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AU,I NEPAL ELECTRICITYAUTHORITY (An Undertakingof His Majesty'sGovernment of Nepal)

ARUN III HYDROELECTRICPROJECT

ENVIRONMENTALASSESSMENT AND MANAGEMENT EXECUTIVE SUMMARY

KATHMANDU May 1993 NEPAL ELECTRICITYAUTHORITY (An HMG/N Undertaking)

ARUN III HYDROELECTRICPROJECT

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ENVIRONMENTALASSESSMENT AND MANAGEMENT EXECUTIVESUMMARY

KATHMANDU May 193 NEPAL ARUN III HYDROELECTRIC PROJECT ENVIRONMENTAL ASSESSMENT AND MANAGEMENT ABBREVIATED EXECUTIVE SUMMARY

INTRODUCTION

The Arun III Hydroelectric Project has been subjectedto extensive comparative analysis and intensive design studies as well as envirommentalscrutiny. In this summary report, *environment" is used in its broadest sense to mean the total biophysical, socio-economic and cultural setting within which the people of the Arun Valley live. The various environmental studies are contained in a large number of professional reports totalling several thousand pages. This Environmental Executive Summary attempts to condense under one cover the contents, findings and recommendationsof those reports, and the nature of the environmental management systems to be put in place in the Arun Valley as a result.

The major direct environmental inpact of the project concerns land acquisition, compensation and rehabilitation, which is, including the access road, the power project, and the transmission lines, estimated to affect some 1,760 families, about 0.18% of the total population of the Arun Valley. Of these families about 155 are seriously affected, i.e. those whose house is taken or who are left with insufficient holdings, assets and prospects to reach their previous living standard. The major induced risk of the project relates to deforestation, for which a detailed mitigation plan is described below.

POLICY. LEGAL AND ADMINISTRATIVEFRAMEWORK

The environmental scrutiny of the Arun III Project has taken place in an institutional and policy environment that has evolved since the project was first conceived. This has included a National Conservation Strategy (NCS) developed with assistance of the World Conservation Union linking sustainable development with conservation; the most recent Five Year Plan (1992-97) stressing the use of envirommentalassessment as a tool in project design and implementation, the preparation and enforcenent of legal provisions emphasizirg sustainability, and public and NGO involvement; a series of environmental guidelines developed during the ongoing implementation of the NCS.

Important among legislation relating to the Arun III are the Land Acquisition Guidelines for the Arun Access Road (2045) which have been used to implement a Land Acquisition, Compensation and Resettlement Plan (ACRP) which is to be applied to the Project as a whole, that is, including the access road, the power project itself, and the transniission lines. This has included extensive socioeconomic surveys of the project affected families and application of rehabilitation measures that include land for land and employmentoptions for Severely Project Affected Families (SPAFS) and rehabilitation grants for all PAFs, beyond the normal compensation stipulated by Nepal's Land Acquisition Act. PROJECT DESCRIPTN

The Arun III is a 402 MW 'run-of-river' facility that will utilize normal flows in the river, through twin 11.5 Ikmheadrace tunnels, rather than depend on water held back in a large reservoir. Development of the project is envisaged in two equal stages of 201 MW. The dam will be a concrete gravity type with a crest length of 155 m and a height of 68 m.

The Arun III power facilities are dependent on the construction of an access road of 122 km that will follow the river valley alignment. The power transmission system required for the full two- stage development of Arun III includes a double circuit 220 kV transmission line of 380410 km from the Arun III powerhouse to Kathmandu, passing through substations in the Terai; the first stage consists of a 120 km double circuit single tower 220 kV line linking the Arun III Project with the Nepalese national grid and a substation at Duhabi in the Terai..

Project construction is expected to start, with the road, in 1994. The road will take about 40 months, including mobilization. For the bulk of the hydropower components, construction will begin after the provision of road access, post-monsoon 1996. Final design and construction of the complete trarsmission line system, including substations for Stage 1, could be completed within 43 months from contract award. At the present time, funding is sought for Stage 1 only.

THE SEMNG

The Arun Valley contains natural features of recognized international significance, particularly in the Makalu-Barun area north-west of the Arun Im site. This area contains one of the few surviving pristine forest areas in the Himalayan range, with very high biodiversity values. Features of high ecological and cultural value have also been identified, through a World Bank and UNDP sponsored regional study, elsewhere in the Valley, which is an international flyway for migrating birds and has a high diversity of aquatic fauna. the Arun River originates in the Tibet Autonomous Region of China, with approximately 84% of the catchment area lying north of the Himalayan Range. The river pre-dates the uplifting of the Himalayan Range, and its down-cutting has kept pace with the rate of uplift. The catchment area of the Arun at the damsite is approximately 27,000 km2, with that lying within Nepal estimated to be 5028 km2.

The Arun Valley is home to several hundred thousand people from a great variety of ethnic and cultural backgrounds, with different traditions and expectations and different historical roles int he society and economy of the Valley. The populationof Sankhuwasabha District, which includes much of the area to be directly affected by the Project, is estimated at some 160,000. Because most of the settlements and arable land are concentrated on the ridges and terraces along the mountain slopes, the access road traverses land which over most of its length is relatively lightly settled and farmed. The same can be said of the hydro project location, as the general demographic pattern is on of decreasing population density from soudt to north, with only eight persons per km2 in the northern part of the Arun Valley.

-2- Within Nepal, a population of about 450,000 people lives within the catchment area of the Arun River. The access road passes through land occupied by some ten different ethnic groups. The indigenous people are Kirantis, represented by Rais and Limbus (The Arun River is a social dividing line, with the Rais generally to the West and Limbus to the East). Others present in the are Bhotea, Kar Bhote and Gurungs, similar to the Kiranti in their Tibeto-Burman characteristics, and Brahmin-Chetri, occupational castes, and Newars, all of whom have migrated more recently to the valley and are organized along more hierarchical caste lines than the Kiranti.

Most of the Valley's inhabitants live in a rigorous subsistence lifestyle, and some two thirds are functionally illiterate. A main determinant and limitation affecting the economy and lifestyle is that at present virtually all movement of people and goods within the valley is on foot. Consequently, the economy and lifestyle have been largely self-contained and self-sufficient, although the Kiranti have a long tradition of service in the British and Indian Armies, and virtually all ethnic groups depend to varying degrees on seasonal or long term migration out of the valley to India or the Nepalese terai.

Prominent among regional development and conservation efforts has been the Makalu-Barun Conservation Project seeking a combination of sustainable community development and conservation within a protected area for the Makalu-Barun valley. This has been the outcome of a successful programme mounted by an international NGO, the Woodlands Mountain Institute, which has received Global Environmental Fund support, through collaboration with UNDP and the World Bank.

POTENTIAL ENVIRONMENTAL IMPACTS

The impacts are: direct impacts, resulting from the physical presence of the facilities and the way they are designed, built and operated; indirect impacts stemming from the economic activities surrounding construction; and induced economic effects resulting from improved access. These occur in tw- main phases, during construction and operation. The area of influence of the project is taken to be the whole Arun Basin within Nepal.

The Arun III Project will have far-reaching social and environmental consequences. Most of these will result from construction of the road rather than from the power project. During construction, the road will require a workforce of an average 6700, peaking at around 9500 during key dry periods, about twice that of the hydropower components requirement of about 3700, or the some 1300 required for transmission line construction. Many of these workers will be from the Arun Valley, since the contractors are obliged to give preference to hire local people. (The approximately 12-14,000 figure for construction workers - roughly 3% of the Valley's 450,000 population - will also inevitably include some double counting).

During construction there will be large concentrations of workers and their dependents both at the Contractor's camps at the remote work fronts, plus incomers atracted by economic opportunities. Together, these will create a massive increase in demand for food and fuel with consequent impacts on prices and forests. There will also be some social disruption and pressure on health facilities. Positive impacts will be local employment opportunities with a resulting increase in

-3- per capita incomes and an increased market for local produce.

Since the Arun IIl Project is a run-of-river scheme, the impacts typically associated with large reservoir hydropower projects not relevant to this project include:

* no resettlement of people or significant loss of agricultural land due to inundation;

* no proliferation of waterborne disease vectors like schistosomiasisor water weeds, due to unsuitable conditions;

* downstream dewatering will not affect agriculture;

* no potential for induced seismicity due to water impoundment;

* limited sediment trapping potential behind dam, minimizing the potential for downstream erosion, with no loss of water-borne sediments to downstream riparian areas;

* project life will not be reduced by reservoir sedimentationsince it is a run-of-river facility;

* negligible alterations in water temperature and biochemical oxygen demand due to impoundment, given the minimal water retention time;

* no disruption to navigation, since damsite is located in a non-navigable river stretch;

- minimal danger of destructive downstream flooding in the event of dam failure because of the small amount of water retained behind the dam;

a minimal inundation of riparian vegetation due to steep valley sides and small imnpoundment(50 ha, extending some 4 kn upstream).

Without mitigation, some of the identified negative imnpactsin the Arun Valley during construction are likely to include:

* clearance of forests within the vicinity of the project, resulting in habitat loss for endangered species of wildlife;

* pressure on fish populations;

* permanent land take of agricultural land, with loss of food production and effects on marginal households (this will be minimal for transmission line Right of Ways (RoWs), although some will occur for substations and tower pads);

* temporary land take and disruption of agricultural activities, with effects on

-4- marginal households;

* hazards to birds (avian hazards) by transmission lines at valley crossings and breeding sites such as Koshi Tappu in the Terai;

* safety hazards to public of transmission lines;

* encroachment onto RoW of transmission lines by landless squatters;

* possibly, health risks from exposure to electromagnetic fields along transmission line Rows.

* marginalizationof some project-affected families (PAFs) and of women, despite compensationprocedures;

* increased local food deficit;

* food price inflation, with effects on marginal households, especially nutritional status of some women and children;

* development of shanty towns;

3 exacerbation of already existing poor health situation and stress on health facilities;

* impact of labour force on local social systems and culture;

* major stresses on all local institutions (in particular local government, schools, and resource managementgroups).

When the Project is completed, positive impacts during the operational period will be:

-* greatly reduced cost of imported food and manufactured commnodities;

* greatly reduced transport cost for regional exports;

* better access for current outward seasonal and long term economic migration;

* possibility of expansion of feeder road system;

* rapid growth of new economic centres along the road and for maintenance contract work along transmission line Row;

* increased incomes from livestock;

* increased tourism (and tourism related impacts);

-5- * possible return of educated, successful migrants.

Without comprehensive development progranimes in the Valley, negative trends already underway, and likely to be accelerated, will include:

* increased rate of population growth, and consequent demand on resources;

* major reductions in sale prices of locally-producedgrain crops, with worsened food balance;

* major reduction in long-haul portering opportunities;

* increased harvesting of forest products to pay for required food and other goods, and forest clearance for cardamom production, with consequent forest degradation and habitat loss, especially through increased construction needs for urbanization;

* further development of shanty towns;

* no reduction in the ongoing processes of impoverishmentand marginalization;

* loss of some riverain habitat essential for endangered species;

* loss of forest habitat of other endangered species, and direct threats due to hunting;

- increased disparities in wealth and access to services;

* accelerated erosion of traditional values and culture.

Cumulative iinpacs can also be expected once the access road is completed, as two other projects, th.e Upper Arun Hydroelectric Project (UAHP) and the Lower Arun Hydroelectric Project (LAHP) are planned for the Valley. A short discussion of these is found in the main Executive Summary document.

Some quantifiable impacts of the Arun III Project area, according to latest estimates:

Access Road Power Transmission Line; Total TOTAL Affected 1014 170 576 1760 Population-Families (PAFs and SPAFS) SPAFs 132 19 4 155 TOTAL Land Take 394 117 602 1113 (Ha) Privately Held 293 77 312 682 Land fHa) Of the total land take, agricultural land will be 186 ha, which corresponds to about 0.14% of the agricultural land in the Arun Basin.

PROJECT ALTERNATVES

Internally, Nepal has a major unsatisfied demand for electricity. Externally, the country is in a unique position to supply power to the burgeoning South Asian economy. Nepal has enormous economically feasible hydroelectric power potential, of the order of 25,000 MW. Therefore, the logical choice for some rural and most urban and industrial uses is hydropower. The Arun III Hydroelectric Project was identified as the best major hydropower scheme to be added to the Nepal interconnected System under a least cost generation expansion plan (LCGEP) completed by NEA in 1987 and reconfirmed by an LCGEP Update Study completed in 1990.

HMG/N has now initiated analytical work to improve efficiency in financial resource allocation and to prioritize the expenditure portfolio, so that investment in Arun III will not crowd out other priority projects, particularly those in the social and rural infrastructure sectors. At the same time, HMGN is taking steps to open up the electricity supply system to competition by encouraging private sector participation in power generation.

IMPACT MMTIGATION

The Arun III Project has an Environmental Mitigation Plan, which is an integral part of the project and deals with direct impacts including land acquisition, compensation and rehabilitation (ACRP) and a Regional Action Programme, which has grown out of a Management of Basinwide Environmental Impacts Study (MBEIS) by the NGO the King Mahendra Trust for Nature Conservation (KMTNC), sponsored by the UNDP and World Bank (October 1991). This latter addresses the indirect impacts and induced effects, and together the two constitute the 'Environmental Management Plan" required by World Bank appraisal procedures (OD 4.01).

