<figure><img width="1777" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111011114/636cccc99c7e80680e08bc40jpeg.jpg" alt=""/><figcaption>All photos: NABIN BARAL / www.thethirdpole.net</figcaption></figure>Plans to build Nepal’s biggest hydropower project was been delayed by politics and compensation issues for 10 years, but is now held up because the Chinese contractor is incommunicado.The 263-m high dam on the Budi Gandaki River will be the world’s tenth tallest, and impound a reservoir 45km long displacing 50,000 people, to generate 1.200MW of electricity. But the $2.5 billion project is in doubt because of delays and doubts about its viability.The project, situated 60km northwest of Kathmandu, was supposed to be completed by 2022. It had been cancelled and revived several times by successive governments, but has been stuck for the past year because of the pandemic.The China Gezhouba Group Corporation (CGGC) was awarded the main construction contract in 2018, but has not shown up for the past year.  “We have repeatedly tried to communicate with the company, but it has not responded clearly. We cannot say whether they are in or out, it is between somewhere and nowhere,” said Gokarna Raj Panta at the Ministry of Water Resources, Energy and Irrigation in Kathmandu.‘Between somewhere and nowhere’ is also a fitting description of the lives of the people of the Budi Gandaki Valley whose homes, farms and livelihoods will be submerged by what will be Nepal’s largest reservoir.  https://www.youtube.com/watch?v=F22pmtP1Q4M&amp;feature=youtu.beHowever, at the project office in Siurenitar near the proposed dam site there is frantic activity. Phones are ringing constantly, and staff are busy taking calls from those asking about their compensation claims.  “The first priority is land acquisition and we have already paid out Rs33 billion as compensation,” said Krishna Bahadur Karki who heads the project’s compensation and resettlement unit. Another Rs20 billion is earmarked for reimbursement for homes, livestock, trees and other assets.The government froze land dealings in 2013 along the valley, but in anticipation of jobs and economic activity new roads and towns have sprung up in a district tht has seen dramatic depopulation due to outmigration.Ghare Gurung runs a roadside metal workshop outlet 40km north of the dam site. He bought this small patch in Arkhet using money saved from working in Malaysia. He got Rs120,000 compensation for it.“Now they have been saying that a 10% depreciation cost would be applied for our infrastructure. If it happens, then I need to pay them instead of receiving money,” he said.Besides submergence of the main valley, the reservoir will put another 22km of land along the Aankhu Khola tributary under water.   <img width="1777" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111011114/636ccccc9c7e80680e08bc41jpeg.jpg" alt=""><img width="1777" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111011114/636cccd19c7e80680e08bc42jpeg.jpg" alt="">Gyanu Maya Shrestha sells snacks from a small stall by the Aankhu Khola in Hepne of Dhading district, and is worried about her future.  The April 2015 earthquake destroyed her home and her animal shed, killing her buffaloes, oxen, and goats. Before the quake, officials from the project had assessed both structures. “After the earthquake, they inspected it again, and now say they will reduce the compensation,” says Shrestha.The response from project officials was that the pre-earthquake inspection was for the environmental impact assessment (EIA) report, not compensation. While many other quake-hit communities have built new houses, people along these two rivers have not. Krishna Majhi lives in unregistered land at Gumti village, 10km from the proposed dam. In 2017, the government had agreed to compensate structures on unregistered land. Till now, no payments have been made.Krishna uses part of his earthquake-damaged house as a kitchen but has spent five years living in a makeshift structure. “Even a small earthquake would now be enough to kill us, and we cannot dismantle it because we need to show it to the project for compensation,” he said. <img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111011114/636cccd49c7e80680e08bc43jpeg.jpg" alt="">Many promises were made to locals to persuade them to hand over their land, including of resettlement. They were asked to fill forms saying where they wanted to be resettled and what facilities they needed. “We were told that new villages will be built in the slopes above the reservoir we would be provided all facilities. But we have heard nothing since, all these years they tricked us,” said Sushil Dharel, from Khahare on the Ankhu Khola.Back at the compensation office, Karki says he can understand the frustration of the people, but adds, “The compensation amount is many times higher than the government rates, and there are rules. There are also people who have received millions in compensation and bought houses in Kathmandu.”Indeed, while some have done well from compensation payouts, the majority are from poorer communities without political clout or access. They resent the way the authorities downplay their problems.“Our field is irrigable, there is a market nearby and we can produce three crops a year. I can’t buy a piece of land in the city with our project compensation, how do I make a living there?” asks Pampha Khadka from Khahare, bursting into tears.  Government officials in Kathmandu do not have any clearer answers on resettlement, but say the details need to be ironed out.“We have drafted a resettlement policy, but there isn’t clarity on the modality of project implementation. Unless it is finalised, resettlement is not possible,” said Gokarna Raj Panta at Nepal’s Ministry of Water Resources, Energyand Irrigation.Botched resettlement policies are not new in projects in Nepal. And in Budi Gandaki, too, there are problems. Some families have spent the money they got on parties, which means they will be homeless and landless if not resettled. Many have used payouts to meet their daily needs or pay debt, buy motorbikes or educate and marry off their children.“I received about Rs100,000 for a piece of land. I spent Rs10,000 on my grandchildren and sent Rs 80,000 to my daughter in Kathmandu for her studies,” said Purna Bahadur Ale Magar from Arkhet.According to the <a href="https://bghep.gov.np/images/category/EIA-Final-Report-2016.pdf" data-saferedirecturl="https://www.google.com/url?q=https://bghep.gov.np/images/category/EIA-Final-Report-2016.pdf&amp;source=gmail&amp;ust=1613840507629000&amp;usg=AFQjCNEZ6Lul1s1B_1d91EBJUQE6RtCeUA">environmental impact assessment</a>, the reservoir will submerge 2,400 hectares of forests with 3.5 million trees of 38 species. The forests are home to 19 mammal species, 9 reptiles and 54 birds. They include 15 protected species, and there are five fish species on the IUCN red list, whose habitat will disrupted.  There has not been much interest from environmental activists and civil society groups in Nepal.  “There was interest in the 1990s about the social and environmental costs of large hydro projects, but Budi Gandaki shows that there is no concern anymore,” says  water resource expert Ajaya Dixit.  There is also cultural impact. Much of life in rural Nepal revolves around rivers, which are considered holy. The Budi Gandaki reservoir will submerge 44  cremation sites, 74 religious and 29 places of historic and cultural importance.   <img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111011114/636cccd89c7e80680e08bc44jpeg.jpg" alt="">“Even if you raise genuine and serious concern, you are tagged as being anti-development. I think this has helped to instill fear at all levels and civil society has fallen prey to it,” he added.The project will also undermine the region’s achievements in forest conservation. Some 1,500 hectares of community forests managed by 62 communities will be impacted bny the reservoir. The Pashupati Community Forest in Majhitar is one of them, where locals are cutting trees before the waters start rising.About 200m above the riverbank, Suresh Shah pointed out freshly cut tree stumps. “When I try to stop them, they say why do you care about these trees, we have lost everything,” he said. “Feelings of ownership had helped conserve the forest, but that is gone now.”  