The water resources of Nepal are regarded as one of the principal opportunities for the future economic development of the country. However, much has not been done to develop and utilized the available water resources. Even the developed projects have not been yielding expected outcome primarily due to sedimentation problem. Sustainable hydropower development is basic for development of country. There are several problems associated with hydropower development, but two major problems for the hydropower development in Nepal are financial and technical. Nepal’s own resources, not in the public and private sectors cannot meet the financial investment needed for large scale hydropower development. There are several obstacles to get adequate external funding to develop the large scale of hydropower. Technical problem directly connected to the climatological, topographical and geological features of the country. Long term reliable hydrological and sedimentological data are not presently available. Sediment production in Nepalese watersheds has generally been acknowledged to be the highest in the world. This paper highlights sedimentation problem in Nepal, historical development of hydropower and opportunities in developing hydropower.
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