Chapter 1: introduction

9.3 Environmental Management Cost

The environmental management cost of the project is envisaged to be about 0.75% of the base civil cost i.e. NRs 30,223,575. The basic civil cost of the project estimated is NRs 4029,810,000. This cost is already included in the civil management cost of the project costs. The above cost will also be used for the staff and consultants of the ESU of the PMO.

In addition, the IDA has provisioned for a USD 2 million Technical Assistance to the Ministry of Energy to enable the GoN to carry out any additional basin-wide studies that are necessary to design concrete measures to manage potential cumulative impacts and risks at the Tamor River watershed level.

9.4 Environmental Audit

The Cost estimated for the environmental audit after two years of project operation is NRs. 750,000. The cost will comprise the auditor’s remuneration, transportation and report preparation.

9.5 Summary of Environmental Mitigation, Monitoring, Management and Audit Cost

Table 9.3 presents the summary of the project environmental costs.

Table 9.3: Summary of the Project Environmental Costs

SN	Particulars	Costs (NRs)
1	Environmental Mitigation construction	10,844,177.00
2	Environmental Mitigation Operation	27,900,000.00
3	Environmental Monitoring Pre-Construction Phase	1,820,000.00
4	Environmental Monitoring Construction	6,300,000.00
5	Environmental Monitoring Operation	5,382,500.00
6	Environmental Management Construction	30,223,575.00
7	Environmental audit - post construction	750,000.00
8	Additional study costs included in mitigation	3,000,000.00
9	Cumulative Impact Assessment, Catchment Area Treatment Plan and other future complementary studies (US$ 2 million is included in the project for government agency to commission these studies. KEL is not responsible for this activity).
10	Environmental cost in civil costs including camps, resettlement rehabilitation and other	152,058,935.00
Total Environmental Cost		238,279,187.00

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Website
www.iucnredlist.org
www.icimod.org/hkhconservationportal/PA.aspx?ID=1
www.doed.gov.np

www.aepc.gov.np/

1^ Initial Environmental Examination (IEE) is used in Nepal legislation for a limited Environmental Assessment. Local legislation requires a full scale EIA for a hydropower project larger than 50 MW, a project lying within officially declared protected areas, or a project requiring clearance of more than 5 ha of forest land. The Ministry of Energy (MOE) has the authority to approve IEEs and the Ministry of Science, Technology and Environment (MOSTE) has the authority to approve hydropower project EIAs.

2^ The acronym FPICon was used to refer to Free, Prior and Informed Consultation with project affected communities by IDA and IFC. However, under the 2012 IFC Sustainability Framework this process is now referred to in IFC as Informed Consultation and Participation – ICP to differentiate it from Free, Prior and Informed Consent – FPIC – only applicable where Indigenous People are involved and when significantly adverse impacts upon them are expected as a result of the project.

3^ The Nepali Environmental Protection Act (EPA,1997) and Environmental Protection Rules (EPR, 1997).

4^ Exchange rate 1 US$ = NRs 103.25.

5^ Social Assessment (SA) of Kabeli-A Hydroelectric Project, July 2013, Submitted to

the WORLD BANK by KABELI ENERGY LIMITED, Buddha Nagar, Kathmandu, Nepal; Prepared by HYDRO-CONSULT ENGINEERING LIMITED.

6^ Social Action Plan (SAP) of Kabeli-A Hydroelectric Project, July 2013 Submitted to

the WORLD BANK by KABELI ENERGY LIMITED, Buddha Nagar, Kathmandu, Nepal; Prepared by HYDRO-CONSULT ENGINEERING LIMITED.

7^ Including environmental flow. See Chapter VI.

8^ HYDEST: Method to estimate flows developed by the Government Agency WECS/DHM.

MSHP: Medium Scale Hydroelectric Project

9^ Despite a high rate of urbanization (estimated at just under 5% per annum over 2005-2010), the rural population in Nepal is believed to account for about 80% of the total population.

10^ CO₂ Baseline Database for the Indian Power Sector: User Guide, Central Electricity Authority, New Delhi 2011.

11^ CO₂ Baseline Database for the Indian Power Sector: User Guide, Central Electricity Authority, New Delhi 2011.

12^Those animals, albeit sporadic visitors to the area, however, can be affected by noise from construction and illegal hunting by workers.

13^ This has already started in July 2013: findings of which are summarized in Section 4.3.3.3 and in Table 4.26, and Table 4.28 of this EIA Report.

14^ See Table 6.10 for target fish species of Kabeli.

15^ The Sapta Koshi River is a network of seven major rivers flowing through the Koshi River basin. All the seven rivers, namely, the Tamor River, the Arun River, the Dudh Koshi River, the Likhu River, the Tama Koshi River, the Sun Koshi River, and the Indrawati River, from east to west, originate from the High Himalaya. Among the tributaries, the Sun Koshi-Bhote Koshi, the Tama Koshi, and the Arun River originate in Tibet.

16^ Source: South Asia Trade and Energy Security, The Role of India, Narottam Banskota.

17^ The Mid-Hill Highway is a recent announcement of the central government; its full length does not exist at present. There are some existing east-west road sections in the mid-hills. The plan is to upgrade the existing road sections and construct new sections, hence connecting existing and new road sections to make an east-west Mid-Hill Highway of Nepal. An initial road corridor has been identified. Some of the east-west existing sections of the proposed road are within the Tamor basin. The remaining sections to complete the future Mid-Hill Highway still need to be defined and constructed. Currently, there is no firm plan for completing the sections.

18^ These tests were conducted in May-July 2009 - cited in the Nepal Journal of Science and Technology 10 (2009): 219-223.

19^ This includes 198 km of Tamor River plus 11 main tributaries including the Kabeli. The estimated dewatered section was calculated based only on 11 out of the 13 HPPs considered under the Scenario 1, since the information for the other two was not available at the time of this assessment. For other two an average dewater distance is considered.

20^ DDCs receive 12% of the hydropower royalty, and VDCs receive grants from the central government. A significant proportion of these resources are used in haphazard construction of rural roads. A joint mechanism may be used to support and promote proper and environment-friendly rural road construction.