Karki, the project office manager, was unable to answer any questions on environmental issues, and his engineer was equally at a loss. “This is an issue which will be dealt with when construction starts. We have not thought about it and have not been advised on how to deal with it,” Karki said.After the deadly flood on the Alkananda River in India this month that destroyed two hydro power projects and killed at least 100 people, concerns about the impact of the climate crisis also loom large. The Budi Gandaki watershed drains the eastern flanks of Himalchuli and Manaslu and the Ganesh Mssif to the east, which has many glacial lakes in danger of bursting.Experts say it is very risky to build such a large and expensive projects directly downstream from mountains that are melting rapidly due to the climate emergency.In Kathmandu, three successive governments in the last three years have made as many decisions to award or scrap the contract with China Gezhouba Group Corporation. After pre-feasibility study in 1984, the project was sidelined till 2006, when it was opened to international bidders. No expressions of interest were received.It was next revived in 2011, when Nepal’s power outages exceeded 12 hours per day. Once again, international companies showed no interest, so the government opted to make Budi Gandaki into a ‘national pride project’ – a development priority with a bigger budget from domestic resources.In 2016, the Belgian multinational <a href="https://tractebel-engie.com/en/the-history-of-tractebel" data-saferedirecturl="https://www.google.com/url?q=https://tractebel-engie.com/en/the-history-of-tractebel&amp;source=gmail&amp;ust=1613840507629000&amp;usg=AFQjCNH6UKIRE1xX87FdmFnCa5KUg3vVAw">Tractebel</a> completed a detailed design. The project was set to move ahead with local funds and management when China entered the picture in 2017.A few days before leaving office, the Maoist party Prime Minister Pushpa Kamal Dahal’s cabinet awarded the project to China Gezhouba Group Corporation, without any bidding.In November 2017, the incoming Nepali Congress-led government promptly scrapped the contract stating irregularities and lack of transparency. A court action followed. Nepal got another new government four months later, and K P Oli became prime minister who returned the project to China Gezhouba in September 2018.Now the problem is that China Gezhouba is showing little interest and failing to respond to Nepali government requests for information.“It's not that Chinese are less interested now. They are just waiting for a favourable time as there is political chaos in the country,”said Nepali hydro-economist <a href="https://www.researchgate.net/publication/327182585_Power_Paradox_Growth_of_the_Hydro_Sector_in_Nepal" data-saferedirecturl="https://www.google.com/url?q=https://www.researchgate.net/publication/327182585_Power_Paradox_Growth_of_the_Hydro_Sector_in_Nepal&amp;source=gmail&amp;ust=1613840507629000&amp;usg=AFQjCNFUZgWsCJNS8MFxLk3h6ib6tsjtCw">Ratna Sansar Shrestha.</a> In his view, China’s interest in Nepali hydro projects is limited to making money from construction contracts. “India has more interest in Nepal's water as it depends on water that flows from the mountains for irrigating vast swathes of land in the Gangetic plains,” Shrestha explained.   <img width="1778" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111011114/636cccdb9c7e80680e08bc45jpeg.jpg" alt="">Geopolitical friction The Budi Gandaki feeds into the Gandaki, one of Nepal’s four main rivers. It flows into India’s Bihar state and eventually empties into the Ganges.  Nepal and India signed the 1959 <a href="https://www.moewri.gov.np/storage/listies/May2020/aggrement-on-nepal-and-india-gandak-river-1959.pdf" data-saferedirecturl="https://www.google.com/url?q=https://www.moewri.gov.np/storage/listies/May2020/aggrement-on-nepal-and-india-gandak-river-1959.pdf&amp;source=gmail&amp;ust=1613840507629000&amp;usg=AFQjCNFnWToLZflbwMZONfOd4NCCvNXDzA">Gandak Treaty</a>, which bars Nepal from upstream activities that would impact water flow in Bihar, where millions of hectares of farmland depend on waters from the Gandak (as Gandaki is known in India). However, China’s growing influence in Nepal as the largest provider of foreign direct investment could lead to geopolitical friction, according to a <a href="https://asiafoundation.org/2018/08/15/the-price-of-power-the-political-economy-of-electricity-trade-and-hydropower-in-eastern-south-asia/" data-saferedirecturl="https://www.google.com/url?q=https://asiafoundation.org/2018/08/15/the-price-of-power-the-political-economy-of-electricity-trade-and-hydropower-in-eastern-south-asia/&amp;source=gmail&amp;ust=1613840507629000&amp;usg=AFQjCNGJXMeATWXJ7aUlNj-_Ex9ogLOAGw">2018 report by the Asia Society</a>. Chinese firms recently built two other hydro projects in Nepal at Upper Marsyangdi A and Upper Madi, with a combined capacity of 75 MW. But both are run-of-the-river schemes, unlike Budi Gandaki which would be a gigantic reservoir. Indian state owned and private firms have not built a power project in Nepal since the mid-1980s, although one is involved in large projects on the Arun River. However, India is promoting cross-border trade in electricity as part of the nascent BBNI (Bangladesh, Bhutan, India, Nepal) regional sub-group in its sphere of influence. Both Nepal and Bhutan have objected to the Indian power ministry’s statement in December 2016 that electricity was a ‘strategic commodity’ so non-BBNI foreign powers could not be involved in the supply chain.    Shrestha says India is not concerned about China’s involvement in the Budi Gandaki project, whose power is solely for domestic use, and it views the reservoir positively.  “In general, India is not happy with Chinese companies being involved in Nepal's hydropower, but in Budi Gandaki they are more than happy as India would get lean-season augmented flow for free,” he added.   India had said it was not interested in investing in or building the Budi Gandaki project, and withdrew from bilateral talks in the late 90s. Another water expert, Dipak Gyawali says that the irrigation aspect has been completely ignored in designing Budi Gandaki.   Gyawali headed a review committee formed by the government to look at the design, and says: “About 100,000 hectares of land in Nawalparasi and Chitwan districts downstream could have benefitted in Nepal. The water that flows in dry months from the reservoir is not flowing water, it's produced by submerging our land and through our investment. If India uses this water then we should get financial returns.” Another problem Gyawali sees in this project is that it is located close to the epicenter of the 2015 earthquake and may not be able to withstand a future megaquake. “For a seismically active region like Nepal, rock filled dams are better than concrete double arch dams as proposed on the design,” he said. But Laxmi Devkota, the former Chair of the Budi Gandaki Development Committee, claimed that it has been designed with a serious consideration for earthquake impacts and is within international seismic resistance parameters. The many delays risk making the Budi Gandaki project financially unviable. Costs are plummeting for other renewables, such as solar and wind power, and emerging hydrogen energy technology. According to the Asia Foundation <a href="https://asiafoundation.org/publication/the-price-of-power/" data-saferedirecturl="https://www.google.com/url?q=https://asiafoundation.org/publication/the-price-of-power/&amp;source=gmail&amp;ust=1613840507629000&amp;usg=AFQjCNHA-718IXF7L4V8YODxQxVtc-crlA"> report</a>, solar electricity tariffs in Rajasthan, India, fell from more than 19 cents per unit in 2010 to 3.6 cents, and wind energy was  around 3.7 cents. Nepal’s hydropower costs 7 cents per unit to produce. India, which is Nepal’s expected energy export market, is ramping up renewable energy capacity fast with 37 gigawatts of solar and 38 gigawatts in wind by 2020. However, Budi Gandaki’s output is planned for domestic use so need not compete directly in the regional market. Nonetheless, the technical costs are making its value questionable, even for domestic use. “If we can develop this project within five years then we will definitely save some money, but if it is the next 20 years then it would be a hotpot of corruption for politicians and bureaucrats. It looks like this project is losing its technical strength in terms of cost already,” said Dipendra Bhattarai, an energy expert. <a href="https://www.thethirdpole.net/2019/04/09/nepals-hydropower/" data-saferedirecturl="https://www.google.com/url?q=https://www.thethirdpole.net/2019/04/09/nepals-hydropower/&amp;source=gmail&amp;ust=1613840507629000&amp;usg=AFQjCNG8pzipmFIljVwAHCiTObtvXl5OUg">Who will buy Nepal’s hydropower?</a> Finally, the daily power cuts that drove Nepal's policymakers to revive the project in 2011 have ceased.  Nepal doubled its electricity production from 700MW in 2010 to 1400 MW in 2014. Another 700MW is likely to be added in the next couple of years. However, Nepal has been importing about 600 megawatts from India in the dry, winter months (November to April) to meet peak demand as the smaller run-of-the-river projects struggle when water levels are low-- one motivation to build a big reservoir.  The Budi Gandaki hydropower plant should have been completed by 2022. In 2015, the project cost was estimated at 2.5 billion— more than one fourth of Nepal’s total budget that year. Says Laxmi Devkota of the project: “We have already lost about half a billion dollars in the last four years if we consider just 10% inflation rate. Another one and half billion dollars could have been gained by selling electricity in the four years that were delayed. We are already on loss at total project cost amount.”  The story was first published on <a href="https://www.thethirdpole.net/en/">The Third Pole</a>. Accompanying video by Nabin Baral.

