Chapter 1: introduction

Purpose of the Project

The purpose of KAHEP is to harness the hydropower potential of the Kabeli river within the licensed geographical coordinates by optimizing the available water resources with a minimum possible environmental and social damage in the project development area. The project proponent has the objective to deliver the generated electricity to the central electricity grid under a power purchase agreement with the concerned electricity transmission and distribution agency of Nepal and assist the Government of Nepal to overcome the ongoing load shedding and contribute to the national development efforts.

5. Statuary Environmental Requirement

The statuary environmental legislation for the development of the proposal in Nepal is the Environment Protection Act (EPA), 1997 and Environment Protection Rules (EPR), 1997. The EPR Schedule 1 classifies KAHEP as Initial Environmental Examination (IEE) category project, since the project has an installed capacity of less than 50 MW and does not affect forestland area above 5 ha and lies outside the limits of the officially gazetted National Parks, Wildlife Reserves, Sanctuaries and Conservation Areas (refer EPR Schedule 1, Section UU, and sub-section 2). Hence, KAHEP has to undergo IEE level study and its approval as per the EPR procedures to satisfy the environmental requirements of the Government of Nepal prior to development.

Since the project is seeking financial support from the World Bank Group to meet parts of the project development cost, it has to comply with the environmental and social safeguard policies of the World Bank Group. The project has been classified by the World Bank as a 'Category A' project and therefore a project specific EIA report is prepared within the framework of the World Bank’s Policies to be eligible for financial support.

6. Objectives of the EIA Study

The objective of the EIA study is to assess whether the proposed project is acceptable or not from the environmental point of view and make the proposed project technically and environmentally sustainable. The objectives of the EIA study are to:

• 
  Collect baseline data on environmental conditions of the project area
  
• 
  Carry out alternative analyses for various power generation, layout and design from the environmental point of view
  
• 
  Identify environmental impacts of the selected alternative in terms of magnitude, extent and duration that may be expected to occur during pre-construction, construction and operation
  
• 
  Identify the critical environmental problems that require further studies and/or monitoring.
  
• 
  Suggest mitigation measures for adverse impacts and enhancement measures for beneficial impacts
  
• 
  Develop an Environmental Management and Monitoring Plan
  
• 
  Assess the institutional arrangements and capacity for the implementation of the Environmental Management and Monitoring Plan
  
• 
  Develop information dissemination and consultation strategy for the implementation of the project
  
• 
  Consult and inform the project affected parties and other stakeholders, and ensure their active participation
  
• 
  Advise decision makers on the environmental implementation of the project
  
• 
  Conduct a rapid environmental assessment of cumulative impacts of planned hydropower development in the Kabeli and Tamor basin and identify measures that need to be incorporated in the KAHEP based on the basin environmental considerations.
  

An integral part of the EIA study is the Social Assessment (SA) Report⁵ prepared for the project. The Social Assessment addresses social impacts and other social issues associated with the project such as: resettlement and land acquisition, health impacts, physical cultural resources, ethnic minority issues, among others. A Social Action Plan (SAP)⁶ was prepared to address social impacts of the project and it complements the Environmental Management Plan included in the EIA. The SA and SAP reports are integral parts of the EIA report.

7. EIA Study Methodology

The following methodologies have been applied for the collection of the baseline information and impact prediction:

1.7.1 Literature Review and Consultation with the Stakeholders

The available published literature, documents and maps were reviewed (GoN's topographic map with scales 1: 25,000 and 1:50,000, land use maps, aerial photographs, cadastral survey maps, Google maps etc.) related to the project area. The existing policies, legislations, guidelines and manuals related to the hydropower development in Nepal and the World Bank's Environmental Assessment policies and guidelines were also reviewed. Apart from the above, the EIA Scoping Documents, approved Terms of Reference (ToR) and the Detailed Design Report including the EIA study carried out by Nepal Consult (P) Limited in 1998 were thoroughly reviewed to come up with the project study requirements both at the desk level and the field level. The data collected through literature review on the physical environment include physiography, geomorphology, geology and soil, drainage and hydrology, meteorology, land use, erosion and land stability, water use and rights, glacial lake outburst flood (GLOF) potential and seismicity. On the biological environment, information related to the forest coverage and types, floral & faunal biodiversity, rare, endangered and protected faunal and floral species, habitats and ecological conditions of the project area was collected. Demographic characteristics of the project district and the affected village development committees (VDCs), quality of life, culture and traditions were the key information collected in the socio-economic and cultural aspects.

