Compensation Fixed for Families Affected by Tanahun Hydropower Project

Compensation has been determined for 10 households affected by the under-construction 140-megawatt Tanahun Hydropower Project in Rishing Rural Municipality–1, Jhaputar. According to the project, the decision was taken during a recent meeting of the Compensation Determination Committee chaired by the Chief District Officer, based on damages incurred during construction activities in areas including Lokpa, Dharapani, Dhoklak, Bulsat, and Jhaputar.

Based on a field inspection report submitted by the committee, compensation has also been fixed for orange trees damaged during the construction of a retaining wall for a transmission tower under the Damauli–Bharatpur transmission line in Byas Municipality–14, Sodhe. In addition, the meeting addressed compensation-related demands raised by informal land users and unmanaged settlers residing within the reservoir and buffer zone areas of the project.

The committee also discussed additional responsibilities assigned to it by a Cabinet decision, which includes conducting on-site studies and surveys of public (ailani) land located within the demarcated reservoir and buffer zones. These lands have been used for farming, livelihood activities, and settlement for a long period. The discussion focused on how compensation and rehabilitation issues of such long-term users should be addressed in a fair and systematic manner.

Construction of the project is progressing through multiple contract packages. Package-1 covers the dam and related headworks structures, Package-2 includes the main tunnel, powerhouse, and associated electro-mechanical equipment, while Package-3 involves the construction of the 220 kV Damauli–Bharatpur transmission line.

The total project cost, including transmission infrastructure, rural electrification, and interest during construction, is estimated at USD 505 million. The financing structure includes USD 150 million from the Asian Development Bank, USD 184 million from the Japan International Cooperation Agency, USD 85 million from the European Investment Bank, and USD 86 million jointly funded by the Government of Nepal and the Nepal Electricity Authority.

Project officials state that addressing compensation, resettlement, and livelihood restoration issues remains a priority alongside construction progress. They believe that resolving local concerns in a timely manner will help ensure smoother project implementation and strengthen community support for one of Nepal’s major national hydropower projects.