original

674x448

610x380

500x500

400x266

400x240

400x203

301x200

1250x600

1084x550

Nepal’s mega-dam is a mirage

<figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101128/636a21e89c7e80680e041761jpeg.jpg" alt=""/><figcaption>Dam site of Upper Karnali hydropower (900 MW) in Daab in Dailekh district. Indian company GMR is in final stage to start construction of the project. Photo: NABIN BARAL</figcaption></figure>Dal Bahadur Shahi lives in Tuinkuna, in Dailekh district of western Nepal. This is the proposed site for Nepal’s largest hydropower project, the 900 megawatt (MW) <a href="http://archive.nepalitimes.com/news.php?id=6689#.XDSJuFUzaUk" target="_blank" rel="noopener">Upper Karnali</a><a href="http://www.ibn.gov.np/project/upper-karnali-hep">.</a> He was in his 50s when he first heard that electricity would be produced from the river he used to cross it several times a day. “My arms could conquer the strongest waves of the river back then, but now I don’t dare to go near it,” he said. “Even if the project is built, I won’t be able to see it. But I hope that our sacrifice of leaving this place for the sake of the nation will not be forgotten.” Read also: Part 1: <a href="https://www.nepalitimes.com/banner/faith-to-reality/" target="_blank" rel="noopener">Faith to reality</a>Part 3: <a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/banner/climate-denial-in-the-himalaya/" target="_blank" rel="noopener">Climate denial in the Himalaya</a>Part 4: <a href="https://www.nepalitimes.com/banner/dancing-with-the-river/" target="_blank" rel="noopener">Dancing with the river</a> Part 5: <a href="https://www.nepalitimes.com/banner/a-karnali-portrait/" target="_blank" rel="noopener">A Karnali portrait</a> <img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101128/636a21eb9c7e80680e041762jpeg.jpg" alt="" width="1500" height="1000">Dal Bahadur Shahi in Twinkuna in Dailekh district in the bank of Karnali river where the biggest hydropower is about to kick off. Shahi's family will be displaced once the dam construction starts. Photo: NABIN BARALIn the late 1990s, when the first project survey began, an engineer advised Dal Bahadur to buy more land so that he would receive compensation when the dam was built. But Shahi did not heed the advice, he did not have enough money anyway. There have been numerous surveys after that, but the locals were unaware of the wider water and electricity politics at play. In 2008 an Indian company, <a style="background-color: #ffffff; letter-spacing: 0.01em;" href="http://www.gmrgroup.in/hand-shake.aspx">GMR</a> got the deal to carry out a detailed study, but a decade later the project is yet to take off. The company signed the project development agreement four years ago but has not yet managed to attract investors. “I don’t think this company has money. It looks like it will sell the license at higher price to another company and it will be delayed,” says another resident, Lokendra Rawat, who left his village in 2008 when the company set up a project office. “I came here to operate a hotel as the construction work would bring a lot of people. But it looks like I will be too old when it will be implemented,” he smiled. <img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101128/636a21ee9c7e80680e041763jpeg.jpg" alt="" width="1500" height="1061">Map: STEFANO WROBLESKIRecently the company said it had provided compensation for the 250 families whose land will be submerged, but only a few people have received it. Dal Bahadur’s two sons were lucky to get compensation a few months ago. The company has now halted the compensation process and no one knows when it will resume. There is talk that the company is only paying compensation to influential and politically powerful people. The Upper Karnali has always been a high profile political project. The Prime Minister of India, Narendra Modi, and Nepal’s then Prime Minister Sushil Koirala signed a deal for the project during Modi’s visit to Nepal in 2014. But investors have not been convinced and it is unclear who will buy the electricity. The project is designed to generate power for export to India, but there is no power purchase agreement. Frustrated by the lack of progress in India, last year the company signed a memorandum of understanding with Bangladesh, which could buy the electricity. Later in August this year Nepal signed a <a href="http://kathmandupost.ekantipur.com/news/2018-08-11/nepal-bangladesh-sign-power-cooperation-deal.html">cooperation agreement</a> with Bangladesh aimed at facilitating power trade. Read also: <a href="https://archive.nepalitimes.com/article/nation/reservoirs-of-suspicion/hydropower-geopolitics%20,3991" target="_blank" rel="noopener">Reservoirs of suspicion</a>, Om Astha Rai<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://archive.nepalitimes.com/regular-columns/Comment/storing-water-reservoir-Nepal,1042" target="_blank" rel="noopener">Storing water</a>, Bishal Thapa <figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101128/636a21f09c7e80680e041764jpeg.jpg" alt=""><figcaption>In Rabalde, power house site of Upper Karnali hydro project is seen through fish net hung in Roshan Buda'a home in Accham. Zinc sheet roofed buildings in the field is the office of GMR company which is building the project. Photo: NABIN BARAL</figcaption></figure>Nepal needs permission from India to take electricity across India to Bangladesh so all three countries need to agree on a deal. But experts say it’s not easy given the complex geopolitics of the region. Even so, India recently indicated that it’s open to trilateral trade by amending its earlier cross border trade regulation.Some speculate that this move to ease the trade of electricity was only to help the Indian company GMR to secure financing for Upper Karnali. Nevertheless the amendment is also good news for Chinese and other companies who have been eyeing bigger projects in Nepal. The project on the <a href="http://archive.nepalitimes.com/news.php?id=18119#.XDSEGFUzaUk" target="_blank" rel="noopener">Karnali</a> Bend was first envisaged as a 240 MW project in the 1990s, but has grown in scale over the decades. GMR agreed to build a 900MW plant in 2008, but some technocrats and activists have blamed Nepal’s government for selling the project short. The feasibility study identified the possibility of developing a 4,180 MW project a little further upriver from where the current 900 MW project is planned. Whether this is really possible or not, given the fragile geology of the region, is another matter.