Democracy For Nepal: World Bank

Showing posts with label World Bank. Show all posts

Saturday, September 19, 2015

Ease Of Doing Business

देश विकास का लागि चाहिएको नंबर एक कुरा। Ease Of Doing Business मा राम्रो रैंकिंग।

Ease of doing business index
सीके राउत को आलोचना

Gujarat tops ease of doing business ranking among states

The western Indian state, three other BJP ruled states and one led by a party ally occupied the top five places on the list, which also highlights the poor state of business environment in a large number of states. ...... Chandrababu Naidu-headed Andhra Pradesh was second on the list, followed by the central Indian states of Jharkhand, Chhattisgarh and Madhya Pradesh, all ruled by the BJP. Bihar, which goes to election next month, was at the 21st spot. ......

India is 142nd on he list of 189 countries. The government wants India to breaking into the top 50 at the earliest. It expects to make it to the top 100 in the next ranking.
..... States were given six months to improve business environment based on98 parameters in December ..... Punjab is ranked highest with an 81.4 per cent score for setting up a business. The state has launched an online single-window system for registrations and licences that cover most of the regulatory services. ...... Gujarat has a 100 per cent score for complying with environment procedures while Jharkhand has got 100 per cent for that on labour regulations. "Reforms today will lead to investments many years down the line. India has to make it easy for India to invest in India ...... on an average, only 32 per cent of the proposed reforms have been implemented cross the country. The implementation of reforms regarding inspection and enforcement of contracts, which necessitate medium term actions, stands at less than 20 per cent.

Thursday, March 20, 2014

The Terai Lags Behind

English: "Malnourishment in Niger" Malnourished children in Niger, during the 2005 famine. (Photo credit: Wikipedia)

Help, not hinder

Almost all statistics including population density, literacy rate, annual income, unemployment, infant mortality rate, malnourished children, wasted status of children (20.4 percent in Tarai vs. 6.9 percent in Hills), anaemic women (42.0 in Tarai vs. 26.9 in Hills), families without toilet (51.2 in Tarai vs. 24.8 in Hills), Human Development Indicator, Human Poverty Index and Gender Empowerment Measure (GEM) demonstrate much worse condition in Tarai compared to Hills. Despite this, only a small fraction of foreign aids and grants is allocated for Tarai. 51 percent of Nepal’s population lives in this region and carries the same proportion of burden of the loans by the Asian Development Bank, the World Bank and other donor agencies. Moreover, international agencies fare much worse than Nepal government’s structures in regards to the inclusion of Madheshis. According to the UNDP data published in 2001 about the manpower involved in 30 major multilateral agencies and 61 projects, they had only 5.2 percent of Madheshis. Foreign tourists, volunteers and journalists often flock to Nepal with their backpacks, full of stereotypes. Their Nepal revolves around mountains, monks and medieval temples. They crave for virgin goddess and yetis, for trekking on trails and resting in resorts. Madhesh is no Nepal-like for them. They are not ready to buy tickets to Nepal and then end up in a place that looks much like India, as a European friend of mine remarked after looking at the landscape and people of Tarai. “If I have to see this and spend time with these types of people, I’ll go to India. Why bother about Nepal?”

Tuesday, August 20, 2013

Feeling Intense About Nepal Hydro

Nepal topography. The green/yellow zones hold the Inner Terai valleys. (Photo credit: Wikipedia)

(published in Vishwa Sandesh)

Feeling Intense About Nepal Hydro
By Paramendra Bhagat (www.paramendra.com)

I harbor pretty intense feelings about Nepal hydro and hopefully I have been infecting some of the people around me.

Nepalis grew up being fed the potential of Nepal hydro. But if the country’s capacity is to produce 50,000 MW (some estimates put the capacity at 200,000 MW) then less than 1% has been produced so far, less than 500 MW. Most of what has been produced has been at the initiative of the government of Nepal with funding from entities like the World Bank, the Asian Development Bank and the like. But some small projects have made headway recently through efforts by private individuals in Nepal. That is commendable. There is some serious Chinese and Indian interest in the sector as well. China is especially to be watched. Some Chinese companies look like might swoop in and grab some really big projects.

And then there is the NRN effort. The NRNA is a non profit. It can not be making for profit moves. But it has incorporated a for profit company. That company I believe is investing in one small project in Nepal. That effort is commendable. But I can’t think of one Nepali in NYC who could put a million of his or her money into a project in Nepal when hydro projects routinely ask for tens of millions of dollars. Appealing to the patriotism of the global Nepali population has huge limitations.

