West Seti Must Be For Nepalese Too

Dr. Trilochan Upreti

William Bulti-tude, Managing Director of Australia's Snowy Mountain Engineering Corp (SMEC), has reportedly said that the construction of the 760 megawatt West Seti Hydroelectricity Project will start in November 2007. This means three months earlier than the original plan to initiate the project by January 2008.

Energy vs. revenue

Baltitude has been quoted as saying that SMEC is willing to consider providing free energy to Nepal instead of cash, if the government asks for it. He also said that, legally, SMEC is under no obligation to provide free energy to Nepal because the existing agreement is to provide Nepal 10 per cent of the revenue generated by the project. It is also said that the government has not yet formally requested SMEC to provide 10 per cent of energy instead of cash. However, Baltitude has been misinformed. The government is not in a dilemma because the Natural Resources Committee of the legislature-parliament has instructed the government to get 10 per cent of the energy instead of cash from SMEC.Bultitude had also revealed that it was not economically feasible to provide energy to Nepal from the West Seti Project itself, and, therefore, a different project would have to be identified for that purpose because the West Seti is being built to export power to India. SMEC has already initiated a Power Purchase Agreement with the Power Trading Corporation of India for a period of 25 years at 4.95 US cents per unit.

Pursuant to the policy of involving the private sector in generating energy, and SMEC having showed its interest in the West Seti, a MOU was signed between the two 13 years ago. In the MOU, SMEC had promised to provide Nepal at least 10 per cent of the total hydro-electricity to be produced and exported to India from the project. This provision was changed in 1998, whereby, in lieu of the 10 per cent energy, 10 per cent of the revenue was to be provided to the Nepal government. This provision was again replaced by a provision of providing 10 per cent energy instead of 10 per cent revenue. Thus, the presiding water resources ministers have been inconsistent on the policy of energy versus revenue, whereas the need of the country for energy has not changed at all. Thus the ministers, who agreed to the option of revenue against energy, had not decided the matter considering the better option for Nepal. It is an allegation from the side of the people at this juncture of time.West Seti Hydro Ltd. (WSH) has also conducted a meeting with some 28 parliamentarians representing the far-western region, where the topic of the discussion was about energy versus money. It is also reported by the WSH that in the event the project moves ahead as it is today, Nepal would obtain an estimated financial return of US$ 1.12 billion (Nepalese Rupees 73 billion), inclusive of royalty, tax and bonus from the project over the 30-year period. The total cost of the project is US$ 1.2 billion, and 1,579 families would have to be resettled for the construction of the project. This project, if commenced on time and no out of control situation emerges during the implementation stage, will be completed by 2012, five years from now.

Regarding the investment in the project, the WSH's investment would be 26 per cent, Asian Development 15 per cent, China National Machinery Import and Export Corporation 15 per cent, Government of Nepal 15 per cent, for which it has acquired US$ 2 million from the ADB and Special Purpose Vehicle investment will be 14 per cent. The profit of the company has not been made transparent to the media and public. However, the government would not be prohibited from the huge profit generated by the project. This is the first test case of hydropower development by private investors with the aim of exporting power to India. Those who think that this is the only natural resource bestowed on us by nature and that it should be utilised for the optimum benefit of the country wish for its success so as to open up a flood of private investors for making a prosperous Nepal from the huge royalty and other benefits from large water projects. A recent World Bank study suggests that Nepal could get annually US$ 6-10 billion from its water resources development, if a holistic, integrated and prudent use of Nepalese water resources is carried out.

There are a few issues that have to be resolved. For example, the rehabilitation and resettlement of 1,600 displaced families should be undertaken in accordance with international standards and norms. Water withdrawal rights of the local people in this basin must be protected for the past as well as future use. For it to happen, any such plan should be made with wider consultation and consent of the people likely to be displaced, and the basic tenet of it is that their life and livelihood should be better off than the present level. In terms of employment, housing, property, cultural and religious rights, their mode of life should be strengthened and preserved. Therefore, the social, environmental and resettlement policy must be people-friendly and highly beneficial to the displaced families, which is yet to be finalised and accepted by the local community. The local people and the institutions should also get proper benefit from the project, and water entitlement and right of the upper riparian people should also be well defined and protected so that present and future use for drinking and irrigation facilities of the people is safeguarded. This will prevent potential disputes with local institutions and the federal entity, if it is established after the election of the constituent assembly.

