Nepal : Upper Trishuli-1 Hydropower Project

Nonsovereign Project | 49086-001

The project comprises the design, construction, commissioning, operation and maintenance of a 216 MW run-of-river hydro power plant, 1.2 kilometers of transmission lines, and associated infrastructure on the Trishuli River. The electricity generated will be sold for domestic consumption to the Nepal Electricity Authority.

Project Details

  • Project Officer
    Mosnier, Zsuzsanna
    Private Sector Operations Department
    Request for information
  • Country/Economy
  • Sector
    • Energy
Project Name
Upper Trishuli-1 Hydropower Project
Project Number
Borrower / Company
  • Nepal Water and Energy Development Company Private Limited
Country / Economy
  • Nepal
Type or Modality of Assistance
Approval Number Facility Fund Source Amount Status
3781 Loan Ordinary capital resources USD 30.00 million Committed
8355 Loan Canadian Climate Fund for the Private Sector in Asia II (CFPS II) USD 30.00 million Committed
Strategic Agendas
  • Environmentally sustainable growth
  • Inclusive economic growth
Drivers of Change
  • Partnerships
  • Private sector development
Sector / Subsector
  • Energy / Large hydropower generation

Effective gender mainstreaming
Project Sponsor(s)
  • Bkesh Pradhanang
  • Daelim Industrial Company Limited
  • International Finance Corporation
  • Korea South-East Power Company
  • Kyeryong Construction Industrial Company Limited
The project comprises the design, construction, commissioning, operation and maintenance of a 216 MW run-of-river hydro power plant, 1.2 kilometers of transmission lines, and associated infrastructure on the Trishuli River. The electricity generated will be sold for domestic consumption to the Nepal Electricity Authority.
Objectives and Scope
Nepal has suffered from a severe shortage of power and frequent load shedding. The project will help reduce imports of electricity into Nepal during the dry season with indigenous renewable sources.
Status of Development Objectives
The Project is yet to meet the Development Objectives.
Status of Operation/Construction
The Project is still under construction.
Linkage to Country/Regional Strategy
The project supports two of the seven operational priorities outlined in ADBs Strategy 2030: (i) fighting remaining poverty and reducing inequalities; and (ii) tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability. Under Strategy 2030, ADB will expand and broaden its support to the private sector for building critical infrastructure with strong development impacts and the project supports this. ADBs country partnership strategy, 2013-2017 for Nepal aims to help the country achieve high and inclusive economic growth through higher capital investment, in among other areas, energy and transport infrastructure. The strategy calls for an increase in electricity generation to help energy security. The project increases electricity generation in the country and thus contributes to energy security, which is consistent with this country strategy. The project is aligned with ADBs Energy Policy, which encourages interventions that promote use of renewable energy to slow down the growth of greenhouse gas emissions and help countries achieve energy self-sufficiency.

