How has Local Equity Sharing (LES) for small hydropower projects affected local development in rural areas? Community leaders' perception and experience in Nepal

Keywords: hydropower, rural development, Nepal, environmental justice
Session Type: Virtual Paper Abstract
Day: Sunday
Session Start / End Time: 2/27/2022 03:40 PM (Eastern Time (US & Canada)) - 2/27/2022 05:00 PM (Eastern Time (US & Canada))
Room: Virtual 53

Abstract

Understanding water-rural development nexus is essential not only for the expansion of spatial effects of the endogenous factors but also for the equitable distribution of benefits. Local Equity Sharing (LES) in hydropower projects is one type of hydropower benefit sharing arrangement that enables project-affected local community to become direct stakeholders in a hydropower project and eventually benefit from any future profits. Nepal institutionalized LES in 2010; however, there has been little evaluation of how LES has achieved its goals. This study examined the impact of participation in LES of small hydropower projects on rural communities’ income, consumption, and diversification of livelihood strategies across rural Nepal where local people have participated in LES.

Semi-structured qualitative interviews were conducted with 30 representatives of rural municipalities that participated in LES. The rural municipalities were pre-defined based on a review of hydropower projects that have issued public shares to local public and are currently listed in the Nepal Stock Exchange. For the analysis, the perceptions of rural municipality chairs were qualitatively assessed to identify the relevant aspects of rural development and environmental justice.

This study found that when viewed from the lens of local community leaders, the impact of LES on local development varies across time and space. The perceptions vary across geographical regions, and there are specific impediments to LES implementation. The findings of the study are relevant for future policy dialogue related to LES in Nepal and other countries in Global South that are promoting small hydropower projects for rural development.