My effort is in the hard core for profit sector, the shark eat shark world of global finance. This is early innings. From 500 MW to 50,000 MW might be two decades worth of work. I am going to start out by being the guy who raises money, but down the line my company is going to provide A to Z solutions. My multi-national corporation is also going to do construction work for the dams in Nepal. Fundraising is not going to be enough fun for too long.

And why stop at Nepal? There are hydro prospects in India, in Pakistan, in Brazil. Clean Energy is not limited to hydro. There is wind, there is solar. There are several continents to explore. But one step at a time.

One guy said, but why have not Binod Chaudhary or Upendra Mahato invested in Nepal hydro? Good question. Nepal hydro is a tough nut to crack. Whoever cracks up the Nepal hydro code is going to be bigger than Binod Chaudhary or Upendra Mahato. There is your answer.

My hydro team is going to be the top Nepal hydro team in New York City. I am smart, I am hard working, I am a super networker, I can penetrate Indian circles easily for being half Indian, I speak a few languages, I am no hydro philanthropist or hobbyist, as in I am not some full time lawyer, engineer, doctor, life insurance agent, peddler, business hawker, or whatever trying to wing hydro on the side during nights and weekends. Hydro for me is a serious career move. It is going to be getting full time like attention from me. It is between that and my software interests. If you are not going full time with it, it will be hard for you to compete with me. You might as well bring your projects to me for your small cut. Or you could languish like about 200 Nepalis in New York City who are each carrying PDFs of hydro projects in their email accounts. Those project PDFs are not wine. They don’t get better with time.

Funding necessarily has to be a package deal. Investors in NYC are capable of fully funding, but that’s not the point. If you have local private investors in Nepal and local and regional banks involved that builds trust. Imagine a scenario where a 10 MW project has an ask for $15 million. $7 gets raised in Nepal and the region. $8 gets raised in NYC. Of that $8 million, $1 million gets raised among Nepalis in the city. I can easily think of 20 Nepalis who could put in 50K each if they were interested, several could put much more. I really like the idea of raising 1,000 dollars each from about 100 Nepalis in the city.

But when none of the money has been raised, I ask the Nepal team to find me 10 Nepalis they might know in NYC who would be willing to put 1K each for shares worth 2K in the project. This is not about the money. 10K is not going to move the project. This is about social capital. Those ten people are going to help keep the communication between me and my local team and the Nepal team as smooth as possible. It is also a vote of confidence in Nepal’s hydro potential. As for that million to be raised from among Nepalis, I have been advised that has to be the very final step in the fundraising. Nepalis are going to come in, but not at the beginning. That makes sense. Can’t blame the local Nepalis for wanting to be the icing on the cake. After all, they have some claim to the country.

Investing is for those who have money to spare. If you are making below minimum wage in the shadow economy, chances are hydro projects are not of investment interests to you. That is understandable. Or even if you are making six figures but you have been living beyond your means, chances are you will yawn at the prospect of hydro projects.

And then there is sheer inertia in segments of the community. I went to meet someone. After some small talk I brought up the topic. I’d like to talk to you about Nepal hydro for a few minutes, I said. The guy paused for a few split seconds and said, “Please finish the tea and leave.”

Friday, August 24, 2012

Hydropower In Nepal

Hydropower In Nepal: Videos
Hydropower In Nepal: Images

Hydropower in Nepal

Nepal has approximately 40,000 MW of economically feasible hydropower potential. However, the present situation is that Nepal has developed only approximately 600 MW of hydropower. ..... only about 40% of Nepal's population has access to electricity. Most of the power plants in Nepal are run-of-river type with energy available in excess of the in-country demand during the monsoon season and deficit during the dry season. ...... in the entire scenario of energy use of the country, the electricity is a tiny fraction, only 1% energy need is fulfilled by electricity. The bulk of the energy need is dominated by fuel wood (68%), agricultural waste (15%), animal dung (8%) and imported fossil fuel (8%). ...... the development of hydropower will help to achieve the millennium development goals with protecting environment, increasing literacy, improving health of children and women with better energy. ...... The electricity demand in Nepal is increasing by about 7-9% per year. ..... The power system is dominated by the hydropower which contributes about 90 % of the system and the balance is met by multi fuel plant. The hydropower development in Nepal began with the development of 500 kW Pharping power plant in 1911. The most recent significant power plant commissioned is the 144-MW Kali Gandaki “A” Hydroelectric Plant. ...... Until 1990, hydropower development was under the domain of government utility, Nepal Electricity Authority (NEA) only. However, with the enactment of new Hydropower Development Policy 1992, the sector was opened to the private sector also. There are number of projects already built by the private developers. Private power producers contribute 148 MW of power to the ‘Integrated Nepal Power System'

