THESIS ABSTRACT

Abstract

This thesis examines the socioeconomic impacts of the Lower Solu Hydropower Project (LSHPP) on local communities in Ward No. 11 of Solududhkunda Municipality, Solukhumbu District, Nepal. As run-of-river hydropower expands across Nepal’s mountain districts, questions remain about how such projects reshape household income, employment, access to services, natural resources and community governance at the local level. Using a household survey of 94 respondents selected through stratified proportionate sampling across seven wards, combined with descriptive and inferential statistical analysis, this study assessed changes in household income, employment, land acquisition and compensation, environmental conditions, access to services and benefit sharing, and community governance and attitudes toward the project. The findings show that LSHPP has delivered small but measurable increases in household income for a portion of surveyed households, limited direct local employment, and near- universal improvements in access to electricity and associated infrastructure. At the same time, respondents expressed persistent concerns about reduced river flow and changes in local water sources. Consultation with communities was found to be largely one- directional, grievance redress mechanisms were inconsistently applied, and awareness of formal benefit-sharing arrangements remained low. Despite these governance shortcomings, overall community attitudes toward the project were favourable, driven primarily by the economic and infrastructure benefits received. Inferential analysis revealed a significant association between land acquisition status and household income change, and significant correlations between perceived benefits and governance quality with overall attitude, while perceived environmental impact showed no significant association with attitude. Differences in perceived benefit by distance from the project and by ward location point to an uneven distribution of gains even within a single project’s command area. These results suggest that LSHPP’s performance on income generation and electrification compares favourably with much of the literature on larger storage hydropower projects in Nepal and the wider Himalayan region, while its shortfalls in consultation, grievance handling and benefit-sharing awareness mirror governance challenges documented globally for run-of-river hydropower. The study recommends strengthened two-way 2 consultation, formalised and transparent grievance mechanisms, and clearer communication of benefit-sharing provisions to local communities, and offers recommendations for LSHPP, local government, and similar run-of-river projects in mountain districts of Nepal.

Keywords

Run-of-river hydropower, socioeconomic impact, rural electrification, benefit sharing, community governance, Nepal