The Environmental Mitigation Plan includes design level accommodations, such as avoidance of settlements and buildings wherever possible (a major consideration in choosing the Valley route for the acceas road over the previous Hill route), minimizing earthworks, and slope stabilization measures as well as various controls on the Contractors, such as on methods of and locations for spoil disposal, strict controls on use of wood for any purpose, and requirements to maxirnize use of local labor (especially SPAFs). The ACRP, for PAFs and SPAFs includes, as well as socioeconomic surveys prior to acquisition, land for land and employment options for SPAFs, and rehabilitation grants for all PAva:

* guidelines for leasing land, and restoring it, whenever possible;

* inclusion of informal tenants and squatters in the Land Acquisition Guidelines 2045;

* compensation for any physical damage caused by the Contractor or any

-7- subcontractoroperating on the project, according to an agreed and publicized claimsprocedure

Measures to minimizethe indirect impacts of the access road, and to capitaliseon the economic opportunitiesprovided by improved access such as tourism, have been idendfied in the MBEIS the KMTNC. The study listed long-term managementoptions for the area, and proposed an interim managerent structure, cntered on the National Planning Conmmission(NPC).

The Study's report lists 21 recommendedsectoral programmes in six major programmeareas (conservation;income generation; insdtutionalstrengthening; extension and training; infrastrucure and energy; and research, monitoringand infornation) designed to address both the immediaterequirements brought about by the constructionprocess and the longer-termneeds for sustainabledevelopment within the Arun Valley. In terms of scheduling, five sectoral programmes (strengtheninglocal forest management;helping local comununitiesservice construction-relateddemands, particularlyfor wood; strengtheninggovernment institutions to cope with impacts; training and education for local human resource development;and environmentalmonitoring) were regarded as priorities for pre-emptive implementation. These activities comprise a "core programnewto be implementedby HMGN as a priority.

Dfrestation

As mentionedearlier, the major induced effect of the Arun m Project is the potential serious exacerbation of the ongoingdeforestation in the Arun Valley. As a framework, it bears noting that the King Mahendra Trust Study concludedthat if existingagricultural practices continued, including the extensiveuse of 'slash and burn' practices, all the Valley's forest resourceswould be lost in 5-15 years. The major potential causes of deforestationare the Project workforce during constructionand illegal logging once the access road is completed. Among the mitigation steps being taken to address these issues are: requiring contractorsto give preferenceto hiring the local residents (especiallySPAFs); institutingstrict controls on the use of fuelwoodby contractors for any purpose, making contractrs responsiblefor operation of illegal logging control gates during the constructionperiod; locatingcontractor work canps away from potential environmentl 'hot spots,' after consultationwith local NGOs and experts in biodiversity; institting a strict Project MonitoringPlan (see below), as well as an Action Plan for the control of illegal logging, to be managedby HMG/N. In additionto ihe settingup of the 2,330 km2 Makalu Barun National Park and ConservationArea in the northwestquadrant of the Basin, the Arun Basin's biodiversityresources would also be covered under the Arun Hydroprojectthrough the institutionalizationof the Milke Danda ConservationArea along the valley's eastern border.

ENVIRONMENTALMANAGEMENT RESPONSIBILITIES

The construction team, comprisedof the Employer, Engiefer and Contractor, have the institutionalresponsibility for implementingthe Project's environmentalmanagement saegy, the Environmental ManagementPlan, which will cope with direct impacts. HMG/N will provide the leadership for setting up an administrativemechanism responsible for the RegionalAction frggalnm which will deal with indirect impacts and basin-widechange. Both componentsof the strategy will require new institutions,and therefore will be the subject of institutional strengthening,programmes.

Both the Engineer and Contractor will have at least one full time professionalenviromnentalist on their staff for the duration of the works, and the Nepal Electricity Authoritywill undertake an institutionalstrengthening programmne for its EnviromnentalUnit, which will include the creation of an Arun III Project EnvironmentalManagement Unit, worldng directly with the Engineer's environmentalistand having a professionalResettlement Advisor on its staff.

The NPC has commissioneda Macro-managementStudy to examnineand refine the managemen; recommendationsof the BasinwideImpacts Study, to turn agreed proposals into implementable programs in time for the start of road constructionafter the 1994 monsoon. It is likely that the Regional Action Programme would be carried out by a policy making board (the Arun Basin Interim Management Board) assistedby a multidisciplinaryexecutive unit, the Arun Basin EnvirorunentalManagement Unit (ABEMU),which would work closely with the District administrations.

ENVIRONMENTALMONITORING AND EVALUATIONPLAN

The Arun 111Project will operate dual enviromnentalmonitoring and evaluation progranmmes, through the Enironmental MitigationPlan for direct impacts, and through the Regional Action Programmiefor indirect impacts. Both roles envisage a criticalrole for NGOs, not only within implementationof social programs, but also as critical and objective evaluatorsof project performancein the envirorunmental(in a broad sense) realm. A post-constructionEnvironmental Impact Audit is part of the overall project planning.

Coordinatedby the ABEMU, the RegionalAction Programne (RAP)will establish an effective monitoringand evaluation system covering a wide range of issues, reflecting the broad coverage of the Basinwide Impacts Study and the various other enviromnentally-orientedprojects and activitiesrelated to the Arun III Project.

-9- ARuN 11HyYDROELECTRIC PROjECT: ENVIRONMENTAL EXECUTIVE SumMMARY

PREFACE

The Arun III (AccessRoad/Hydroelectric) Project will be Nepal's biggestdevelopment project to date. It has beenthe subjectof a major planningand designeffort extendingover several years and invoMnga wide range of organisationsand experts.

An importantfeature of the planning processhas been the intensiveeffort which has been givento the ervironmentalassessment and managernent components of the project. This has includedseveral major environmentalstudies by the design team, resuktingin significant environmentalinputs into the tender documentsand engineeringdesigns, and independent study of wider environmentalissues related to projectimplementation. The environmental work has involvedgovemment agencies, local and intemationalconsultants, international fundinginstitutions, non-governmental organisations, and the people of the Arun Valley.

The variousenvironmental studies are containedin a large number of professionalreports totallingseveral thousand pages. It is not reasonableto expectinterested parties to study all thesein detail. This EnvironmentalExecutve Summaryattempts to summariseunder one coverthe contents,findings and recommendationsof those reports, and the nature of the environmentalmanagement systems to be put in placein the Arun Valley as a result.

Nevertheless,it is not possiblein so short a documentto do full justice to the vast amountof workthat has beendone. Thereforethis summaryshould be treated as a guideonly. Those wishingto follow up on any issueand obtaingreater detail are urgedto consultthe full reports. Theseare availableat the Nepal ElectricityAuthority's Arun Ill ProjectOffice in Kathmandu.

Someof the environmentalassessment work has been undertakenwith assistancefrom the United Nations Development Programme, the World Bank and Kreditanstalt fuer Wiederaufbau. Thus the primary source of guidance on methodologyhas been these institutions.However the final stagesof analysisand preparationof this Summaryhave taken into accountthe requirementsof all the agenciesinvolved in financingthe project.

Contact Address:

Dr. J.L Karmarcharya ProjectDirector Arur. IlI HydroelectricProject Nepal ElectricityAuthority AdwaitMarg P.O. Box 4909 Kathmandu Nepal

Tel: (+ 977-1)225973 Fax: (+ 977-1) 226619 Telex: 2633 NEA HO NP Cable:BIDYUT

FRr.NEw 00 ARUN III HYDROELECTRICPROJECT

ENVIRONMENTALASSESSMENT AND MANAGEMENTEXECUTIVE SUMMARY

CONTENTS

1. INTRODUCTION 1 1.1 Backgound 1 12 EnvironmentalStudies in the ProjectPlanning Process 2 1.3 This Report 3

2. POUCY,LEGAL AND ADMINISTRATIVE FRAMEWORK 5 2.1 Irtroduction 5 2.2 NationalContet s 2.3 IrtemraionalContexd 7

3. PROJECTDESCRIPTION 9 3.1 Arunl!! fHydroelectricProject 9 3.2 OtherMajor HydroelectricProjects Proposed for the Arun Valley 16

4. THE SElriNG 17 4.1 NaturalEnvironment 17 4.2 Socio-EconornicErnirorwnent 24 4.3 RegionalDevelopment 28

S. POTENTIALENVIRONMENTAL IMPACTS 30 5.1 Irtroduction 30 5-2 Arun AccessRoad 30 5.3 HydropowerComponents 42 5.4 TransmissionLine System 47 5.5 CumulativeImpacts 48

6. PROJECTALTERNATIVES so 6.1 Irtroduction so 62 Alterative Technologies 50 6.3 AltemativeSites 51

7. IMPACTMMGATION 56 7.1 Introduction 56 72 EnvironrnentalMitigation Plan 56 7.3 LandAcquisition, Compensation and Rehabilitation 65 7.4 RegionalAction Programme 67

8. ENVIRONMENTALMANAGEMENT RESPONSIBILMES 68 8.1 Introduction 68 82 ProjectErvironmfiertal Management - Implementingthe EnvironmentalMitigation Plan 69 8.3 RegionalManagemnent Strucure 68 a4 Instittional Strengthening 71

9. ENVIRONMENTALMONITORING AND EVALUATION 74 9.1 Introduction 74 9.2 Ernirornental MitigationPlan: Monitoring and Evaluation 74 9.3 RegionalAction Programme:Monitoring and Evaluation 77 9.4 FurtherSurveys 78

10. CONCLUSION 80 ARUN 11HROELECTRIC PROECT: ENVIRONMENFALEXECUTIE SUMMARY APPENDICES

1. ReferrMces A-1 2. Recordof Constltationand Meebngs A-3 3. BasinwideImpacts Study A-6 4. MakalF-BarunConservation Project A-16 5. ImpactMatices A-18 6. Index to EnvironmentalSections of Tender Docunents A-32

TABLES

3.1 Characteristicsof PowerGeneration Components, Slaged Development 10 32 Characteristicsof Arun AccessRoad 13 3.3 Characteristicsof PowerTrarsmission System 13 3.4 Characteristicsof Upper Arun HydroelectricProject 16 3.5 Characteristicsof LowerArun HydroelectricProject 16 4.1 Rare and EndangeredPlant Species Found along Fte AccessRoad 21 4.2 Endangered,Threatened and Rare Mammalsand ReptilesKnown or Suspectedto Occur in the ImmediateVicinity of the AccessRoad 21 4.3 EstimatedEthnicity in the Arun Basin 24 4.4 AverageAnnual Family Iromne by Source 28 5.1 Access Road:Most SignificantPotential Construction Period Impacts 31 5.2 AccessRoad: Most SignificantPotential Impacts When Open 31 5.3 Land Use by Arun Access Road 35 5.4 Land Take by HydropowerFacilities 45 5.5 Land Take and LabourForce for Full TransmissionUine System 48 6.1 Arun AccessRoad - ComparafiveChart Distances,Land Use, LandTake and FamiliesAffected 53 62 Arun AccessRoad: Hil VersusValley - A QualitativeAssessment 54 A3.1 SummaryTable of RecommendedAction Programmes and Projects. Managementof Basirnide EnvironmentalImpacts Study A-12 FIGURES

ai ProjectEnwironmerita Management During Construction 72 6.2 ProjectEnvironmental Management After Caommissioning 72 &3 Model for Administrationof the RegionalAction Programmne 73

MAPS

1. Arun Watershed,Nepal, showing Project Location 4 Z. Project Layout 11 3. TransmissionUne Routes 14 4. EcologicallySensiive and ProtectedAreas 22

PLATES

1. Typical Rai House,Arun Valley 2 2. PhyaksiindaDobhan, the DamSite 9 3. Hile, the Starting Pointfor the Arun AccessRoad 12 4. Phyaksinda- the IntakeArea, from the West 20 5. Rai Girl 25 6 Porter carryingBuilrng Materialsfrom Hile to Khandbari 27 7. HinkuVllevy Makalu-BarunNational Park 29 B. Tunbetar, north of Heluwabesi:Possibie Site for Contractor's Facilities 33 9. Tumnlingtarfrom the North 36 ARUN 1HYDROELECTRIC PwEC ENVIRoNMENTALEXEcuTIVE SUMmARY

NCS NationalConservation Strategy NEAL NepalElectricity Authorit NGO Non-Govemental Organiztion NPC NationalPlanning Commission

OD Operational Directve ODA OverseasDevelopment Administraton (U.K)

PAF ProjectAffected Famly

QNP QomoiangmaNature Preserve

RAP RegbnalAction Programme RoW Right-of-Way RPO RegionalPlanning Office

SDC SwissDevelopment Cooperation SPAF SeriouslyProject Affected Family SWK Scott WilsonKirkpatrick & Partners

TRRL Transportand Road ResearchLaboratory (J.K)