Furthermore, series of discussions and consultations were carried out with the project technical team involved in the updated feasibility study (UFSR, 2011) to get updates on project location, design aspects, project construction and operation modalities, concentration of activities in the different periods of project construction and operation, etc. Design merits and demerits of the various alternative options of project development and operation were also discussed.

In order to cross check the local concerns and local information available in the secondary literatures, officials of the local and district level, particularly VDCs, District Development Committees, District Forest Office, Community Forest User Groups, District Soil Conservation Offices and District Land Revenue Office were contacted to solicit site-specific information of the project area. Furthermore, the local, national and international institutions working in the project area were also consulted to verify the project specific information related to the environmental and social aspects.

1.7.2 Field Study

The field investigation was carried out by a multidisciplinary team, which comprised of a wildlife expert, physical environment expert, environmental engineer, hydropower engineer, taxonomist and fishery experts. The design and hydropower engineers of the proponent also assisted the team members during the field survey. A month long field visit was conducted in September, October 2010 to collect the baseline information. The study team carried out a field visit in two VDCs of Pachthar district (Amarpur VDC and Panchami VDC) and two VDCs of Taplejung district (Thechambu VDC and Nangkholyang VDC).

The required baseline information on physical and biological environment of direct and indirect impact areas of the project were collected during the field visit. The information on different environmental components was collected by using the tools included in Annex 1. 3.

1.7.3 Impact Analysis

After the full documentation of the baseline environmental data of the project area, each of the environmental parameters was examined against the project activities at different stages of the project development using various methods and tools as required by the environmental parameter in question. By using the format of the National EIA Guideline (1993), the impacts were categorized as direct and indirect impacts. Each of the direct and indirect impacts was further evaluated in terms of its extent as site specific, local or regional. Each of these was further analyzed in terms of duration as short-term, medium-term and long-term. The magnitude of each of the impact was then evaluated as high, medium and low based on the conditions of the environmental parameter at present and estimated or projected changes with the project. While doing so, reversibility of the impacts was also examined to qualify their magnitude for the impact significance. The evaluation of magnitude of impacts on the value based system as presented in the National EIA Guideline, 1993 is not used as this system does not take into account the impact irreversibility and the impact rating for magnitude often misguides the impact significance.

1.7.4 Public Consultation and Public Hearing

Regular informal public consultation is a part of an EIA study. Local people were consulted in a number of occasions and forums during the EIA process.

A total of 14 focus group discussions (FGD) with the local people have been conducted in different locations of the project areas to identify various issues related to the hydropower project development and its socio-economic consequences and corresponding mitigation measures. A total of 251 individuals representing different impact areas and socio-economic groups such as dam site, dewatering zone, access road, powerhouse site, community forest user groups (CFUG), leasehold forest user groups (LFUG), Dalits, indigenous peoples (IPs) and women participated in the FGDs. Out of the 14 FGDs, 2 were with women, 1 with Dalits, 3 with IPs, 1 with Kabeli Concern Committee, 1 with CFUG, 1 with LFUG, 1 with local school teachers and the rest 4 FGDs were conducted with the mixed groups comprising of male, female, IPs, Dalit, Bahun, Chhetri, etc. Table 1.1 presents the locations of the FGD and the members who participated in each of the FGD.

