<h4>As Nepal reaches the goal of sanitation for all, the next health challenge is to make latrines hygienic</h4>https://www.youtube.com/watch?v=XeOw-x3Sp_E&amp;t=3sTill recently, across many parts of Nepal, where people defecated was a matter of life or death.Sidewalks and trails strewn with human excrement spread disease and contaminated drinking water. The main killer of children in Nepal used to be diarrhoeal dehydration.But in the past decade, the rapid spread of household latrines in Nepal is an internationally recognised success story. And it has saved the lives of many thousands of children who would otherwise have fallen victims to water-borne diseases like diarrhoea, typhoid and <a href="http://archive.nepalitimes.com/article/nation/%20jajarkot-open-defecation-free,2023" target="_blank" rel="noopener">cholera</a>.Read also: <a href="https://www.nepalitimes.com/editorial/getting-our-shit-together/" target="_blank" rel="noopener">Getting our shit together</a>, EditorialThere is an inverse correlation between the increase in the proportion of households with toilets and the decrease in child mortality. In 1980 only 2% of homes had toilets, that figure has jumped to 97% today. In the same period, Nepal’s under-five child mortality dived from 209 per 1,000 live births to below 35 today.“The achievement in health outcomes of household toilets, especially in reducing diarrhoea incidence in the last five years, has been dramatic,” said Siddhi Shrestha of UNICEF.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107111148/6368e2b29c7e80680e033341jpeg.jpg" alt="" width="400" height="655"/>However, experts say just declaring a district open defection free does not mean it is -- access to water supply plays a critical role. In addition, the toilets need to be cleaned regularly to keep them hygienic. An evaluation found many latrines of substandard construction, not child or girl-friendly, many were located next to water sources, or were contaminating ground water. Open pits were buzzing with flies, which spread disease.Toilets in many schools and households were so dirty many students and villagers preferred to go out into the open.“Having a toilet in every household and declaring a district open defecation free is a major achievement. But having a toilet is different from using a toilet,” explained UN-HABITAT’s Bhushan Tuladhar.Read also: <a href="https://www.nepalitimes.com/opinion/where-to-take-a-dump/" target="_blank" rel="noopener">Where to take a dump?</a>, Bhushan TuladharBut as Nepal inches closer to the 100% household toilet target, another danger has already manifested itself: management of excreta that is overflowing out of pit latrines and septic tanks. There are only a handful of functioning faecal sludge treatment plants, even though emptying the sewage has become a booming business.“It is now time to think beyond the toilets,” said Bipin Dangol of Environment and Public Health Organisation (ENPHO). “Unless waste water and human excreta are safely disposed, we will continue to face health risks. The next step is to spread awareness about proper disposal of waste.”Read also: <a href="https://www.nepalitimes.com/here-now/nature-calls/" target="_blank" rel="noopener">Nature calls</a>, Sonia Awale<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107111148/6368e2b49c7e80680e033342jpeg.jpg" alt="" width="750" height="442">Toilets are now being thought of as part of a value chain system, starting from user interface, containment and transportation of the waste, followed by its treatment, disposal and safe reuse.The current toilet technology that involves flush tanks using drinking water is resource intensive, especially in Nepal’s cities which suffer a chronic water shortage. Engineers worldwide are experimenting with the next generation of toilet designs that allow excreta to be burnt and converted into valuable energy source. They also want the new prototypes to be affordable, work off-grid so that the poorest communities have access to safe sanitation solutions (read story below).Sanitation expert Doulaye Kone of the the Bill and Melinda Gates Foundation was in Kathmandu recently for a meeting to approve a new standard ISO 30500 that set requirements for toilets of the future. They have to meet many criteria: destroy waste and kill pathogens, not use water or electricity, generate energy and water, cost less than Rs5 per use, and be easy to install and maintain.https://www.youtube.com/watch?v=Vm_K5NvFpok“A new toilet that meets these standards will be a super vaccine,” he told Nepali Times in an interview. “A toilet is a health product so that people won’t have to suffer or die due to the lack of safe sanitation anymore.”A working model for a future breakthrough in Nepal's sanitation movement could be a new facility at an orphanage in Lubhu, which treats household effluent, turning it into methane gas, fertiliser and water for the kitchen and vegetable garden.Sanitation engineer Reetu Rajbhandari (pictured below at the Lubhu treatment plant) at ENPHO says the system is still expensive, and there are challenges of location.But she added: “This is an ideal solution for waste collection, disposal, treatment and recycling when everyone has a toilet. Future research needs to go into making it more affordable.”<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107111148/6368e2b69c7e80680e033343jpeg.jpg" alt="" width="1400" height="789"><figcaption> </figcaption></figure><h2>Waste not, want not</h2>Nepal solved one problem, and created another. After a successful campaign against open defecation, 97% of households in Nepal now have latrines. But what to do with the waste that has accumulated in the pits and sewage?To solve the growing problem, the Ministry of Water Supply and Sanitation passed the Faecal Sludge Management (FSM) framework for the collection, transport, treatment and disposal of waste in urban areas. For Kathmandu Valley, this will go hand-in-hand with the government’s plan to free the Bagmati of sewage by 2020.