UAHP UpperArun Hydroelectric Project UNDP United NationDevelopment Programme

VDC VillageDevelopment Commiltee

WECS Water and EnergyCommission Secretariat WMil WoodlandsMountain Institute

('IF' ARUN Nl HYDROELECTRICPROJECT. ENVIRONMENTAL EXECUTIVE SUMMARY

ACRONYMSAND ABBREVIATIONS

ABEMU Arun Basin Enrironmental Management Unit ABIMB Arun Basin Interim Management Board ACRP Acquisiton, Compensation and Rehabilitation Plan ADB Asian Development Bank ADBIN Agricutural Development Bank of Nepal AJDS Acquired Immune Def,ciency Syndrome APEMU Arun Project Environmental Management Unit ARI Acute Respiratory Infection

CDO Chief District Officer CITES Corvention on International Trade In Endangered Species CIDA Canadian International DevelopmentAgency

DFO District Forest Ofcer DNPWC Departmert of National Parks and Wildlife Conservation DOR Department of Roads

EA Environmental Assessment E3A Environmental Impact Assessment EMP Enrrronmental Mitigation Plan

FIDIC Federation Internationale des Ingenieurs Conseils FINNIDA Finnish Intemational DevelopmentAgency

GEF Global Ernvronment Facility GIs Geographic Information System GLOF Glacial Lake Outbust Flood

HEP Hydroelectric Project HIA High Impact Area HMGJN His Majesty's Governmert of Nepal

ICBP International Council for Bird Preservation ICIMOD International Centre for Integrated Mountain Development IDA International Development Association IUCN The World Conservation Union

JV Joint Venture Arun Ill Consulting Services

KW Kred1tanstaltfur Wiederaufbau KHDP Koshi Hills Development Programme KMTNC King Mahendra Trust for Nature Conservation km Kilometer KPAs Key Planning Area kV kilovolt

LAHP Lover Arun Hydroeectric Project LOGEP Least Cost Generation Expansion Plan LDO Local Development Officer LDFF Landslide Dam Failure Flood LUA Low Impact Area m.as.L meters above sea level MBCP Makalu-Barun Conservation Project MBEIS Management of Basinwide Environmental Impacts Study MOFSC Ministry of Forests and Soil Conservation MW megawatt

(VI ARuN III HYDROELECTRICPROJEcr: ENVIRONMENTAL EXECUTIVE SUMMARY 1. INTRODUCTION

1 INTRODUCTION

1.1 BACKGROUND 1.1.1 The Arun Ill Hydroelectric Project

Fdlowingextensive comparative analysis and ilensive designstudies, the Nepal ElectricityAuthority (NEA) intendsto constructa rn-of-rier hydroelectricproject on the Arun Riverin easternNepal (Map 1). The projectis knownas the *ArunIlIl HydroelectrcProject since the site chosenis the third of six potential hydropowersites originally idernifiedon the Arun River in the 1985 Koshi River Water ResourcesDevelopment Master Plan. In the couse of iurtherstudies the numberof feasiblesites was reducedto three, namelythe UpperArun, Arun III and LowerArun projects.

The installedcapacity of the Arun IlIl projectvnll be 402 MW, which compareswith Nepal's currert installedhydropower capacity of approimately 250 MW. The projecthas three principalcomponents:

* an accessroad - the "ArunAccess Roadm;

* a dam, tunnel,powerhouse and associatedworks;

* a trarsmissionline systemfor power evacuation.

The first 201 MW stage of the Arun IlIl projectis to be fundedby a consortiumof internationallending agenciescomprising, among others, the Asian DevelopmentBank (ADB),the Finnish Intemabonal DevelopmentAgency (FINNIDA), the InternationalDevelopnert Association,Washington, D.C. (IDA), and the governrnentsof Germany,Japan and Sweden.

It is plannedthat constructionof the access road should comnmencein 1994, with the first power becomingavailable in the year 2001. 1.1.2 Environment and Development in Nepal

Nepal is a poorcountry with a limitedcapacity to mobiliseits natural resourcesfor economicgrowth. Developmentof its massivehydroelectric power potentialis seen as a strategicnecessity to proide electriciy for industrialisationto employthe increasingpopulatiorL In additionto meetingin-country needs,there will be opportunitiesfor sale of surpluspower to India

Given the wellablished link between poverty and environmentaldegradation, the primary environmentalissue is not whetherinfastucture developmentshould occur. Instead,the need is to ensurethat those projectswhich are implementedare sensitiveto the enwironrmentand sustainable, andthat they bring real and astingbenefits to the peopleof Nepal. It is aLsoimportant to balancelocal and nationalneeds.

In Nepal,it is well recognisedthat erviromiental managermentrequires an integratedapproach to the physical,biological, social, cultural and economicenvironmernt In this sunmmaryreport, menvironment" is used in its broad sense to mean the total biophysical,socio-economic and culturalsetting witin whichthe peopleof the Arun Valley live

CHAPSI-2.NEW 1 ARUN 111HDROELECTRIC PRojECr ENVIRONMENTALEXECUTIVE SUMMARY 1. INTRODUCTION

p1.1.1 TypiclRi House,Awn VaDey Photo: Chales Ramble

12 ENVIRONMENTALSTUDIES IN THE PROJECTPLANNING PROCESS

The generalcharacteristics of the AruMValley are remoteness,diversity (both natural and cultural),and poverty. A rraor irfrastructure project will buing rapid and irreversible changes to the area Consequernly,the ArunIll HydroelectricPrcgect has been the subjectof five dmfferentcategories of environmentalscrutiny:

(1) Recommendationsof avariety of independentnational and internationalobservers: at leasttwo reportswith an overviewof ervironmentalmanagement and developmrent ecology in the Valley.

(2) The projectdesign team (NEA.and their nationaland interational consultants):three major environmentalimpact studies plus this environmentalexecutive summary, as wellas inputto otherproject repors, the engineeringdesign and specifications,and the tender documents.

(3) A *Panelof Expers (independentspecialists, irncluding an environmentalistengaged by NEA to review the designteam's recommendations and progress):seven reports to date.

(4) A national conservaton and developmentNGO, the King Mahendra Trust for Natre Conservation, as a consultant to the World Bank: the Managemnentof Basinwde Envronmental Impacts Study,a major report on managementof incirect and induced impacts in the Arun Valley.

(5) Fundingagency missions.

CAPsI-V2EW 2 ARUN It/ HYDROELECTRICPROJECT: ENVWRONMENTAL EXECUTIVE SUMMARY 1. INTRODUCTION

Thesestudies have followed a recogrisablesequenc: iirstly,early independentreports discussing the values at risk In the valley and the need for futher analysisrelating to managementof cne (1); secondly, project-specificreports Investigatingprobable direct impacts and appropriatemitigating measures (2, 3, 5); and thirdly, analysis of indirect and induced changes, including economfic opportunities,and mechanismsfor managinghese processes(4, 5).

The consensusof the studiesis thatthe project'sdirect impactswill be relativelymhnor when compared withthe nationalbenefits of increasedelectricity availabilily. However, the indirectimpacts and induced effectsresulting from the projectand openingup the Valley are harderto predictand manage. There wil be majoreconomic opportunities, but tere will also be increasedpressures on natural resources, andthe dangerof inequitble spreadof benefts.

Managementof bolh the direct and indirecteffects necessitaesa major upgradingof administrative mechanismsand capability. 1.3 THIS REPORT

This Summary'slayout follows the format suggestedin the World BanKs OperationalDirecfive on EnvironmentalAssessment for a full project-specificEA Report(OD 4.01, 1991).

CHVS1-ZNEW 3 ARuN iII HYDROELEC PROJEcr ENVRONMENTALEXECU7iVE SUMMARY 1. INTRODUCTnON

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CKPSI-2ZNEW 4 ARUN mHYDROELECTRIC PROJECrf ENVIRONMENTAL EXECUTIVE SuMMARY I POUCY,LEGAL AND ADMINISTRAlTVE FRAMEWORK

2 POLICY,LEGAL AND ADMINISTRATIVE FRAMEWORK

2.1 INTRODUCTION

Largeinfrastructure projects do not occur in a vaun. They emergefrom a particularinstitutional erMronmerit,and operateat a particularmoment in th poldicaland socioeconomichistory of the pawtneragencies and counties. Overthe periodof dopment ofthe Arun lIl Projectthere have been major changesin nationaland internationalpolicy on environmentand developmenLThe Arun IlIl Projectwas conceivedand largelydesigned under te Panchayatregime. The revdution of 1990 beganthe processof democratsationin Nepal.with consequertopening up of debateon environment and development,incuding the role and effectsof majorprojects such as Arun Ill.

In addition,the 1980ls saw rapid advancesin both the conceptualsationand acceptanceof the necessityfor ervironmentalyberdgn 1f0ms of developmert,culminating in 19gs EarthSummit and the publicaton of Agenda 21. The establishmentof the legal and admfinistrativemechanisms to implementthe new policies have resulted in contnuous revisionsto the Projects ernirornmental provisonsand mandate. 22 NATIONALCONTEXT 22.1 National Conservaton Strategy

Nationalpolicy on environmentand developmenthas developedrapidly in recentyears. In the mid 19Bs His Majesty'sGovwernment of Nepal, with the assistanceof IUCN- the WorldConservation Union - prepareda NationalConservation Strategy (NCS). It wascompleted in 1987and endorsedas podicy in 1988. The strategy, Buildngon Success, places great stress on the interdependenceof conservationand development.The openingsentence of the prefacestates that

Sustainabledevelopment and conservationmust be firmly linkedif Nepalis to meet the needs and improvethe quality of Ife of its present populationand Ure generations.-

The NCSincludes a ConservationAction Agenda whichsets out specific actions and policies. Under the heading Conservationand Large-ScaleProjectr the followingpolicies are stated:

o The terms of referencefor feasibilkystudies relatedto such projectswill include a requirementfor the preparation of environrmentaland socio-economicimpact statements,including proposed measures to mhinmisepossible detrimental effects.

O The proponentof ary large-scaleproject, either government or privatesector, will be requiredto:

- establisha conservationfund as part of projectcapital costs to carry out the necessarysocial and environmentalprogrammes associated with the project, the purposeof the programmeswould be to mminiisethe detrimentalsocial, econoric and environmntal effectsthat may be causedby the project,

- estabish a conservationsecton withinthe projectto managethe socialand environmentalprogrammes;

CaWi-WEW 5 ARLIN V HYDROELECTRICPROECT: ENVRONMENTALEXECUTIVF SUMMARY 2 POUCY,LEGAL AND ADMINISTRA11IE FRAMEWORK

Irnial planning for the Arnm IlI Project was undertaken concurrently with deveopment of the Natnal Conservation Strategy, but before it had been confirmed as government policy. Since 1988, NEA's design team has kept abrea of policy developmnts, and has promored the incorporaion of appropriateaproachs and responsesin the designprocess - etensive environmentaland social impactwork has beencarried out, envirorunenteal mmagament tnits will be establishedbath withinand outsidethe project to managemifigaton programmes(Chapter 8), and alfthoughthe conceptof a conservationfund has not been adopted,ernironmental mitigation costs are being incorporatedin projectcosts.

2.22 Eighth Five Year Plan

The most recent statementof governmentenvironmental policy is the environmentalchapter in the EighthFive Year Plan (1992-97).Environmental proecdion and managementare seen as important obligationsof te State. Eighth Plan pdicies include, amornst others,the use of environmertal assessmentas a tool in projectdesign and implementation,the preparationand enforcementof legal provisionsemTphasisirng sustainability, and publicand NGO irnolvemenL

2.2.3 Environmental Impact Assessment Guidelines

As partof the ongoingimplementation of the NCS,Nepal is rapidlydeveloping its ownlaws, regulatons andgtdelines for environmentalassessment and managemenL National guidelines for environmental impact assessmert were fomially endorsedby Cabinet on 18th September1992, and sectoral guidelinesare beingprepared. Key documentsindude:

O NationalEnvironmental Impact Assessment Guidelnes. National Planning Commission/IUCN,

o EnvironmentalImpact Assessment Bill (draft). HMCG/N,1992.

o Guidelinesfor the EnvionmentalAssessmentof Waterand EnergyPolicies, Programmes and Projects (draft). Social and EnvironmentalDirectorate, Water and Energy Commission Secetariat, March1992Q

o Guidelinesfora NationalSystem of EnvironmentaPanning in Nepal(draft). National Planning ComrnissiorVlUCN,1992.

O EnviRronmentat lmpactAssessment Guidelines for theFestry Sector(draft). National Planning Commission/Ministryof Forestsand Soil ConservatiorVlUCN,December 19W2

As far as possible,the phiosophyof the these guidelineshas been incorporatedin the ongoing environmentalassessment actvities of the Project

22.4 Legislation

The acquisitionof land for state puposes is governedby the LandAcquisition Act 2034 (1977).and amendedfor the Arun Ill Projectby the LandAcquisition Guidelines 2045 (1968)declared under the act Forestsand forestryare controlledby the newForest Act 2049 (1993).

The most importantact relaed to wildlifeconservation and protectedareas is the NationalParks and WildlifeConservation Act 1973(2029). ft providesfor the establishmentand administration of protected areasand Meconservation of animalsand birdsand their habitat'. The latestamendment of theAct was in 1989to allowfbr the estabishmentof Conserato Areas.

