Kishore Thapa: Mega Projects Blueprint of Nepal

Kishore Thapa is a former government secretary, who served in the Ministry of Urban Development, Ministry of Education, Ministry of Tourism and Civil Aviation, Election Commission, and Water and Energy Commission. He has a bachelor’s degree in architecture from Calcutta University and master’s degree in urban planning from School of Planning and Architecture, Delhi. He was a Humphrey Fellow at Rutgers University, USA, in 2003/04. Thapa is also the past president of the Society of Nepalese Architects (SONA) and current chairperson of South Asian Association of Architects (SAARCH). He also serves as the chairperson of the Architecture Subject Committee as well as advisor to Kathmandu University. 

In this write-up, Thapa shares his thoughts about mega projects, their development, and challenges.

History of mega projects

The famous pyramids of Egypt can be considered as a mega project. It was implemented about 5,000 years ago and may have taken many years of hard labor of thousands of workers. Similarly, the Great Wall of China is another good example of a mega project. This project was initiated in 400 BC and was completed in 1600 BC spanning a time span of 2,000 years. The Colosseum of Rome built in 80 CE is another example of a mega project of the Roman period. 

In the modern times the Suez Canal in Egypt, Panama Canal in Panama, Trans-Siberian Railway line in Russia, Inter-state Highway network in the United States, Empire State Building in New York, USA (which was the tallest building in the world at that time), Eiffel Tower in Paris, France, Shinkansen Railway line in Japan, Grand Trunk Road in India were some of the examples of mega projects in 19th and 20th century. With the advancement of science and technology ,several mega projects are being launched in developed as well as developing countries. These include airports, express highways, water management system, stadium, city development, energy production and space technology. The largest mega project of our time with a cost of $150bn is the development and maintenance of the International Space Station in 15 countries. There are several mega projects under implementation in China, India and West Asia.

Importance

Generally mega projects are planned and executed for achieving economic growth and prosperity in a shorter period of time by investing huge financial, technological and human resources. Such projects during its implementation phase generate large scale employment and promote business activities. After completion, benefits of such projects include higher revenue for the government, improvement in  mobility of goods and people, energy security, and improvement in physical and social well-being of the people. The scale of the projects depends upon financial capacity, technical competence, political will and commercial viability. There are several mega projects in our neighboring countries—India and China. Both of these countries are investing huge amounts of money in highways, railways, water ways, airports, urban development, water resource management and space exploration. Since implementation of mega projects requires a higher level of technical and management competence, it is very likely that a single country may not be able to handle it alone and require international assistance.

Mega projects of Nepal

Nepal entered into the modern era of development only after 1950. However, during the Rana period also some remarkable infrastructure projects were implemented. Those included Raxaul-Amlekhgunj Railway, Janakpur-Jayanagar Railway, Dhorsing-Matatirtha Ropeway, Pharping Hydroelectricity project, Sundarijal Hydroelectricity project, Motorable Tunnel at Chure hill along Bhimphedi-Amlekhgunj Road, construction of Rana Palaces in Kathmandu Valley including the famous Singha Durbar. After the advent of democracy in the country in 1950, the Tribhuvan Highway was the first mega project implemented with the financial and technical assistance of India. This highway linked the capital city of Kathmandu to the border town of Birgunj. This project was followed by Kathmandu-Kodari Highway (Arniko Highway), Pokhara-Sunauli Highway (Siddhartha Highway), East-West Highway (Mahendra Highway). Similarly, in the water resources sector, Koshi and Gandak projects were implemented. Considering the coverage of geographical area, time and cost, these can  be considered as the mega projects of that time. In the electricity sector Trishuli Hydroelectricity project followed by Kulekhani and Kali Gandaki Hydro-electric Projects were also considered as a mega project a few decades ago.

Recent mega projects

In recent times, Upper Tamakoshi Hydro-electricity Project (456 MW) is the largest electricity project completed so far. Considering the complexities, coverage and cost, the Melamchi Water Supply Project  is the largest mega project Nepal has completed so far. Although only the first phase of the  project is completed so far, it can boast of the longest tunnel (26 km) in South Asia and one of the longest water supply tunnels in the world. In the irrigation sector, mega projects like Bheri-Babai diversion and Sunkoshi-Marin diversion projects are under implementation. The Gautam Buddha International Airport Project and Pokhara Regional International Project in Pokhara, both of which are already completed, are also some of the largest megaprojects of the country. In the building sector, the recently completed 18-story high Damak Tower in Jhapa is the tallest building in Nepal. The Federal Parliament Building at Singha Durbar premises is probably the largest building project of our time.

Nepal is undertaking ambitious infrastructure projects with the financial and technical assistance from multilateral donors like Asian Development Bank, the World Bank and bilateral donors like India, China and Japan. With improved technical capability of government and private institutions, consulting and contracting companies, Nepal’s capability in undertaking large mega projects has improved significantly. In several cases Nepal has demonstrated its capability in undertaking mega projects on its own. Upper Tamakoshi Hydroelectricity project, Sikta Irrigation Project, Bheri-Babai Diversion Project and Sunkoshi-Kamala Diversion Project are good examples. These projects are  fully financed and managed by Nepal’s own resources.

Some of the mega projects in pipeline are Nijgadh International Project, Karnali Chisapani Hydroelectricity Project, Budhi Gandaki Hydroelectricity Project, West Seti Hydroelectricity Project, Beni-Muktinath Cable Car Project (undertaken by private sector), Widening of East-West Highway, Raxaul-Kathmandu Railway Project.