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107111148/6368e2b99c7e80680e033344jpeg.jpg" alt="" width="1200" height="802"><figcaption> </figcaption></figure>A first-of-its-kind project at an orphanage in Lubhu (pictured above) outside Lalitpur gives a glimpse of how it would work. Septic tank waste is collected from households that pay for the service, transported to the treatment plant to be turned into fertiliser, methane gas and water.The plant (right) was originally set up to treat waste at shelters after the 2015 earthquake by the German organisation BORDA, Environment and Public Health Organisation (ENPHO), and Saligram Bal Griha. A similar faecal sludge treatment plant has been built in Bardia.The system treats six cubic metres of sewage per week, with separate solid and liquid units. It takes three days for the sludge to be treated and the water reused for irrigation. The rest flows into a digester to generate biogas, and the effluent takes 12 days to dry into odourless fertiliser.Vegetables thrive in the nutrient-rich waste, and are enough to feed all 42 children and staff in the orphanage. Extra greens are sold in the market.“We didn’t have sufficient water to farm in the past, now we can grow our own food, and cook in gas from treated human waste,” says caretaker Surya Prasad Ghimire. With a price tag of Rs7 million, the only downside for now is the cost, but that is because it is a prototype.When biogas first spread in Nepal 40 years ago, users were squeamish about allowing latrine waste to flow into the digester along with cowdung. By now there are 400,000 household biogas plants in Nepal, and nearly a third of them process both animal and human waste. In addition, 100 Police stations, Army bases and jails use human waste to generate gas for their kitchens.Explains Prakash Aryal of the Alternative Energy Promotion Centre (AEPC): “There used to be a taboo about linking toilets with biogas, but it is now easier to convince people due to the rise in awareness.”<h2>Here come the smart toilets</h2><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107111148/6368e2bc9c7e80680e033345jpeg.jpg" alt="" width="600" height="400"><figcaption> </figcaption></figure>In the last 200 years, humans have sent rockets to Jupiter, the Internet has transformed communication, the Human Genome Project has mapped the chromosomes. Yet in that time, toilets have remained the same.Social taboos about defecation have stymied toilet technology from evolving beyond the ceramic water closet that allowed loos to be located inside homes. Aside from some automation and digital spray control, toilet technology has remained unchanged for two centuries.Finally in 2011, the Bill and Melinda Gates Foundation launched the Reinvent the Toilet Challenge to provide safe and affordable sanitation solutions to 2.5 billion people worldwide who don’t have access to toilets. The idea was to stop open defecation with a cheap alternative that would also prevent the spread of infections.The Foundation’s specification was to re-invent the toilet that would destroy the pathogens in human waste, convert it into energy, and not need to be connected to the sewage, water, or electricity grids. And, oh yes, it should also cost less than $0.5 cents per user per day and be suitable for urban poor and rural settings.Many companies have joined the competition with ideas like: a solar-powered toilet that generates hydrogen and electricity, sanitation systems that convert human waste into biological charcoal, fuel gas, minerals and clean water. The challenge has gained momentum in India and China where engineers are coming up with innovative new technologies.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107111148/6368e2be9c7e80680e033346jpeg.jpg" alt="" width="640" height="429"><figcaption> </figcaption></figure>Last week, 120 experts from 33 countries were in Kathmandu (pictured above) to brainstorm on sustainable non-sewered sanitation systems, and approved a new standard ISO 30500 that set the requirement for toilets for the Third World that are safe, cheap and don’t need water.“Toilets today do not work. We need a system that kills pathogens, runs off the grid, and is affordable. A structure that can operate without existing infrastructure and reach marginalised communities,” explained Doulaye Kone (pictured below), sanitation expert at the Bill and Melinda Gates Foundation.The Challenge is literally a challenge. What engineers have come up with so far are contraptions ranging from what look like mini nuclear reactors to glorified pit latrines.Kone says what the Foundation is looking for are appliances that will outwardly appear no different from existing toilets, but will be standalone structures with no sewers, and can convert waste into clean water and energy. Cost, maintenance and social acceptance will be the main hurdles to be overcome.Manufacturers are ready to bring some of the new inventions into the market, but the ones so far are still expensive. Kone argues that while the prototypes may be expensive and will target urban dwellers, mass production of a viable business model will eventually take it to the poorest.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107111148/6368e2c19c7e80680e033347jpeg.jpg" alt="" width="640" height="578"><figcaption> </figcaption></figure>“This is innovative technology that allows for on-site treatment and produces minimum waste, while producing pathogen free water,” says Bipin Dangol of Environment and Public Health Organisation (ENPHO). “Its capital investment might be large, but we have a good financial mechanism and social marketing. We just need to convince people that this system will be good for the health of their families.”

