The government must act swiftly to help developers rebuild hydropower projects damaged by the devastating Bhotekoshi flood. Instead, investors complain they are facing additional hurdles because of bureaucratic delays and cumbersome procedures. Senior officials of the Independent Power Producers’ Association, Nepal (IPPAN) complain that developers must approach at least 13 government and regulatory agencies to secure the approvals needed for reconstruction. Such red tape is unacceptable when restoring damaged infrastructure is a matter of national importance. The August 26 Bhotekoshi flood damaged a dozen hydropower projects, including operational plants with a combined generation capacity of 281 megawatts and projects under construction with a combined capacity of 388 megawatts. The total damage is estimated at more than Rs 100 billion. Rebuilding these projects is not merely the responsibility of private developers; it is also a responsibility of the state, which must facilitate the restoration of critical infrastructure and electricity generation.
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Bureaucratic red tape a major obstacle to reconstruction
Yet the response of government agencies suggests that the urgency of the task has not been fully understood. The delay and confusion also raise questions about whether the government has learned from past disasters. Following the 2015 earthquake, reconstruction was hampered by poor coordination, delayed decisions and a lack of understanding among government agencies. Despite the establishment of the National Reconstruction Authority, bureaucratic hurdles prolonged the suffering of disaster victims. A decade later, the same institutional weaknesses appear to be undermining recovery efforts. Exceptional circumstances do not necessarily require the government to bypass established laws and procedures. They do, however, demand a more coordinated, efficient and responsive approach. The government should have introduced a single-window mechanism for the reconstruction of flood-damaged hydropower projects from the outset, rather than waiting for developers to complain about the hurdles they face. If the state cannot act proactively during the immediate aftermath of a disaster, it should at least ensure that reconstruction is not held hostage to administrative inertia.
The Ministry of Energy, Water Resources and Irrigation has reportedly formed a high-level committee with government and private-sector representation to facilitate policy implementation and address problems arising during project execution. While such a committee may help resolve routine issues, it may not be sufficient to overcome the complex administrative and regulatory barriers involved in post-disaster reconstruction. A committee without clear decision-making authority or the power to coordinate across ministries risks becoming another layer of bureaucracy rather than a solution. What is needed is a powerful, time-bound mechanism under the direct authority of the prime minister, with the mandate to coordinate and expedite all decisions required to rebuild the damaged projects. Reconstruction involves multiple ministries and agencies, with responsibilities spanning financial approvals, legal clearances, technical assessments and administrative procedures. Unless these decisions can be coordinated and resolved through a single mechanism, developers will continue to face delays, increasing reconstruction.