Unless a full guarantee of the local interests is safeguarded and local institutions and people are happy, this project cannot move forward. Therefore, the developer should be prudent and liberal to protect and preserve the interests of the local people, and ensure that no adverse effect on the environment and livelihood of the people of the surrounding districts of the project is caused in any way. The legal, constitutional, socio-economic and technical issues and loopholes should be dealt with in a better way for ensuring the broader benefit of the local people. If SMEC is successful in its objective, then many private investors would queue up to invest billions of dollars in many hydropower projects in Nepal.

Trade balance

Nepal's rapid economic acceleration and development depend upon water resources development. If we are able to develop 4,000 megawatts of hydroelectricity and export them to India, then our Rs. 55 billion trade deficit would be balanced. Bhutan has been exporting around 2000 megawatts at the moment and will export an additional two thousand megawatts in the foreseeable future, giving a big boost to its economy. Once the smooth export of West Seti power is resolved, then the prospects of Nepal's development in the hydropower sector will also be opened.

Source: The Rising Nepal, August 22, 2007

Cold feet

The government has fallen distinctly short of meeting its targets outlined in the Water Resources Strategy, 2002. For instance, the strategy envisioned generation of 820 MW of electricity through hydropower projects by 2007, but the existing maximum power generation capacity is a paltry 560 MW. Another goal was to increase the share of private investment in hydropower sector to 75%. As things stand, private sector involvement is limited to very small power plants. Other areas where the government made some progress but failed to meet its targets are water supply and sanitation, and irrigation.

The strategy, say its proponents, was not ambitious (one big hydropower project would have been enough to meet the country’s power needs). They are unanimous in their view that even though the decade-long Maoist insurgency erected countless hurdles for effective implementation of their outlined plans, the failure to meet even modest targets can by and large be attributed to the lack of political commitment and incompetent leadership. As usual, Nepali political leaders and top-level bureaucrats have proven themselves ultra-efficient in making big promises but found to be developing cold feet when it came to making a real difference. Building a new Nepal starts with the readiness on the part of those occupying responsible posts in the government to change their outmoded mindset that tends to encourage rewards for producing practically nothing of substance. Old habits die hard. And yet, unless Nepali leaders and bureaucrats are weaned off the culture of exalted sinecures, carving out a new Nepal will be that much more difficult.

Source: The Himalayan Times, August 17, 2007

Water supply: Case for public-private partnership

Chiranjibi Nepal

I n the early 1990s, with increasing awareness of environmental degradation and widespread stress on water-related issues, the UN and the international community started to take freshwater issues seriously. In accordance with the “Dublin Principles” that emerged from the International Conference on Water and Environment in Dublin, water was recognised as an economic good (a commodity to be priced at cost of provision and value to society). Private sector participation in water services increased worldwide. But still, it only serves about five per cent of world population. At the end of the 1990s, multinationals started to revoke contracts and concessions in developing countries and are now reducing their involvement in projects that are unprofitable or risky.

Two popular models exist in the water sector: the English model of full privatisation, where ownership and management are private, and the French model (PPP model) of delegated management (lease and concession contracts), where the ownership is in public hands and the management is handled by a mix of public and private bodies. The English model is adopted mainly by England and Wales, whereas the French model has been the norm in most developed and developing countries.

Partnership between public and private sectors is a means of collaboration to coordinate and pool organisational, technical and financial resources to achieve compatible objectives. Dwindling public resources and increasing need of the citizens with regard to service delivery are the reasons for emergence of this concept. Public-private partnerships (PPPs) enable public sector to generate private funds while maintaining ownership of assets and services.Private sector’s involvement can significantly improve effectiveness and efficiency of service delivery. This came with the realisation that the government alone could not provide everything to everyone. This led it to promote private sector in areas where it is willing to cooperate for service delivery or infrastructure building. PPPs for service delivery are applicable to the most of public services such as drinking water supply, garbage collection and disposal, waste water treatment, operation of transport services, real estate development and management, education and public health.