Sonia Awale

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<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107111148/6368e2a39c7e80680e03333cjpeg.jpg" alt="" width="1400" height="1050"/><figcaption>Bikram Rai</figcaption></figure>At personal, family, community or national levels, we Nepalis are generally not given to maintaining high hygienic standards. Waste management is not our forté. <a href="http://archive.nepalitimes.com/article/nation/recycle-reuse-reduce-garbage-kathmandu,1279" target="_blank" rel="noopener">Littering is a national trait</a>, we are genetically programmed to dump garbage at our own doorstep, we let household sewage flow into the drainage system which empties into the river we worship.Jesuit missionaries who were the first European travellers to pass through the Nepal Valley en route from Tibet to India in the 17th century described the towns here as the dirtiest they had seen in their journey. In those days, that was saying something.Read also: <a href="https://www.nepalitimes.com/banner/toilet-trained/" target="_blank" rel="noopener">Toilet trained</a>, Sonia AwaleGranted, Kathmandu eradicated open defecation in the streets within one generation. But other than that, we have regressed in every other respect of urban management, acquiring an international reputation for polluting our rivers, poisoning the air, and tolerating squalour.Google <a href="http://archive.nepalitimes.com/article/nation/cleaning-up-everest,1408" target="_blank" rel="noopener">Mt Everest</a>, and the top news items will be about <a href="https://www.nepalitimes.com/here-now/everest-garbage-caravan" target="_blank" rel="noopener">expedition garbage</a>. Search <a href="http://archive.nepalitimes.com/article/nation/incompetence-of-kathmandu-airport-magnified-during-shutdown,2086" target="_blank" rel="noopener">Kathmandu Airport</a> and this pops up: fetid toilets and a terminal building redolent with the odour of urine. Kathmandu is no longer known as a valley with historic temple towns, but a dust bowl with garbage landfills along a reeking river, and <a href="http://archive.nepalitimes.com/article/nation/Sick-city,108" target="_blank" rel="noopener">air so toxic it is unbreathable</a>.Read also: <a href="https://www.nepalitimes.com/here-now/nature-calls/" target="_blank" rel="noopener">Nature calls</a>, Sonia AwaleWe spoke to anthropologists, urban planners, ecologists and governance experts to get to the bottom of this chronic failure to pick up after ourselves. They said the problem is not confined to Nepal: disregard for waste management pervades the subcontinent from Peshawar to Chittagong.Flush toilets were invented during the Indus Valley civilisation, but today Pakistan’s rivers are sewers. Mass defecation by the tracks greets passengers on early-morning train rides in northern India. Plastic landfills are new topographical features on Dhaka’s outskirts.Are there cultural reasons that span religions, ethnicities and nationalities for this regional inability to recognise and handle waste? Is it the inherent fatalism in our societies? Does it have a gender angle in our patriarchies? Are individualism, greed and selfishness factors? Are we hardwired to wallow in our own waste?Read also: <a href="https://www.nepalitimes.com/opinion/where-to-take-a-dump/" target="_blank" rel="noopener">Where to take a dump?</a>, Bhushan TuladharFinding an excuse in cultural determinism for unhygienic behaviour is a cop-out. The reasons lie instead in the failure of education, collapse of governance, lack of accountability, in corruption and impunity. It is <a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/Buzz-plastic-wars,612" target="_blank" rel="noopener">filthy politics</a> that force people to live in filth. Dirty streets are a metaphor for dirty politics.We are confronted with evidence of chronic state failure everywhere as we move around Nepal: the <a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/the-ecology-of-worship-bagmati,3380" target="_blank" rel="noopener">putrid Bagmati</a>, government hospitals which spread infections instead of curing them, vehicle emissions that have made Kathmandu so toxic the daily pollution average is five times higher than the WHO threshold.Nepal’s holiest temples are the dirtiest parts of its towns. Cremation sites, instead of evoking transcendence and spiritualism, feel like purgatory. Devotees throng festivals in uplifting mass displays of faith, but once the gods have been appeased, they go home leaving mountains of trash and the gory remains of sacrifices.<a href="http://archive.nepalitimes.com/article/nation/The-sewage-canal,1161" target="_blank" rel="noopener">Cleaning up the Bagmati </a>every Saturday is a valiant gesture, but alas, it is doomed because it does not address the structural root of the solid waste problem. Two weeks ago this newspaper printed <a href="https://www.nepalitimes.com/banner/industrial-scale-litter/" target="_blank" rel="noopener">an investigation into why plastic bag bans have been sabotage</a>d by successive governments: the manufacturers enjoy political protection.Plastic bottles are the new global scourge. We reported that Langtang Valley alone has 5 million discarded plastic water bottles, used once and thrown away. Yet, by placing a value on the bottles, they are now <a href="https://www.nepalitimes.com/banner/virtuous-cycle/." target="_blank" rel="noopener">being collected for recycling</a>. To reduce single-use plastic trash, Nepal has to upscale such upcycling.This week, the world marks World Environment Day with the theme #BeatPlasticPollution. There is growing global awareness about ocean plastic that is killing marine life and contaminating seafood.Also in this issue we look at the government’s <a href="http://archive.nepalitimes.com/article/nation/%20jajarkot-open-defecation-free,2023" target="_blank" rel="noopener">open-defecation free campaign</a> which, although it has raised awareness and reduced child mortality, has concentrated on building latrines but not on sludge disposal and ensuring water supply. There is a danger they will spread the infections they were supposed to control.A civilisation is judged by the way it manages and disposes of its waste. Ministers sweeping streets for tv cameras, or donning masks to test vehicle exhausts are just for show. The government has to go far beyond tokenism with policy reform and its implementation.Smart cities are those which have learnt to generate energy, produce fertiliser and recycle raw materials from their waste. To be smart, Nepal’s municipalities do not have to reinvent the wheel. The solutions are all there. Just Google it.

