Cross-border Downstream Benefit Sharing in Reservoir Type Hydropower Projects: Case of Budhi Gandaki Storage Project in Nepal

Abstract

This paper analyses the role of the principle of downstream benefit sharing under international water law regime in the management of cross-border water courses. This paper argues that the principle of downstream benefit sharing may play a key role in wiping away the long-existing distrust between countries as well as hold the potential to usher in a new phase of cooperation between riparian neighboring countries, such as Nepal and India. If pursued in good faith the downstream benefit principle would enjoin erstwhile losers of the vast potential to a cooperative mechanism where they could find themselves in a win-win situation. The Budhi Gandaki Storage Project presents a unique opportunity for employing this new paradigm of cooperation between two countries: Nepal and India. In this paper, we present the example of India that is facing a water and energy crisis for which it may ease to a considerable extent its problem by depending on Nepal for these resources. Downstream benefit sharing may provide India an opportunity to gain the confidence of the Nepalese people for developing many hydro projects with or without water augmentation resulting into multiple benefits downstream in India. Employing the downstream benefit sharing principle might requirere visiting treaties like Gandak Project Agreement.DOI: http://dx.doi.org/10.3126/hn.v14i0.11267HYDRO Nepal JournalJournal of Water, Energy and EnvironmentVolume: 14, 2014, JanuaryPage: 59-64

Water Resources Development in Nepal: Myths and Realities

“…Despite improving the water cooperation, controversies over the existing bilateral treaties have made transboundary water management a contentious issue between Nepal and India. And to date, no meaningful harnessing of the vast water resources available to both countries has materialized (Upadhyay and Gaudel, 2014).…”

“…Because of India's intransigent behavior regarding the interpretation and implementation of the Treaty's otherwise clear provisions, the Treaty went through rough conditions. And again the Treaty resulted in India reaping heavily one-sided benefits, and left the Pancheshwar Project in the lurch (Upadhyay and Gaudel, 2014). Therefore, downstream benefit sharing has remained a myth.…”

The Adoption of the Declaration of the Principles on the Grand Ethiopian Renaissance Dam and Lessons for South Asia

“…If economically weak, landlocked and upstream riparian country, Ethiopia can initiate such important project, then Nepal must also be in similar position to fulfill own demand without causing significant harm, rather benefiting the downstream countries. Decision makers of Nepal need to see Budhi Gandaki Storage Project from this perspective which has potential to bring regional benefits (Upadhyay and Gaudel, 2014).…”