In the context of the kind of urban services in Nepal, there is limited scope for the multinational companies (except in Water Supply Management). However, there is a high potential for local and national companies. But comprehensive national policy on public private partnership is still underdeveloped. PPP should be based on mutual prosperity and fairness and PPP policy should follow national policy for timely and cost effective development by allocating risks to the party best able to manage them and benefit from private sector’s efficiency, expertise, flexibility and innovation.But PPPs will only help if there is a good regulatory authority that can enforce policies and regulations. The issue of public-private partnership is complex, even more so in the case of municipal water supply. Hence, every law and institution that can affect PPP must be carefully examined. These include labour law, industrial enterprise act, company act, company taxation rules, environmental standards and regulatory tools, power and capacity of regulatory agencies, division of responsibilities between municipality, VDCs and Nepal government, among other related acts and policies.

The private sector seeks commitment of the political parties to PPP approach, clear definitions of scope of work, transparent tendering process, security of water supply, clear definition of responsibilities of municipalities and VDCs, an autonomous body for drinking water management and a company act for drinking water.New and effective financing mechanisms are essential for the development of water sector. New funding mechanisms should be sought that include bond financing, expanded role for urban banks in water sector, independent intermediary private sector funding through increased participation in water services with appropriate sharing of risks between contracting parties - with the banks providing guarantees for some risks as well as issue of treasury bills.

Private sector participation would be enhanced by arrangements with international agencies to protect against political risks. Availability of guarantee would be contingent upon having appropriate contractual structures for private sector participation. Private companies need to be assured return on investment, as investment in the water sector is high and irreversible. Further, there is no ‘one size fits all’ approach and the choice of a particular partnership depends on local context and feasibility. It is indispensable for governments as regulators to understand the motive of private sector for entering PPPs and have skills to manage unknown circumstances over the life of the partnership.Dr Nepal teaches Economics at TU

Source: The Himalayan Times, May 30, 2007

Hydropower: An Overview

Uttam Maharjan

Energy is one of the basic components of development. Without energy, no economic sector can develop. An instance of energy is fossil fuels. Fossil fuels are extensively used around the world. The far-reaching use of such fuels has contributed to destabilising the environment, causing, for instance, global warming. With fast-paced depletion of fossil fuels and the resultant effects on the environment, hydropower is being explored as a renewable source of energy. In the present scenario dominated by the deleterious effects on the environment of greenhouse and other noxious gases, moving towards the use of hydropower as a carbon-free energy source has been deemed viable and eco-friendly.

Renewable energy

Hydropower has been recognised as a renewable source of energy. The Johannesburg World Summit on Sustainable Development and the Third Water Forum (Kyoto) have both recognized hydropower as such. Other sources of renewable energy are solar energy, wind energy, geothermal energy, oceanic energy, cogeneration (use of a heat engine or a power station to generate both electricity and useful heat at the same time) and biomass.

At the end of the Third Water Forum held in March 2003, a new report was released on how developed countries should fund water projects. At the beginning of the 21st century, 33 per cent of the people were found suffering from water hardships as per the 54-page report of the Forum. In Africa, households spend 26 per cent of their time fetching water. As per the study by the Water Supply and Sanitation Collaboration Council, an independent body that endeavours to secure safe drinking water for the teeming poor in the world, Asian and African women have to walk around 6 kilometres a day to fetch water. Consumption of water per person per day in developing countries is estimated at 10 litres vis-୶is 135 litres in the developed countries.