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It was 30 years ago this month that investment into ‘Baby Arun’, the 201MW first phase of the run-of-river Arun III project, was brought to a screeching halt when the World Bank officially withdrew its support. This brought about profound and fundamental changes in the way Nepal’s power sector subsequently developed. Nepalis suffered debilitating power outages between 2008-2016 due to shortages attributable to the cancellation. At the same time, the gap left by Baby Arun was filled by private sector investment in ways that were not obvious in 1995. It took 30 years, but in many ways Nepal’s power sector is more healthy today than it has ever been, and likely better than if the project was built as planned. At a projected budget of $1.08 billion, Baby Arun would have cost the equivalent of Nepal’s entire annual government expenditure in 1995. It was to be funded by concessional grants and loans from multilateral and bilateral funders, including the World Bank, Asian Development Bank (ADB), KfW, and investment by the government itself. At the time, Nepal’s total electricity generation capacity was only 230MW, and the trajectory of the power sector changed dramatically following the cancellation. In the past 30 years, $5.4 billion has been invested in the power sector led by private investors, and much of it from domestic banks and pension funds (table, right).  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150840_c13d6f9f34d7163832b3089eabdad6f20d2d5cef3a53039e0432add2be6c32f0.jpg" data-media-id="editor_0" data-image-id="20250829150840_c13d6f9f34d7163832b3089eabdad6f20d2d5cef3a53039e0432add2be6c32f0" data-rendition-name="original" width="984" height="521" loading="lazy" alt="30 years after Baby Arun"> </figure>  Nearly 70% of the new megawatts generated were by private independent power producers (IPP) in the past 30 years, while the Nepal Electricity Authority (NEA) and its subsidiary companies added 30% of new capacity. Almost 80% of total debt financing came from domestic banks and employee retirement funds. International assistance for power generation dropped dramatically over this time, accounting for only about 15% of investment. Before 1995 new power projects used to be entirely dependent on foreign aid. Since 1995, 63% of new generation came from 171 small hydropower projects with an average capacity of 12MW, while 4% was from 21 solar photovoltaic and biomass projects developed by local IPPs.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150844_5bc299fc78be90b95ce4727b0b3bdaa4542e17e126718cc8725d136630ffc097.jpg" data-media-id="editor_1" data-image-id="20250829150844_5bc299fc78be90b95ce4727b0b3bdaa4542e17e126718cc8725d136630ffc097" data-rendition-name="original" width="988" height="503" loading="lazy" alt="30 years after Baby Arun"> </figure>  Over three decades, investment in Nepal’s power supply came primarily from new actors that had never before been involved in this sector. The rate of electrification rose from 10% to close to 100% -- sufficient to meet domestic needs during most of the year, and in 2024 made Nepal a net exporter of power to India for the first time in its history. As practically all the new investment in this period went into run-of-river hydro and solar projects, rather than into hydropower reservoirs with seasonal storage, Nepal continues to rely on imports from India during the dry winter months. Surplus electricity generation for export during the monsoon is slated to grow rapidly as another 200 solar and hydro projects are nearing completion of construction, with over 5,000MW of power capacity. Private Power The cancellation of Baby Arun inadvertently accelerated the entry of the private sector into Nepal’s power generation. The government enacted the Electricity Act in 1992 to attract private IPPs and diversify away from total dependence from international aid, but had been struggling for several years to conclude the first agreement with the 60MW Khimti Project. There remained a large gap between the tariff that the government thought was reasonable versus what was demanded by the Norwegian investor Statkraft, and the private sector arms of the World Bank and ADB that were financing the project. The shock of World Bank withdrawal from Baby Arun put tremendous pressure on the government, then led by the UML as it is now. The Bank’s decision to terminate its involvement was ostensibly, at least partially, taken in response to a letter critiquing the project sent by the UML while it was in the opposition.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150848_7fb3641d776fe86a09ad60a758f7e16660a409fdb15e541644f13646b0894347.jpg" data-media-id="editor_2" data-image-id="20250829150848_7fb3641d776fe86a09ad60a758f7e16660a409fdb15e541644f13646b0894347" data-rendition-name="original" width="949" height="446" loading="lazy" alt="30 years after Baby Arun"> <figcaption>BAD NEWS: Newspaper clippings from the early 90s on tender announcement ahead of loan approval (left) and secrecy surrounding environmental assessment (centre) of Arun III before its eventual cancellation in August 1995.</figcaption> </figure>  The government was forced to soften its position and agree to the investors’ terms following the cancellation of Baby Arun. It directed NEA to sign a power purchase agreement (PPA) with Khimti. It was concluded in January 1996, and this was followed by a second PPA in July 1996 with Panda Energy, the American developer of the 45MW Upper Bhotekosi project. The expensive USD-denominated agreements to buy power from two international private producers, with price escalation clauses tied to the New York Consumer Price Index, sent alarm bells ringing. There was worry that the country was heading towards unaffordable tariff rates for the consumer and potential bankruptcy for NEA as a result of inevitable future weakening of the Nepali Rupee. The government had strong-armed NEA into signing these agreements, and realised that concessionary financing terms that Nepal was used to receiving for public sector projects such as Baby Arun and Kali Gandaki A, that included below-market interest rates and 40 years repayment period with a 10 year grace period before starting repayment, were not the norm for private sector investors. Nepal’s status as a less than attractive destination for foreign investment meant that the country had few options but to accept expensive dollar PPAs from international developers with the high commercial interest rates and short repayment periods imposed by their banks because of high investment risks. In the end, the government ended up having to additionally provide a sovereign guarantee in order to close the deal at the insistence of the lenders – committing it to repayment in case NEA defaulted on paying the IPPs. It is reasonable to assume that the extraordinarily high political cost of agreeing to the PPA terms would have meant that no government would have willingly agreed to them in 1995 had it not suffered the trauma of the loss of concessionary-financed public sector projects as large as the Baby Arun. It has taken NEA 25 years to consider offering dollar-denominated PPAs again: to cover the foreign exchange portion of the investment in the 216MW Upper Trisuli-1 and 120MW Rasuwa-Bhotekosi Hydropower projects. It seemed unlikely at the time, but it turned out that the dire situation Nepal found itself in 1995 planted the seed to mobilise investment for affordable power from within the country. Double Whammy After the dual shock of first losing investment in Baby Arun and having to sign expensive power purchase agreements with international IPPs, the first proposal for an alternative strategy to mitigate the risk of foreign currency investment into hydropower projects came from a group of engineers within the Arun III team at NEA. Led by <a href="https://archive.nepalitimes.com/news.php?id=4900">Deputy Director Damber Bahadur Nepali,</a> engineers convinced the leadership that NEA needed to invest in a subsidiary company to build a series of locally-designed and domestically-financed projects that would have lower cost with rupee-denominated PPAs. They registered the Chilime Hydropower Company Limited (CHCL) in October 1995 with 51% shares from NEA, 25% from its employees, and 24% available for the general public, 10% of which was prioritised for local residents at the project site. The 22.1MW project is in Rasuwa on a tributary of the Trisuli, and mobilised debt financing from the Employee Provident Fund, which manages retirement savings for employees of the government, public enterprises, and private sector institutions. CHCL’s experience showed that NEA employees themselves believed that individual hydropower projects with operational independence from NEA could be developed profitably in Nepal by its own engineers -- and they were willing to put their own money on the line. Chilime also demonstrated that there was money in the country, particularly with retirement funds, looking for opportunities for long-term investments. Following completion of Chilime in 2003, CHCL led the formation of three other NEA subsidiary companies that completed construction in 2023 and 2024, producing 168.3MW using fully rupee-tied investment. NEA’s largest subsidiary, the Upper Tamakosi Hydropower Limited, completed construction of its 456MW plant in 2021.