Hydropower in Nepal

World's 20% of electricity is by Hydropower. In contrary, 96% of electricity in Nepal is by Hydropower ...... Hydropower electricity is environment friendly - no pollution in air or in land, and, is also the most efficient method of all

Himalayan Hydropower

Nepal is one of the poorest countries in the world—a quarter of its population lives on less than US$1 per day, and unemployment rates are over 40 percent. With a population of over 29 million, Nepal is facing an upward trajectory in energy demand, resulting in energy shortage situations where less than half of the nation’s electricity needs are met. In recent years, during the coldest winter months, Nepalis have experienced power cuts for over 16 hours per day. ..... The combination of poverty and political instability has stunted the growth of an otherwise vibrant and culturally rich society, endowed with the breathtaking Himalayas, rich biodiversity, and most importantly, water. ........ current annual hydropower output to be at 634 MW, grossly below potential and insufficient to meet domestic energy demand. ......... Nepal’s steps for future development lie in harnessing the full potential of hydropower ...... there exists a tremendous market potential in India and China. ...... better ameliorate the social and economic costs of such projects by employing local populations in the construction of projects, implementing skills-based technical training, improving local schools, and operating with deference to local authorities and laws. ...... With its proximity to the world’s two most populous nations, Nepal should channel its own liquid gold to support domestic electricity needs and export to energy-hungry markets

Nepal approves hydropower project

The government of Nepal has given the green light for China Three Gorges Corp.'s $1.6 billion hydropower project on the West Seti River..... The West Seti approval came after China Three Gorges, China' largest hydropower development company and operator of China's massive Three Gorges Dam, on March 16 threatened to pull out of the 750 megawatt project if it didn't move forward...... Nepal's state power utility would have a 25 percent share in the project and China Three Gorges the rest..... Construction is to start in 2015, with electricity generation to begin starting in 2019...... Nepal says the estimated $1.6 billion cost for West Seti will come from China Three Gorges as well as from a loan from China's Exim Bank. It says the 3.33 billion units of energy the project is expected to supply is intended for domestic consumption..... The project license for West Seti was previously awarded in 1994 to Australia's Snowy Mountains Engineering Corp. but was scrapped last July. Under the terms of that license, Nepal was to receive 10 percent of the project's 750 megawatts of electricity along with a nominal royalty from SMEC's profit from the project, with the remaining 90 percent of the power exported to India

Nepal turns back on hydropower

The Himalayas provide Nepal with fast flowing rivers, ideal for hydropower ..... To deal with crippling power cuts that last two thirds of a day, the government has declared a national power crisis, and announced a plan to install a series of generators of up to 200 megawatts (MW). .... They will run on diesel ..... there were talks about importing the generation plants from China, which reportedly had many of them spare after hosting last year's Olympics. ..... we will have to get thermal plants to immediately address the load shedding, it's a compulsion ..... Having been hit hard by the power cuts, the private manufacturing sector is also stressing the need for businesses to install their own electricity generators. ..... Most of these will again be equipment run on diesel. .... With more than 6,000 rivers and rivulets gushing down the Himalayan foothills, snaking through the country's rugged topography, there is the potential to generate tens of thousands of megawatts. .... Major large hydroelectric project partnerships with India, agreed years ago, have never moved off the drawing board