“Why was the best and cheapest project to build handed over to a foreign company who will export the energy, while we have a shortage of power? It should be developed for us,” said Ratan Bhandari, a water rights activist from the region. <figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101128/636a21f39c7e80680e041765jpeg.jpg" alt=""><figcaption>A kayaker paddles in the Karnali River in Accham district of Nepal. Photo: NABIN BARAL</figcaption></figure>The current project will still be the biggest hydropower project in Nepal worth $1.5 billion. The Upper Karnali has rare <a href="https://archive.nepalitimes.com/article/editorial/what-in-it-for-us,3994" target="_blank" rel="noopener">hydropower</a> potential, where water can be pushed through a 2.5 km tunnel over a drop of 130 metres, creating a huge generating capacity. This project is often called ‘jewel in the crown’ of Nepal’s hydropower. “Our jewel has been sold at the rate of coal,” says Ratna Sansar Shrestha, a hydro-economist. Nepal’s move towards big dams has come at a time when scientists warn that more extreme weather events like floods and landslides will increase in the already fragile mountains in the region. “The changing probabilities and magnitudes of extreme events can place additional risk on power generation infrastructure (dams and hydropower plants) as well as secondary infrastructure (roads and transmission lines). Further, hazards associated with shrinking glaciers, such as glacial lake outburst floods, can jeopardise large infrastructure investment,” says a <a href="http://lib.icimod.org/record/32006/files/StatKraft_Review_final.pdf">report</a> by International Centre for Integrated Mountain Development. A <a href="http://lib.icimod.org/record/29591">study</a> in 2014 also revealed that Nepal’s glaciers have shrunk by 24% and its ice reserves by 29% over the past three decades.  <figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101128/636a21f69c7e80680e041766jpeg.jpg" alt=""><figcaption>Mount Kailash in Tibet. Four large rivers of Asia originate from four sides of Mount Kailash-- the Brahmaputra (called Yarlung-Tsangpo) from the east, the Karnali from the south, the Sutlej from the west and the Indus from the north. Photo: NABIN BARAL</figcaption></figure>However, developers say that current knowledge about impacts of climate change in hydropower is inadequate and does not help better planning. While reports say that the hydropower projects will be impacted, they lack the details as to what degree, and what precisely to take into consideration, says Kumar Pandey of the <a href="http://www.ippan.org.np/page/ippan-committee/">Independent Power Producers Association Nepal</a> (IPPAN). “Investors need accurate information with evidence at micro scale so that they can use it while developing the project so there is need of specific knowledge about the impacts,” adds Pandey.  There are other dangers. Seismologists like Roger Bilham of the University of Coloradio say that a <a href="https://archive.nepalitimes.com/article/editorial/preparing-for-future-shocks,3472" target="_blank" rel="noopener">mega earthquake is long overdue</a> in western Nepal. “There are two dangers lurking beneath the Himalaya: one is the unfinished business of 2015, and the other is a looming megaquake in western Nepal,” <a href="https://www.nepalitimes.com/here-now/past-disasters-foretold/" target="_blank" rel="noopener">he told Nepali Times</a>. If built, the project will be the first hydropower plant on the Karnali, the country’s longest river which originates near Mount Kailash in Tibet and becomes Ghaghara in India before it meets the Ganga at the border of Uttar Pradesh and Bihar.  Megh Ale, team leader of the Karnali expedition, believes the main stream of the Karnali should be left free-flowing, “We can bring millions of tourists here while other tributaries could be used for electricity,” he says (see below). Read also: <a href="https://archive.nepalitimes.com/regular-columns/Comment/rivers-fighting-back,993" target="_blank" rel="noopener">The rivers are fighting back</a>, Megh Alehttps://www.youtube.com/watch?v=ns7jytSwpngBesides tourism, hydropower development would also <a href="https://www.nepalitimes.com/banner/project-dragonfly/" target="_blank" rel="noopener">endanger aquatic species</a>. “Aquatic life has been threatened by hydropower across the country and if it continues many species will go extinct,” says Deep Narayan Shah, a researcher from Nepal’s Tribhuvan University’s Central Department of Environmental Science. Nepal’s hydropower policy has a mandatory provision for developers to maintain 10% flow of water downstream around the year, but this has not been implemented and monitored. Chief minister of Karnali Province Mahendra Bahadur Shahi says there has to be greater understanding about river ecosystems and suffering of people, who are critically dependent on the river and its resources, like fish. “We may revisit the agreement done with GMR and I have told them that it won’t go ahead as agreed,” he says as he joined the expedition on the banks of Karnali recently. However a few weeks later Shahi told journalists that he was willing to waive taxes for the developers, adding that without large hydroelectric projects, Karnali Province would remain poor.  https://www.youtube.com/watch?v=v1a6JHJufKgIt is common practice for companies to hold licences for years and then sell them to another company. Late last year, GMR (the same company that holds the licence for Upper Karnali) pulled out of the 600MW Upper Marsyangdi project after holding the licence for years.  A consortium of Nepali and Chinese investors bought shares from GMR just as work was due to start. The parliamentary committee of Nepal has <a href="http://setopati.net/market/134280">formed a probe committee</a> to investigate further.China is becoming a new but important player in Nepal’s energy politics, dominated by India for decades. There are two big projects in pipeline, the $2.5 billion <a href="http://archive.nepalitimes.com/blogs/thebrief/2017/08/06/building-budhigandaki/" target="_blank" rel="noopener">Budi Gandaki</a> and the $1.8 billion West Seti – both reservoir projects, and both controversial. Earlier last year, the Nepal government announced that the 750 MW <a href="http://archive.nepalitimes.com/news.php?id=19084#.XDSL01UzaUk" target="_blank" rel="noopener">West Seti project</a>, on one of the tributaries of the Karnali in western Nepal, would be built by Nepali firms while the license of the project had already been given to China's Three Gorges Company (CTGC). Negotiations then failed, resulting in the Chinese withdrawing from the project.The 1,200MW Budhi Gandaki in central Nepal has also had a series of setbacks as the Nepal government awarded the project to China’s Ghezhuoba firm, only to scrap it a year later, and then re-awarding the contract to the same company.This has increased doubts among locals that Karnali will ever be built. “The most productive time of my life has gone waiting for this project to kick off,” says Bal Bahadur Shahi at Ramaghat, 3km downstream from the project site. Frustration is growing and locals are in a mood to fight back. Says Shahi: “We will wait at least for one more year. If the project is still not implemented, we will ask the government to take it over.” The story is jointly published by Nepali Times and <a href="https://www.thethirdpole.net/en/">The Third Pole</a>. Subsequent installments of this five-part series will appear from 8-11 January.

