Changing dynamics of water negotiations: A case from Dhulikhel, Nepal

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1 Changing dynamics of water negotiations: A case from Dhulikhel, Nepal Kaustuv Raj Neupane*, Kamal Devkota*, Tikeshwari Joshi*, Ngamindra Dahal*, Eszter Kovacs** *Southasia Institute of Advanced Studies, Nepal, * * Department of Geography, University of Cambridge

2 Context Competition over water sources Decreased water volume--- Increased conflict Informal negotiation used to be sufficient for agreeing and building water supply schemes Dhulikhel - Successful example of water negotiation Underlying causes (and definitions!) of success are not free from conflicts and controversies

3 Dhulikhel Touristic Town, Trade route along Kathmandu-to-Tibet 30km far from Kathmandu 14 sq. km with population 16,263 Banepa and Panauti adjoining Municipalities History of more than 2 decades of water negotiation Water being tapped from 14 km away, from rural village called Bhumidanda

4 Aim of the Study To analyse and reflect on the dominant factors that have shaped the negotiations for water access and supply in Dhulikhel and its upstream communities

5 Methodology Review of secondary and grey literature Semi structured interviews (40) Focus group discussions (FGDs; 2) Stakeholder consultation (1)

6 History of water negotiations in Dhulikhel The first agreement, 1985 Kavre valley agreement, 2010 Revised agreement, 2011 paved way for Dhulikhel water supply project funded by then-gtz water considered as social good In exchange for water, Dhulikhel provided money to the upstream village to build a school tap larger volume of water to three municipalities annual payment of US $ for five first year Project under construction (supported by ABD) pay annual US$8,000 to upstream VDC and US$2000 to school replace exiting intake pipe of 6 inch pipe to 10 inch managed by community

7 Changing in landscape of negotiations for water Changing Water Values: available-to- all to commodity Changing Political Context: Centralized to local governance system, monarchist to multi party system Water Policy: informal practice of water source registration to formal Weaker Public institution: Local elected representatives to no elected representatives

8 Changing water values" to "increasing water scarcity? Development should have started in this village the moment the Dhulikhel area was offered water. They are selling our resources, and they have [only] contributed to the construction of a school building. We are giving away our valuable resource, people in Dhulikhel are enjoying it and will enjoy our resources for their lifetime. In return, we are getting nothing. (Farmer, FGD of upstream farmers) I earn on average US $15 per day by grinding flour in the water mill, which fulfils the basic needs of my family. After diversion of water by the Kavre valley project, only a few water mills will stay in operation. It will impact irrigation as well as the same water that is diverted by water millers is used in irrigation. (President Citizen Forum, interview note).

9 Changing political context Monarchy pre Multiparty democracy Federal republic after 2006 Newly emerged political parties are required to establish their legitimacy, credibility

10 Ambiguous water policies drinking water and domestic users Irrigation agricultural uses hydroelectricity cottage industries and mining navigation other

11 Rising conflicts linked to weaker public institutions Local leaders sold water sources overnight in a surreptitious way, and as a result we are very likely to face severe water scarcity for irrigation and in the operation of water mills, (Local leader of fringe party, Interview Note) We would be more than happy if ADB project or Dhulikhel itself works for development in Bhumidanda as compensation [for taking water] rather than providing cash to these leaders. (Interview, Bhumidanda) We want development not cash

12 What is the purpose of the payment? Agreement did not clarify how the funds should be used by upstream village Downstream feel they completed their obligation by simply paying the agreed amount, and thus legitimizing their water access. Dhulikhel has given an incentive amount but it has been used in development activities in another part of the upstream which is not in the specific impact zone of the Dhulikhel water Supply project and as well as new Kavre Valley project. (Local Political Leader, Interview Note)

13 Conclusions Nepal hill towns are experiencing a growing number of claims on water sources Water values are changing from essential and accessible resources for all, to a resource in scarcity that is priced Lack of holistic participation within communities Lack of transparent decision-making and expenditure processes within the communities

14 Acknowledgements Ecosystem Services for Poverty Alleviation Program, UK (ESPA) Bhaskar Vira, Department of Geography, University of Cambridge, UK Hemant Ojha, University of New South Wales, Australia Respondents INSEE

15 Thank You