Nefport 49 - Local Economic Development Special

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DOCKING NEPAL’S ECONOMIC ANALYSIS

Energy and Environment Despite the increase in the installed capacity of hydropower projects in the review period, the decrease in hydroelectricity production from Run-of-River projects during the dry season led to the increase in electricity imports from India. Meanwhile, the Government of Nepal has urged Indian firms to buy an additional 200 MW of surplus electricity in the upcoming monsoon season. The review period also saw Nepal signing an agreement with China for the development of a cross-border transmission line, as well as an agreement with India to expand energy trade under the Bangladesh Bhutan India Nepal (BBIN) framework. In terms of renewable energy, the Nepal Electricity Authority (NEA) lowered the maximum power purchase agreement rate for solar energy, which might discourage investors from investing in solar energy plants. Nevertheless, the review period saw fuel prices reach record highs. POLLUTION AND EMISSIONS Segregation of Waste Made Mandatory by Kathmandu Metropolitan City Issuing a public notice, the Kathmandu Metropolitan City (KMC) has made it mandatory for households and businesses in the city to segregate biodegradable and nonbiodegradable waste while disposing them to garbage collectors. As per the KMC, two separate vehicles would be deployed to collect the two types of waste separately. If households fail to dispose the biodegradable and non-biodegradable waste separately, a cash penalty of NPR 500 (USD 4.09) would be levied. The new rule came into effect starting April 14, 2022.167

Similar kind of a rule was also implemented in August 2019, and piloting was conducted in wards 12, 18, and 21 of KMC.168 Back then, KMC had planned to collect biodegradable waste for four days (Sunday, Tuesday, Thursday, and Saturday) and non-biodegradable waste on Monday and Wednesday, every week. However, the authorities had failed to implement the rule effectively. This backdrop especially necessitates more detailed and effective planning and execution from the metropolitan this time around. Garbage Piles up in Kathmandu Valley With the Sisdole landfill site in Nuwakot district full, waste management at all 18 local

FACTSHEET Total Petroleum Product Imports (Six months 2021/22)

(USD 1.79 billion)160 Peak Energy Demand (2021)

1482 MW161 Total Energy Generated

2205 MW162 Total Hydropower generated

2022 MW163 Total Solar Energy generated

49.76 MW164 % of households with access to electricity (2021)

94%165 Number of permits/license issued for energy generation

229166

levels in the Kathmandu Valley has been affected once again since May 8, 2022. According to the Kathmandu Metropolitan City, waste management in the valley was disrupted as space needed to be managed for more garbage at the Sisdole landfill site.169 Transportation of garbage to the landfill had been earlier affected since March due to obstructions from locals of Nuwakot, who had been demanding the construction of better roads in the Sisdole area. The government had to mobilize security forces to escort garbage trucks to transport the garbage to the landfill site.170 Sisdole has been managing trash from the Kathmandu Valley for the past 15 years, even though the facility was only prepared for two years.


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