QOAPS1-ZJEW 6 ARUN /i1 HYDROELECTRICPROJECT: ENVIRONMENTALEXECLMVE SUMMARY 2. POUCY,LEGAL AND ADMINISTRAiVE FRAMEWORK

In addition,Nepal is a state signatoryto a numberof internationalconventirons relating to wildlife and erwironerital conservationincluding:

1956 PlantProtection Agreement lor the Asia and PacificRegion 1975 Conentio on lrtemationalTrade in EndangeredSpecies of Wild Faunaand Flora (CIrES) 1g78 World HeritageConventin 1983 Irtematioa TropicalTimber Agreement 1987 Conventionon Wetlandsof Internatil Importanceespecially as WaterfowlHabitat (RamsarConvenon)

HuLtingis regulatedby the Nationa Parksand WildlifeProtection Regulations made underthe Act (1974,1975, 1978, 198). Other acts and regldationsrelevant to biodiversityinclude the Wildlife ReserveRegulations (1977). the HimalayanNational Park Regulations2036 (1979).Regulations for the recentygazetted Makalu-Barun National Park and Conservation Area (22nd November 1991), and the AquaticLife (Conservation)Act, 1961.

Tourism is cortroled by the TourismAct 2035 (1979), mountaineeringby the Mountaineering ExpeditionRegulatiors 2035 (1980), and trekking by theTrekking and RiverRafting Regulations 2041 (1985).

RecentActs to furtherthe decentralisationprocess indude the VillageDevelopment Committee Act, the MunicipalityAct, andthe DistrictDevelopment Committee Act, all of 1991. 2.2.5 Administration of Environmental Policy

Mechanismsfor the implermaon of envrormentalpolicy are at an early stage of developrmentin Nepal,but are evolvingrapidly. Endorsementof the NCS in 1988 resultedin the establishmentof a high-levelumbrella Council for the Conservationof Naturaland CulturalResources. Recently, this has been dissolvedand replacedby a powerfulEnwment Protecion Councd,chaired by the Prime rinister,with a wide-rangingmandate to formulateand implementenvironmental policy. The Council wnllbe assistedby a newEnvironment Protection Division under the Secretariatof the NationalPlanning Commission.(At the same time, the nameof the Ministryof Forestand Environmentwas changed backto the Ministryof Forestand Soil Conservation).

One of the Council'smain responsiblitieswill be coordinationof the activitiesof line agenciesinsofar as they affectthe environment(Departmerts of Irrigation,Roads, Forest etc.). At the same time, the Councilwill be taking advantageof Nepals regionaldevelopment and decentralisafionpolicies to improvethe capabilityof districtand villagelevel adrmdnistrations. These will havean increasingrole to play in envirorimentalmanagement as Nepal movesfrom a centralisedbureaucracy controlling developmentto a decentralisedone facilitating local and privatesector initiatives. 2.3 INTERNATIONALCONTEXT Thoughout the 1980Is and early 90s donor policy on environmentand sustainabledevelopment evolvedrapidly. All the multilateraland bilateraldevelopment agencies now have environmental assesserit proceduresin placeto screenprojects throughout the projectcyde. For examnple,the World Bankhas envirornmentaassessment policies and procedures

to ensurethat developmentoptions under consideration are environmentallysound andsustainable, and hat any ervironmentalconsequences are recogrnsedearly and taken into accout in projectdesign."

OWASI4JIEW 7 ARUv mxHYDROELECTRIC PROJECT- ENV1RONMENTAL ExECUTiVE SUMMARY I POUCY.LEGAL AND ADMINISTRATVE FRAMEWORK

RFeet Worid Bank publications on enironmntal assessmert methodology relevant to the Arun IlIl Projed nclude:

o Ernvrnmea AssesnsmntSour,cbook Vdunes I, II. IIl. Techricel Paper No. 139 Envimrrient DepL, World Bank. August 1991.

O World Bank Opeaiona Directive 4.01 EnvoronmaAssessrnent October 1991 (0D 4.011.

O Numerous other relevant World Bank Operational Direcves, Operational Manual Statement and Operational Policy Notes, as Hstedin the Sourcebook.

In additon, there are a number of papers by Bank stiff on subjects such as compensation and resettlement which are specific to Nepal.

These comIprehensiveguidelines are paraleled by similar gtidance published by the ADB and oer development agencies, for example the ADB's Guilines for Socil Anals of Bank Pretects (1991).

As well as considering direct impcs and their mitigation, these irternational EA proceckres are now focused increasingly on indirect and induced effects, and on public participation. For example, the World Bank's OD 4.01 on EnvironmentaeAssessment requiresthat project-specificEAs should normally cover: (a) exing environmernalbaseline conditions; (b) potenrial envirormnentalimpacts, direct and inirect, including opportunities for envirorvnental enhancement; (c) systematic environmental cofparison of atnative inestnernts, sites, technologies and designs; (d) preventive, mitigatory, and Compensatorymeasures, generally in the form of an environmental mitigation or managementplan; (e) environmental managemrentand trairing; (f) environmenta monitoring.

Issues that should be addressed include, amongst others, bidogical diverskty, cultural property, indigenous peoples, induced development and other sociccultural aspects, involuntamyresettlement, natural hazards. and occpaional health and safely. All these topics are cwveredby Bank Operational Directives. In addiion, futher Directves or Operational Pdicy Notes cover Dams and Reservoirs, Projects on Internaonal Waterways, Tropical Forests, and Wildlands.

The Arun Ill Project has respondedto this increasingly rigorous analytical atmosphere by extendingthe scope and coverageof its environmentalimpact assessmentstudies, and by assistng other government agencies to develop the prograrnmes necessary for impact mitigation and the enhancemerit of economic opportunities.

HAMaI-21EW 8 ARUN l HYDROELEcTICPRWjEC7 ENIRONMENTAL MEECUTIVE SUMMARY 3. PROJECTDESCRIPTON

3;) PROJECTDESCRIPTION

3.1 ARUN III HYDROELECTRICPROJECT 3.1.1 Introduction

ArmnIll is a 402 MW arun-ot-river Waciltty,that is It will utilisenormal flows In te rher rather than dependon water held backin a largeresewoir. Water diverted from the rier will low througha tunnel to an undergroundpowerho, andthen be dischargedback intothe riverchannel.

Key Featuresof the Project

* Highfirm riverlow due to glacierand snowmelt(7B.5 etls 90%dependable flow) * High head dueto steepgradiert in loop of river(286 m net headat full load) hFirmenergy of 1558GWiannun * Small areato be inundated(30 ha) * High energVoutprt per urit of land occupied(MW/ha = 402(430= 0.93) Favourabegeology at the lcations of almostall majorsuctures * Accessroad which can also serve oer attractivepower projectson the same river (totalling 1045 MW)

Tender designfor a staged development(268 MW, 134 MW) was concludedwith the April 1991 EngineeringDesign Report Forfinancial and macroeconomic reasons NEA and the funding consortium, led by the WorldBank. row erlsage projectdeelopmenit In two equal stages,each of 201 MW.

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OWNPS34.w 9 ARuN in HVROELE C PROJECT:ENVRONMETAL EXEcuGVE SUMmARY a PROJECTDESCRPTnON

3.12 Power Gsnemtlon Components

The main permanent components (Map 2) will take up some 47.8 ha of land, and will be:

* Dam and resenvoir(40 ha Inundated), Induding diversion works * Poerr Intake, underground dasanding basins and flushlng system O Twin 11.5 km headrace tunnels, undergroundsurge tanks and adits * Undergroundpowerhouse and associated structures 0 Permnanentoffices and housing (5.8 ha)

The dam Is required to dhiert water into the headrace tunnel. It will be a concrete gravity dam with a crest length of 155 m and a height of 68 m. Although the reservoir created by the darn will extend some 4 km upstream, it will only have a surface area of some 50 ha.

Temporary facilities will cover some 69.1 ha and will include:

* C?Quarries,borrow sites and spoil storage areas (16.1 - 32.4 ha) * Concrete batching and mbdingplants * Work end storage areas (13.5 ha, inc. batching and mixing plants) * Constructioncamps, offices and housing (28.5 - 36.5 ha) * Supportfacilities, including helipads * Constructionpower supply (22 ha) and local 33 kV transmission system *Roads and bridges

Table 3.1 CHARACTEFRSTICSOF POWER GENERAllON COMPONENTS.STAGED DEVELOPMENT

COMPONENT FEATURES FIRST STAGE SECOND STAGE

Dam concretegravity with Integral to be completed spillway,crest length155 m, height 68 m

Spilway 3 radialgates, discharge capacity to be completed 8100 m3Is

Power Intake 4 openings4 x 13.5 m, trash racks, to be completed except intake tunnels 1, sedimerntflushing system, roler Intake tunnels 1, 2 2

gates______

Desanding 4 underground,1- x 28 x 110 m downstreambasins 3, 4 upstream basins Basins and all of flushing system 1.2

Headrace 2 concrete-lined,length 11.51 lon, mountainsidetunnel and valleyside tunnel Tunnels diameter5.6 n. surge tank and surge tank

High Pressure 2 steel-linedshafts, 4.3 m diam. shaft f- Units 1-3 shaft for Units 4- Waterways 6 Power Cavern underground,space for 6 generating space for Units 1-3. space for Units units,22 x 35 x 161 m service bay, unloading bay 4-6

Turbines 6 x Peltontype, 67 MW each, total Units 1-3, 201 MW Units 4-6 402 MW 201 MW Tailrace System 2 lunnels,2 surgetanks, 1 ouUtet one tunnel and surgetank. second tunnel structure outlet structure and surgetank

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3.1.3 Arun Access Road

Conrctn and operation of the Arun IIl power faclities is dependenton the corstrucion of an access road to link the site with the existing road system. The direct distane from the nearest road head at Basantapurto the dam site is approdmatety 50 km (Map 2). However, the difficut terrain necessiates a total engthof new road construction of 122 kn, Icluding access to the powercavern.

The road wiv start at the small market town of Hile in Dhankuta Distric (Plate 3). This is the highest poirt on the rwte, at 1920 .Las.l. The road descends rapidly past Pakhribasto the Arun River, and then follows the valley throughout Mp 1). Heading noth close to the river at 260 - 300 rmas l five major tribtries are crossed before reaching the Tumlingtar | plateau. Between Tumlingtar and the powerhouse site the road 1 _ . conrinues to follow the left (east): bank of the river, with the terrain 5 ' ,-_ becoming much steeper and more - * - l dirficult halfway, at Bumring.

At the powerhouLse the road i crosses the river and proceeds northwards on the right bank near river-levelfor soie 7km, retuming '%. . to the left bank immediately below te site of Adit No. 2. Here the road ascends to avoid very steep and difficult ground near the river, | - mid then contours at an elevaion of around 1340 m.as.l. past Amrang,the site for the permanent 7- camp 17 km rath of the i_ powerhouse.

The final descentto the Intake site is made at Phyaksinda, below Num. g ^icC

11 major bridges will be requiread. including two over the Arun River itself, one near the powerhouse - and one below the site of Adit No. 2 (Map 2). passingplcs wit a sele Pla. th i, \e The road will be single-lane wih ______passing places, vith a sealed rhft 3 Kdothe Slatng Paintfor# AwnAcnessRd surface. This will minimise Phob:JoH Henley earthworks,slope disturbance, and maintenancecosts.

A roadmaintenance depot will be builtat Tunlingtar,an importantstaging point hallwayto the power developmentsites. Other acirSiieswill include Engineer's-camps and resthouses.

CHAPSa4LIEW 12 ARUN 111HYDROELECTRIC PRoECr. ENVRoNMENTALEXECUc E SuMmARY 3. PROJECT DESCRIPTION

Table 3.2 CHARACTERISTICSOF ARUN ACCESS ROAD

COMPONENT FEATURES Length of new construction 122 km single lane with passing places

Cafrlageway 4.5 m with 0.5 m shoulders, widening on curves Right of Way 30 m widlh taken Irto govemmert ownership Gradients ruling, 7 %, max: 10 %

Wearing surface double layer surface dressing (stone chip and bitumen spray)

Bridges 11 no, with spans from 30 - 104 m; steel trusses with concrete docks, piers and abutments Culverts 1100 no, concrete pipe or corrugated steeL variable ciam. Retaining walls 0.57 M m3 masonry. gabion

Eafhworks soft cut: 1.1 M m3 rock cut 0.9 M m 3 fill: 0.95 M m'

3.1.4 Power Transmission System

The power tansrission systern required for the full two-stage developrnent of Arun Ill includes a double circuit 220 kV transmission line from the Arun IIl powerhouse to Kathmnandu,passing through a 220/132 kc substation at Duhubi nwar Biratnagar, a 220 WVswitching station at Dhaikebar in the Terai, and terminating in a 2201132kV substation near Kathmandu (Map 3). The total length of line will be 380-410 kmn,dependring c.n final alignmnrt decisions at the Sapta Kashi crossing.

For Stage 1, only the section Anun Ill - Duhubi will be needed (120 Iam). The 33 WVtransmission system used for the conruction power supply at the project site will be retained for local use.