About 1.1 billion people around the world are deprived of safe drinking water, whereas about 2.4 billion people are balked of good sanitation. One of the millennium development goals is to halve the problem relating to safe drinking water by 2015.Nepal is very rich in water resources. Despite this huge potential of water resources, the hydropower picture in the country is bleak. There is no denying that hydropower has multi-dimensional use, through which sustainable development can be notched up. Sustainable development in the economic sector would certainly transform the socio-economic status of the people, a daunting challenge for the poor countries.With the restoration of multi-party democracy in the 1990s, the hydropower sector in the country, like other economic sectors, has somewhat metamorphosed. The Water Resources Act 2049 and Hydroelectricity Act 2049 were promulgated, enabling the private sector to step in for investment in water resources. Foreign companies are interested in hydropower projects, but they prefer large-scale hydel projects.

Foreign aid for the development of water resources projects also comes but with harsh terms. Such projects are marred by lack of transparency, accountability, monitoring and financial discipline and by economic anarchy and malgovernance. The cost of such projects would also soar due to delay in completion, exchange rate devaluation and additional cost. It is essential to set up an Electricity Development Board and encourage small- and medium-scale hydel projects. For water resources to develop in a true sense, three things need to be in place: management of electric development and promotion, market management of electricity, and operation and maintenance of projects in a timely fashion. In developing countries like Nepal, large-scale hydel projects are a difficult proposition due to the high cost and sophisticated technical know-how required. Hence, small-scale hydel projects such as micro- and pico-hydel projects need to be encouraged and stimulated in addition to large-scale hydel projects. Micro-hydels produce upto 100 KW of power. Such hydels are often used in areas where there is plenty of water. They supply power to small communities. Micro-hydels can complement photovoltaic solar energy systems.

On the other hand, pico-hydels generate power below 5 KW. Such hydels are used for far-lying communities requiring very low power. Pico-hydropower does not pollute the air, so it is more eco-friendly than fossil fuels. Hydropower projects have elimination of the cost of fuel as their major advantage. As no import of fuel is required, hydel plants are free from price hikes normally associated with fossil fuels like oil, natural gas, coal and POL products. Besides, the operating labour cost of hydel plants is lower as plants are automated, requiring very few people on site during normal operation. Reservoirs built for the purpose of hydel operation may provide water sports facilities. Such areas may be used for wooing tourists, thus, developing the areas into tourist spots. In a similar vein, a hydel plant may be constructed at a lower cost around multi-purpose dams for irrigation, flood control or recreation, which may recoup the cost of the construction of the dam. Hydropower projects do not come with advantages only; they may pose a threat to aquatic ecosystems. Damming often poses an obstacle to the migration of fish, thus preventing them from reaching their spawning grounds upstream. Similarly, damming and redirecting the waters of a river may endanger native and migratory birds. Large-scale hydel projects may give rise to environmental snags both upstream and downstream. The reservoirs of hydel plants in tropical regions may generate a lot of noxious gases such as methane and carbon dioxide.

Disadvantages

Construction of hydel dams makes it necessary to relocate the people who are living where the reservoirs are planned to be built. In such a case, the question of compensation often crops up, leading to spats with the local people and causing a delay in completing the hydel projects. Besides, historically and culturally strategic places may be affected, sometimes leading to their complete loss, which is a great blow to heritage preservation. Construction of a dam in a geologically unsuitable area may give rise to disasters. One such example is the Vajont Dam in Italy, which killed 2,000 people in 1963. Failure of dams can be very serious. The failure of the Banqiao in China killed 171,000 people and rendered millions homeless. Even stronger dams built at a great cost are vulnerable to sabotage and terrorism.

Source: The Rising Nepal, May 25, 2007

Global Warming And South Asia

Dr. Trilochan Upreti

GLOBAL warming refers to the increase in the average temperature of the earth and the oceans in recent times, and in the future. Gases such as carbon dioxide, methane, ozone, nitrous oxide, sulphur hexafluoride and hydroflurocarbons (HFCs) and water vapour are called green house gases, which are collected in the atmosphere like a blanket trapping the sun's heat that is radiated off the earth's surface. These gases have been contributing factors to global warming over the past 50 years, during which the average global temperature is said to have increased at the fastest rate recorded in history and is expected to keep increasing at a rate of up to 2 degrees Celsius in the next 50 years. This would eventually lead to a rise in the sea levels that will inundate the low lying coastal belts, even leading to many smaller islands being totally submerged. InundationThe Maldives will disappear along with many island nations; one third of Bangladesh will be under water and, likewise, low lying belts of many coastal states would also be inundated. Consequently, there would be other disastrous effects. For example, there would be frequent incidents of extreme weather conditions like floods, heat waves, droughts and hurricanes that would trigger natural calamities, making human life more difficult than ever.

