Bhote Koshi Hydropower Plant Shut for a Week

The 45-megawatt Bhote Koshi Hydropower Project, a landmark foreign direct investment venture in Nepal, has been completely offline for the past week after a group claiming to represent the “Gen Z movement” threatened staff and demanded a 10 percent free share allocation.

Chief Executive Officer Bikram Ratna Sthapit said employees fled the site on September 8 and 9 when the group forced its way into the project office and issued threats during nationwide protests. “Our staff have not returned. Although the Nepali Army is providing security and no physical damage has occurred, power generation remains at a full halt,” he confirmed.

According to company officials, local administration and security forces are present, yet the group lingers near the facility, making it difficult to resume operations. Talks have been tentatively set for September 19, but Sthapit noted uncertainty about the negotiation process because the so-called Gen Z group has no recognized structure.

Kumar Shrestha, chair of Bhotekoshi Rural Municipality Ward 2, said the intruders broke the project gate on September 9 and threatened workers, who fled the scene. He acknowledged the company had earlier pledged to provide 6 percent of shares to local residents but not the 10 percent now being demanded.

The Bhote Koshi plant began commercial generation in 2001 with U.S. equity partner Panda Energy as the primary shareholder. At the time of construction, Nepali law did not require hydropower developers to offer shares to affected communities, leaving locals without an ownership stake. In response to subsequent demands, a multi-party committee including local leaders and company representatives was formed in 2014 to determine how to distribute 6 percent equity. Sthapit said that committee has yet to deliver its report, preventing any share allocation.

Ownership of the project has since shifted, with roughly 95 percent now held by Nepali investors and only 5 percent by an American company after Panda Energy sold its stake in 2006. The project operates under a 40-year government license and a 25-year power purchase agreement with the Nepal Electricity Authority. Under the agreement, half the project’s assets will transfer to the Authority when the purchase contract ends, and full ownership will revert to the Nepalese government when the license expires.