Safeguard Categories

Involuntary Resettlement
Indigenous Peoples

Summary of Environmental and Social Aspects

Environmental Aspects
Key environmental impacts include: (i) permanent loss of circa (c.) 2.61 hectares (ha) of natural habitat and temporary use of 4.16 ha of modified habitat for the workers camp in the Langtang National Park buffer zone; (ii) reduced downstream flows and alteration of aquatic habitat in the dewatered stretch of the Trishuli river (about 10.7 kilometers); (iii) occupational, public health, and safety risks and impacts during construction and operation; and (iv) project contributions to cumulative impacts in the Trishuli River basin. The climate change risk assessment concluded that the risks of climate change impacts on the project are low. The project design includes a fish ladder to minimize the impact on the migration of common snow trout (Schizothorax richardsonii), a vulnerable fish species. The environmental flow and connectivity assessment concluded that 10% of the mean monthly flow would be adequate to maintain the aquatic habitat and connectivity within the diversion reach. The environmental and social assessment report indicates that the project area is not a critical habitat for any species. The environment and social management and mitigation includes framework plans for dealing with all the project impacts, including a biodiversity management plan and offsets to demonstrate no net loss. Quarterly third-party monitoring reports are submitted during project implementation to report on progress and compliance with the requirements of ADBs Safeguard Policy Statement (2009).
Involuntary Resettlement
The project footprint is spread across 10 villages in the three former village development councils of Kaku, Dhunche, and Ramache. A total of about 109 ha of land is required for the project on a permanent (c. 31 ha) or temporary basis (c. 78 ha). Of these about 85 ha are government owned and the rest is a mix of private (c. 8 ha) and guthi land (monastery-owned land farmed by local tenants, c. 16 ha). Land acquisition for the project affected 38 land plots and 36 structures (both permanent and temporary) resulting in impacts on 154 families. Of the affected structures which have been, or will be, impacted, 10 represent primary residences, the others are agricultural buildings, temporary residences used during cropping season, water mills, or storage buildings. The government and forest lands used by the project and its ancillary facilities such as the transmission line, affected community forest user groups. Stakeholder consultations indicate that individual dependence on the community forest was limited in nature. Most of these lands were acquired in 2012-2013 and a further 8 ha was purchased in 2018 to establish safe worker camps in the aftermath of the 2015 earthquake. A land acquisition and livelihood restoration plan (LALRP) in accordance with ADBs Safeguard Policy Statement (2009) was developed and is being implemented to avoid, manage, and mitigate impacts resulting from land acquisition for the project.
Indigenous Peoples
The Project directly affected the land and natural resources of 154 families, of whom, ethnically, more than 90% are Tamang and less than 5% are Gurung. Both ethnicities are recognized under the Constitution of Nepal as indigenous nationalities, or Adivasi Janajati. The project impacts on indigenous people include the acquisition of community forest user group land and water resources for commercial development and the limited relocation of indigenous people families, both of which trigger broad community support (BCS) under the ADB Safeguard Policy Statement (2009) (SPS). A project-specific BCS process was assessed and documented in line with the ADB SPS. The Nepal Federation of Indigenous Nationalities, Nepals preeminent indigenous peoples organization and an international indigenous peoples expert, were engaged to facilitate the BCS process on behalf of the sponsors. They mobilized the federations Tamang speaking national and district chapters to work with affected communities during the BCS process, with the explicit aim of facilitating meaningful and informed consultations and collective decision-making. The BCS process and outcome, as captured in the indigenous peoples plan (IPP) provided evidence that: (i) affected communities believe that the process was conducted in a transparent manner and with disclosure of relevant information; (ii) meaningful consultations were held with affected communities; (iii) recommendations from these consultations were integrated in planning and implementation; and (iv) good faith negotiation between these communities formed the basis on which NWEDC and the indigenous communities arrived at a formal consent agreement. Implementation of the IPP is ongoing involving the IPP Governing Board and program committees in 13 villages.
Stakeholder Communication, Participation, and Consultation
The project has a detailed stakeholder engagement plan, which maps out the engagement and disclosure activities during construction and operations phase. A grievance mechanism process is in place to deal with any stakeholder complaints or concerns about the project. The complainants have access to various forums and modalities through which grievances can be lodged and which ensure timely response to and redressal of concerns. The IPP Governing Board and the community representatives are actively engaged in identifying social, cultural and livelihood programs for financing under the IPP. Workers are consulted on labor and working conditions as part of the periodic labor audits conducted by an external expert.


Responsible ADB Officer
Mosnier, Zsuzsanna
Responsible ADB Division
Portfolio Management Division, PSOD
Responsible ADB Department
Private Sector Operations Department

Timetable for assistance design, processing, and implementation

Concept Clearance
23 Jan 2019
Credit Committee Meeting
18 Mar 2019
12 Apr 2019
Last PDS Update
11 Apr 2024

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Upper Trishuli-1 Hydropower Project: Report and Recommendation of the President Reports and Recommendations of the President Mar 2019
Upper Trishuli 1 Hydro Power Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Mar 2019

Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Upper Trishuli 1 Hydro Power Project: Indigenous Peoples Plan Indigenous Peoples Plans/Indigenous Peoples Development Plans Dec 2018
Upper Trishuli-1 Hydropower Project: Land Acquisition and Livelihood Restoration Plan Resettlement Plans Dec 2018
Upper Trishuli 1 Hydroelectric Power Project: Final Environmental and Social Impact Assessment Environment and Social Impact Assessments Jun 2018
Upper Trishuli 1 Hydroelectric Power Project: Draft Environmental and Social Impact Assessment Environmental Impact Assessments Mar 2018

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.