There have been no dearth of scientists and politicians who maintained that global warming is part of a natural process that occurs due to non-human causes like solar activity, volcanic emissions and so on. However, after the landmark report of the UN's Intergovernmental Panel on Climate Change (IPCC), whose drafting was marked by an angry row, the argument blaming nature for global warming has lost its trust and credibility, and the world community has unanimously blamed human intervention for the issues. This is an interesting shift in the mind-set of the global community concerning the issue.The IPCC has strongly suggested that countries ought to adopt strategies to mitigate global warming through measures such as energy conservation and shifting to renewable sources of energy to displace carbon fuels and, thus, reduce the emission of carbon dioxide and other greenhouse gases. As a result of such concern, the Kyoto Protocol was drawn up. The protocol is an agreement made under the UN Framework Convention on Climate Change. By 2006, 169 countries, responsible for 61.6% of emissions, have ratified it except the USA and Australia.

The USA, which is the largest economy of the world and contributes 25% of the global emission, has not ratified the Convention arguing that allowing unfettered emission levels to countries like India and China is unacceptable and that the USA has adopted effective measures for combatting global warming issues on its own. Whereas the developing countries are directly blaming the developed countries for the global warming, they are also maintaining that they first need to develop their own economy, a process which would be hampered by compliance with the instrument at this juncture in time. Those responsible for the irreparable damage due to climate change and problems associated with it should reverse the impacts through their own effort. Thus, global warming has remained a threat to the existence of the earth and its inhabitants, including the flora and fauna.The IPCC report predicts that billions of people will face water scarcity and hundreds of millions will likely go hungry, mainly in the poorest regions least to blame for spewing the fossil fuel pollution that is driving up temperatures. Likewise, glacier meltdown and ice sheet erosion will accelerate, which would impact the sea levels, causing devastating impacts on the coastal states. Similarly, upto 30 per cent of the planet's plants and animal species will become extinct, if temperatures rise by 1.50C to 2.50C.

The poorest regions and continents will suffer the most - tropical countries, African continent and the SAARC region. That means the melting of glaciers and Himalaya in Nepal would adversely affect the entire SAARC region and its weather pattern, causing abnormal drought and floods, which will contribute to the scourge of famine upon one billion people. One third of Bangladesh and huge swathes of Indian coastal territory would be inundated, inviting extraordinary problems of human survival in the entire South Asian region. Numerous problems not yet identified would emerge, leaving no space for easy resolution. These nations are already witnessing huge problems for their economic development, and tackling the issues of poverty will have to confront additional formidable problems. Eventually, it would invite inconceivable conflicts amongst communities, states and nations making it extremely difficult to find a point of resolution.One must study its impact at the national level by recalling that many bridges and one hydropower plant were washed away when one glacial lake caused by a retreating Himalayan glacier in Solokhumbu district burst a few years ago.

What would be the effect when glacial retreat and melting of the Himalayan peaks occur at the same time? We have huge human settlements near the banks of rivers, and most of the fertile lands in the hills lie on the banks of rivers. When such catastrophes occur, it will wash away people and inundate and fill up adjoining agricultural lands with sand and boulders.No one can even predict the magnitude of its implication for India and Bangladesh, where huge devastations and disasters will wash away millions of people and waste millions hectares of agricultural land. Towns and cities will be transformed into graveyards. Clean hydropower should be developed and used by the needy countries by adopting an equitable sharing of the benefits of the immense water resources of the region. In this context, this time could be the best for resolving every outstanding issue on sharing and utilising the huge water resources in the SAARC region by addressing the past grievances and also accommodating the future needs of all nations on an equal and equitable basis. Blame gameRather than blaming each other, the developed and developing countries like China, India and Brazil should comply with the provision of the Kyoto protocol by involving themselves in the resolution of the problem and making space to exist for future generations. The developed nations should assist them wholeheartedly for obtaining this global objective.