Table 3.3 CHARACTERISTICSOF POWER TRANSMISSION SYSTEM

COMPONENT TYPE DIMENSIONS

System double circuit single tower, 220 kV Length powerhouse- Duhubi 120 km powerhouse- Kethmandu 380-410 km

Right of way Controlled laid use width estimated at 40-45 m

Towers standard rigid lattice galvanisedsteel; height 40-45 m, footprint 15 x 15 m possibly wire stay type in Terai approx, average span 400 m +

Conductors twin bundled from Aun Ill - Duhubi; remainder single

Substations 220 kV/132 kV Duhubi, Kathmandu

Switlching 220 WV Dhalkebar station

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SUBSTATION/SWITCHYARD Ito 10 ° g KM MAJOR ROAD &PURNEA o ARUN 111HYOROELECTRIC PRoEcT ENwRONMENTALEXECu77VE SUMMARY 3. PROJECTDESCRIPrnON

3.1.5 Construction Schedule

Caucien ofthe first 201 MW stage of the project is scheduled to commence on 01.01.1994, with commissioningtests of the first trbine on 01.05 2001. The implemntation schedle fthe second 201 MW stage has yet to be decded. Consruucon planning sudies have resutted in the folowing key dates and periods for Stage 1 consrucon:

Letter of Acceptane fbr Lots Cl, C3 (dam, desanding caverns, access road, headrace tunnel, surge tank, NEA camp) 1.11.1993 Start of road corsruction post-monsoon 1994 Air support 1.09.1994 - 1.05.1997 Fist road access to damsite 1.10.1996 Compblion of corstucton power supply 1.10.1996 Compblion of penent camps 1.03.1997 Competion of river diversion tunnel, start of coffer dam 1.11.1997 Spoil disposal to Arun River moansoon1998, '99, 2000 Closure of diversion tunnel and fiiiing of waterways 1.032001 Completion of transmission line 1.032001 CommiTssioningtests for Power Unit 1 1.042001 Demobilisation of cornractor(s) 04.2001

Road Constuction To meet this schedule, overall constructiontime for the access road will be limited to 40 months, including mobilisation. Work Will start in 1994 and proceed simultaneously on an estmated seven separate worklronts, with extensive air (heicopter) support. The road labour force will average about 6700, peaking at around 950D during key dry season periods. Camps will be estabrishedat Hile, Tumlingtar, and an estimated two points furter nortth The contractor for the road will also consruct the permanent NEA camp at Amrang.

Hydropower Components Constructon The hydropower comnponentsare divided into ciil, mechanical, electrical and hydrauic steel structures lots. The bulk of the work will begin after the provision of road access, in the 1996197dry season. Labour force requirements for Stage 1 are estimated at a minimumof 3700, plus at least 140 Employer's/Engineer's supervisory staff, over a period of some four years. Temporary camps will be constucted at two main locaions, the powerhouse and the intake. Additional Landwil be requiredfor storage and assembly areas, concrete batching plants, quanies and aggregate processing, temporary spoil storage, and other facilities includirig pre-assembly yards at Tutmlingtar.

Construction of Stage 2 (remainder of power cavem and 3 further turbines, plus remaining intakes, desanding basins, valleyside tunnel, surge tank, high pressure waterway, outlet tunnel and surgetank) would require a smaller labour force since the road, dam and camps would already be builL

Transmission Line Construction Final design and construction of the complete transmission line systern including substations for Stage 1 could be c3mpleted within 43 months from contract award. The exact btmng of construction of the various elemerts depends partly on te pattern of growth in demand and the location of irtermefiaLtegenerating facilities. A tentative schedule is:

by 2001 constuct 220 kV double circuit system Arun III-Duhubi-Purnea construct Duhubi substation by 2005 exend 220 kV lines from Duhubi to Kathmrandu upgrade Dhalkebar switching station and Kathmandu substations

Each major secton of line will require a labour torce of some 500, on several workfronts. Substation consruction will require about 55 workers.

at4P934EWW 15 ARUN IMHYDROELECTRIC PROJECT- ENIRONMENTAL EXECUTIVE SUMMARY 3. PROJECTDESCRIPnON

32 OTHER MAJOR HYDROELECTRICPROJECTS PROPOSED FOR THE ARUN VALLEY 32.1 UpperArun HydroelectricProject A deiled feasiblitystudy of thisproposed prqedt was completed in 1991. It is anotherrun-o-river scheme,with a prqectedfirst stage poweroutput of 335 MW. The undergroundpowerhouse will be sied some 24 km northof the Ann IlIl hake site,inked by a headracetunnel to a dam site 16 km upstreamand approAimately15 km southof the borderwith te TibetanAutonomous Region of China (Map1). It will requireexension of the Arun lIl accessroad by approximately47 km. 35 km of 220 kV doublecirctit tansmissionline, generally following the accessroad, would cornrvey power to theArun III swtard.

Table3.4 CHARACTERISTICSOFUPPER ARUN HYDROELECTRIC PROJECT Dam/irtalke Concretegravity, radial gated splwy, height37 m; low 62-5m'Is 90 % dependable Headracetunnel length7.84 km, diam. 5.5 m, concrete-lined; head 454 m PowerhoIse underground.21x 35x 105m Turbines Peoton:first stage 4 x 83.75MW, total 335 MW; second stage 2 x 83.75,total 500 MW Accessroad 46.8km single carrlageway, Inc. 1.8 km tunnel

32.2 Lower Arun Hydroelectric Project

The LowerArun Hydroelectric Project is anotherattractive hydropower project an the ArnmRiver. It has beenirNestigated at pre-feasiliy evel,and wouldhave a power outputof 308 MW. The proposed site is downstreamfrom the Arun ill powerhouse,immediately nhwest of Tumlingtar(Map 1). Desandedwater from theArun lIl turbinelow wouldbe diverted directly irto a headracetunnel leading to the LowerArun powerhouse.Two weirsacross the Arun would providesupplementary and bypass lows. Addiffinalwater woLdd be divertedfrom the Kaguwaand Sankhuwa Kholas. The whole project site wouLdbe very closeto the accessroad already buift for the Arun IlIl Project

Table3.5 CARACTERISTICSOF LOWER ARUN HYDROELECTRIC PROJECT Divesionstructures concretefIod crestweir across Arun above Waleng Khda, gated weir at ArunIII outlet structure, dbrivon on WaengKoa, Intakestrcure and _ t~~~~~~~unneland surge lank; maxflcw 160 m'ls l Headracetunnel nlegth14.3 - 15.9km, diam. &8 - 9.2m; head 204 - 235mi Powerhouse undergroundcaem Turbines Pelton;instaled capacity 308 MW Accessroad singlecarriageway, very short

CIAPS3.4NEW 116 ARuN 11HYDROELECTRC PRFECT. ENVIRONMENTALEXECUT7VE SUMMARY 4. THE SETIING

4 THESETTING

4.1 NATURAL ENVIRONMENT

The Arun River rises in Tibet, where over 80 % of its basin les. The river predates the upliftng of the Himalaya, and in its passage to India has cut a deep and narrow valley for some 155 km through the mountainsof Nepal. In Nepal, the northern part of the Valley is remote, extremely rugged, and has few inhabitants. The southern part of the Valley is lower, warmner,and densely populated. Overall the population of the 5000 knm Arun Basin in Nepal is about 450,000, from 10 ethnic groups.

The Arun Valey contains naturalfeatures of recogrised intemnationalsignificance, particudarly north-west of the proposed power prolect sites. Here,the new Makalu Barun National Park and ConservationArea contains one of the few surviving pristine forest areas in the Himalayan range, with very high biodivrsity and heritage values, and adjoins Sagarmatha ¶L Everest) National Park to the west. Features of high ecological and cultural value have also been ideriflied elsewhere in the Valley, which is an international flyway for migrating birds and has a high diversity of aquatic fauna

4.1.1 Physical Environment

() The Dynamic Landscape

The mountainsof Nepal are the product of an ernormouscolirsion - the Indian continental plate moving nrxth and being forced under the larger Eurasian plate. The Himalaya are the world's highest mountains, and are still rising at a rate of perhaps 1 firrVyear. This is extremely fast in geological terms. These high mountains intercept the annual south-east monsoon, resulting in very high rainfall over a short period. 600 mm of rain within 24 hours have beenexperinced in Darjeeling, immediately east of Nepal. Except at high elevations, temperatures are high, so rock wealheiring is rapid.

The combination of rapid uplift, weak rock and intense rainfall results in a highly active landscape. Rivers are eroding rapidly, attempting to reach the base level of the Ganges Valley. The lower side slopes of the valleys, undercut by the rivers, are steep. In the Middle Hills gentler terrain is found on the higher slopes, but these are subject to erosive attack by the rivers from below. Along the Arun rapid river erosion combined with bedrock joint orientations dipping into the hillside has created steep rock slopes or rock ciffs. Mass wasting (landsliding) is the normnas slopes attempt to retreat to stable angles. Some of the terrace deposits in the Himalayanvalleys result from catastrophicevents invoMng several cubic lilometres of debris - glacial lake outburst or landslide dam failure floods (GLOFS and LDFFS), sometimes triggered by earthquakes

(i) Climate

Most geogaohers classify areas of the Valley below 1000 m as being tropical, with a sub-tropical zone from 1000 - 2000 m. The dominant feature of the climate is the summer monsoon. Pre-monsoonrains in April and May trigger vegetative growth, with the fuI monsoon setting in from early June. Rainfall tends to peak in July, and then tail off to virtually nil in November.

Rainfalltotals vary from an average of 1470 mm at Paklu-ibas(1650 m.as.l.) to some 4000 mm at Num (1497 m.as.l.). Along the Valley and on north slopes there is a rainshadow effect, with annual totals at Leguwaghat (330 m.as.l.) being only 790 mm, and at Tumlingtar (403 m.a.s.l.) 1198 mm.

17 ARUN 111HYDROELECTRIC PROJECT: ENVIRONMENTAL EXECU71VE SUMMARY 4. THE SEtMlNG

Temperatues areelevaton-depandent The nrMa atudinal declineof C6 C per 100 m Is modified by topographicaleffects, in particularslope aspect. South-facing slopes are markedlywarmer and dryer than norhern slopes. Cloudcuer above 2000ma.s.l. EmiStcrop cultivaton. OIl Geology,Topography and Soils Artn Acces Roau The accessroad runs through the MiddleHills of the NepalHimalaya Essentlally a Unebetween Heluwabesi (Bumligtar) and Khandbariseparates hilly terrain with extensivesoil developmentand coliwialdeposits to the south,from steep,mountainos androcky terrain to the north.

The Hillsgenerally consist of weaklyto moderatelymetamorphosed rocks with rel2divelygernle slopes. especialyon the weak phyllites. Steeperslopes are associatedwith harderrocl: types, particularly schistsand quartzites. Elevationsvary trom 500-2000m.as.l. The Arun is an antecedentriver (i.e. t existedin roughlyRs present course belore the Himalayaformed). Consequertlythe Arun valleyis very deep. Tributaryvalleys are structurallycontrolled. Terrace deposits, in a few casesextensive and knownas tars,can be foundon the sidesof mostvalleys.

The easternslopes of the Arun catchmert(where the accessroad is to be locatecqare drainedby a small nuLmberof large tributaryvalleys, many of which have cut deep gorges upstreamof their confluenceswith the Arun. In the southernpart of the area, erosionand slope instabilityin these tributaryvalleys have resulted in the deposiionof extensivefan surfacesat theirmouths. The steeper slopes in this area usuallyoccur on the lowervalley sides due to stream incisionand vally side erosion. Much of the naturaldrainage pattern on the tributaryvalley sides has been disturbedby irrigation,which tends to increasecatchment storage and leavesmany riverchannels dry, even during the wet season.

Soils on slopestend to be young,formed in colkuial (gravity-transported)debris. As a generalrule, slopesin the hilly, southernportion of the road corridorare less than 350and are martled by locally deep (upto 5 m) residualsilty, sandysodis on the broadrkige and spur summits,with colluvialsols, alsoup to 5 m deep,located on the lowervalley side slopes. A conspicuousfeature along the Valley are areasof red soil (ralo mato). These old soils occurin areasof greatestlandscape stability. The durationof weatheringhas resultedin soils of low fertilityand little agriculturalvalue. They are highly susceptibleto acceleratedsurface erosion.

Froma roadalignmrent point of view,the lowervalley side slopes are lessfavourable owing to generally steeperslopes, wetter soils, river scour, and slopefailure or soil creepon irrigatedfarnland. Bedrock at the surfaceis generallymoderately to highlyweathered except where it is exposedin structrally controlleddiffs, or whereit has beenrecenty exposedby slopefailure.

HydroelectricPower Components The rock massin the areaof the powerfacilities mostly consists of Pre-Cambrianaugen gneiss, granitic gneiss and micaschists. The beddingis regular,and major faults rare. Major structuressuch as the dam, the desandingcaverns, the upstreampart of the headracetunnel, the pressureshafts, the tailracetunnels and the outletstructure are locatedin gneiss which is of mediumstrength. Some 4.15 km of the headracetunnels passthrough an area where variablequality mica schists outcrop.