Challenges for implementation

There are several challenges for undertaking mega projects. First of all, it demands huge financial resources. Nepal’s GDP of about $46bn and government’s annual budget of about Rs 1.86trn (about $14bn) cannot support mega projects similar to that of developed countries. The capacity of   government institutions, in terms of capital expenditure, is much lower compared to neighboring countries. The private sector of Nepal is not fully developed and has its own limitations in terms of  financing and management capacity.

Another important challenge for undertaking mega projects is the environmental factor. Nepal lies in a highly seismic zone and is prone to multi-hazards such as earthquake, landslides, flood, forest fires and lightning. Most of the physical infrastructure is damaged every year due to monsoon floods and occasional earthquakes. Water-induced disaster is the most formidable threat to the physical infrastructure. Therefore, environmental vulnerability has to be duly considered while conducting feasibility study of mega projects. The cost and time overrun of the infrastructure projects in Nepal is a common phenomenon and one of  its causes is  water induced disasters. Such disasters not only impede the pace of construction but also destroy the completed infrastructure. The flooding of the Melamchi river and its impact in the headworks of the Melamchi Water Supply Project two years ago has given us big lessons for undertaking mega projects in mountainous  regions. Nepal’s major hydro-power projects are vulnerable to Glacier Lake Outburst Flood (GLOF) as well as monsoon floods and landslides.

Political instability

Nepal is passing through political and social unrest for many years and it is the major impediment for smooth implementation of mega projects. Projects in Nepal suffer from political rivalry, extortion by political cadres, obstruction by the local community and controversy raised by environmentalists. While conducting feasibility studies, such issues seldom arise but it comes to the surface when construction works start. In recent times, geo-political  factors are also playing a significant role in implementation of infrastructure projects in Nepal. The projects under MCC and BRI as well as Bhairahawa and Pokhara International Airport Projects are some of the visible examples of geo-political rivalry.

Blueprint for mega projects

In order to achieve our national goal of ‘Happy Nepali and Prosperous Nepal’, we need to invest heavily on infrastructure projects in energy, irrigation, drinking water supply, urban development, roads, railway, air connectivity, health facilities, educational establishments, tourism, cultural and natural resources management. We have to graduate from least developed countries to middle income countries in a real sense and improve the quality of life of our people. Instead of projects driven by petty political interests, we have to identify and prioritize projects which are cost effective, environmentally and financially sustainable, resilient and inclusive. In order to stand for our commitment to be a carbon neutral country by 2050, we have to adopt the principles of green growth, resilient  and inclusive infrastructure development.

Energy sector

In the energy sector,we need to invest in large multi-purpose hydro-power projects such as Budhi Gandaki, Karnali Chisapani and West Seti Projects. These projects shall be designed not only for electricity generation but also for flood management, fisheries development, irrigation, drinking water and tourism promotion. Since a part of the benefit of these projects  goes to India, we have to engage them in financing and technical support in the implementation of these projects. It would be a historic blunder to seek loan from the World Bank or ADB in implementing the projects and providing its benefits to India free of cost. Similarly, high voltage transmission lines which can support in evacuating energy from existing hydro-power projects both for domestic and export purposes shall be given high priority.

On the water resources management, completion of the second phase of Melamchi Project, Bheri Babai  Diversion, Sunkoshi-Kamala Diversion, commencement of  Nagmati Dam on the northern part of Kathmandu Valley shall be a priority.

Transportation

In the highway sector, upgrading of the existing Mahendra Highway from Jhapa to Kanchanpur to  a six-lane carriageway to Asian highway standard should be a priority project. While upgrading this highway, all the amenities required for drivers and passengers shall be available and concurrent urban development projects in the adjoining towns and cities shall be undertaken. The East-West Highway shall be connected to north-south feeder roads leading to Indian border in the south and Chinese border in the north. The existing Mid-hill highway shall be completed throughout its length and development of towns on the cross roads shall be initiated . Those towns shall serve as the center of tourism (hill stations), education, health and agriculture markets and encourage people to invest in hilly areas.

In the air transport sector, construction of the proposed Nijgadh International Airport shall be commenced. This airport will be the only full-fledged international airport of the country which can cater to all kinds of aircraft and function as a transit hub for airlines operating flights from Korea, China, Japan to West Asia and Africa. We should know that the existing Tribhuvan International Airport has severe limitations in international flights due to its geographical location and infrastructure. Similarly, Pokhara and Bhairahawa airports have their own limitations in handling larger passenger and cargo aircrafts. In a land locked country like Nepal, air connectivity is a critical infrastructure whose benefits will be visible during major disasters and economic blockade. Hence a full-fledged international airport is critical for maintaining its international connectivity by air.

In the urban development sector, development of smart cities and upgradation of existing cities shall be given high priority. This is very important because urbanization is inevitable and growth of unplanned cities leads to environmental disasters, pandemics, civil unrest and severely jeopardizes the well-being and productivity of the people. Development of national capital Kathmandu, tourism capital Pokhara and religious capitals of Janakpur and Lumbini shall be given high priority. Similarly, development of cross- road cities along Mahendra Highway, Mid Hill Highway (Pushpa Lal Highway) is equally important.

Conclusion

In order to plan and execute mega projects, there is a need for political stability, policy consistency, sustainable financial system and technical and managerial capability of government and private sector. Nepal may seek international assistance in complex projects like metro train, flyovers, airports and energy projects but it can venture on its own resources in other projects like highways, urban development and water resource management. Prior to undertaking any mega project the government shall invest on institutional, financial and human capital development.

When identifying and implementing mega projects, it is also essential to minimize environmental impacts in the context of climate change and the socio-cultural landscape. Balancing geopolitical interests to foster national development, ensuring a long-term strategy for economic growth and sustainability, maximizing employment generation and technological advancement, and harnessing the country’s natural and human resources are crucial. Additionally, involving the local community and stakeholders in the project’s design and implementation is imperative to ensure its success and acceptance.