Table 1.1: FGD Locations and Participant Details

SN	Location of FDG	Date	Participants
			Sex		Caste/Ethnicity			Occupation			Total
			M	F	Br/Ch	IP	Dalit	Primarily farming + supplementary fishing	Job and business	Other (leaders, school teacher)
1	Amarput-6 Women	14/7/2010	-	14	14	-		14			14
2	Thechambu-5, Downstream Affected households	15/7/2010	14	02	03	13	-	07	04	05	16
3	Amarpur-6 Community Forest	16/7/2010	25	01	12	13	01	24	-	02	26
4	Amarpur-8, Downstream Affected households	17/7/2010	11	07	07	08	03	18			18
5	Amarpur-6 Kabeli Concern Group	18/7/2010	22	-	13	09	-	18		04	22
6	Amarpur-9, Pinase affected communities of Panchami VDC	19/7/2010	21	03	08	15	01	23	-	-	23
7	Amarpur-9, Pinase affected Majhi indigenous community and Leasehold forest, Amarpur VDC	19/7/2010	11	06	01	16	-	17			17
8	Nangkholyang-5, affected communities	21/7/2010	27	11	10	28	-	25	05	08	38
9	Nangkholyang-5, School teachers	21/7/2010	06	-	03	03				06	06
10	Thechambu-5 Indigenous peoples and VDC representatives	22/7/2010	25	02	05	21	01	21	06	-	27
11	Thechambu-5 women group	22/7/2010		07	01	06		07			07
12	Amarpur-6, Indigenous peoples of four affected VDCs	23/7/2010	19	-	01	18		15	03	2	20
13	Dalit people of Amarpur VDC	23/7/2010	7	3			10	8	2		10
14	Amarpur-9Pinase, Consultation Meeting with Majhi Indigenous Community	19/7/2010	10	7		17		17			17
	Total		188	63	78	167	16	214	20	27	251

*M=Male, F=Female, Br=Brahmin, Ch=Chettri, IP=Indigenous People

The FGD meeting was organized by the SA consulting team by giving a prior verbal notice through a runner to the entire project affected VDCs. The main objectives of FGD were to collect information on socio-cultural landscapes, human-environment interactions, and livelihood practices, the views of local people towards the project, their perceptions, aspirations and expectations. FGDs were organized to collect the information on local development and their felt needs, their roles on project implementation, possible mitigation measures and institutional arrangements. Separate FGDs were organized for IPs, women, Dalits and affected households and other marginalized groups as they may have different agendas, interests and aspirations than the dominant groups. The purpose of the focus group discussion meeting was:

• 
  To provide factual information on the project location, particularly the main project structures such as dam, tunnel, adit portals, powerhouse, surge tank, tailrace and the project access roads besides tentative locations of the quarry sites, construction camps and operation camps of the project.
  
• 
  To clarify the objective of the Project SA and its procedures.
  
• 
  To provide information on the potential impacts of the project and technical considerations during project construction and operation in the project area's physical, biological, social, socio-economic and cultural domain.
  
• 
  To collect information on the project area’s physical, biological and socio-economic and cultural environments from the local peoples’ perspective.
  
• 
  To collect opinion of the people on the project.
  
• 
  To get feedback on the potential impacts of the project in the eyes of the local people particularly on the local infrastructure, social norms and culture and on the physical and biological environments.
  
• 
  To solicit opinion of the local people on the alternative mitigation measures to abate, or avoid the potential impacts
  
• 
  To solicit opinion of the local people with regard to the development aspiration of the project.
  

The focus group discussion meetings were informal. The project layout, its different components, details of the type of construction and operation activities, project’s physical location in the field were explained during the meetings. They were opened to the general public. Annex 1.4 briefly summarizes the findings of the FGD meetings. The major issues, discussed during the FGDs were: land acquisition and mode of compensation; livelihood related issues due to the loss of land; dewatering; prior information dissemination practices; ILO 169 and the rights of IPs; rural electrification; current uses of Kabeli river; perceptions towards the project; socio-cultural practices associated with Kabeli river; local development needs; likely impacts due to various project structures and corresponding mitigation measures.

Information pertaining to the optimum environmental mitigation option and environmental enhancement measures was also obtained from the discussions and consultation with the local people. The information solicited has been used extensively in the preparation of this EIA report, particularly for the environmental baseline, prediction of environmental impacts; design of mitigation and monitoring and in the preparation of environmental enhancement programs. The list of persons consulted in the Community Forest User Group Meetings is presented in Annex 1.5.

Public hearings were organized at local level (project area) as well as national level (Kathmandu) to present the findings of the EIA study as well as to collect the issues, concerns and views of the people of the project area and stakeholders. A summary of public consultations, deliberations, comments and suggestions of the public hearings is incorporated in Annex 1.6.

8.