economics Collision

Small-scale hydropower projects get built faster when developers spend money on local mini-projects rather than promising cheap electricity to the town.

April 23, 2026

Original Paper

Determinants of Community Consensus in Small Scale Hydropower Development Project (A Case Study of Bhujung Hydropower Project)

Rajendra Ojha

SSRN · 6625438

The Takeaway

Community consensus for large infrastructure projects depends more on immediate local benefits than on the primary purpose of the project. In the case of the Bhujung Hydropower Project, pre-allocating budgets for secondary needs was the key to success. Developers often assume that the big win of a project, like national power or regional energy, will be enough to win people over. This study shows that the small wins are actually what secure social buy-in and prevent long delays. For regular people, this means their specific neighborhood needs are more powerful than grand national goals.

From the abstract

<span>This research highlights the issues, negotiation, and consensus process of a local community confrontations with the commercial as well as development projects that are to be started in a particular location, especially in the places where there are lots of conflicts and misunderstandings between project holders, development entrepreneurs, and local communities. This research is based on a case study of the 7.5 MW ‘Bhujung Hydropower Project’ located in the Lamjung district, Gandaki provin