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dam-l LS: Nepalis debate water pact



                                Nepalis debate water pact
                                with India ahead of vote
                                06:23 a.m. May 08, 1999 Eastern

                                By Gopal Sharma

                                MAHENDRANAGAR, Nepal,
                                May 8 (Reuters) - Nepalis,
                                preparing for the second round of a
                                general election, are debating the
                                future of a river pact with India
                                which has become a thorn in
                                relations between the two
                                neighbours.

                                The first round of voting in the
                                Himalayan kingdom's third
                                legislative election in nine years
                                took place last week and the second
                                is scheduled for May 17.

                                Voters in this sleepy town on the
                                western borders with India are
                                sceptical about the will of
                                politicians to resolve issues such as
                                the Mahakali River controversy.

                                ``They make empty promises but
                                forget everything once they win the
                                ballot,'' Prem Jairu said

                                Lack of water for irrigation and
                                electricity is a key problem in
                                Nepal, which nestles between India
                                and China on the southern slopes of
                                the Himalayas.

                                In 1996, Nepal and India signed the
                                Mahakali River Treaty, setting out
                                the terms for the construction of a
                                dam to generate hydroelectric
                                power and provide irrigation.

                                The new dam, capable of
                                generating up to 6,400 megawatts,
                                would cost more than $3.0 billion
                                to be shared equally between
                                Kathmandu and New Delhi.

                                The pact gives Nepal more water
                                and power from an existing Indian
                                facility at Tanakpur on the same
                                river.

                                A dispute over how the water
                                should be shared out has delayed
                                the dam. Nepal wants India's share
                                to include water New Delhi uses
                                from existing facilities but this is
                                opposed by India.

                                The centrist Nepali Congress and
                                the Communist United
                                Marxist-Leninist (UML) parties
                                vowed in their election manifestos
                                to go ahead with the dam while the
                                Communist Marxist-Leninist (ML)
                                party wants to rewrite the pact.

                                Political analysts expect no clear
                                verdict after the vote, which would
                                cause fresh political instability and
                                damage prospects of the dam being
                                built.

                                ``It (the pact) does not give Nepal
                                equal water rights so it should be
                                changed,'' said Keshavlal
                                Shrestha, an ML member.

                                Analysts say the dam, which would
                                take more than 10 years to build,
                                was not a priority for Nepal. The
                                construction cost was large and the
                                it would produce more electricity
                                and water than Nepal needs.

                                ``Mahakali is not a priority for
                                Nepal. There are better investment
                                alternatives,'' said Rajendra Dahal,
                                editor of the Nepali magazine
                                Himal.

                                A lack of money and technical
                                know-how has forced Nepal to use
                                only 3000 MW power out of its
                                potential of 83,000 MW.

                                Only about 15 percent of 22 million
                                Nepalis currently have access to
                                electricity.

                                Private investment in hydropower
                                can narrow Nepal's $294.2 million
                                trade gap with India.


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