Nepal is currently steering toward a definitive realignment, characterized by the collapse of traditional partisan fealty and the emergence of a meritocratic mandate. The ‘GenZ Uprising’ and the subsequent dismantling of Sher Bahadur Deuba’s hegemony signify a profound repudiation of a legacy marred by administrative ineptitude and strategic stagnation. Deuba’s political career, alongside the populist rhetoric of KP Sharma Oli and the ideological volatility of Pushpa Kamal Dahal, serves as a cautionary tale of prioritizing personal survival over the foundational democratic and governance values.
The ascension of Gagan Kumar Thapa signifies a profound generational shift toward results-oriented pragmatism, marking a departure from traditional ideological rigidity. To achieve a similar transformative impact, the communist led by former multiple time prime ministers of Khadka Prasad Sharma Oli and Puspa Kamal Dahal along with others must experience a comparable party avalanche akin to the recent restructuring of the Nepali Congress. However, the March 5 election faces the threat of ‘unholy alliances’ between the entrenched trio of Deuba, Oli, and Dahal, who seek to manipulate the democratic and governance values to preserve their waning influence.
To counteract this, voters must demand a robust social contract that literalizes ‘Power to the People’ by securing water and energy as the non-negotiable bedrock of national security and economic development. They must critically analyze these recycled agendas and reject any coalition that views vital resources as elective luxuries. This election is a strategic imperative for Nepali citizens to purge the political landscape of institutionalized corruption and to establish a capable governance model of fostering genuine economic dynamism and national sovereignty.
The River Basin Plan 2024
The Water and Energy Commission (WEC) of the Government of Nepal successfully brought to the River Basin Plan 2024 represents a seminal shift in Nepal’s geoeconomic strategy, offering a sophisticated framework for hydrological, terrestrial resource governance and flood control. Rooted principles of the Integrated Water Resources Management (IWRM), the blueprint advocates for a decentralized, multi-scalar river basin governance model across ten major river basins like the Gandaki, Bagmati, Karnali and Koshi.
By prioritizing multipurpose projects, the plan seeks to harmonize hydroelectric generation, perennial irrigation, and ecological preservation, positioning water security as the primary catalyst for domestic production and a vital antidote to the chronic ‘brain drain’ of overseas migration. However, a critical disconnect persists between this technocratic roadmap and the prevailing orthodox political landscape. Despite the immense potential of fertile, sequestered river valleys such as the Dordhi and Rapti to foster niche agricultural entrepreneurship, these regions remain marginalized by systemic corruption and populist rhetoric.
Leadership under figures of Puspa Kamal Dahal, Khadka Prasad Sharma Oli and Sher Bahadur Deuba including other incapable former prime ministers have historically substituted substantive policy with strategic stagnation, leaving the nation burdened by debt and governance ineptitude. Established political entities, including the Nepali Congress and various communist blocs, continue to treat energy and water as peripheral commodities rather than the fundamental pillars of economic sovereignty. Ultimately, the active river basin plans of the WEC success hinges on whether Nepali voters can compel the political class to move beyond ‘recycled dreams’ and embrace this roadmap as a non-negotiable imperative for national resilience.
Imperative of water and energy
Water and power are the fundamental catalysts required to reanimate Nepal’s stagnant economy. As stakeholders in the democratic process, voters must scrutinize party manifestos for concrete economic agendas regarding the water and energy sector. The River Basin Plan of the WEC 2024 provides a comprehensive blueprint for unlocking natural resource potential to catalyze economic transformation. Therefore, voter support must be directed toward candidates who offer pragmatic, realistic policy commitments prioritizing the needs of the populace who have been neglected for over three decades. To date, neither the Nepali Congress nor the various splintered communist factions have demonstrated a serious commitment to converting these resources into genuine economic endeavors.
Economic Implications of the River Basin Plan 2024
The implementation of multipurpose projects at local, provincial, and national levels across the identified river basins offer profound economic opportunities. These projects serve a strategic function: transferring water to agricultural command areas, enhancing environmental services, revitalizing rural and urban economic partnerships by increasing productivity, advancing industrial and ecological balance. Sufficient water infrastructure supports productivity across all social, economic and environmental sectors.
The River Basin Plan of 2024 projects a capital requirement of $8.8bn for investment and operations, which is estimated to yield $15.7bn in total benefits. Under the strategic river basin plan framework: the Economic Net Present Value is projected to increase from Rs 1,151bn to Rs 1,221bn. Beyond these metrics, integrated water and power projects act as a multiplier for job creation and ‘real sector’ growth, directly elevating household incomes and human development indices, ultimately expanding GDP over $100bn with over $5000 per capita income.
The institutional failures of the power sector
Nepal’s power sector is currently stifled by the structural inefficiencies and monopolistic stagnation of the Nepal Electricity Authority (NEA). Despite extensive government support, the NEA’s gross failure to ensure reliable delivery has forced enterprises into costly diesel-reliance, compromising national economic dynamism. This institutional paralysis is exacerbated by a leadership culture that prioritizes the performative optics of energy exportation and populist media narratives over domestic infrastructure and household energy promotion.
Furthermore, the NEA exerts a ‘feudal’ dominance over independent power developers, frequently defaulting on grid-connection commitments and imposing restrictive Power Purchase Agreements and power generation to existing projects that jeopardize the sustainability of power projects. Such autocratic behavior necessitates an immediate transition toward an unbundled, decentralized market structure.
To unlock Nepal’s hydroelectric potential, the upcoming election must prioritize the establishment of a robust, independent regulatory body capable of enforcing accountability and dismantling entrenched political patronage. The professionalization of energy governance replacing administrative lethargy with meritocratic leadership is the only viable pathway to securing economic sovereignty. By curbing the NEA’s absolute market dominance, Nepal can foster a competitive environment that transforms electricity from a neglected luxury into the fundamental bedrock of industrial prosperity.
