Challenges in the Feasibility Study of Hydropower Projects in Nepal
Student: Sujan Niraula
Supervisor: Er. Gyanendra Prasad Kayastha
Submitted Date:
October, 2023
Abstract
The feasibility study of hydropower projects is the base and backbone of further study and
development of the hydropower projects. This thesis examines the challenges encountered
during the feasibility study of hydropower projects in Nepal, effect of these challenges and
also proposing effective remedial measures to address these challenges. Through a
comprehensive research approach, involving Principal Component Analysis (PCA),
Relative Importance Index (RII), Key Informant Interviews (KII) and thematic analysis, this
study advances our understanding of the issues surrounding feasibility studies.
The research objective centers on identifying challenges in the feasibility study of
hydropower projects in Nepal. The specific objectives encompass the identification of major
challenges & their effects and the provision of remedial measures.
The analysis of challenges reveals a categorization into seven components, a) Addressing
social and legal challenges, b) Addressing water conflicts and project management issues c)
Optimization of project for financial attractiveness d) Dealing study complexity & expertise
e) Acquiring qualitative reliable data and addressing geotechnical surprises f) Poor
communication and coordination culture g) Managing risks and uncertainties. Notably,
"Social and legal challenges" emerges as the foremost challenge.
Examining the effects of these challenges on feasibility includes significant delays in project
timelines, increased study costs, compromised output quality affecting project construction
and operation phases, unexpected variations during construction, and frequent client
dissatisfaction leading to conflicts among stakeholders. These collectively shows the effects
of challenges faced during feasibility studies.
The study concludes by offering remedial measures to address the identified challenges.
Proposals range from stakeholder engagement, sustainable environmental practices and
community development, to climate resilient planning, financial planning and risk
mitigation strategies. Addressing the issue of acquiring and retaining technical expertise
vi
involves competitive compensation packages, professional development opportunities and
collaborative work environments. Similarly, obtaining reliable data and managing
geological uncertainties necessitates advanced methodologies, consultations and real-time
monitoring. Effective communication protocols, stakeholder interactions and meetings have
major role in mitigating communication challenges.
Keywords
Feasibility study, Principal Component Analysis, Hydropower projects,
Challenges, Consulting services.