Nepal’s political landscape is dominated by long-standing parties: the Nepali Congress (NC), the CPN (Unified Marxist–Leninist), and the Nepali Community Party (NCP) with many names and faces remaining the same. Despite the emergence of reformist challengers like the Rastriya Swatantra Party (RSP), the nation’s most persistent developmental hurdle, the management of hydropower and water resources remains unresolved. While investments in this sector have exceeded Rs 7trn, hydropower has yet to catalyze the transformative economic prosperity once envisioned. Today, the electorate is increasingly scrutinizing the systemic failures of traditional parties, the rising appeal of the RSP, and the broader implications for governance, transparency, and the future of Nepali democracy.
The paradox of ‘white gold’
Hydropower is frequently hailed as Nepal’s ‘white gold’. With its network of high-altitude rivers and steep gradients, the country possesses the natural capacity to generate tens of thousands of megawatts of electricity. If properly harnessed, these resources could power domestic industrialization, eliminate import dependency, and stimulate a diverse energy-based economy rather than merely generating revenue through cross-border trade. Furthermore, integrated water resource management encompassing irrigation, potable water, flood control, mitigating risks of glacier lakes’ outburst, public health, environment and tourism could fundamentally restructure the national economy.
However, despite decades of political rhetoric, the sector remains significantly underdeveloped. Managing the technical, regulatory, and administrative complexities of hydropower is a monumental task. As hydropower shares are now traded on the public market, the need for scientifically grounded, independent regulation has become critical. Without robust oversight, public and private investments risk being squandered. To date, over the Rs 7trn invested has yielded disappointing results, characterized by: infrastructure gaps, chronic delays and weak transmission grids; operational inefficiency: plants operating well below capacity and underutilization of domestic end-use remains minimal relative to the potential. This disconnect between massive capital expenditure and tangible outcomes has fueled a deep-seated public skepticism. Citizens are left asking a fundamental question: if such vast sums have been spent, why has prosperity remained out of reach?
Systemic failures of governance
For over three decades, the NC, UML, and NCP (Maoist) merged with UML factions have governed Nepal, often through musical chair coalitions. While leaders of these parties promised structural transformation, practical progress has been stifled by corruption, a lack of transparency, and the politicization of state institutions. Singhadurbar, the seat of the government, has become a symbol of bureaucratic apathy and political patronage.
The electorate has grown weary of a cycle of broken and false promises regarding ‘load-shedding’ (power outages), irrigation expansion, infrastructures and export growth. Governance concerns are paramount; public procurement in the energy sector is frequently manipulated by political elites, leading to inflated costs and substandard infrastructure. Because regulatory bodies often lack the independence to provide true oversight, public trust in the state’s capacity to manage large-scale projects and public economy has eroded.
Rising appeal of the RSP
In response to this stagnation, the Rastriya Swatantra Party (RSP) has emerged as a disruptive political force. Unlike traditional entities, the RSP positions itself as a technocratic and reformist movement, emphasizing: depoliticization: removing party influence from civil and regulatory institutions; digital governance by increasing accountability through technology and economic geography by leveraging regional advantages for growth like Karnali.
This platform resonates strongly with younger voters and the vast community of Nepali migrant workers abroad. These laborers, who left the country due to a lack of domestic employment opportunity, are increasingly urging their families and keen at home to reject the status quo. Their logic is pragmatic: since traditional parties have failed repeatedly, the nation must test a new alternative.
Voter sentiments
The prevailing public mood is one of palpable frustration. Voters are questioning the moral authority of legacy parties to seek re-election after decades of unmet goals with the same faces but changing color like lizards. This anger extends beyond hydropower to a general failure in delivering public goods, services, and accountability. The upcoming elections will serve as a referendum on governance. The stakes are historically high: if the RSP can translate its reformist rhetoric into measurable action, it could redefine Nepal’s political trajectory.
However, caution is necessary. New parties often encounter the same structural constraints such as rooted patronage networks that hampered their predecessors. Realizing Nepal’s hydropower potential requires more than just a change in leadership; it requires technical expertise, financial discipline, and a total overhaul of the regulatory framework.
Conclusion
The hydropower sector is a microcosm of Nepal’s broader struggle: immense natural potential hamstrung by chronic governance failures. While trillions have been spent, true prosperity remains elusive due to corruption and a lack of strategic vision. As traditional parties struggle to justify their track records, the RSP offers a glimmer of hope for an electorate desperate for transparency. Ultimately, Nepal’s future depends on whether its leaders can move beyond political maneuvering to implement the transparent, productive policies necessary to turn its water resources into national wealth.
The author is a hydropower engineer and multiple gold medalist with an MSc in Hydropower Engineering from the AIT, Thailand. Laxman Neupane, PhD is the former chairman of the Nepal Stock Exchange (NEPSE). The opinions expressed here are strictly personal and do not represent any political party, institution, or organization