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829160812_ce9ab8b49c598970db3f5bf0a079061ef52f153b28d9f4ead2bb1b26bfd7c2f3.jpg" data-media-id="editor_4" data-image-id="20250829160812_ce9ab8b49c598970db3f5bf0a079061ef52f153b28d9f4ead2bb1b26bfd7c2f3" data-rendition-name="original" width="3000" height="1571" loading="lazy" alt="30 Years after Baby Arun"> <figcaption>DAMNED: The $700 million 456MW Upper Tamakosi built entirely with domestic funds before it was destroyed by the September floods last year. </figcaption> </figure>  There were some delays and cost overruns on this run-of-river project, the largest in the country with a final cost of over $700 million -- all of it sourced domestically. The five subsidiary companies launched by NEA have produced almost two times as much new power as NEA has over the past 30 years. Seven other NEA subsidiaries are currently constructing projects to add another 474MW to the national grid. But even more important than NEA subsidiaries have been local IPPs: Nepali companies which have over the past three decades enthusiastically entered the hydropower sector. From a regulatory perspective, the credit for mobilising domestic private investment to engage in power generation goes to Minister of Water Resources Shailaja Acharya, who in 1998 offered a flat feed-in-tariff of Rs4/kWh for hydropower projects under 10MW. This upfront offer removed a major barrier that early developers had faced of having to spend money to carry out a detailed feasibility study before they could even start tariff negotiations with NEA. She had laid the foundation stone of the Chilime project, and proved to be the champion of opening up the sector for domestic IPPs. The guarantee of a PPA with a fixed tariff, irrespective of project specifications, gave small power developers the confidence to apply for survey licenses and invest in feasibility studies so they could directly approach commercial banks and make a case for their project producing required revenue to repay loans. Domestic IPPs started adding power to the national grid in 2002. Their contribution was initially modest, and first projects were small and commercial lenders who took time to be confident about providing debt financing to a sector which had previously not been considered suitable for private sector investment. While the first 10 years were slow, with less than 10MW being added to the grid each year, this increased twenty fold over the following ten years, resulting in the equivalent of a Baby Arun being added by Nepali IPPs to the grid each year. A total of 84 IPPs added 232MW, 328 MW, 454MW, and 400MW of new generation to the grid in 2021-2024 (graph). There was explosive, exponential growth as domestic developers have surged ahead to account for 76% of the new megawatts added to the grid since 2020, compared to 24% by NEA and its subsidiary companies. The megawatts that IPPs are adding have followed the classic ‘hockey stick curve’ with the ‘breakout point’, signaling the rapid growth phase in 2020. Private producers are expected to accelerate new generation in the coming years with 300 solar and hydropower projects adding 11,000MW. Another 166 hydropower and 96 solar projects are currently in the survey stage, and are in line to add another 11,000MW to the construction pipeline. One major challenge is finding financing required for the projects. Domestic investment will no longer be sufficient to finance this ambitious pipeline of renewable energy projects. Project developers as well as NEA and the Electricity Regulatory Commission will have to leverage their substantial experience accumulated through the construction of over 200 projects to attract regional and international investment and hedge the risks of dollar-denominated PPAs. Following the cancellation of Baby Arun, <a href="https://nepalitimes.com/opinion/people-power/decentralising-power-in-nepal">Nepal developed a highly distributed power sector</a>. The national electricity grid is currently supplied with power from a remarkably decentralised array of hundreds of hydropower and solar photovoltaic projects spread across 43 districts and all seven provinces.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150848_0c3aa66b34bfb08380a624f397bf3ebb4126f4d6b41a26115848b496876f501b.jpg" data-media-id="editor_6" data-image-id="20250829150848_0c3aa66b34bfb08380a624f397bf3ebb4126f4d6b41a26115848b496876f501b" data-rendition-name="original" width="1228" height="867" loading="lazy" alt="30 years after Baby Arun"> </figure>  This presents a sharp contrast to the pathway of a few large public sector hydropower projects with a sprinkling of private sector projects that was envisioned as part of NEA’s investment planning when Baby Arun was being considered the front runner for investment. The strategy then was to allow public sector investment in a few large hydropower projects with thermal plants to fill the gap. Knowing what we know now about acceleration of climate change impacts and increased extreme weather events, following this path would have made Nepal’s power sector highly vulnerable. Decentralised generation greatly improves the resilience of Nepal’s power supply as damage to power plants in one part of the country need not affect other areas that have their own generation. Following the investment plan where over two thirds of the country’s power supply would have come from power plants on the Arun River, would have greatly imperiled Nepal’s energy security. All rivers in Nepal are susceptible to flooding from cloudbursts made more frequent by climate change. The Arun River which is fed by glaciers in Tibet is also at risk to glacial lake outburst floods. Bikash Pandey is Director of Clean Energy and Circular Economy at Winrock International. People Power is his regular column in Nepali Times on global energy issues relevant to Nepal. <h2>Decentralised and Diversified</h2> In the 30 years since the cancellation of ‘Baby Arun’: Hydropower projects constructed cover capacities ranging from less than 1MW to 456MW and developed by IPPs from across the country with strong local involvement in purchasing equity shares. Renewable energy sources contributed to the generation mix through solar IPPs that further contribute to climate resilience, and cover shortfalls during low rainfall. The government is committed to solar contributing 10% of the power on the grid. Increasing solar beyond this target and providing incentives to project developers to invest in utility-scale battery storage would further improve resilience. BIG ARUN: The 900MW Arun III project under construction since 2018 at Num in Sankhuwasabha (pictured, below) is a separate initiative by a different project developer using a different financing modality. The ‘Baby Arun’ version of Arun III was cancelled in 1995.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150852_df534df5166eb5a9bb4cbe101627bdec7ac1df2a405a9d3988d1c86fcc8ecdeb.jpg" data-media-id="editor_7" data-image-id="20250829150852_df534df5166eb5a9bb4cbe101627bdec7ac1df2a405a9d3988d1c86fcc8ecdeb" data-rendition-name="original" width="1750" height="1312" loading="lazy" alt="30 Years after Baby Arun"> </figure>

