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

Nepal: Upper Trishuli 1 Hydroelectric Power Project

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

The Upper Trishuli-1 Hydropower Project involves the construction and operation of a 216 MW greenfield run-of-the-river hydropower facility located in the Trishuli watershed, 275m downstream of the confluence with the Bhotekosi river, and about 70km north of Kathmandu. The Project consists of a 77m wide diversion dam by which the water will get diverted through a 9.8km long headrace tunnel to an underground power station. The electricity generated will be sold for domestic consumption to the Nepal Electricity Authority (NEA) based on a fixed tariff structure. The 35 year concession will be on a BOOT basis and includes a 5 year construction period.

Project Details

Project Officer
Tang, Sonali Private Sector Operations Department Request for information
Country
  • Nepal
Sector
  • Energy
 
Project Name Upper Trishuli 1 Hydroelectric Power Project
Project Number 49086-001
Borrower/Company Nepal Water & Energy Development Company Pvt. Ltd
Country Nepal
Location
Type or Modality of Assistance
Loan Ordinary capital resources USD 90.00 million Proposed
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 Some gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 1
Responsible ADB Officer Tang, Sonali
Project Sponsor(s) Daelim Industrial Co. Ltd.
Korea South East Power Company
Kyeryong Construction Industrial Co. Ltd.
Description The Upper Trishuli-1 Hydropower Project involves the construction and operation of a 216 MW greenfield run-of-the-river hydropower facility located in the Trishuli watershed, 275m downstream of the confluence with the Bhotekosi river, and about 70km north of Kathmandu. The Project consists of a 77m wide diversion dam by which the water will get diverted through a 9.8km long headrace tunnel to an underground power station. The electricity generated will be sold for domestic consumption to the Nepal Electricity Authority (NEA) based on a fixed tariff structure. The 35 year concession will be on a BOOT basis and includes a 5 year construction period.
Objectives and Scope Nepal faces a large power deficit, resulting in daily load shedding. The project will reduce this shortage and generate a significant amount of power during the dry season (December to May) and reduce the need to import power during this season.
Linkage to Country/Regional Strategy The project is also in line with ADB's country partnership strategy 2013-2017 for Nepal, which lists the energy sector as one of the 3 core sectors in Nepal. The country partnership strategy also emphasizes the need to attract greater private sector finance investments into the industry.
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples A
Summary of Environmental and Social Aspects
Environmental Aspects Under ADB's Safeguard Policy Statement (2009), the project to construct and operate a 216MW hydropower plant is classified as category A for environment. NWEDC has undertaken the preparation of an Environmental and Social Impact Assessment (ESIA) to identify potential environmental and social impacts, as well as the effective measures to avoid, mitigate and compensate identified adverse impacts. NWEDC will implement measures and relevant management plans to monitor and respond accordingly to the identified potential risks and impacts during construction and operation (e.g. health and safety, water quality, biodiversity, downstream flows); and manage cumulative impacts through participation in a co-management platform with other key stakeholders of the river basin.
Involuntary Resettlement The project is classified as category A for resettlement following ADB's Safeguard Policy Statement. Of the approximately 99.79 hectares of land required for the project and its associated facilities, most it (approximately 77ha) is government land. The remaining is a mix of private (~3.68ha) and trust (~15.53 ha) lands. This land take will result in both physical as well as economic displacement. NWEDC has undertaken the preparation of a Land Acquisition and Livelihood Restoration Plan (LALRP) aligned to ADB SPS requirements to address the adverse impacts resulting from involuntary resettlement. NWEDC will implement measures as identified in the LALRP. Progress on LALRP implementation will be periodically monitored and reported.
Indigenous Peoples The project area is dominated by Tamangs who are identified as one of the 24 hill tribes/indigenous people in the country. Most of the project affected persons/land losers (physically as well as economically displaced) are Tamangs who are native to the area. In addition, the project facilities like the access roads will result in some adverse impacts on community forests which is a source of timber and other non-timber forest produce for these indigenous communities in the area. NWEDC has undertaken the preparation of an Indigenous People Plan (IPP) aligned to ADB SPS requirements to address the adverse impacts on these IP groups. NWEDC will implement measures as identified in the IPP. Progress on IPP implementation will be periodically monitored and reported.
Stakeholder Communication, Participation, and Consultation A Stakeholder Engagement Policy (SEP) is under preparation for the project. The SEP will include a detailed communication strategy covering a stakeholder analysis, a communication strategy (for disclosure, information sharing, grievance redressal and community feedback), and an outline of resources to be allocated. Key stakeholders such as affected people, community members, women, vulnerable groups, civil society organizations, concerned government officials/departments, local political groups, traditional leaders, village elders will be consulted throughout the project cycle. The stakeholder consultation, communication and participation programme will follow culturally and linguistically appropriate methods and be inclusive in its approach and coverage. Progress on implementation of SEP and communication strategy will be documented and periodically reported.
Timetable for assistance design, processing and implementation
Concept Clearance 12 Jul 2016
Credit Committee Meeting -
Approval 01 Aug 2018
Last PDS Update 27 Mar 2018

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 Public Communications Policy (PCP) 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.

None currently available.

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

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) 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.