Nepal’s Shared Rivers Spark Revenue Disputes Between Local Governments

A long-standing dispute over revenue sharing from the Jhupra River has been ongoing between the Biratnagar and Lekbesi municipalities in Nepal’s Surkhet district.

The Jhupra River, which forms the geographical boundary between the two municipalities, has been a source of contention, with Biratnagar having collected revenue from the river alone since the fiscal year 2074/75.

Lekbesi Municipality claims that it has not received any share of the revenue, despite a verbal agreement with Biratnagar to provide 35% of the revenue. Lekbesi’s Mayor, Umesh Kumar Poudel, stated that the agreement was made without a written contract or clear legal framework.

The dispute highlights the lack of a clear policy for sharing revenue from natural resources, such as rivers, between local governments in Nepal.

Similar Disputes in Other Areas

A similar dispute had occurred between Biratnagar Municipality and Barahatal Rural Municipality over the Girighat River, which was resolved after Barahatal was given the responsibility of managing the river’s resources.

Other local governments in the region have adopted an alternating system for managing shared rivers, where one municipality collects revenue one year, and the other municipality collects revenue the next year.

Experts suggest that a clear policy and legal framework are needed to resolve such disputes and ensure fair sharing of revenue from natural resources.