Water Resources Planning and Management in A Federal Democratic Nepal

INTRODUCTION

Nepal is gifted with abundant water resources. Water is regarded as the key strategic natural
resource, which is believed to assist the all round development and economic growth of the
country. With the far-sighted use of the water resource, Nepal can go through a drastic economic
development and a real new Nepal could emerge.

Federalism is a new concept getting ground in the socio-political arena in the path of
constructing a new system of governance in Nepal. The then Interim Legislature-Parliament
made the first amendment of the article 138 (1) of the Interim Constitution 2007, with the
provision that the country would be restructured with a federal system of governance. But this
topic has not been undisputable. Is federalism really possible in a small country like Nepal? Has
enough research studies been carried out on the positive and negative aspects of federalism? And
are the Nepali people aware enough of this new concept? Such debates are being heated up and
homeworks and brainstorming are being carried out among different sectors to decide upon the
model of federalism in Nepal.

In Nepal’s context, water resource is as important as other issues such as administration, security
and national integrity. It is very crucial to have a clear vision about the challenges of optimum
exploitation of water resources, its management and usage of the benefit for the betterment of
Nepal and Nepali people in the federal context. While deciding on the model of federalism in
Nepal in the process of drafting the new constitution, it is important to discuss about the
provisions relating to water resources. Arrangements have to be made for equitable access to and
utilization of and sharing of benefits from the water resources. It is necessary to hold serious
discussion on the matters, rights, responsibilities and duties relating to the water resources, and
incorporate them as basic elements in the constitution. People’s participation should be made
more meaningful for equitable access to and utilization of water resources and equitable sharing
of benefits.

PROBLEMS AND CONFLICTS

Despite being one of the natural resources, the nature and forms of utilization and benefiting
from water resources is entirely different from other natural resources. It is almost impossible to
divide the water resources among provinces like other natural resources under federalism. It is
necessary to identify the existing differences between water resources and other natural resources
in the context of the federalism.

After the country is divided into different provinces under the federal system, complexities over
sharing of natural resources is certain to arise. People have started believing that people of one
province will not get anything from the other province after federal system is adopted. Therefore,
it is important to analyze the negative impacts that may result while sharing water resources after
the adoption of federalism. The benefit from water resources can only be maximized by ensuring
its optimum exploitation which is likely to be hindered by fragmentation of the country in very
small units.

For instance, let us consider the case of diverting water from the Melamchi River of
Sindhupalchowk district through underground tunnels to address the drinking water problem of
Kathmandu. If after federalism, these two places fall in different states, different complexities in
this project will arise. The local people have been putting forward various demands for
compensation, including sustained source of income for them.

Similarly, in the context of Hydropower production and use, the Western development region
produces the highest amount of electricity (about 330 MW) in the country, but it consumes only
half of what it produces. However, the Eastern development region consumes 20 times more
electricity than what it produces (14 MW). Even if the existing five development regions are
declared as the five provinces, this type of sharing will not be possible. Provinces will have the
choice to shut off power if the price is not right for them. If India is buys power at a higher rate,
then a province could choose to export it rather than supply to other provinces. Thus, provisions
should be made in the new constitution to keep the power in the Centre regarding the production,
sale and distribution of the electricity and give power to local governments for small scale
hydroelectricity projects.

Similarly, if a project involves two or more provinces, the people living in the upstream will be
deprived from the uses of water while people living in the downstream areas will benefit as water
will become available even during dry season for the purposes of irrigation.

Other conflicts regarding resettlement of displaced people from areas of implementation of

projects to other provinces, and problems of delineation of boundaries between provinces sharing
a common river can also arise.

Thus, the new constitution should ensure equitable access to and use of water resources,
equitable sharing of the benefits, participation of local people in policy and decision making,
and inclusive participation of the poor and the excluded community without any political
economic, social, cultural, religious discrimination. 

OPTIMUM MANAGEMENT WITH CONSIDERATION OF FEDERALISM

Nepal can benefit by ensuring optimum exploitation and distributing the benefits from
multidimensional uses of the water resources through sensible management and benefit
maximization techniques.
An approach of dividing the country in different states could be on the basis of river basins or
catchment areas of the major river systems. The catchment areas of Sapta Koshi, Sapta Gandaki
and Karnali river systems can be used as the delineations of the possible provinces from the
eastern part of the country to the western part. Basins of smaller rivers; for instance the Mechi
and the Mahakali river can be appended with the adjoining large river systems; the Sapta Koshi
and the Karnali river systems, respectively. The right to decide the maximum use of a river that
flows through a province should rest with the concerned province. Local people should have the
priority to obtain rights for the use of river water. They should also be given the opportunity to
have shared ownership in the projects implemented in the rivers.

Under the federal system, there will be three levels of governance, the center, the province and
the local government (municipalities or VDCs). Since unlike other resources, water cannot be
bound within the territory of one province or local government, the power of control over the
water related projects should be given to the centre while the provincial and local governments
should have the power to mange and regulate it. The federal states should have the authority to
implement big hydro power, irrigation, drinking water and recreation based projects that are
limited within the province. In addition, the constitution should have a clear provision whether to
allow local governments to initiate and implement small scale projects, or to involve the private
sector to do it. The central, provincial and local governments need to collect revenue from the
projects implemented within their authority to make an equitable distribution of it by the centre
to the provinces and by the provinces to the the local governments. Commissions on natural
resources on the legislative and the judiciary levels will have to be set up to settle disputes that
may arise among provinces or among local governments.

After the model of federalism and the governance system is decided upon, the importance of the
equitable use and distribution of benefits of water resources would increase even more. It can be
expected that there will be serious discussion over it in the Constitutional Assembly and in other
concerned sectors after the model of federalism is determined.

Sagar Shiwakoti

Tribhuvan University

Institute of Engineering

Nepal