49086-001: Upper Trishuli-1 Hydropower Project | Asian Development Bank

Nepal: Upper Trishuli-1 Hydropower Project

Nonsovereign (Private) Project | 49086-001 Status: Approved

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
Tang, Sonali Private Sector Operations Department Request for information
Country
  • Nepal
Sector
  • Energy
 
Project Name Upper Trishuli-1 Hydropower Project
Project Number 49086-001
Borrower/Company Nepal Water and Energy Development Company Private Limited
Country Nepal
Location Nation-wide
Type or Modality of Assistance
3781 Loan Ordinary capital resources USD 30.00 million Approved
8355 Loan Canadian Climate Fund for the Private Sector in Asia II (CFPS II) USD 30.00 million Approved
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Energy / Large hydropower generation

Gender Equity and Mainstreaming Effective gender mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 1
Responsible ADB Officer Tang, Sonali
Project Sponsor(s) Bkesh Pradhanang
Daelim Industrial Company Limited
International Finance Corporation
Korea South-East Power Company
Kyeryong Construction Industrial Company Limited
Description 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.
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
Environment A
Involuntary Resettlement A
Indigenous Peoples A
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 for 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 will be 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, impact six 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 Establishing the project results in direct impacts on 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 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.
Stakeholder Communication, Participation, and Consultation The project has a detailed stakeholder engagement plan, which maps out future engagement and disclosure activities. 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.
Timetable for assistance design, processing and implementation
Concept Clearance 23 Jan 2019
Credit Committee Meeting 18 Mar 2019
Approval 12 Apr 2019
Last PDS Update 19 Mar 2019

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Title Document Type Document Date
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.

Evaluation Documents See also: Independent Evaluation

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Related Publications

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