Water Storage - A strategy for climate change adaptation in the Himalayas

Sustainable Mountain Development No. 56, ICIMOD, Winter 2009
to work with upland communities in Kulekhani and the
hydropower plant authorities to foster a win-win situation
based on a PES mechanism (Upadhyaya 2005). The
RUPES programme empowered local communities
and organised them into a Watershed Conservation
and Development Forum to promote the conservation
of forested lands in the upland watershed to reduce
siltation. The aim was for the electricity authority to
ﬁ nance the activities through a PES mechanism with the
upland people living in the catchment area receiving
a payment from the hydropower plant in return for the
community managed forests they conserve.
The Kulekhani watershed: a mosaic of different land uses
RUPES was successful in establishing a payment
mechanism channelled through the district development
to unsustainable land management practices, but
committee (DDC) based on the 1999 Local Self-
the demand for such services is increasing. The PES
Governance Act and the 1992 Decentralisation Act.
mechanism is an evolving policy instrument that offers
The Nepal Electricity Authority pays the upland farmers
innovative solutions by offering incentives to promote
for implementing the conservation activities via the
sustainable land management. The Kulekhani case
central government, which allocates 12% of the royalties
shows that a reward system for upland farmers that
generated from the Kulehkani plant to Makwanpur DDC
leads to reduced siltation and enhanced water storage
under the Environment Management Special Fund.
capacity can be implemented, although more needs to
Of this, 50% is allocated to the village development
be done to ensure that the desired outcome is achieved.
committees (VDCs) in Makwanpur District and the
This is the beginning of a paradigm shift in natural
remainder to upland settlements (20%), downstream
resource management in Nepal. The drawing of lessons
settlements (15%), and the VDCs that house the power
from the Kulekhani case to formulate national policies in
plant, generator, dam, and reservoir (15%).
Nepal is underway.
The Kulekhani case reﬂ ects the start of a paradigm shift
References
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population for rural development work of immediate
Kathmandu: Winrock International
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short-term gains over long-term beneﬁ ts, and forest user
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Upadhyaya, S (2005) Payments for environmental services:
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Conclusion
SEARO. Available at http://www.worldagroforestry.org/sea/
Globally, the services that watersheds provide in terms
networks/rupes/index.asp
of quality and quantity of water are decreasing due
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