30 years after Baby Arun

It cannot be a coincidence that after pushing bills to constrict freedom of expression and allow greater <a href="https://nepalitimes.com/news/security-or-espionage">surveillance of citizens</a>, Nepal’s government is now tightening controls on civil society.
In a <a href="https://nepalitimes.com/opinion/guest-editorial/command-and-control">series of recent moves</a> journalists have been sued for contempt of court, imprisoned for YouTube videos, or ordered by courts to desist from investigating corrupt officials.
An amendment to the Print and Publications Act that would hand the power to shut online media to the Chief District Officer (CDO). Another draft Bill would allow a political appointee to head a new Media Council with the power to revoke a journalist’s license. The draft counter-intelligence Bill would let random officials to arbitrarily tap phones, read emails and trail citizens.
Now comes yet another draft Bill that would replace the <a href="https://archive.nepalitimes.com/news.php?id=10675">Social Welfare Council (SWC)</a> with direct government control over registration, regulation, and management of non-governmental organisations, nonprofits and charities. There are more than 54,000 NGOs, 200 international NGOs registered with the SWC.
The draft makes civil society organisations needlessly jump through hoops to carry out work that complements the government in the social sector. Critics say the Bill was drafted without any consultation with <a href="https://nepalitimes.com/opinion/comment/nepal-s-rights-groups-must-step-up-4r4z6ck4">civic groups</a>.
“This Bill’s content is questionable whether it intends to allow for civil society organisations in Nepal a free space to operate,” concludes Dr SP Kalaunee, Country Representative of BlinkNow Foundation and Chair of the Association of International NGOs in Nepal (AIN). “The draft seems oriented towards controling rather than facilitating the work of civil society organisations.”
The Bill will be open for feedback from the public, and integrates the National Directives Act (1961), Association Registration Act (1977), and the Social Welfare Act (1992) and proposes dissolving the SWC and replacing it with a new Social Welfare Department under the Ministry of Women, Children and Senior Citizens.
Non-government groups will now be required to get approval from the Registrar Office, the CDO or the provincial government depending on their area of operation. Those working across provinces will have to get permission from the federal government. &nbsp;
The government says the Bill is intended to vet organisations to see if they are engaged in espionage, violate national security, assist a foreign state, commit treason, cause strife between federal units, or incite communal violence.&nbsp;
CSOs working in Nepal have long called for legislation to better facilitate their work, minimise administrative and bureaucratic red tape which have posed operational challenges. But they are opposed to such drastic control.&nbsp;
Read also: <a href="https://nepalitimes.com/banner/the-crow-and-the-scarecrow">The crow and the scarecrow</a>, Om Astha Rai
The NGO Federation of Nepal also issued a statement this week calling the Bill ‘retrograde and cumbersome’. It added: ‘Most of its provisions are intended to further constrain and control civil society organisations rather than facilitate and strengthen them, and reduce the role of citizen participation … it is an attack on our civil liberties, inclusivity, and transparency, and curtails our <a href="https://archive.nepalitimes.com/news.php?id=5156">democratic values and constitutional rights</a>.’ &nbsp;
<a href="about:blank">Nepal’s graduation</a> from least-developed country status next year may mean less aid for Nepal, and higher interest rates on loans from multilateral creditors. The <a href="https://nepalitimes.com/news/how-usaid-cut-affects-nepal">closure of USAID </a>and reduction in bilateral grants means the work of INGOs will be even more vital – especially to meet its <a href="https://nepalitimes.com/here-now/target-2030-for-maternal-and-newborn-health">SDG targets by 2030</a>.&nbsp;
“We are competing with other countries at a time when the global aid environment is shrinking, so the support we receive is directly dependent on a conducive environment for INGOs to operate and function,” says Kalaunee. “INGOs follow regulations of the nations they operate in, they will not protest or wait around for governments to change their minds or policies.”
Social safety net
Since 1977, the work of non-governmental actors in Nepal has been regulated by the Social Service National Coordination Council (SSNCC) chaired by Queen Aishwarya.
After the <a href="https://nepalitimes.com/banner/one-moment-30-years-ago-today">1990 People’s Movement</a>, King Birendra set up the Social Welfare Council (SWC) as an autonomous body in 1992 through the Social Welfare Act. But since then the SWC has been dogged by controversy and allegations of corruption and extortion.
In 2018, the Commission for the Investigation of Abuse of Authority (CIAA) filed a Rs315 million corruption case against 14 individuals, including the Minister of Women, Children and Social Welfare and SWC chair Badri Prasad Neupane and other officials for violating public procurement laws to rent out three hectares of its property around Bhrikuti Mandap.
Civil society groups have for years called for reforms in the SWC, and a report was drawn up to restructure it before this Bill proposed its dissolution. INGOs in particular will now have to go through the Social Welfare Department and multiple ministries for permissions.
A particularly objectionable provision in the draft stipulates that NGOs must have a Board of Director made up almost entirely of secretaries of various ministries. The NGO Federation has urged the government to take a civil society-friendly approach and not tangle its work in red tape and control. It says the government has no option but to revise the bill in its current form.
“Civil society organisations need an open space to operate, and an autonomous body to oversee them,” says Kalaunee. “Non-government organisations support in the areas prioritised by the government but by definition they cannot be a part of government.”