Dams and dreams a journey down the Karnali

The monsoon has got bad press because Nepal’s tourism operators actively told visitors to avoid <a href="https://nepalitimes.com/opinion/managing-the-monsoon?%2F">the rainy season</a>. It is time to change that. The reason can be found right here in the vast alpine meadows of Central Nepal where this time of year you can walk on velvet grass of pastures abloom with delicate pink, red and yellow flowers as the mist rolls up the valley. There is no sound except the hum of bumble bees. &nbsp;&nbsp; There are dozens of places across high Nepal called Chaurikharka, which means yak pasture. But this particular Chaurikharka in Rukum East located at an altitude of 4,000m stands out for its serene beauty, rustic charm and bucolic setting. There is just the occasional chime of <a href="https://nepalitimes.com/here-now/when-yaks-go-so-does-culture">yak bells</a> in the distance, and the sharp whistle of herders corralling sheep. &nbsp;&nbsp; The grass shoots are so fragile that one hesitates to step on them, the rounded ridges appear and quickly vanish in waves of mist. With the<a href="https://nepalitimes.com/here-now/before-the-next-monsoon"> arrival of monsoon</a>, these meadows are a soothing shade of green dotted with millions of <a href="https://nepalitimes.com/review/the-anatomy-of-a-flower?%2F=">multi-coloured flowers</a>. Until very recently, it took a week or so to hike up to places like Chaurikharka, but with the expansion of the road network even to these far-flung mountains in the lap of Dhaulagiri, they are much more accessible. It is just a three-hour uphill from the Mid-Hill Highway on the border between Baglung and Rukum East.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250802130828_a0b06b494d751b2144ffbbf10894ea64b29e8aed844bc8c66171783abfaf4e16.jpg" data-media-id="editor_4" data-image-id="20250802130828_a0b06b494d751b2144ffbbf10894ea64b29e8aed844bc8c66171783abfaf4e16" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="Visit Nepal in the monsoon"> </figure>  Purists would say that such easy access devalues the sanctity of these remote high meadows, but it also means more people will be moved to treasure the experience, appreciate <a href="https://nepalitimes.com/banner/natures-fragile-gift-to-nepal">the value of nature </a>so they can take steps to protect it.&nbsp; To be sure, the <a href="https://nepalitimes.com/here-now/deadly-monsoon-in-nepal-turns-deadlier">monsoon season can be challenging for road travel</a>. The roads are rough even at the best of times, and in the monsoon they become muddy and treacherous, often blocked by<a href="https://nepalitimes.com/news/monsoon-deluge-in-nepal"> landslides</a>. But that could be precisely the kind of adventure that the more intrepid visitors crave. Improved road connectivity has already made Chaurikharka and places like Badimallika &nbsp;and other sacred lakes in the mountains of western Nepal popular with domestic tourists. What is driving this traffic is the urge to go to exotic new places and share videos and selfies on social media. Several of Nepal’s travel vloggers have visited Chaurikharka and popularised the place, enticing followers on TikTok or YouTube to retrace their footsteps. But even as they become more popular, these fragile and once-remote places should be protected from over-tourism.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110736_f97110b7cdc3e7f80d5877690948fc9f4c95a09c583deb23b07355491e6c5446.jpg" data-media-id="editor_8" data-image-id="20250731110736_f97110b7cdc3e7f80d5877690948fc9f4c95a09c583deb23b07355491e6c5446" data-rendition-name="original" width="1083" height="699" loading="lazy" alt="Visit Nepal in the monsoon NT"> </figure>  <h2>INCREASING FOOTFALL</h2> Chaurikharka is located in Bhume Rural Municipality of East Rukum, near the scenic valley of Dhorpatan in Baglung district. Even in the <a href="https://nepalitimes.com/banner/monsoon-culture">middle of the monsoon</a>, there is a steady stream of Nepali hikers trooping to these high pastures – especially during festival days like Saune Sankranti which this year was on 17 July and actually marks the auspicious beginning of the monsoon here. “This year the rains have not been as heavy and there have been some clear mornings when we could see everything from Dhaulagiri to Machapuchre,” says Khageswar Bhandari, who trekked up here from the road. “The flowers, the greenery and the snowy mountain views make this an incredibly unique place.”&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250802130824_1b9e26f2e9853fdfe69154bb42a7c9ea6da4bf4940efc1da99b304dcfbd7d3d9.jpg" data-media-id="editor_10" data-image-id="20250802130824_1b9e26f2e9853fdfe69154bb42a7c9ea6da4bf4940efc1da99b304dcfbd7d3d9" data-rendition-name="original" width="2048" height="1152" loading="lazy" alt="Visit Nepal in the monsoon"> </figure>  Chaurikharka is worthwhile to get to in any season, but it has a different charm during the monsoon. Word has spread and because it is now easy to get to from Baglung or even Pokhara, people have been flocking here.&nbsp; “Holidays and Saturdays see the largest crowds, with up to 500 visitors every day,” says ward chair Mankaji Pun of Bhume.&nbsp; There was a time not too long ago when local herders brought sheep, goats, cows, buffaloes, horses, and mules to graze here during the monsoon. Although there are still livestock around, animals have been replaced by visitors taking selfies. Read also: <a href="https://nepalitimes.com/here-now/the-monsoon-and-nature-s-arithmetic">The monsoon, and nature’s arithmetic</a>, Tom Robertson Ward Chair Pun says infrastructure development is his main priority. A foot trail to Chaurikharka was built last year by the Tourism Division Office in Kohalpur, but access via the Raniwas-Koipa road section still remains challenging.&nbsp; “If we get more budget, we can improve the road and facilities to make Chaurikharka the main tourist attraction of this region,” says Bhume Municipality Chair Hom Prakash Shrestha. “After that, we hope to promote Chaurikharka as a top tourist spot.”&nbsp; Economic activity is also picking up with the arrival of visitors, but there seems to be a need to manage the makeshift sheds made of corrugated sheets that spoil the beauty of the place. Tea shops and lodges are also available but facilities are basic. Kuldeep Neupane took a three-day trip from Ghorahi in Dang to visit Chaurikharka recently, and says: “This is an ideal trip to make a quick getaway and let nature recharge your mind and body. And it is much more fun with a tent, to watch the sunrise over the Himalaya or the mist blowing in.”

