The 45 MW Upper Bhotekoshi Hydropower Project in Sindhupalchowk, which had been shut down for a month over locals’ demand for 10 percent free shares, has resumed operations. An all-party meeting between representatives of the Bhotekoshi Power Company, the agitating Bhotekoshi GenZ group, local government officials, and community leaders reached a five-point agreement, including the provision of 10 percent free shares to local residents.
According to the agreement, Bhotekoshi Power Company will allocate 10 percent of its shares to GenZ Public Investment Limited—a company formed by residents directly affected by the project. The agreement was signed by GenZ Public Investment Limited Chairperson Phurpa Sherpa and Bhotekoshi Power Company Secretary Bishwamohan Karmacharya.
Locals will be allowed to purchase shares at Rs 100 per share through bank loans, to be repaid from project dividends within a year. The agreement also raises the percentage of free shares to be given by the company to GenZ Public Investment Limited from six to 10 percent.
It was further agreed that 10 percent of the company’s shares would be distributed among 20,000 local shareholders, with payments covered through dividends and bonuses. Likewise, the company’s annual social responsibility fund will be increased from Rs 4.9m to Rs 25m.
This is the first time in 25 years of operation that shares have been distributed to locals. “The residents of Bhotekoshi have long demanded ownership in the project. The company has finally agreed to give us 10 percent shares,” said Pasang Nurpu Sherpa, Chairperson of Bhotekoshi Rural Municipality. “We are happy with the agreement, but attention must be paid to its legal aspects.”
Chief District Officer Bandhu Prasad Bastola said the agreement has created an environment for the project’s regular operation. “The company has agreed to provide 10 percent shares for free,” he told protesters. “You should now focus on securing the shares under your company’s name. I will help coordinate with the project.”
He warned that if the agreement is not implemented, locals have the right to halt the project again. “If both parties honor the deal, there will be no issue,” he said. “But if implementation falters, we may see renewed obstruction, which we must avoid.”
Bhotekoshi Power Company Assistant Manager Babin Pradhan urged locals to ensure the project’s peaceful operation. “The project has already suffered huge losses during the protest,” he said. “Now that their demands have been addressed, we hope operations will continue smoothly.”
Back on 24 Dec 2014, the project had reached an agreement to provide six percent shares to locals in the presence of political party representatives. However, locals claim that the written agreement signed by MPs and leaders of five major parties—including the Nepali Congress, CPN-UML, Unified Maoist, CPN-Maoist (Baidya), and Rastriya Prajatantra Party—was never implemented, forcing them to protest again.
During the recent GenZ movement, locals under the banner of the Bhotekoshi GenZ Group had shut down the project demanding 10 percent free shares. The company initially expressed readiness to provide 10 percent shares but not free of cost, prompting the month-long closure.
On Sept 18, following a meeting between company officials and local representatives, youths vandalized the rural municipality office. Initially, 95 percent of the project’s shares were owned by American company Panda Energy. They were later acquired by Tara Management Company, owned by Nepali businessperson Siddhartha Shamsher Rana.
The project’s ownership will be transferred to the government in five years and fully in six years. Since there is no clear legal provision regarding what happens to shares held by locals after government takeover, experts say that as a private entity, Bhotekoshi Power Company can legally distribute its shares as personal property.
Due to the month-long shutdown, the company incurred losses of over Rs 300m. “We lost about Rs 10m per day in electricity sales,” said Assistant Manager Pradhan. “We hope such a situation will not repeat.”
Earlier, Minister for Energy, Water Resources and Irrigation Kulman Ghising had said that while locals have the right to demand shares, any decision must comply with laws and regulations. During his inspection of the Middle Bhotekoshi Hydropower Project last week, he remarked, “Electricity generation at Upper Bhotekoshi has been halted for a month due to local obstruction. Even if free shares are demanded, the issue must be resolved lawfully. The government is working to resume operations by coordinating with the company and the locals.”
