Chapter 1: introduction

Project Operation Modality

The proposed project is a PROR Project. A typical ROR project generates energy at a reduced capacity during the whole day, whereas a PROR project can be designed to operate at full (installed) capacity for a specified number of hours. Considering the available river flow and the riperian water release, this project is designed for two slot peaking mode of two hours in the morning and four hours in the evening peaking hours with a reduced capacity. A detailed calculation showing the results for a two slot operation is shown in Annex 2.1, 2.2 and 2.3 and presents the calculations for two hour peaking and four hour peaking separately i.e 6 AM- 8 AM in the morning and 6 PM -10 PM in the evening. Table 2.4 presents the available mean monthly flow, flow that will be diverted for electricity generation and flow released in the Kabeli River downstream barrage for the different months.

Table 2.4: Flow Regulation of the Kabeli River during Operation of the Project

Months	Mean monthly flow available m^3/s	Flow diverted for energy generation m^3/s	Flow released from Barrage m^3/s (at least 10% of annual monthly minimum)^7	Flow released from tailrace m^3/s
January	10.31	9.45	0.86	37.73 for 5.8 hours a day
February	8.63	7.76	0.87	37.73 for 4.7 hours a day
March	8.88	8.01	0.87	37.73 for 4.6 hours a day
April	13.30	12.44	0.86	37.73 for 7 hours a day
May	31.63	30.77	0.86	37.73 for 16 hours a day
June	86.28	40.00	46.28	40.00 for 24 hours a day
July	168.95	40.00	128.95	40.00 for 24 hours a day
August	181.71	40.00	141.71	40.00 for 24 hours a day
September	127.42	40.00	87.42	40.00 for 24 hours a day
October	58.11	37.73	20.38	37.73 for 24 hours a day
November	25.25	24.39	0.86	37.73 for 13.4 hours a day
December	16.18	15.32	0.86	37.73 for 8.1 hours a day

Source: UFSR 2011

2.10 Project Costs

Estimated construction cost of the project is about 70.84Million US$ (UFSR, 2011)

Chapter III: LEGISLATIVE AND REGULATORY CONSIDERATIONS

This Chapter reviews the Policies, Procedures, Guidelines and Legislative provisions of the Government of Nepal, the World Bank and the IFC that have a direct relevance with the proposed project development and operations.

3.1 Plans, Policies and Strategy of Government of Nepal

3.1.1 Interim Constitution of Nepal, 2007

The Interim Constitution of Nepal, 2006 (2063 B.S.) has given high priority to the protection and conservation of natural resources and the environment as one of its principles. While recognizing the importance of the natural resources, it has emphasized the utilization of the resources in a sustainable manner for the national development through judicious management and protection of the natural resources. In other words, the Interim Constitution envisages the sustainalble utilization of natural resources for the national development by the judicious management of the available resources. The proposed project, thus does not contradict the tenets of the Interim Constituion of Nepal.

3.1.2 Thirteenth Three Year Plan, 2013-2016

The Approach/ perspective paper of thirteenth three year plan document has been built on the basis of previous achievements in the six decade of Nepal’s efforts on planned development. Some of the past plans had been implemented with poverty alleviation as the principal objective. The past experiences show that the objective of poverty alleviation might not be achieved even if the overall economic indicators remain positive. Based on this reality, past achievements and commitment towards Millennium Development Goals (MGD); the approach/perspective paper of thirteenth Plan has given emphasis on the sustainable economic growth and social and environmental justice to achieve its long term goal of transforming Nepal from the list of world’s least developed country to developing country within 2022.

The approach/perspective paper has mentioned the promotion and development of hydroelectricity and alternative energy as the important priority sector to achieve the objectives, mission and goal of this plan. The plan emphasizes to encourage domestic and foreign investment for the development of hydroelectricity by adopting clear, simple and transparent procedures to increase the participation of the private sector, the community and the local bodies in production, consumption and export of hydroelectricity. The KAHEP Project complies with the policy principles of this approach/ perspective paper of the thirteenth three years plan.