Big, beautiful Bills

An average Nepali could live 3.3 years longer if air pollution is reduced to meet the World Health Organization (WHO) guideline, according the annual <a href="https://aqli.epic.uchicago.edu/">Air Quality Life Index</a> 2025 published this week. The annual average concentration of tiny suspended particles in the air (PM2.5) in Nepal in 2023 was 38.3 μg/m3, nearly eight times the WHO standard, and 10% higher than 2022. Thirty years ago, air pollution in Nepal was half the current levels. WHO says particulate concentration above 5μg/m3 &nbsp;is<a href="https://nepalitimes.com/here-now/what-is-invisible-is-more-dangerous"> hazardous to health</a>.&nbsp; The most <a href="https://nepalitimes.com/banner/why-is-the-air-in-bhaktapur-so-bad">polluted parts of Nepal</a> are along the Indian border in Rutahat, Mahottari, Dhanusha, Parsa and Bara districts in Madhes Povince where average life expectancy is reduced by as much as 5.3 years.&nbsp; People in Sarlahi, Siraha, Saptari, Morang, Sunsari, Rupandehi and Jhapa are also dying at least 4 years earlier. The Air Quality Index 2025 report which is published annually by the Energy Policy Institute at the University of Chicago, says the figure is relatively lower for Kathmandu and Lalitpur at 2.6 and 2.4 years. After the Madhes, Kosi and Lumbini Provinces are the most polluted — especially in towns along industrial corridors and near the border. Karnali Province was by far the cleanest, followed by Sudurpaschim. Read also: <a href="https://nepalitimes.com/here-now/epicentre-of-pollution">Epicentre of pollution</a>, Sonia Awale  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250828060856_136770cc84e114e8993af82e6a682c45d9458060e4ecf45f18e9f210673e1279.jpg" data-media-id="editor_4" data-image-id="20250828060856_136770cc84e114e8993af82e6a682c45d9458060e4ecf45f18e9f210673e1279" data-rendition-name="original" width="753" height="584" loading="lazy" alt="AQLI map"> <figcaption>Potential gain in life expectancy from permanently reducing PM2.5 from 2023 concentration to the WHO guideline.</figcaption> </figure>  Air pollution is now the leading external<a href="https://nepalitimes.com/editorial/cleaner-air-longer-lives-0z0okfeu"> threat to life expectancy in Nepal</a>, exceeding both tobacco and diet-related risks, which reduced average lifespans of Nepalis by 1.9 years and 1.3 years respectively. The Air Quality Management Action Plan for Kathmandu Valley introduced in 2017 had identified vehicular emissions, brick kilns, and construction as the most polluting. It adopted measures to strengthen air quality monitoring, develop emissions inventory, and conduct impact assessments. Other major sources of emissions in Nepal include <a href="https://nepalitimes.com/news/no-smoke-without-fire-p7vb9dcj">forest fires</a>, crop residue and garbage burning as well as transboundary pollution from India and Pakistan. The report says India is the world’s most polluted country with the particulate concentration in 2023 at 41 μg/m3, an average resident in India could live 3.5 years longer if pollution levels were brought down to meet the WHO guideline. Residents of New Delhi on average would live 8.2 years longer if they breathed clean air. South Asia has some of the world’s most polluted cities. On some winter days, Kathmandu records the worst air quality in the world. In 2023, PM2.5 concentrations in South Asia declined by 9.6% between 2021 and 2022 due to lockdowns during the peak of the Covid-19 pandemic. ‘After a dip in 2022, particulate pollution in South Asia increased by 2.8% in 2023 — though it remained 7% lower than in 2021,’ <a href="https://aqli.epic.uchicago.edu/report/annual-update-2025">states the report</a>. ‘In the region’s most polluted countries, particulate pollution’s impact on life expectancy is nearly twice that of childhood, and maternal malnutrition and more than five times that of unsafe water, sanitation and handwashing.’ Elsewhere, unprecedented wildfires caused particulate concentrations to rise to levels not seen since 2011 in the United States and since 1998 in Canada. China also registered a decline in air quality, an increase of 2.8% in particulate pollution in 2023 relative to 2022, the first in a decade since the start of its ‘War on Pollution’ in 2014.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250828060856_94860b929d0fb161220ad72ecb76fcd29ba8e306bd6b844485a4171dadb6bb47.jpg" data-media-id="editor_8" data-image-id="20250828060856_94860b929d0fb161220ad72ecb76fcd29ba8e306bd6b844485a4171dadb6bb47" data-rendition-name="original" width="754" height="501" loading="lazy" alt="AQLI line graph"> <figcaption>Annual average PM2.5 concentration in Nepal from 1998-2023.</figcaption> </figure>  Globally, the PM2.5 concentration in 2023 was 1.5% higher than in 2022, and nearly 5 times the WHO guideline. If global particulate pollution were permanently reduced to meet this guideline, an average person around the world would gain 1.9 years of life, adding 15.1 billion total life years to the <a href="https://nepalitimes.com/opinion/the-future-is-older">global population</a>, the report adds. ‘Particulate pollution remained the greatest external threat to human life expectancy in 2023, with <a href="https://nepalitimes.com/here-now/air-pollution-is-more-dangerous-than-smoking">its impact comparable to smoking</a> and surpassing other major health risks,’ the report says. ‘Its toll on life expectancy is more than 4 times that of alcohol use, 5 times that of transport injuries or unsafe water, sanitation, and handwashing, and more than 6 times that of HIV/AIDS.’ The report also highlights the need for open data, and says that accessible air quality information has translated into reduced particulate concentrations and gains in life expectancy in the United States, China, and Poland. Besides data, the report says, investment in monitoring and other air quality management infrastructure must be matched by political will, ambitious policies, capacity building, and sustained enforcement.

