Chapter 1: introduction

Chapter VII: RAPID CUMULATIVE IMPACTS ASSESMENT AND PROPOSED MANAGEMENT MEASURES

7.1 Background

Over 1996-1997 the Government of Nepal (GoN) carried out a comprehensive screening and ranking process of 138 potential hydroelectric projects. In the late 1990s the sector formally opened to private sector developers, resulting in a rush from individuals and companies applying for a hydropower development license in Nepal. Annex 7.1 describes the licensing process currently followed by the Ministry of Energy (MoE).

As illustrated in Figure 7.1, there are nine major basins where the theoretical hydropower potential of 83,000 MW is concentrated.

Figure 7.1 – Location of the Kabeli-A HPP as it relates to all major watersheds of Nepal


KAHEP

As of June 21, 2013, the DOED had issued 24 licenses for hydropower development in the Tamor-Kabeli basin. While the likelihood of all of these projects materializing in the near future is still uncertain, if they were all to be constructed and operated, the potential cumulative impacts in the Tamor-Kabeli watershed would be unprecedented for Nepal (Figure 7.2).

Figure 7.2 – Layout of hydropower projects with government, survey and construction licenses 

(This figure also includes projects that the GoN has reserved for development in the future as well as the transmission lines)

7.2 Objectives

The concept of Cumulative Impact Assessment and Management (CIA) is new to Nepal. The GoN and the related concerned Ministries and Departments (Ministry of Energy, Ministry of Science Technology and Environment, Water and Energy Commission Secretariat, Department of Electricity Development, etc.) do not legally require CIA as part of the EIA process.

However, in response to the requirements from a potential financier, the World Bank Group (the IDA and IFC), KEL has undertaken Rapid Cumulative Impact Assessment (RCIA) to assess potential cumulative impacts related to the KAHEP. This RCIA has an ultimate goal of identifying: (i) issues that KAHEP, when placed in the context of existing, planned, and reasonable predictable developments in the future, may generate; or (ii) cumulative effects initiated by KAHEP that could jeopardize the overall long term environmental, social and economic sustainability of the watershed. Preparation of this RCIA involved consultation with local experts, government officials, and international CIA practitioners; advice from an independent international freshwater fish ecology expert who has worked in Nepal for several years; collection of additional fish and water quality data; and an extensive literature review.

KAHEP is committed to manage the significant potential cumulative impacts identified by the RCIA by:

• 
  Including in its Environmental Management Plans (EMP) the mitigation measures to appropriately manage its contribution to any potentially significant cumulative impacts (please refer to section 7.10 and Chapter 8, on proposed mitigation measures included in KAHEP’s EMP); and
  
• 
  Work with the WBG, GoN and other stakeholders to design a governance mechanism that would allow for the appropriate development, implementation, enforcement, supervision and monitoring of a basin-wide approach to the environmental and social management of the cumulative impacts (please refer to sections 7.10 on Proposed Management Strategy and 7.11 on Complementary Studies).
  

To implement the second part, the proposed project includes a separate US$2 million Technical Assistance component for the Ministry of Energy (MoE). This Technical Assistance is to increase GoN’s capacity to manage the potential cumulative impacts and risks, and carry out any additional basin-wide studies that are necessary to design additional measures to manage potential cumulative impacts at the Tamor-Kabeli watershed level. The main components of this Technical Assistance are summarized in Box 7.1.

Box 7.1: Components of the IDA Technical Assistance to the DOED

Component	Budget (USD)
TA for supervision of KAHEP to ensure compliance with PDA.	300,000
Capacity Building of GoN agencies and financial institutions in hydropower development	200,000
Capacity Building on Social Aspects Development of implementing guidelines for resettlement, community benefit-sharing mechanisms, monitoring and evaluation etc. Strengthen capacity of regulators, project developers and consultants by offering short and medium term training	500,000
International Workshop on “Integrated River Basin Management For Sustainable Hydropower Development”	Trust Fund (TBD)
Additional Basin-wide Studies to Manage Cumulative Impacts in Kabeli-Tamor Watershed	600,000
Capacity Building on Environmental Aspects Review of existing guidelines for hydropower sector Develop supplementary guidelines on specific topics such as Minimum Ecological Flows; Watershed Management; Sediment Management etc. Strengthen capacity of regulators, project developers and consultants by offering short and medium term training	400,000