3.1.3 Hydropower Development Policy, 2001

The main objective of the policy includes inter alia producing clean energy through the development of hydroelectric projects, and to help conserve the environment. One of the policy objectives stipulates to extend the use of electricity for the utility minimization of fuel wood and to render necessary assistance in the conservation of forests and the environment. Overall, the policy goal is to develop environmental friendly hydropower to meet the country’s energy needs and to encourage the private sector to investment in the hydropower.

The policy has a provision to make public the programs and measures identified by the EIA study for implementation to the local people. The policy further states that all developers to release at least ten percent of minimum monthly average discharges below the water diversion structure for all types of water resource projects. The private parties developing hydropower projects are encouraged to acquire the private land and property required for the project at their own costs. If the lands and houses are not available, the government ensures to acquire such property to the private developers according to the prevailing laws. However, private developers will have to bear all the expenditures incurred towards such acquisitions, and resettlement and rehabilitation of the affected people. The government lands shall be made available to the private developers on lease basis or according to the prevailing laws.

For the development of the directly affected VDCs, the policy has made a provision to allocate one percent of the royalty obtained from the hydropower projects.

Environmental provision of the policy requires “to release such quantum of water which is higher of either at least ten per cent of the minimum monthly average discharge of the river/stream or the minimum required quantum as identified in the environmental impact assessment study report”.

3.1.4 National Forest Policy, 1998 (Revised 2000)

The revised National Forest Policy (2000) emphasizes the protection of soil, water, flora and fauna constituting the main element of forestry to sustain biodiversity. It recognizes that sustainable forests management is only possible when it gives adequate attention towards meeting the basic needs of the people, sustainable utilization of forest resources, participation in decision making and sharing of benefits and above all on socio-economic growth.

The Forest Policy does not specifically mention environmental policy strategies with regard to other development programs which might intervene in the forested areas, however, the other policy strategies related to forest management and forestry program implementation emphasize the need of land use planning, prioritisation for the conservation of biodiversity, ecosystem, and genetic resources, effective production and utilization of forest resources and blending forestry management, biodiversity conservation and community development activities in a holistic sense.

3.1.5 Nepal Biodiversity Strategy, 2002

The Nepal biodiversity strategy, adopted by GoN in August 2002, specifies the implementation of EIA process in accordance with the provisions of EPA 1997 and EPR 1997 to assess the impacts of development activities on biodiversity. The strategy has given emphasis on ensuring effective implementation of the existing laws regarding EIA.

The National Biodiversity Strategy plan describes the protection and wise use of the biologically diverse resources of the country, the protection of ecological processes and systems, and the equitable sharing of all ensuing benefits on a sustainable basis for the benefit of the people and to honour obligations under the Convention on Biological Diversity. Biological diversity in Nepal is closely linked to the livelihoods and economic development of most of her people, and relates to agricultural productivity and sustainability, human health and nutrition, indigenous knowledge, gender equality, building materials, water resources, and the aesthetic and cultural well being of the society.

3.1.6 National Water Strategy (2002) and National Water Plan (2005)

Integrated Water Resource Management has been adopted as one of the principle themes of the National Water Strategy. It professes that water must be viewed from a holistic perspective, both in its natural state and in balancing the competing demands on it, e.g. domestic, agriculture, hydropower, industrial, cultural and environmental. The National Water Strategy has set forth 10 strategic outputs for short, mid and long term for the overall development of water resources. The Nepal Water Plan is built around these strategic outputs of the National Water Resources Strategy.

The strategic output under the Environmental Action Plans on Management of Watershed and Aquatic Ecosystem has set short term, medium term and long term targets. The major action programs on this sub-sector are:

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  Improve environmental database system;
  
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  Map important, critical and priority watersheds and aquatic ecosystem;
  
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  Develop and implement water and watershed quality and standards and regulations
  
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  Implement water conservation education programs;
  
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  Implement nationally important watershed and aquatic ecosystem protection, rehabilitation and management programs;
  
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  Develop strategic environmental assessment in water resource management;
  
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  Ensure compliance of EIA;
  
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  Promote community participation in the management of watersheds and aquatic ecosystems;
  
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  Enhance institutional capacity and coordination and
  
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  Develop a watershed management policy
  

Under the strategic output of hydropower, the plan emphasises on programs on planning and implementation of new hydropower projects and calls for strengthening and capacity building of local level institutions in planning and project implementation.