Source: The Rising Nepal, May 17, 2007

Environment Conservation And Development

S.K. Shrestha

ENVIRONMENT and development have close relationships. In the present context, they are like the two faces of a coin. Sources of environment such as land, water, vegetation are utilized in development works. While constructing roads, natural condition such as land, forest etc are cut and leveled. The development activities bring change in environment. The environment should not be degraded by conducting unreasonable development works. Human poverty is an obstacle for environmental conservation. The development and environment conservation activities must go forward in an integrated way. Moreover, environmental degradation has an adverse impact on development process. There must be environment conservation for meaningful development work.

Classification
Infrastructures of development are classified as human resources, physical, social and economic aspects. Skilled manpower is needed to conduct development works in the different sectors such as education, health, agriculture, communication, science and technology etc. Additional development activities become easy due to the development of infrastructures such as roads, bridges, canals, drainage systems, buildings, electricity and communication facilities, etc. They help in communicating the information to accelerate the development ahead. It is quite essential to develop the social aspect as infrastructures to conduct development works effectively. The decision making power, interest to work and desire for participation are to be developed in the people of present organizations, for making them self?dependent and efficient in their works. The development activities are different according to economic investment. The investment is needed to make infrastructure for physical and social development. The formation of development infrastructures help in executing development works in the country.The most dependable media for development in countries like Nepal is industrial development. Our country being a predominantly an agricultural country, industrial development can be made using agricultural products. We must give priority to industrial development which has much role to mobilize the use of human resources and other resources of the country. It helps to raise the economic and social status of the people. Such development has a great role in Nepal with poor economic condition. There is a great importance of cottage industries along with large scale industries also in our country. Cottage industry is essential to make use of local environmental resources. The large scale industries like jute, sugar, cement, paper etc help in the economic development of the country. These industries are not running smoothly due to the prevailing situation in the country. These industries are related with the environment. So, special attention has to be paid for industrial development along with environmental conservation and protection.

The industry, people and environment are related to one another. So, the importance of industry deals with production of raw materials and use, development of human resource, employment opportunity, production of goods, improvement in standard of living, economic development and mobilization of private sectors. Both the government bodies and the private sector should be encouraged to invest and run various types of industries. It leads to competition in the private sector for the development of the industries. It stimulates the efficiency in industrial development of private sectors. The investment of private sector in Nepal for the development of the country is required to be increased in the present situation.The development works of the country are correlated with environment. The people get benefits on the one hand and on the other there are some adverse effects on the environment. Such adverse impacts can be alleviated by arranging necessary means, resources and instruments. The local people should also be involved in the development activities so that poverty can be alleviated through employment generation to them. They are also required to be provided environmental education to minimize adverse impacts on environment while carrying out development tasks in the particular sector. The effects on environment caused by development works can be found from construction works and industrial works. These effects on environment due to construction activities are degradation of the ecosystem, destruction of natural resources, degradation of agricultural land, diminution in the shelter of creatures, change in natural structure and scenery obstruction. Such effects should be minimized with proper planning and management of these activities.

Nexus
Industrial development is the backbone of the development of the country but it is lacking due to instability in the prevailing situation of our nation. Development helps the economic and social status of the people. Besides, various kind of environmentally adverse effects are also seen. Thus, environment conservation must be given attention when executing any development work. Environmental act with rules and regulation should be strictly followed while carrying out development activities in any field. The present government should pay due attention in this regard. Stable political environment is also required for development together with the conservation of the environment.

Source: The Rising Nepal, May 14, 2007

Addressing Urban Environmental Problems

Keshab Raj Joshi

Unmanaged and unplanned urbanisation has made the cities the centre of environmental problems. The pace of urbanisation in the developing countries has accelerated greatly. Often rapid urban growth has taken place without matching expansion of the infrastructure, services and facilities necessary for a healthy urban environment and without adequate planning or regulation. This has caused deterioration in urban environmental quality and left urbanities susceptible to health hazards associated with poor environmental quality.