Visit Nepal in the monsoon

Two weeks ago, Prime Minister KP Sharma Oli announced jubilantly on social media that Nepal had achieved a historic annual growth of 81.8% in exports. He was right. Nepal’s trade did take a great leap forward compared to last year. But the dramatic rise was mainly due to processed soya bean oil.&nbsp; However, Nepal does not produce the edible oil it exports. In fact, the soya and palm oil that make up 44% of total exports are imported from Southeast Asia and South America, and simply re-exported, mostly to India.&nbsp; Under the SAFTA (South Asian Free Trade Area) Agreement, Nepal can export products to India duty-free if it has at least 30% value-added. Nepal’s traders have taken advantage of SAFTA even though the edible oils they export do not reach that value addition threshold. “The 30% value addition requirement is often only on paper,” says former commerce secretary Purushottam Ojha. “It is clear that simply packaging edible oils in Nepal does not fulfil the terms of the trade agreement.” Prime Minister Oli is aware of this, and even called Nepal’s export figures “fake” at an earlier event. The government is relying on other iffy figures to suggest that Nepal’s economy is strong and getting stronger. For example, the value of imports rose by 13.25% in 2024-25 compared to the previous fiscal year.&nbsp; Some of it was due to a jump in electric vehicle imports worth Rs 31.76 billion, but mostly it was because more wholesale soya oil was imported to be re-packaged and sold in India. The very fact that the government boasts about increased imports is an indication of how much it relies on taxing them for revenue. Touting such trade figures cannot be the basis to claim an economic rebound.&nbsp; “A jump in the value of imports can be interpreted as an increase in purchasing power, but it is not evidence of a stronger economy,” says economist Keshav Acharya. “Even though imports have increased, Nepal's domestic production and productive capacity have not improved.” Nepal Rastra Bank's semi-annual economic activity study report shows that industrial production was down in the first six months of the last fiscal year. This despite an increase in the number of new industries registered and investment commitments. Out of the Rs70.2 billion proposed foreign investment, Nepal received only Rs17.9 billion last year.&nbsp; Meanwhile, the rate of capital formation was limited to 24% last year, which is lower than the year before, suggesting that new investment, job creation and economic expansion all declined. If domestic production does not improve in relation to this year’s inflated trade figures, the outflow will put pressure on foreign exchange reserves like it did three years ago. At that time, Nepal borrowed from the IMF under its Extended Credit Facility Program to kickstart the economy.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025080710084_2cdaaa5795828c4a7de93a0604ba884ef0a8b8f24cccd939f6c24e279ab6058f.jpg" data-media-id="editor_0" data-image-id="2025080710084_2cdaaa5795828c4a7de93a0604ba884ef0a8b8f24cccd939f6c24e279ab6058f" data-rendition-name="original" width="1633" height="723" loading="lazy" alt="Nepal's bubble economy NT"> <figcaption>Source: NEPAL RASTRA BANK</figcaption> </figure>  The macroeconomy is on firm footing with foreign exchange reserves at a comfortable Rs2,520 billion in May, up 23% from last year. This was largely due to remittances, and partly due to a falling NPR exchange rate. Real estate transactions and the stock market index have also been climbing as a result of government policies to revive the sector.&nbsp; However, former executive director of Nepal Rastra Bank Nar Bahadur Thapa cautions: “This is not organic growth, it is the result of deliberate policy decisions to relax rules on real estate and stock markets transactions.” In reality, the sharp rise in land prices have increased the cost of production, and excessive monetisation of the real estate has become the main source of Nepal’s economic woes. The central bank has announced a slew of new policies, shifting the terms of loan repayment for industrialists and entrepreneurs, reducing interest rates, and injecting more working capital — all designed to inject adrenaline into the real estate and stock market sectors.&nbsp; When he was governor, Mahaprasad Adhikari made several financial reforms during the latter half of his tenure to stimulate the economy, including tightening credit flow.&nbsp; By the last fiscal year, additional financial reforms had resulted in a credit expansion rate of around 8%. As the pace of credit expansion slows, real estate prices have started to fall. This is actually beneficial to the economy, because it lays the foundation for improvements in land-related entrepreneurship, production, and the construction sector. Just because real estate and the stock market transactions increase, it does not indicate an economic turnaround — especially when manufacturing and productive sector continues to languish.&nbsp; “It is foolish to believe that real estate and the stock market have magically revived our economy. Agriculture employs more than half of the population, but it is in decline. Investment in the productive sector has not increased, and job creation has not increased.” Two years ago, Nepal’s industrialists, business leaders, and political leadership predicted a recession amidst a sluggish business, declining market demand, large-scale job loss, and a shrinking real estate and share market.&nbsp; Still, the economy grew by 3.36% in fiscal year 2023/24. In fact, Nepal’s economy has grown nominally over the last two decades even when all sectors of the economy are in decline.&nbsp; Says Keshav Acharya: “The growth in trade, real estate, and the stock market are bubbles. The real economy remains stagnant.”

