Development banks under fire for backing disputed Nepal hydropower project

Nepal has long relied on hydropower projects to meet most of its energy needs, but recent complaints from Indigenous and local communities have cast a shadow over the development of some projects — particularly the Tanahu project.

In 2023, U.S.-based human rights watchdog Accountability Counsel documented a series of 16 complaints against hydropower projects in Nepal, many with funding from international institutions such as the Asian Development Bank (ADB), European Investment Bank (EIB) and World Bank. These projects, including the Tanahu project, which is funded by the ADB and EIB, have been accused of failing to meet their due diligence requirements during the approval process.

“Even though these projects have records of not fully adhering to environmental and social compliance and respecting Indigenous and community people’s rights and decisions, they [international development banks] keep supporting more and more projects,” said Sutharee Wannasiri, communities associate at the Accountability Counsel.

Read the full article from Mongabay here.