Sustainable cities

Today's cities are not sustainable. They are the major consumer of resources, and for their needs, they have to depend upon distant sources. Therefore, environmental problems occur not only within the cities but much beyond. Cities are often located in prime agricultural areas. Conversion of this land into urban areas cuts down on agricultural productivity and puts additional pressure on nearby areas, which may be less suitable for agriculture. Water is a key issue in urban areas.

Local supply becomes inadequate given the intensified demands. Moreover, human pressure on the existing water bodies pollutes the water due to the discharge of untreated wastewater, sewage, urban runoff as well as disposal of solid waste. Urbanisation takes a toll of the greenery in the cities. Trees as well as other vegetation that absorb air pollutants, give off oxygen, help cool the air, muffle noise, provide wildlife habitat and give aesthetic pleasure are destroyed. As a result, the local ecosystem is disturbed.Cities are where vehicles and industries are concentrated. Their concentration makes the cities vulnerable to air and noise pollution. Traffic congestion intensifies the pollution. The gaseous emission from vehicles and industries turn the urban air unfit for breathing.

Urbanisation alters the local climate also. Cities are warmer than the nearby rural areas. Vehicles, industries, light and people generate enormous amounts of heat. Tall concrete buildings and paved surfaces absorb heat and obstruct the cooling wind. Paved surfaces everywhere lead to rapid runoffs, causing flooding in the cities. Flooding also occurs because the course of the natural river is obstructed by encroachment. Cities tend to be developed on floodplains as they are flat, accessible and near the rivers. Reduced seepage of rainwater brings down the groundwater table, drying up wells. One of serious problems in the urban areas is solid waste management. Most of the cities lack landfill sites, and practices of reuse and recycling are not adopted. In the absence of landfill sites in the urban areas, cities have to depend on outer rural lands, which means waste is generated by the urbanities and its environmental cost has to be borne by the rural poor.

Urban poverty is a major issue in the discussion on urban environment. Many of the urban poor live in slums and squatter settlements where drinking water, solid waste pickup facilities and good sanitation do not exist. The emergence and expansion of squatter settlements have led to the encroachment of riverbanks, public lands, religious/cultural sites, agricultural land and forest areas. However, it is not to say that urban areas are bad due to the presence of these environmental problems. Urbanisation itself is not a problem. Urban areas are engines of growth. They play an important role in economic, political and cultural development; provide better access to education, employment and health care. They also have beneficial environmental effects. Recourse use is more efficient where people can share goods and services, which leads to greatly reduced unit cost in providing such goods and services. Less energy is spent in transportation and production when people don't have to travel too far.

Efforts are necessary to make urban areas livable and environment-friendly through good urban planning and environmental management. Urban areas must not be car-oriented; they should be people -oriented. Well planned densely populated settlements can reduce the need for land conversion, provide opportunities for energy savings and make recycling more cost effective. Urban environmental management involved increasing resource efficiency reduction in waste generation and setting recycling schemes; developing more effective waste collection systems and effective mechanisms for hazardous waste treatment; waste management through private-public partnerships; and adoption of clean and energy efficient technology by vehicles, industries and households. Improving urban infrastructure for water supply, management and conservation of water resources in urban areas through improved wastewater treatment is a must. Categorising the city into different zones is necessary. There is a need to raise awareness among the people regarding the environment, health and appropriate practices and behaviours; addressing urban poverty and the needs of the urban poor, including those of the slums and squatter settlements; and introducing "polluters pay principle". Strengthening of municipalities and local bodies and introducing clear urban development policies and a legal framework is important.

Management

Urbanisation will continue to play an important role in the economy, environment and people's lives. The challenge is to live in cooperation with urbanisation while using its benefits and making the negative impacts manageable because many of the urban environmental problems are the result of poor management and planning and absence of coherent urban policies rather than of urbanisation itself.

Source: The Rising Nepal, April 23, 2007