Nepal’s bubble economy

The final investigation report on the crash of a Saurya Airlines jet on 24 July 2024 at Kathmandu airport has revealed flaws in the carrier’s technical operation procedures, poor monitoring by the Civil Aviation Authority of Nepal (CAAN) and gaps in the airport’s emergency response. Eighteen people including a child were killed, and only the captain survived as the plane plunged seconds after takeoff, crashing within the airport perimeter. This was the latest in a series of aircraft accidents in previous years, and further tarnished Nepal’s already poor aviation safety record and contributed to the country being retained in the EU’s air safety list. &nbsp;&nbsp;&nbsp; The circumstances in the Saurya crash were different from the Yeti Airlines crash in Pokhara in January 2022 that killed all 72 on board, and two Tara Air crashes in February 2016 and May 2022 on approach to Jomsom that together claimed 45 lives. However, all four tragedies were a result of negligence of carriers and crew, failure to follow procedures, regulatory slackness, and overconfidence. The Saurya crash, especially, was a glaring example of how an ailing airline broke its own rules to allow passengers, including non-employees, a joy ride to Pokhara on a maintenance ferry flight. CRASH REPORT The Final Investigation Report prepared by the Aircraft Accident Investigation Commission and released on the first anniversary of the crash last week carried a long list of rules that were ignored or broken, and of regulatory failure. The first mistake was to cram spares, tools and inflammable chemicals needed for the aircraft’s C-Check in Pokhara into the cargo hold flouting its own ground handling procedures.&nbsp; There was no check-in of passengers, some of whom were not even employees – even though regulations say only flight and maintenance crew should be on board a maintenance positioning flight. Many brought their own luggage into the plane and stored it unsecured in the cabin. There was no flight attendant to give a safety briefing to passengers. The load and trim charts given to the flight crew were rough estimates, and the total takeoff weight of the plane was 18,300kg plus or minus 200 kg. That would still have been all right, but there was a glaring mistake in the speedchart Saurya pilots were using to calculate the minimum takeoff speed (known as VR), and it had been wrong ever since the 21-year-old aircraft entered service with the airline in 2017. FAULTY DATA&nbsp; The Commission probed Flight Data Recorder inputs from previous takeoffs of the Canadian-built CRJ200-LR in 2023-2024 and found that the undetected error in the speedchart had caused the plane to pitch up at an abnormal rotation rate at least 18 times on previous takeoffs.&nbsp; Any rotation rate more than 3°/sec is regarded as unusual. But on at least two occasions, this aircraft with tail number 9N-AME had rotation rates of 5.8°/sec and 5.5°/sec, the second one was when the pilot who survived was flying in March 2024.&nbsp; On this particular day, the plane’s rotation rate was 6.5°/sec, causing it to go into a deep stall soon after takeoff, the Commission report said. Essentially, the plane was not flying fast enough down the runway to take off safely.&nbsp; It is not yet clear whether excess weight, unsecured luggage, wrong centre of gravity were also factors, but relying on a faulty speedchart for the given takeoff weight, the captain flying pulled back on the yoke before the plane had reached takeoff speed and at a pitch angle that was too steep. The investigation report says the plane then went into a deep stall and started banking right with the stick shaking. At this point, the flight officer on the right hand seat is heard on the cockpit voice recorder saying: “Whoa, whoa, whoa. Sir, Sir, Sir…” It then banked left before the pilot flying turned the plane sharply to the right again in an evasive action to avoid the parking aprons of the international and domestic terminals. Had he not done so, there would have been a disaster of a much greater magnitude at Kathmandu airport that day. The plane scraped the runway with its right wingtip, collided with a container having helicopter spare parts, and plunged into a gully east of the runway, exploding in a fireball. The investigation also noted that the impact forces seemed to be survivable for some occupants. The fire trucks took unnecessarily long to reach the site even though it was inside the airport perimeter. The absence of an ICAO-standard runway strip, inadequate rescue drills, lack of training, and a blocked emergency service gate leading to the crash site were cited as other factors. &nbsp;&nbsp; <h2>Timestamp of a Disaster</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110724_39cdd04693994ce6e55a5b302905c0fa4884fe85bed21ff0779bb1439f3a5725.jpg" data-media-id="editor_0" data-image-id="20250731110724_39cdd04693994ce6e55a5b302905c0fa4884fe85bed21ff0779bb1439f3a5725" data-rendition-name="original" width="778" height="826" loading="lazy" alt="Flouting rules caused Saurya tragedy NT"> </figure>  11:10:34 - The Saurya Airlines CRJ200 on the takeoff roll from runway 02. It had a takeoff weight of about 18,300kg, but the pilot’s speedcard had a previously undetected mistake about the minimum takeoff speed. 11:10:55 -The plane with tail number 9N-AME goes into deep stall soon after takeoff because it does not have enough speed to lift its weight. The plane also has an abnormally steep nose-up attitude.&nbsp; 11:11:03 - Without enough speed to generate lift, the plane banks right, then left and right again in CCTV photos taken from the domestic apron (below). If it had not banked right, it could have hit the aprons and terminal buildings. Seen parked is Saurya’s other CRJ200 with tail number 9N-ANM.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110732_608132f7225c649125cca2691dd6a6bf930984c5b359e888d7ad9e5eacce3afd.jpg" data-media-id="editor_1" data-image-id="20250731110732_608132f7225c649125cca2691dd6a6bf930984c5b359e888d7ad9e5eacce3afd" data-rendition-name="original" width="770" height="555" loading="lazy" alt="Flouting rules caused Saurya tragedy NT"> </figure>  11:11:08 - The plane scrapes the runway with its right wingtip, and falls into the gully. The captain is thrown off the left side of the cockpit and survives. 11:11:15: Plane explodes in a fireball inside the airport perimeter. Firefighters take time to reach the site because of lack of access road and a blocked gate. Read the full investigation report <a href="https://www.tourism.gov.np/files/9N-AME%20AIC%20Final%20Report.pdf">here</a>.