TransmissionUne Thelines will run throughboth the MiddleHills andthe alluviallowlands, the Terai. In the hills erosionprocesses are widespreadand demandgreat care in line routingand tower pad locationand design. In the Teraithe terrainis fiat, but latera rivererosion can be rapidand this again demandscare in Finerouting and towerfoundations.

CKAPS3.4.NMW 18 ARUN 111HYDROELECTRIC PRaECJ: ENVRONMENTALEXECUTiVE SuMMARY 4. THE SETnNG

(Iv) Smiadciy

The area is seismicallyactive, but the power sites are well rth of the Main Cental Thrust faulL The last major eatquake occured in 1988, with an epicentre in the easten Terai. The seismic risk sht undertakenfor the project in 1990 indicated a low risk of a darmging earthquake at the power sites, and concmdedftht a horizona design oDefficientof 0.12 woutd be adequate for important stuctures.

Cv) Hydrdogy

The Anun River originates in Fe Tibet Autonomous Region of China, with approximately 84 % of the catchmentarea lying north of the Himalayan Range.The river pre-datesthe uplifting of the Himalayan Range, and its down-cuting has kept pace with the rate of uplift. The catchment area of the Arun at the damsite is approimately 27,000 km2, of wtich rore than 90% lies in Tibet. The area of the basin lying within Nepal is estimated to be 5028 km2 (Map 1).

The Arun River low fllows the seasonal varia2ion in rainfall. Minimum flows occur in February, and average 79.5 m3s. Highest flows occur during the monsoon season in July and August (average 890 rJ/s and 910 m3/s,respectively). The flood with an averageretum interval of 1 00 years at the damsite is estimated at 4177 m3/s. The Probable Maximum Flood for the dam and powerhouse sites is esbimatedas 8100 and 10,780 m3/s,respectively.

Floods: GLOFS and other Catastrophes In addition to occasional floods due to extreme rainfall, there is a possibility of a Glacial Lake Outburst Flood (GLOF) or Landslide Dam Failure Flood (DFF) in the Arun Valley. These events are episodic, with a low probability of occurrence, but high damage potential when they do occur. For the Arun Ill Project the major potential GLOF hazard is a glacial lake at the head of the Barun Khola, which joins the Arun upstean of the dam site. LDFFs may occur in the main valley or any of its tributaries. The Project's 1993 fisk AnaWis and Insurance Study concluded that the probability of rain-causedfloods and GLOFS capable of damaging the project when under construction (flows of 3600 m3/s or more) was was once in thirty years for each type of event

4.1.2 Biological Environment

Nepal, and the Arun Basin in particular, is home to a very large number of different forms of rife, both plant and aninal. This is due to its remarkable diversity of habitatsand to Nepal's location within Asica, where the Himalaya form boti a boundary and corridor between drferent biogeographic provinces (principally Eurasia and South and South-east Asia). The Arun river is itself a distinct ecological boundary for sorne mammal and bird species.

The biodiversity of the area is under severe pressure due to man's actiitbes. Many species of fauna are forest-dependent Some 14 endangered or poterkiallythreatened plant species, 14 endangered, threatened or rare mammal species, 2 endangered reptle species, 4 threatened bird species, at least 4 rare and one endangered species of butterfly, and 1 rare species of fish are known or suspected to occur in the immediate vicinity of the Access Road and power sites (rables 4.1, 4.2). Ecologically sensitve and protected areas wifin the Valey are shown in Map 4.

(i) Vegetation and Forest Habitat

Wthin the area of the Arun Valley to be traversed by the access road, a number of distinct habitat types can be recognised. In the Tropical Zone (c 1000 m.asi.) these include Hill Sal Forest, Evergreen RiverimneForest, and Deciduous Riverine Forest. The hll sal forests consist of nearly pure stands of sal (Shorea robusta),with few epipytes or climbers. Trees are some 12-16 m high. Evergreen riverine forest is the narrow strip of dense jungle which occurs on steep slopes adjracert to the river and its tributaries. These forests support marryspecies of tree and shrub, are richly endowed with dimbers and epiphytes, contain endangered species of plats such as the tree-fern Cyathea spinufosa (Table 4.1), and form important habitat for rare mammals and reptiles (see below).

CHAPS3EN 19 ARUN 1HYDoELECTRIC PROJECT: ENVIRONMENTAL EXCulvE SUMMARY 4. THE SEtIING

I- -- -. - 2~~~~~" - - -

I 1>~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ PRat4 Phyakeinda- the IrdakeAres, mmFte West Photo:Jwmes Rwnsay

Deciduous nvenne forest occurs on dryer southem exposures and along river banks. The most prominent tree is Acacia catediu, often on new allwAimn as between Drae and the Sabhaya Khola

The Subtropical Zone (1000-2000 m.as1.) supports ( ) cir pine forest, a type dominated by the single speies Pinus roxburghrl and found an the dry ridge at Salleri between Gorlikharka and Diyale, and (1) Chesnut (Castanopsis spp.) and mixed Chestnut-Sdihna forests. These occur north of the Adit No. 2 site. Natual stands of the higher-eevation chestnut, Casnopsis Iribulides, have a closed canopy, with trees as tall as 30 m. Rainfall in this zone is high.

As elsewhere in Nepal, mwch of the forest in this zone has been destroyed and the land converted to agricuiture. The remaining forests are extremely important for willife, particLuarly for deep-forest birds.

ii) Wildlife

Mammals and Reptiles The riverine fbrests of the Arun Valley shelter a number of rare and endangered species of mammals, reptiles and birds prdtected by national law and international convertions. Wildlife-people interactions are at a high level, with very signilicant economic losses reported due to crop damage and predation on livestock. Hunring for food is widespread, as well as for religious rituals, for medicinal purposes, to control problem animals, and for trade.

Mammals of note irnclude Clouded Leopard, Leopard Cat, Asiatic Golden Cat, Otters, Spotted Linsang (dvet), Assamese Macaque, and Pangolin (scaly ant-eater). Reptiles include Python and Indian Monitor Lizard Popdation sizes are unknown but are likely to be decreasing, principally due to habitat destrucfion. 10 mammal and both reptile species are protected uider CITES Appendix I as species threatened with extinction (Table 4.2).

CHAPaWW 20 ARUN INIHYDROELECTrRIC PROJECT- ENVIRONMENTAL EXECUTIVE SUMMARY 4. THE SETIlNG

Table4.1 RAREAND ENDANGERED PLANT SPECIES FOUND ALONG THE ACCESS ROAD SdientficName CITES__HMG/N_| MBEIS Aisanba echoioads QI) ,+ Amndhogrminffola + Cyathe' spinuosa pl) + + CYCspeC&IStpgoI + + ChowrspondiasadilAds + Dendroblundensifom m1) Lycopodlum clavafum + Micheliachampaca + Muss Sp. + Rhododendronarboroum + Shorea robusta + Terninala behaca + Temninalacheoba + Pandanus nepaensis + Total 14 4 10 7

Note: CIES: Conventionon Intrnaion Tradein EndangeredSpeciesof Wld FaunaandFlora (to whichNepal bocamne a StateParty In 1975). 11 Appendbx11: Specs poluWiallythreatened. Npl ha proposedaevel planb for CITES sihng (shownaboe In parenhse) HMG11 Lted in Mastr Pbanbor te Faresy Seclor(HMGIADBJFINNIDA 1988) MBEIS: Considredto be endangeredin Nepalby scienti6e consensus and hIad in the Managementof Basinwide Evionmnnsl ImpacsStud

Table 4.2 ENDANGERED,THREATENED AND RARE MAMMALS AND REPTILES KNOWN OR SUSPECTEDTO OCCUR IN THE IMMEDIATE VCINITY OF THE ACCESSROAD Common Name Scienfific Name CITES HMG/N Mammals Asiatk BlackBear SeSnarcs thbetanus I Leopard Panthers paru I + CloudedLeopard Neofelisnebulosa I + LeopardCal Feilsbegahnsis horsfeldl I + Asialic GoldenCat FelNstommirncid I JungleCat Fegschaur Otters Al Lut2h II Spotted lJnsang Pnonodon pardicolor I + AssameseMacaque Macacaassamensis I + RhesusMacaque Macwa muata ii + CommonLangur Presbytisentilius I Pangolinor ScalyAnt-Eater Manisspp if + MainlandSerow Capricamissumnatraensis I + Goral Nenmorhaedusgoral I

RRepiles Python FPytnmounrus I + IndianMonitor Varanusbengabless I

Note: CnTESaus categoreswe: I AppendbtI: Speies theatenedwith enction 11 AppendixII: Speciesnot yet theatenedwith exgnction. but whichcould become so iftrade (or otr irnpacw)is not controed HMG)N: potbctedin Nepalunder Schedule I (Section10) of iheNatioal Parksand Wldrae Conservation Act 2029

C HAPS34EW 21 ARUN WoHYDROELECTRIC PROJEcT: ENVIRONMENTAL EXECUTIVE SUMMARY 4. THESEMTNG

QOMOLANGMANATURE PRESERVE

t I t CHINA(TIBET)

|POWRNIER O E SITE /

KVATLUE ountAid

* BEHO JP V < ^i}fis

/ ~) t,DHANKU 8 _ ArV9 \ G~~~~~~~~F HIGH ECOLOGICAL ! { - } . ~~~~~VALUEt outside protected areas) / >ACCESS ROAD KOSHI TAPPU RU WILD LIFE RESERVE \ / Sn

Map4 EcologicallySensitive and ProtectedAreas

GHAPS34JEW 22 ARuN IVHYDROELECTRIC PRaECT: ENVIRONMENTALEXECUTIVE SUMMARY 4. THE SEtrIING

Birds There are124 bird species whose breeding distiuons are restricted to an area encompassing the Himalaia, north-east Indi4 northern south-east Asia and south-west China, for which Nepal may hold hiterntlonatysignificant populatios A total of 82 of these species have been recorded In the ArunValley (excdudingthe Barun valiy). The riverine forest tird community Is distinct, with 28 speces associated only with this forest type. Reconna_ssne ecological surveys of the hill sal forests In the lower Sabhaya Khola valley near Tumiingtar have conflirned the presence of 17 species of bird for which Nepal may hold irernationially significant breedirg populations, and three rare species of Flycatcher.

Fourspecies recorded In the Arun Valley (excluding Barun) have been Identifiedas globally threatened: the Cinereous Vulture, the Lesser Kestrel, the 'WoodSnipe, and Blyth's Kingfisher.

In addition to resident birds, Nepal is the temporay host to very large numbers of migratory birds. The NepaJHimalaya are pierced by several very deep valleys such as the Arun, and these act as tlyways for migratory birds travelling between the Indian sub-continent and the rest of Asia to the north.

Butterflies and Moths The area between Num and Hedangna (the Intake site), is a centre of diversiy for Lepidoptera (butterflies and moths). More than 20 species of those present are endemic or rare.

Fisheries The Arun is the largest river in the Koshi river system, which is thought to contain 108 spedes of fish. Of these, 13 spedes may be endemic. A field study at six sites along the Arun in the project area in 1989 indicatedthe presence of 17 fish species, in particularthe rare migratory Copper Mahseer (Nep. Kate: endangered throughout its range in the Himalaya due to darn-building) and resident Mountain Snow Trout (Nep. Chuche Asata). Reconnaissancefisheries surveys for the Upper Arun Hydroelectric Project upstreamfound 25 fish species.

The fish fauna of the river system forms the basis of a complex food chain, involving mammalian predators(including threatened speciessuch as oters), and avian predators (induding rare idngfishers). It also supports fisherfolk. Local fishing techniques indude cast nets (some now with rylon thread), speas, fishing rods with looped snares, bamboo diversions, herbal toxins, and recertly, insecticides and exposives.

Crop Diversity In the project area crop driersity is very high. For example, 59 cultivated varieties of rice have been idenified so far. The introduction and use of improved varieti'. .has been limited, so ta the area remains rich in crop genetic resources.

Ethnobotarry Limited data on ethnobotanyis available for the Arun Valley. However,of the 630 plarts of medicinalvalue so far recorded in Nepal, 512 have been reported from the east of the country. Field surveys have identified 87 species of medicinal plarts in the Arun basin. Of tl .'e, about 30 occur at less than 1000 m.as.l.

In the Arun Valley, plants aid plant products have irmumerable uses. In addibon to medicinal use, some plants have religious significance and importance for ritual purposes. Despite difficult access. the valley is a major exporter of herbs to the lowland market -The main exported herb is chiraito (Sweria hirayia). Reportedly, 129.5tonnes of medicinal plants were exported from the Khandbari area in 1990. The sustainability of existing rates of harvest is questionable.

aP30Ew 23 ARUN i1lHYDROELECTRIC PRWECT ENRONMENTAL EXECUTE SUMMY 4. THESETNG

42 SOCIO-EC'NOMICENVIRONMENT 42.1 The People

The Arun Valley Is hame to some 450.000 people from a great variety of ethnic and cutural backgrounds,with differenttraditons and apeclations and different historicra roles in the society and economy of the valley. Project facilitis will be located In three districts, Dhankuta, Bhojpur and Sarikhuwasabha

(9 Popuaton

The most recent study of poputitlon dynamics in the basin gives an annul population growth rate of 1.62 %, less than the nationalaverage of over 2%. The populaion of Sankhuwasabha District grew by only 0.84 %. The natural gowth rate Is offset by oumgration of people hI secrch of better economic opportunitiesthan are currently to be found in the Arun Valley. Household size averages 5.4 persons. AJmost all settlementis rural - the few towns all have populations of less than 15,000.