Politics and economics of hydropower in Nepal

beginning in October to November and continuing until the monsoon arrives in June or July. By February the cuts are expected to intensify to 16 hours a day. ..... With a government eager to build large-scale schemes pitted against an active civil society keener on small-scale hydropower, progress has stalled. And a middle way is needed fast. ...... a thorough study to establish the country’s true hydro potential was badly needed. ..... the ministry’s goal to produce 10,000 megawatts in 10 years ....... a nation only just emerging from the shadow of a decade-long civil war and desperate for development and growth. Government policy therefore remains large-scale and export-oriented. ..... The early 1990s marked the World Bank’s infamous withdrawal from the 404-megawatt Arun III project located on the eponymous river in north-eastern Nepal. On the basis of a petition filed by members of the local community and activists, Nepal’s Supreme Court ruled that the World Bank and Nepalese government must provide information on the project to the public. There were several criticisms of the scheme, including the fear of a rise in the electricity tariff (the project’s estimated cost was US$5,400 [36,800 yuan] per kilowatt), the ecological impact of the plant on the rich biodiversity of the Arun Valley and the claim the project was too big for Nepal (the cost was equal to the country’s entire annual budget). ....... Then came the Mahakali Treaty between Nepal and India in the mid-1990s, which envisioned the 315-metre high, multipurpose Pancheshwar dam, with water-storage capacity of 12.3 billion cubic metres and a 6,480 megawatt power house. Nepal’s Supreme Court determined that the treaty required ratification by a two third majority of the parliament. After intense debate, the agreement was finally ratified on November 27, 1996, but deep disagreement split the main opposition party (the United Marxist Leninists). The treaty stipulated that the detailed project report (DPR) would be completed in six months, but more than 10 years after signing it, India and Nepal have failed to make significant progress. ......... India is drawn by water and irrigation, not electricity. “India imports power from Bhutan, its friendly neighbour; it has signed nuclear deal with the US; and has its own hydro capacity in north-east and other parts,” he says. “So, it would be incorrect to say that it is eyeing Nepal’s hydroelectricity.” Electrical engineer Bimal Gurung disagrees: “India, which is increasingly drawn into the climate-change debate, can’t use thermal plant,” he argues. “It would be cheaper to import from its geographically close neighbour Nepal than from remote Bhutan.” ...... the Bhutanese model, in which India builds the project and then imports the power, has drawn criticism from experts in Nepal. In an article published in Himal Southasian magazine in August, leading water-resource expert Dipak Gyawali termed the model, a “neo-colonial path to power”. ...... The 750-megawatt West Seti project has been through many ups and downs, culminating in the sudden withdrawal of its Chinese investor early last year. Initially conceived as a 77-megawatt run-of-the-river project, it was later optimised to a 195-metre, concrete face rockfill dam capable of producing 750 megawatts of electricity. But, if it goes ahead, it is feared the dam will displace the people of four districts. The reservoir will cover 25 square kilometres and have a volume of around 1.5 billion cubic metres. ...... there is money in Nepal but lack of security is hindering investment. ..... “Not all big dams are bad and not all small dams are good.” The solution may be promoting micro hydropower as well as investing in environmentally friendly and sustainable medium-sized and large-scale projects

Status Of Hydroelectricity In Nepal: Potential And Challenges

Hydro-electricity (hydel) is the most widely used form of renewable electricity in the world. .... Once a hydel project is completely constructed, it will produce no more direct waste and has very less output level of green house gas CO2 than other fossil fuel powered plants. Moreover unlike other renewable energy resources like solar and wind (intermittent energy sources), where sunlight and blowing wind is not available everytime, hydel can ensure 24/7/365 supply of energy as water always keeps on flowing. Therefore hydel is one of the best renewable energy sources. ...... Only three power plants generating over 10 GW are in operation in world currently, namely: Three Gorges Dam(22.5GW), Itaipu Dam(14GW), and Guri Dam(10.2GW)

Economy of Nepal

Progress has been made in exploiting Nepal's natural resources, tourism and hydroelectricity. With eight of the world's 10 highest mountain peaks, including Mount Everest at 8,848 m. In the early 1990s, one large public sector project and a number of private projects were planned; some have been completed. The most significant private sector financed hydroelectric projects currently in operation are the Khimti Khola (60 MW) and the Bhote Koshi Project (36 MW).The project is still undergoing and has dependancy on India to take the further steps .......... The environmental impact of Nepal's hydroelectric projects has been limited by the fact that most are "run-of-the-river" with only one storage project undertaken to date. The largest under active consideration is the private sector West Seti (750 MW) storage project which is dedicated to exports. Negotiations with India for a power purchase agreement have been underway for several years, but agreement on pricing and capital financing remains a problem. Currently demand for electricity is increasing at 8%-10% a year whereas Nepal's option to have agreement with India will make this fulfillment against demand

Presentation On Hydro Power Development In Nepal June 2011

The average annual precipitation is approximately 1700 mm (80% of which occurs during the monsoon season - June to September). The total annual average run-off from the nation's 600 perennial rivers flowing from high mountains is over 200 billion cu.m....... Nepal's storage potential is estimated at 88 billion cu.m ..... cooperation between the neighboring countries and going for Intra-national Grid is essential for the best use of the hydro resource for mutual benefit...... In coming decades, Nepal’s power sector is expected to boom tremendously. Hydropower Projects currently under construction, planned, and proposed should boost the country’s total generating capacity up to 22,000 MW, half of the country’s economical hydropower potential