Warning: breathing is hazardous to health

This is the 72nd episode of Diaspora Diaries, a Nepali Times series in collaboration with Migration Lab providing a platform to share experiences of living, working and studying abroad. My father ran a store and that is where I spent all my time till Grade 6. Doing my homework. Serving customers. I then moved to my maternal grandparents’ house because I used to get along with my cousin who was a year older than me. We did everything together, and were best friends. We took turns studying: I was a night owl, and he was an early riser. Before I went to bed after studying all night, I woke him up. My mother was 44 when I was born, the same year my eldest brother got married. My sister-in-law becoming a part of our family was how my mother referenced my age. I liked making money, and was always a hustler. In Grade 7, I learnt to handle a tractor and helped my brother-in-law to plough, earning Rs10 a day. As I got better, he paid me more. By Grade 9, I was already making Rs500 per day, but had to slow down to prepare for my exams. From an early age I knew I did not want a 9-5 job. There just wasn’t enough money in it. I wanted to get into business, and compared my brother who worked in the post office and what businessmen made. It did not help that my brother was honest, and never took bribes. A friend and I made money selling cheap Chinese phones at a premium to our friends. We blasted music on the phones and pretended that we were giving them a discount. After SLC, I started teaching math and other subjects. I was soon a shareholder in the same school and in the evening I was involved in our family’s floriculture business, growing amaranth and marigold for garlands.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250831020844_1b54b999d67122a50c4c7e6204cc737bcc99bf2a68db6499a4566a7f61a880b4.jpg" data-media-id="editor_0" data-image-id="20250831020844_1b54b999d67122a50c4c7e6204cc737bcc99bf2a68db6499a4566a7f61a880b4" data-rendition-name="original" width="955" height="1314" loading="lazy" alt="Diaspora Diaries 72"> </figure>  It was then that a friend suggested we learn the Korean language. We could be earning significantly higher in Korea for similar efforts. I had no plans to go abroad but he convinced me. I did not know anything about Korea, and was scolded at the language institute when I asked someone to point Korea on the map.&nbsp; It was only there that I learnt you had to pass an exam for the Korean Employment Permit System (EPS), and pay for language classes. After a week, I decided it was not for me and dropped out. But my friend convinced me to give it one more try. I did not prepare much for the exam, and it was no surprise that I failed. But it was just by one mark, and people would pity me for failing “just by one mark”. It was a brand of failure. It hurt my ego. I had to turn things around by taking the exams seriously, and locked myself up to study hard.&nbsp; Even when we had visitors, my wife told them I was not home. If I was not in my room learning Korean, I would be with a group of ten of us test-takers comparing notes and practicing late into the night. The exam was difficult, but this time I passed, the only one in my group who did.&nbsp; As someone who never liked the idea of doing a job, I still had my doubts about going to Korea. It did not help that one of my acquaintances had returned a month after he had left, and he discouraged me from migrating given that I was already making good money in Nepal.&nbsp; But my wife suggested that I give it a shot since I had worked so hard for it. And if it really turned out not to be my cup of tea, I could always return. What did I have to lose, I thought, at least I would get to visit Korea. My job there was in an electrical company that made circuit boards. I worked all day, earned good money. In the evenings, I kept myself busy with my real estate business back in Nepal. I had learnt the tricks of the trade from fellow real estate agents back home, but at the time did not have the capital to invest.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250831020848_941e961e2045058f255ad89884b51faa7d2365c68236e5cbe573d63d769ac6c5.jpg" data-media-id="editor_1" data-image-id="20250831020848_941e961e2045058f255ad89884b51faa7d2365c68236e5cbe573d63d769ac6c5" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Diaspora Diaries 72"> </figure>  In Korea, it helped that I had salary records that allowed me to get loans from financial institutions both in Korea and in Nepal. Ultimately, I started earning more from my real estate deals in Nepal than from my job in Korea. This was all thanks to my ability to take loans because of the EPS scheme. My wife has been managing the flower business while I was away. My finances grew stronger over the eight years I was in Korea. I paid off the loans that I had borrowed to buy land. But real estate did not satisfy me entirely. I wondered: what is my brand? What will I be known for? What is my contribution to society? Real estate is for wealth, but that is about it. I needed to sell one piece of land and use the revenue to start a venture. I took classes in business, and returned to Nepal six months ago and got back to my family’s ancestral roots in floriculture. In Nepal too, I am continuing the entrepreneurship training I had started in Korea with the Bridge International. Such exposure helps us reflect on our business such as our branding, vision, and proactive aspects like the importance of strong recordkeeping.&nbsp; I am now working to upgrade and expand my floriculture business. With a friend who is still in Korea I am building a cooling room to increase the shelf-life of flowers and other produce and set up a market in my village where others can sell their produce. Floriculture is our primary business, but it is seasonal and earns good money only during festivals like Tihar.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250831020848_a008ffeba13896e6918f68ff6e687c8fe11140d86a96f1ec11690547f2bcd415.jpg" data-media-id="editor_2" data-image-id="20250831020848_a008ffeba13896e6918f68ff6e687c8fe11140d86a96f1ec11690547f2bcd415" data-rendition-name="original" width="1280" height="720" loading="lazy" alt="Diaspora Diaries 72"> </figure>  So, I grow tomatoes to ensure year-round earnings. I also am engaged in other businesses like real estate and online shopping. I work round the clock in Nepal — a strong work ethic is something I picked up in Korea.&nbsp; My Korean bosses would work alongside us, that motivated us. I work just as hard in Nepal as I did in Korea. People here often ask me why I am pushing myself so hard. But making garlands comes easy to me, it is work my forebears were involved in. My childhood memories are about plucking flowers with my sister. I have a comparative advantage in this work. It comes naturally to me, it is easy and I enjoy it. And sometimes, if there are too many garlands to make, I can multitask while holding meetings. My fingers just fly. I am good at this job, but my wife is even better and faster.&nbsp; When there is too much load, we can also outsource the work. To be known as the flower guy would be great personal branding. The मखमली guy. Or the सयपत्री guy. I decided to come home for just this with a one-way ticket. “अब पासा: जाँदैन ल्हासा!” &nbsp;

sewage

Toilet trained

Getting our shit together

30 years after Baby Arun

Big, beautiful Bills

Warning: breathing is hazardous to health

The flower guy