The populaton of SanlduLwasabhaDistrict (3840 km). which includes much of the area to be directly affected by the Project, is estimated at some 160,000. This gives an overall poopulationdensity of 42 persons per km2. This averageconceals great disparitiessince most of the settlements aid arable land are concentrated on the ridges and terraces, whi most of the rest of the terrain is unsuitable for culivation or habitation. In 1981 the total population was 129,414. The general pattern is one of irceasing population deity from rath to south, from only eight persons per km2 in the norhern part of the valley to more than 100 persons per km2 in the south, and with conDcenatons in the vicinity of Hile and Basantapur, Chainpurand Tumlingtar-Khandbari. The access road traverses land which over most its length is relavely lightly settled and farmed due to its low and previously malarial elevation ad to steep terrain.

(1 EthicRty

The accessroad passesthrough land occupiedby someten differentethnic groups (Table4.3). The indigenouspeople are Kirantis.They are representedby two mainethnic groups, Rais (generallyfound west of the river)and Umbus(generally to the east of the river). In addition,there are othergroups whohave Tibetan characteristics in their socio-culturalpattern, i.e. Bhotea,who are concentratedin the upperpart of the basin,and Gurungs, who resemblethe Kirantisin many respectsbut migratedfrom ifd-WestemNepal. In 198140 % of the populationof SankhuwasabhaDistrict claimed a non-Nepali mothertongue. 14 separateRai languagesidertffied in 1880were still spokenin 1979.

The lowerArun has faced a rapidchange of its populationcmposition sinceBrahr'n-Chetri (organised alonghierarchical caste lines), Newar, Gurungand occupationalcastes began to migrateinto the area in the late 18th century. While castes fromnthe Hindusociety have integratedtherselves with the indigenousagriculture orietated society,Newars mainly settled in towns as businessand craftsmen. Brahffin-Chhetripenetration of the hills appearsto stop at Hedangna(immediately north of the dam site), whichis alsothe nothernmostlimit for rice cultivafforL

Table4.3 ESTIMATEDETHNICITY IN THE ARUNBASIN (%) Ral, Umbu,Gurung, Magar 53 Brhmin, Chhetri 27 Occupationalcastes 7 Tarnang,Sherp4a, Than 7 Newar S Om 1

CHiPS3cAw 24 ARUN i1/HYDROELECTRiC PROJECT: ENVIRONMENTAL EXECUTIVE SUMMARY 4. THE SETMlNG

PlatS PaliaX Photo:PRA Nepal

(iiQ Disadvantaged Groups

The largest group to be cisadvantagedis women. As elsewhere in Asia, this is a major socio-cultural and developmental issue. Groups paricularly disadvant -id by ethnicity and caste include the Kumnhalsof Turnlingtar and occupationalcastes, the Kamis of Diding, and a high proportion of Rais throughout the valley. The Kumhals are at the bottom of the economic ladder, and are known to be heily ecploited and massively disadvantaged. They have already lost land at Tumlngtar for the airstrip and the permanent road camp. They will lose more, both to project facilities and to speculators (see Chapters 5, 7).

Qv) Land Tenure

In the Arun Basin, to those who live on it land is much more than simply an econornic asset. It provides its occuparntswith a social and a spiritual home as well as a place to raise crops and animals. The importance of this relationshiptends to be greatest amnongpoor and disadvantaged groups. Wealthier and more educatedpeople trade in land as a commodity, and are able to follow economic opportunitieswherever they arise. This has important implicationsfur the payment of cornpensation for land.

Traditionally, the land use and land tenure system especially among Rais and Umbus was based on a communal tenure system known as 'Kipat. Members from outside the community had no accessto land, while indiriduals or families belongingto the communityhad unchallenged rights to use their land, includilng forests. Shifting cultivation (Nep: khorea; Bhote: so4e) became deeply rooted in the agricultural system. Primarily this irwolves poorer farmilies, and for these it is vital as a survival mechanism. Areas fbr sfting cultivation tend to be rkned and discrete. Forest conversion for cultivation is a separate, albeit related, process

CHAPS34JW 25 ARUN at HYROELECTRICPRMECT ENVRONMENTALEXEcu11vE SUMMAoRY 4. THE SEMtING

When the Goverment encouaged the rnigraton of high-caste Hindus to the are th trdtinl kiat land use syserm became weakened. It was formally abolshed by the Land Act of 1964, when kpat land became legally conetib to raw. Nevertheless, It Is probable hat communltes stIf practise their traditional system in areas where no cadastral survey has been uertaken yeL

Land under cullivation along the access road Is held under raikai the ornykegalisad form of lani tenure which allows cultiation, and which allows the holder buying and seilirg rights. There is a high level of hidden tenancy. A famis lanr holdings are often fragmernted,though usually one plot Is near th touse. Average land hoicings vary from 0.5 - 1.5 ha depeiding on the region. The average size of holdirgs affected by te access road's previous hill alignmentwas 1.3 ha, with considerable differences from area to area.

Cadastral Survey A cadastral survey, which registers individual title to land, is complete for Dhankuta District. In Sankhuwasabha District it Is proceedcig northwards, and by August 1992 had covered six Village Deveopment Committees in the district.

(v) Cultural Hleritage

The remoteness and difficulty of access of the Arun Valley has enabledthe rich variety of local cultures to maintain marnyof their distinctive features. There are fine local traditions of metal and woodwork, pottery, and of using local plart fibres to weave fabrics.

A major cutural feature is the Kirnt cultural heritage of the Rais and Uimbus, which is bound up with the natural world This may be responsiblein part for the beter preservationof the forests of the Arun Basin when compared with areas furter west, as may the related kipat land tenure and resource managemnentsystem.

The access road passes dose to a number of shrines, temples and sacred places, which are common to all tha region's various ethnic groups. The most importat is Manakamara Mai, on the left bank of the Arun immediately north of Tulrlingtar. Phyaksinda Dobhan, the Intake sie ehe confluence of the Arun, Khoktak and Num rivers) is the site of an annual Mbla focal rerigiousgathering). Every year during the winter month of Magh (Jan-Feb), local people and others from surrouncing districts gather here to worship and participate in the Mela, which is a continuation of the larger annual Barun Mela held upsteam at the BarurttArunconfluence. 422 The Economy

Most of the Valley's inhabitants live in poverty in a rigorous subsistencelifestyle that has changed little over hundreds of years Some two thirds of the population are functonally illiterate. A main determinant and imitation affecting the economy and lifestyle is that at present virtually all movement of people and goods witin the valley is on foot. There are no roads north of Bastpu (Map 2), and some settlements are 10 day's walk from the nearest roadhead. Thousandsof men (and some women and children) earn a living as porters, transporting goods to and from the remotesetlemenis, carrying loads of up to 100 kg for several days. Apart from the extreme physical demands, the practical lirnitations, time and costs of porter tansport nean that it is difficuk for the people of the valley to coffimuicate with and trade with the outside world. Consequently,the economy and lifestyle have to be largely self-contained and self-sufficient.

The main economic activity in the Arun Valley is subsistence agricuture, in which the central feature is dependency on forests as a source of nutrients and biomass for maintaining cropland ferbtliy. Livestock are essential to the system, principallyfor processingplants into fertiliser,for dairy and other products, and for ploughing. In the southern part of the project area major crops are irrigated rice (below 1700 m), and maize and millet on rainfed teraces. Wheat is grown in winter as a second crop. A few cash crops are of local importance, such as citus and cardamfom. In the higher, cooler, north only 2.8 % of the land is cutivated. The main crops here are barley, buckwheat and potatoes.

aPSJW 26 ARuN 111HYDROELECTRIC PRatEcT ENVRONMEETALExCuTiE SUMMARY 4. THE SETTMNG

Alhough classWiedby HMG/N as a food grain surplus area, large pats of Sa asabha District are in food deficit. Most households depend on ofer sources of Income besides farming. Portering, collcing medicinal herbs and thr forest products, labour an daily wages, and temporay migratin to work In the Terai and India are the main souces of cash Incxme

Ph.SS Porr cwrig bdkdingmeials taom Hie to Khudboai Photo:K.9h Ga

Of signdicance is the interilocking economic and agricultural system of the middle and upper Arun basin. The

,ll sources of informafion on income data in the Project area show the prevalence of great poverty, with many households in no position to take advantage of the opportunities offered by the Project due to lack of resources and skills for investmnt, dependency and debt, and illiteracy. Indicators of poverty found by the Basinwide Impacts Study team during their household survey were:

- up to one third of famiGes surveyed had mortgaged land to buy food in the past year (1 98990); - 58 % of families suffered food deficits in the previous year.

Although agriculture provides over half the income of the population of the Project area, it still fans far short of the subsistence requirements of most farming families. The findings from surveys on average annual income in Sankhuwasabha District by the Basinwide Impacts Stuly (Table 4.4) are broadly similar to those of the land acquisition studies for the Hill access road, except that gross incomes in the latter averaged NRs 3000-4000. This may be due to a lower level of poverty arnong families on the ridges, where most economic actiiy is concentrated.

CHAPS34AM 27 ARUN 1 HYDROELEcRICPROJECT: ENVIRONMENTAL E(ECUlJvE SUMMARY 4. THE SETIING

Table4.4 AVERAGEANNUAL FAMILY INCOME BY SOURCE l ffi(;ANKHLANASASHAWSTRICr: 1990 Souce T NRs Pern of Total Income Crops 1507 55 Wages 356 13 Llvestock 329 12 Manuhturng 247 9 Portering 192 7 Exports 110 4 Total 2740 100

42.3 Healtlh

The food deficit mnansthat some fanliies are unableto meet their main nutritional requiremerts year- round(usually towards the end of the dry season, MarchVApriVMay).Malnutition affects children in particular. TWr lives are futher threatened by the three commonest diseases: acute respiratory infection (ARI), measles and diarrhoea. Domestic living conditions plus the extremely variable climate ranging from very cold in the winter months to hot and wet in the summer provides ideal condilions for ARI to develop, and as a result it also the commonesthealth problem in the area.

Diarrhoeal diseases are second to ARI in frequency. This is due to people having to use springs and small streams to obtain their drinrndgwater. These are often cortaminated by open air defecation and lack of ltine acilities commonthroughout Nepal. Intestinalparasites such as round worm, hookworm, tapeworm, Giardia, and Trkhuris are extremely common. Anaemia due to hookworm is a particular problemL

Having been largely eradicated from the Terai in the 1 95s, malaria is a minor health problem in the projectarea Below 1200 m.as.l. the Arun Valley is low enough for mosquitoesto breed. The main mosquitois Anophelesfluviatils which favours rivulets and small streamsshaded by vegetation,and can be a malariavector. Healthposts treat occasionalmalaria patients, with the assistanceof the DistrictPublic Health Office, by collectingblood samples and getting them tested in the dirmicthospital. 4.3 REGIONALDEVELOPMENT

4.3.1 Local Government

The hydropowerfacilities will be lcated in SankhuwasabhaDistrict; the access road begins in DhankutaDistrict, and, where it crossesthe Arn northof the powerhouse,passes through Bhqjpur District

The mostsenior govemrment official in eachdistrict is the ChiefDistrict Officer (CDO). The district-level activitiesof the line departmentsof central governmentministries are coordinatedby the Local DevelopmentOflicer (LDO). Vilage leveladministration is carriedout by electedVillage Development Committeesand Boards.

A varietyof resourcemanagement groups and systems exist in the Valley,includirig informal Rai and Umbugroups operating the traditional kipatmarnagement offorests, oter locally-initatedforest security committees,and governmentristablishedgroups. The effectvenessand sutainability of these managementmecharniss varieswidely.

In 1991the NationalPlanning Commission re-instiAuted a Regional Planning Office (RPO) in Dhankuta, with UNDPassistance. This is likelyto becomea focusfor regionalplanning activities.

CH&=J3E.NW 28 ARUN III HYDROELECTRICPROJECT- ENVARONMENTAL EXECUTIVE SUMMARY 4. THESETTING

4.32 Makalu-Barun Conservaton Project

Nalbnaland intemadonalrecognition of the high heritagevalues of the easternHimalayan region has resultedIn the establishmentof three large protectedareas around Sagarmtha (Mt. Everest, Oamczlanma). These are SagarmathaNational Park, the new Makalu-BanrnNaional Park and Consban Area,and Tibet's Qomolangma Nature Preserve.

The last two protectedareas are the outcome of a successfu programme mouited by an interratoa NGO,the Woodlands MountainInsitue (WMI),to assist the goverunentsof Nep andthe Tbet Autonomous Region in developingadjoining mountain 1 * . -. '- protected areas, both of which -, combine conservation with - comnmunitydevelopmert. In . Nepal, WMI Is working with the Ministry of Forest and Soil _o. 4 Conservation's Department of National Parks and Wildlife Conservation under a 12-year cooperationagreement to buildup the now park and conservation area. The projectis funded by a consoriumnof internationalpulic and privatesector donors,and is independet of theArun 3 Project.