FDI in Nepal’s Hydropower Sector: A Focus on the Product

To develop the hydropower sector, we need foreign direct investment (FDI) because Nepal’s own resources both in the public and private sector cannot meet the financial investment needed to do that. A large investment is required from foreign development agencies and private sector entrepreneurs. ...... Currently, Nepal is harnessing less than 1 percent of its potential hydropower energy and the country depends on bio-fuels, mainly wood, to meet its energy needs. It also spends a lot funds on petroleum products. This has had serious consequences for Nepal’s environment. ...... What is needed for Nepal to emerge itself as one of the richest countries in the region is to develop water and human resources simultaneously. ..... A macro-economic study has concluded that in order to eradicate absolute poverty in households, the country needs to register 8% economic growth rate. This will help to bring the level of percentage of population below poverty line to 10% and by 2027 there will be no household in absolute poverty. No other sector of economy other than hydropower is in a position to help achieve this goal. ...... the installed capacity of hydropower by ownership currently amounts to 561.231 MW (389.150 MW in public major projects, 69.34 % of total capacity, 133.113 MW in private power projects; 23.72% of total capacity, 200.00 MW in public-private joint ventures, 3.56 % of total capacity; and 189.68 MW in small hydropower projects, 3.38% of total capacity) ...... FDI may be in the form of loan, contract, or as a grant aid. ..... More than 500 hydropower projects of different capacity have been identified in the country. ..... The most recent private hydropower development projects are almost all proposed by Indian or Indian-Nepali joint investors. ..... The Indian companies are perhaps best suited to operate in Nepal due to their proximity, cultural and economic understanding of the Nepali situation, and relatively low cost of their professional and other costs. ..... the recent budget has enlisted an even more ambitious plan of generating 10, 000 MW in ten years. ..... Since 1992, the private sector development of the hydropower was seen as the best approach to utilize Nepal's most important economic potential while utilizing the private sector efficiency. ..... Although the previous few private power development were carried out by the US, Australian, Chinese and a few other companies, the most successful ventures have been the ones organized by the Nepali investors. ...... The policy should aid hydropower development, not personal development of politicians and bureaucrats. Too often, government officials and investors make surveys, licenses and taxes a means to their personal development. ...... We have bitter examples like Mukti Shree Pvt. Ltd. (an unknown company) which was awarded the license for the largest multipurpose project of Nepal (Karnali Chisapani 10,800 MW) and West Seti Storage Project, and also Power Purchase Agreements (PPA) for Upper Modi, Daram Khola, Langtangkhola and Madi. Their licenses have not been cancelled yet although they are unknown company. Such companies get involved in “Tender Bids” and get some money from other companies by taking out their tenders. Because of poor policy and corruption, there is no any incentive to revoke their licenses. However, recently, the government seems to be making some progress in penalizing such companies. ...... India’s demand for power would grow to 200,000 MW by 2018. If Nepal could fast-track projects to generate just 10,000 MW in ten years, consume 2,000 MW itself and export the rest to India, it could earn $2.7 billion a year. ...... in the fiscal year 2005/06, NRs 2.45 billions has been spent to import petroleum products. If the same amount of money were spent for developing hydropower, we could generate 29.9 MW hydropower electricity (for instance, in Chilme Hydropower Project, 1 KW production cost = $1550 = NRs.108500). ...... India and Bangladesh are two major markets for hydropower. ....... In recent years, three Nepali power projects like Chilime (20 MW) in Rasuwa, Piluwa (3 MW) in Sankhuwasabha and Jhimruk (12 MW) in Pyuthan proved that Nepal can now generate cheap electricity with locally-built and locally-financed hydropower schemes. ..... The donor-funded projects come with strings attached, they have to be designed and managed by international consultants and built by other contractors. Thus, a large amount of money goes back to the donors

Nepal clears China plan for $1.6 bln hydroelectric dam

The project, set to be completed in 2019, is expected to ease the crippling power shortage in Nepal whose economy is still emerging from a decade-long civil war - conflict that scared away investors and slowed infrastructure projects. ..... Two weeks ago, the Natural Resources and Means Committee of the parliament, asked for the project work to be halted due to allegations of irregularities in awarding the contract to the Chinese company without any international bidding...... The Chinese firm, which was to own a 75 percent stake in it while the state-owned Nepal Electricity Authority would take the rest, threatened to pull out after the parliamentary panel ordered an inquiry. ...... According to Lakshman Ghimire, a member of the committee, the Chinese firm should be given only 51 percent stakes instead of 75 percent and the remaining distributed among the public in the remote villages where the project is to be located. ..... Nepal's economy grew 3.5 percent in 2010-11, down from 4.8 percent in the previous year with the country facing 14 hours of daily power cuts during the dry season when its rivers flow slowly. ..... Aid-dependent Nepal, with 900 megawatt of electricity shortage, is one of the world's 10 poorest countries where tourism and hydropower are two key areas in which the government is trying to attract foreign investment

