The proposed 670 MW Dudhkoshi Storage Hydroelectric Project, developed by the Government of Nepal through the Nepal Electricity Authority (NEA) and Dudhkoshi Jalvidyut Company Limited (DKJVCL), has proposed financing from the World Bank (WB), Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), European Investment Bank (EIB), OPEC Fund for International Development and Saudi Fund for Development.
The project threatens Indigenous Peoples and other communities in Solukhumbu, Khotang and Okhaldhunga, including Rai, Majhi, Magar, Sherpa, Bhujel, Newar and Rai communities. According to the Asian Infrastructure Investment Bank’s preliminary assessment, the project is expected to affect approximately 3,300 households, with 290 facing physical and economic displacement, including 171 Indigenous Peoples’ households facing physical displacement. Land acquisition for the hydropower component is estimated to permanently affect 2,405 hectares. Additional land impacts from transmission lines and access roads are still being assessed. The project threatens ancestral lands, livelihoods, forests, water resources and culturally significant sites, including sacred places and cremation grounds.
Concerns have been raised about the Free, Prior and Informed Consent (FPIC) process. Although project materials reportedly record consent in April 2026, land acquisition-related restrictions had already been imposed before the FPIC process began. Communities have questioned the use of an ad hoc committee instead of community-determined mechanisms rooted in Indigenous customary institutions and collective decision-making. The meaningful participation of Indigenous women in the FPIC process also remains a key concern.
LAHURNIP is supporting affected Indigenous Peoples and other communities by providing technical support to help ensure their lawful demands are heard and upheld.
