The project having a construction period of five years will provide employment to around 1,500 individuals. Besides the tax, annual royalty and share dividends, the region will have 19 kilometres of black-topped road and a concrete motorable bridge, which will join other villages beyond the Tamor River. The project, which has received the support and solidarity of the locals and other regional stakeholders, will be a development asset for the eastern region in the coming days when it starts commissioning.

Legal provisions

Certainly, it is not a wise decision to make the investors suffer. The government must create a congenial atmosphere to those who have come forward for developing hydroelectric projects, costlier among other development projects. It is the duty of the government, not the investor, to check bandhs and other probable public obstacles. Also, the investors must work seriously towards accomplishing the project’s gaol. Renewing license a number of times, citing inability to rope in investors, is not a logical deal and such practices require immediate correction.

Therefore, both the MoWR and DoED must rethink about renewing the licence of Tamor-Mewa as well as others in view of the legal provisions. It is not wise to paralyse projects when the government is working with a vision to generate 10,000 MW of electricity by 2020.

(The writer is editor of Hydronepal.org and can be commented at editor@hydronepal.org)