Flouting rules caused Saurya tragedy

French citizen Louis arrived in Nepal for the first time earlier this year, planning to <a href="https://nepalitimes.com/banner/the-abcs-of-a-winter-trek-in-nepal">trek the Annapurna Circuit </a>before heading down to Bardia to hopefully catch a glimpse of some<a href="https://nepalitimes.com/news/nepal-counting-its-tigers"> tigers</a>. Before he began his journey from Besisahar, Louis (who only revealed his first name) had imagined breathing crisp mountain air, and following the melodious gurgle of the Marsyangdi.&nbsp; Instead, he had to breathe fumes and dust all the way to Chame. Louis says he masked his face with a handkerchief: “It was not what I expected, this is not right.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025080304080_f03fce1527cf8a63178e4e82589a1a7096c8cfa28893ca4a5f7fe82d91a6e38a.jpg" data-media-id="editor_2" data-image-id="2025080304080_f03fce1527cf8a63178e4e82589a1a7096c8cfa28893ca4a5f7fe82d91a6e38a" data-rendition-name="original" width="2419" height="1814" loading="lazy" alt="Manang trails NT 1"> </figure>  Many other trekkers are similarly disappointed as roads have been built along what used to be <a href="https://nepalitimes.com/banner/a-walk-back-in-time-chandragiri-hatiban">walking trails</a>. Manang and Humla are the last remote regions in the Himalaya to be connected to the national road network. &nbsp;Construction of the 87km Besisahar-Manang road began in 1994, but was stalled during <a href="https://nepalitimes.com/news/14-years-after-conflict-no-closure-in-nepal">the Maoist conflic</a>t, and finally finished in 2012.&nbsp; Most of it has not yet been blacktopped, and sections have been carved out of vertical cliff faces, making them treacherous. But it has allowed road access to Manang, a journey that previously took a week on foot.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025080304084_32b3ca875a0df9f1dd42dbe915e6f6a2cd4f2e53f1cf2d3ee5cbdb3435905000.jpg" data-media-id="editor_5" data-image-id="2025080304084_32b3ca875a0df9f1dd42dbe915e6f6a2cd4f2e53f1cf2d3ee5cbdb3435905000" data-rendition-name="original" width="2400" height="1505" loading="lazy" alt="Manang trails NT 1"> </figure>  While the <a href="https://nepalitimes.com/opinion/the-road-out-of-nepal">road has improved access</a>, it has impacted on<a href="https://nepalitimes.com/here-now/trekking-in-the-time-of-climate-change"> trekking tourism </a>— the mainstay of Manang’s economy. The number of tourists visiting the scenic valley behind the Annapurnas grew from 21,245 in 2023 to 30,866 in 2024. The Annapurna Circuit is known for unique sights like <a href="https://archive.nepalitimes.com/news.php?id=9194">Tilicho</a>, one of the highest lakes in the world, the Thorong La pass that connects Manang to Mustang, and the valley’s own rich cultural heritage. Thorong La at 5,416m is the highest hiking pass in the world, and was used by locals for trade with Mustang before it became a <a href="https://nepalitimes.com/opinion/comment/lift-restrictions-on-upper-mustang">popular trekking route</a>. &nbsp; “For guests, the excitement of reaching Thorong La is now overshadowed by their disappointment of having to journey through dusty roads to get there,” says Manang lodge-owner Ongma Gurung. “That is the complaint we get the most.” <a href="https://nepalitimes.com/banner/tourism-that-treads-lightly-on-the-land">Local tourism </a>operators are trying to get the government to build alternative foot trails. But there have been delays due to a lack of budget.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025080304084_c5f76e398182785bb17846a148e3ca89de5687b4623580f8e2d725a7a287edfa.jpg" data-media-id="editor_11" data-image-id="2025080304084_c5f76e398182785bb17846a148e3ca89de5687b4623580f8e2d725a7a287edfa" data-rendition-name="original" width="2419" height="1762" loading="lazy" alt="Manang trails"> </figure>  The Naso Rural Municipality has identified other routes along the Annapurna Circuit in Chyamche, Tal, and Khotro so trekkers can bypass heavy vehicles involved in the construction of the Manang-Marsyangdi Hydropower Project. “But the local government cannot do everything,” admits the chair Dhan Bahadur Gurung. “And for leaders in Kathmandu, Manang is out of sight and out of mind.” Munindra Jung Gurung represents Manang in the Gandaki Provincial Assembly, and says he has raised the issue in <a href="https://nepalitimes.com/news/pokhara-s-tourism-woes">Pokhara</a>. He is hopeful there will be a hearing. To be sure, the road is not all bad news. Locals benefit, the number of visitors has grown, and trekkers can now also save time and use it to explore <a href="https://archive.nepalitimes.com/news.php?id=5960">side valleys in Manang</a>, visiting the villages like Nar and Phu. Annapurna Conservation Area (ACA) chief Rabin Kadariya concedes that the road to Upper Manang was crucial to connect the remote region with the rest of Nepal, but adds: “We have built an alternative trail connecting Talgaun, and we will consult local communities about their priorities on other hiking trails.”&nbsp;

dam

Nepal’s mega-dam is a mirage

Dams and dreams a journey down the Karnali

Visit Nepal in the monsoon

Nepal’s bubble economy

Flouting rules caused Saurya tragedy

Trailing off in Manang