The neocolonial path to power

At first glance, Bhutan certainly appears to have achieved better hydropower development than its Himalayan neighbour. Three times smaller in landmass and with a population one-fiftieth of Nepal’s, the current generating capacity of Bhutan (at 1488 megawatts) is twice that of Nepal. The Punatsangchhu-I hydro plant, under construction with a 60 percent grant and 40 percent soft loan from India, will add another 1020 MW by 2016. Such cheap development capital means that Bhutanese consumers pay a mere INR 1.30 per unit of electricity, allowing them to cook food and heat homes with electricity. Currently, about 70 percent of the 123,000 households in Bhutan have access to electricity, and by 2013 the entire country is expected to be electrified. ...... Though Bhutan has twice the electricity-generation capacity of Nepal, around 80 percent of its electricity is exported to India, leaving only about 300 MW for consumption in Bhutan. Of this, only 80 MW is for domestic use, while the rest goes to southern Bhutan to be consumed by various Indian-owned industries, such as cement factories, lured here by the availability of cheap electricity. Subsidised electricity has led to booming demand, which grew by 19 percent from 2007 to 2008, increasing a further 27 percent in 2009 and 54 percent in 2010. ...... Nepal’s chronic power crisis precipitated by its unstable politics ..... India, despite its close friendship with Bhutan, cannot provide cheap power to its smaller neighbour due to its own 10,000 MW electricity shortage in the grid of North India, a fact not understood by today’s Nepali politicians. ...... the mirage of the Mahakali and political infighting ...... Exploring new power policies beyond the straitjacket imposed by hegemonic Indian plans, Bhutan’s hydrocrats have initiated medium-sized plants more suited to Bhutan’s economy. The 126 MW Dagachu and the 208 MW Nikhachu schemes are being developed using a public-private partnership model supported by the Kyoto Protocol’s Clean Development Mechanism, which has come about in the wake of international concerns over global climate change. Recent changes in water policy require all power exporters to give 15 percent of their energy free to the Bhutanese grid as royalty. ....... The feasibility study of the 4000 MW Sunkhosh is now complete, but Bhutanese officials do not seem interested to push it. During a recent four-day stay in Thimphu, this writer heard a uniform refrain from many officials: We cannot be confrontationists like you Nepalis – but inundation projects are our last priority, to be done only if the pressure from India becomes too strong to resist. ...... Besides electricity, storage dams provide flood control, irrigation, fisheries, navigation and tourism, from which different economic actors benefit in varying degrees. As Nepal (and India) has not built any significant multipurpose project, its policymakers have no idea how these benefits can be allocated in an equitable manner, nor how the political, economic, social and environmental issues need sorting out. ...... at least 50 percent of the benefits of a storage dam are in areas outside the electricity sector, which must be accounted for. ..... the regulated water released in the dry season would lead to massive agricultural expansion in the plains, and flood-control benefits would result when the summer peak flood is lopped off to be stored in the reservoirs. As Bhutan does not have any Tarai plains, it is the downstream riparian areas that will reap the non-power benefits from reservoir projects in upstream Bhutan. New Delhi hopes to capture these valuable benefits from regulated water released from storage reservoirs in the dry season and, through its river-linking plan, to transport such waters to the dry western part of the country. ..... A rent-seeking, royalty-earning model might enrich governments, politicians and senior bureaucrats for some time, much like the Arab sheikhdoms, but it does nothing to develop national capacity – which is what development is, in the true sense. ..... Despite state indifference due to the Nepali hydrocracy’s infatuation with foreign aid, the survey, design, geo-technical engineering, contracting, construction and some equipment manufacture and maintenance are now done by Nepalis in small factories and consultancy services, for projects from a few hundred kilowatts to some 20 MW. The importance of such capacity is evident from the fact that Bhutanese power managers, during visits to the Bhutanese gomba (monastery) located in the Boudha area of Kathmandu, also take the opportunity to visit nearby factories to procure services for plant maintenance in Bhutan