13th October 2025, Kathmandu
The 45-megawatt Upper Bhote Koshi Hydropower Project has finally reached a critical agreement with the local community in Bhote Koshi Rural Municipality, effectively ending a month-long operational halt.
GenZ Group Acquires BhoteKoshi Shares
The dispute, spearheaded by the organized local activism known as the ‘Jenji Movement’, centered on a long-standing demand for local ownership in the vital national energy project. The resolution, formally signed on 27 Ashwin 2082 (Nepali calendar date), establishes a significant new framework for community engagement and ownership within Nepal’s independent power producer (IPP) sector.
The core of the new resolution involves the transfer of 10% of the project’s shares from the Bhote Koshi Power Company to the newly formed local entity, Jenji Public Investment Public Limited. This move is a crucial development, as it directly addresses decades of unfulfilled promises and the community’s demand for a tangible stake in the development on their land. The agreement elevates the local share allocation from a previously negotiated 6% to the current 10%, a clear victory achieved through the concerted action of the Jenji group.
The Genesis of the Dispute: A Call for Economic Justice
The 45 MW Upper Bhote Koshi Hydropower Project holds a unique position in Nepal’s energy landscape, being one of the first major projects to attract foreign direct investment (FDI) and beginning commercial operation as far back as 2001. At that time, prevailing Nepali law did not mandate share distribution to project-affected locals, leaving the community without direct economic benefit from the energy generation on their doorstep. This historical oversight was the root cause of the escalating tensions.
For years, the local populace sought a share in the company, with initial demands dating back to an informal request for a 6% stake. The matter was further complicated by the company’s initial reluctance and the complexity of its ownership structure, which evolved from being majority American-owned to predominantly Nepali-investor held. The growing frustration culminated in the recent, highly disruptive Jenji movement, which involved protests and a complete shutdown of the power generation facility.
The movement escalated dramatically on 23–24 Bhadra with a clear, non-negotiable demand for 10% of the company’s shares to be provided for free to the affected local population. This agitation forced a project shutdown that lasted for approximately one month, during which the Bhote Koshi Power Company is reported to have incurred losses exceeding Rs. 300 million, or a daily loss of around Rs. 10 million in energy production during the peak season.
The Resolution: A New Model for Community Shareholding
The newly reached accord, signed by Fuhrpa Sherpa, Chairperson of Jenji Public Investment, and Bishwo Mohan Karmacharya, Secretary on behalf of Bhote Koshi Power Company, signals a pragmatic compromise that has been welcomed by local stakeholders and is likely to be scrutinized by other hydropower developers nationwide.
Key Components of the 10% Share Transfer:
- Designated Vehicle: The shares will be legally transferred to the newly established local body, Jenji Public Investment Public Limited, ensuring that the benefit is collectively managed for the affected community.
- Expansion of Allocation: The agreement formally supersedes the earlier, contested 6% allocation, raising it to the new, demanded threshold of 10%.
- Share Quantity: The transfer involves a total of 20,000 shares, providing the local community with a substantial, quantifiable stake in the enterprise.
- Funding Mechanism: A crucial detail of the resolution specifies that the proceeds from future dividends and bonuses accrued from these 10% shares will be strategically utilized to fund the allocated shares. This creative financing mechanism addresses the company’s legal reservations against providing shares entirely for “free” while achieving the spirit of the local community’s demand by essentially financing the purchase through the project’s own profitability.
This resolution is expected to immediately facilitate the resumption of electricity generation at the 45 MW facility, bringing an end to the protracted and costly shutdown.
Broader Implications for Nepal’s Hydropower Sector
The successful negotiation led by the Jenji movement has profound implications that extend far beyond the Upper Bhote Koshi Project. The movement served as a potent demonstration of local community power, capable of influencing the operations and financial structures of major private-sector infrastructure projects.
- Setting a Precedent: The 10% allocation, particularly the creative funding solution, establishes a strong new reference point for local community share demands in other hydropower projects across Nepal, especially those developed without initial local ownership provisions.
- Investment Climate: While the initial protest caused alarm among private producers, who feared it would create an environment of “anarchy” and discourage investment, the successful resolution based on dialogue provides a model for mitigating future conflicts. It highlights the necessity for developers to proactively integrate local economic participation as a core component of project sustainability.
- Future Demands: The success has already emboldened similar groups, often operating under the ‘Gen Z’ or ‘Jenji’ banner, who have reportedly sent letters to numerous other operating and under-construction hydropower projects in the Sindhupalchok region, demanding similar 10% allocations. Projects such as Upper Balephi A and Upper Chaku A are among those facing mounting pressure.
The resolution, which required high-level intervention from figures like the Chief District Officer (CDO) and directives from the Home Minister to ensure the project’s restart, underscores the national priority of these energy assets. The final agreement at Upper Bhote Koshi thus stands as a watershed moment, a testament to the power of organized local movements in Nepal and a new chapter for inclusive, community-partnered hydropower development.
For More: GenZ Group Acquires BhoteKoshi Shares