4.3.3 Koshi Hills Development Programme

For a numberof years the U.K's Overseas Development Administration(ODA) has been sponsoringa rural development programme in Dhankuta and Sankhuwasabha Districtssof easternNepal. The third phaseof this programme (wK30) concentrates an forestry and E horticulture. When this phase terminates in mid-1993, the Pt7 Hku Valley,Makmlu-Barun National Park forestry programme will be Pholo:Ang rta Sherpa continuedas a componentof the largerNepaVUK Community Forestry Project currently in preparation.

4.3.4 Other Projects and Programmes

Nepal'sAgricultural Development Bank (ADB/N) has a SmallFarmers' Development Programme which the MBEISreports as being activeand effectvein SankhuwasabhaDistrict, having worked with 178 local groupsin the agriculturalsector. Otherprojects indude the NorthernBelt PastureDevelopment Projectand the PakhribasAgricultal Centre,an agriculturalresearch statin near Hile which is supportedby the ODA.

CHAPS34NEW 29 ARUN I HYDROELECTRICPROJECT: ENVIRONMENTAL EXECUTIVE SUMMARY 5. POTENTIALENVARONMENTAL IMPACTS

5,JPOTENTIAL ENVIRONMENTAL IMPACTS

5.1 INTRODUCTION

The impats of major infrastructureprojects can be divided into two prnnipal categories. Firdy direct Impacts,which result rorn the physical presence of the facinties aMdthe way they are dasigred, built and operaed. Secondly, indiret impacts. Incirect impact stem from the economic activiies surrounding construction and the induced economic effects resulting from improved access. These impacts occur in two main phases - during con,slrictimn and during operaton.

In this chapter,potental impacts ideriified by the Proect's internal ernvironmentalassessment exercises and by the KMTNC Management of Basinwide Environmental Impacts Study, are divided into those occurring during the construction phase and the operational phase, and are discussed for each of the major project elemaresin turn: the access road, the hydropowercomponents, and the transmission line system.A finalsection discusses cumldai impacts.

T-s sumnmarydoes not corsider the ermironmentaleffects of increasedelectricity availability nationally. The area of influence of the project is taken to be the whole Anun Basin within Nepal. In judging sigrificance, relevant factors are the intensity, duration, scale, and reversibiity of the impact in question.

Impact matrices are atached at Appendix 5 5.2 ARUN ACCESSROAD 521 Potential Road Impacts: Summary

The Arun IlIl Project will have far-reaching social and environmental consequences. Most of these win resut from the road ra than from the power project.

Duirig road consuction (1994-1997),there will be largeconcentrations of workers(max. 9500 plus some dependants)both at the Contractor'scamps and at the remoteworktronts, plus incomers attractedby economicopportunities. Together, these w1il create a massiveincrease in demandtfor food andfuel alongthe alignment,with consequentimpacts on pricesand forests. Therewil alsobe some socialdisruption and pressureon healthfaclities.

Whenthe roadis openedto the publicin 1997there will be rapidshort term andfar-reaching long term economicadjustmnents and opportunities.Studies of newroads elsewherein Nepalshow that while roadsare a prerequisitefor rapideconomic development, they are not sufficientto causedevelopment by themselves.There has to be some other mqor economicimpetus to allow roadsto liberatethe economicpotential of an area. Wherethis is not presenta rnewroad does little for the economic welfareof the peoplein its vicinity,and it maybring disruption to localcommunities and severedamage to forestsand other naturalresources due to easier accessfrom outside.

Tables 5.1 and 52 overleaf summarisethe most significant potenial constructionperiod and operationalperiod impacts.

CMH&NEW 30 ARUN Ix HYDROELCTRICPRoWEC ENVJRONMENTALEXECUTVE SUMMA4RY 5. POTENTIAL ENVlRONMENTALIMPACTS

Table 5.1 ACCESS ROAD: MOST SIGNIFICANTPOTENTIAL CONSTRUCnON PERIOD IMPACTS Positive J Negalve(asuming no mitigation) Localompoymnmnt oppornE Clmance of fret alongRoW and dogradaion of foret In thev1inily. iuaung in andresuWtng tenporary Increae In hitat Ibu for endangsrd spes of wikdf. parcap hoon_. Presu on fthorel Incased rme t for localproduce. Ponnant te ofl gdeulral kLnd:bls of food productionand effcts an mqgnal holuod Temporamyb takeand dbsuption of agrkculuralacties: effec on marginal homeholds. Marghallalon of aomeproject-affected famles andsome woren, despino compnsationprodure. Increasedlocai food defic. Foodpdes laion: effcts on marginalhousaholds, espsecally nutitional sattus of somewomen and ehildron. Developnt of shwntytown. Exaebation of por heoathsluaion andabse on heoahfacilities. Impectof lbour foe on ca socdalsysterms and cuRias. Maor *_a on al oca Institutions(in percular bcal governent schools,and rsource mangementgroups).

Table5.2 ACCESS ROAD: MOST SIGNIFICANT POTENTIAL IMPACTS WHEN OPEN PosItive Negative Impacts, and E,dstlng Negative Trends Ukely to be of Imp d Acceleratd n r Mlgalon Gratly reducod cost oflImpord food and Incr_d rato of population gwth due to reduced oulmigmfatinand mwnuscWredcomnodxf. Imnproavedhealth. and corwAoquentdemnd on rwoures. Gmty recducedheamport cost fhr rgional Major reducons in sale prie of becdy - produced grain cropcs| ox(porls. worseoiodlood bdance | PoasiblityOf enSIOn road Maer or reductionIn long-haulpoctuuing opportunities. *y ten Incrdsu hanring of kwet products to pay for roWired food and other Fhpid growt of now economxccrnlres goods, and forest deararce for crdamom production, with corsequent along the road. fort degmdadZonand habit [on. Inceased incnws kmonbss No raduction in ongoing proessam of impovishment and marginau ation. Increese tourism(and tourism ndaled Inceod shh and bumof hig biodiwr«ltyforst dueto Inrceosing Impcb). povertyand nwrgin m v aclr Pogble rebumof eduraied. sucel Lose of some rivcrine hebibt asesenba for rKenganeredspecies. mtrwa. lose of forst: habkl«tof other endgongred species, and direct tbea due Enhanced cornfesial opportunidesfor to huntng. women of some ethnic groups esp. Ker IncreaseddispariXe in weadthand acec to services. BDhole.Gurung, Kiranti. Acedkwaed ewmion of ftaidonel valuas and culture. Increaed aes to outskidefor migratr Furdw development of shanty towm hbour, eg. of KarBhote

52.2 Access Road: Potential Impacts during Construction Phase

Tis sectionnotes potentWa direct and indirectimnpacts of the roadconstuction phase (40 months)on the physical,biological, socio-economic and culturalenvironments.

5.2±1 Impacts of Road Construction on the Physical Environment

( Air Quarlty

The onlysignificant air qualityconsideration is potentialimpacts on humancomfort and health.Quarry o.erationsand blastingwill be localised,with limited,local impacts. However,in Nepalmary disease age.t reimd settlemrentsare carriedon dust particles.Traffic-generated dust alongthe roadwill be an appreciablenuisance and possibleheath hazard in existingand new settlements, articularly TLxnfingtar,for the shoo peniodbefore the newroad is sealed.

CKAPNEW 31 ARUN IJIHYDROELECTRIC PRWECfr ENVRMENTAL EXECuTVESUMAY 5. POTENnALENVARONMENTAL IMPACTS

(II) WalerQuality

Chemical Polutlon Umited watr polluton could occur due to tanker acddents, accidental spis, or Improperdisposal. Materialsidled wouldbe kerose, disels, hjbcating and shutterng oils, and possiblypetrd (gasoline)and liqud explosives. Overall, chemicalpotLfion Is not considereda signficantthreat to water qualify.

SedimnenPollution Sedimentpollution arlsing from construction activites is Inevitabte.However, any Impactsare likelyto be limitedin scaleand duration,and so are consideredof low significance.More importantis the possible contaminationof irrigationwatb. with sediment,and the bacteriological cortmination of drinkingwater supplies (spdngs, streams and piped systems).Any impactswoild be localisedand are amenableto mitigation,so this potentialImpact is not regardedas significant.

(Ilf Slopee and Solls Slope Failure Deepslope failures may be triggeredby roadconstuction. The roadcrosses a number of areas of known instabilitysouth of Tumlingtar,and north of Bumling it enters the steep and geomorphologicallyactive gorge area Herethere is a higherrisk of largescale slope failure. The road has been designedto cope with these risks. Nevenrheess,significant impacts may still occur. particuiarlyfor the sectionof road northof Bumling. Despitethe care taken in routeselection, road design,and constructionmeftods, it is probablethat the accessroad will be subjectto slopefailures or otherdamaging geomorphic events during the HEP constuctionperiod over a minimumdistance of 2.3 km. Thesewil resultin temporaryloss of accessuntil cleared.

Spoil DIsposal Along the access road,the proximityof the river will give numeroussites where corntrolledspoil disposal can take place. BetweenAdit No.2 andthe Intakesite strict conrols on spoi dsposal will be enforced. Wthout such controlspoil disposalcould have significantlocal impacts.

Surface Erosion Sheetwash,rilling, gullnrig and shallowslope failure are Luiversalproblems along roadsbuilt in Nepal'shills. Particulardifficulies are likelyto be experiencedin the ArunValley between Margmaand Tunlingtar (35 km)in areasof erosivered soils. Hightemperatures, southern exposures, low rainfalland lowfertility siteswill make establishmentof the necessaryvegetative slope protection on cut and fill slopes a challenge. Localisedslope failhes will be experienceduntil successful bioengirneringtechniques are developed.

In additionto potentialdamage to the road,the significanceof surfaceerosion lies in the downstream effectsof the erodedsediments on () smalllocal irrigationsystems; (ii) springsand seeps required for localwater supplies; (iii) damage to cultivatedareas. Generallythese featuresdo not coincidewith the mosterosion prone areas along the valleybottom, so the overallsignificance of this impactis regardeJ as low.

Lackof attentionto slopestabilisation causes sediment blockage of drains.Blocked irains andculverts frequentlyresult in washoutsand loss of tr roadbed. This is a major,significant problem for road maintenanceeverywhere in Nepals hills and mountains.

5222 Impacts of Road Construction on the Biological Environment

Q) Vegetation

Direct Impacts The drect impactsof road constructionan vegetationwill includeloss of individual plantsthroughout the Rightof Way (RoW)due to the permanentworks, and othertemnporary losses due to land take for ancillaryfeatures - quarriesand camps. The roadwill traverseforested areas for aboutone quarterof its length (approx.33 kmnout of 122 kin:Table 5.3). The toal forest areafalling withinthe 30 m right-f-way is estimatedat 106 ha, but vegetationclearance within the RoW will be stricly imitedto the areaof the PermfanentWorks.

CHA5.6W 32 ARUN IN HYDROELECTRICPROJECT: ENVIRONMENTAL EXECUTAVE SUM MARY 5. POTENTIALENVIRONMENTAL IMPACTS

Areas of vegeion of ecological interest to be directly affectd by the acces road include, fron south to north, Guransedanda(rhododendron hili, Saleri, Piluwa r, Sabhaya river, Satighat, Kartikebhir, Simle, Tumbetar, the powerixousesite, the site of AdIt No. 2, the permanent NEA camp site, and the descentto the lntakesite. Most of these areas show high species diversity, presence d rare, endemic andendangered species (e.g. Pandanusnepainsis, Cyafha spinubsa), orchids,and fILorsic elements represertaive of tropical evergreenforest. The best forests In these localibes are relatively dense, and are found along river gullies, gorges and rocky cliffs with slopes of 40 or more. North of TumlingtEr there will be direct impacts on the nationally scarce riverine forest, as weil as on subtropical forests near the site of Adit No. 2. I.~~~~ Direct impacts on wild vetti per se are consideredto be of moderate significance locally, but of litte significance in a regional context. However, consideredae loss of habtat for vertebrates, the impact couid be significant (see (I) below).

Indirect Impacts Indirect impacts | on vegetation during the constrction phase will include demands for forest products for the labour force, their dependarts, and incomems, plus additional demand created by avalable cash, and accidertal fire. These

impacts will be concenrrated - around(i Hile; (a)Tumlingtar; (in1) Heluwabesi; Civ) Pukhuwa (the - poweDrhose site); (v) Adit No. 2 site below Sholakhani; (vi)Amrang - (the pmanent camp site); (vii) Phyaksinda (the intake site). Air operabons out of Tumbetar, north of Heluwabesi, could also attract a labour force which would affect the nearby forest areas (Plate B). Except for Hile, there are areas of high botanical value in the vicinilly of all these sites.

Potential indirect impacts on forest resources during the constuction phase are considered to be highly significant locally. plwt. Tumbetr.north of Hakuwabesi: poaibe aft lor Contrsctos fabliies (ii) Wildlife Photo:Jmes ramsey

Mammals and Reptles The rmadwill run close to the Arun Rier for somne67 km. Construction of the road will have direct impacts on mammalian and reptilian riverine wildlife due to habitat destruction, severance of territory, disturbance (incuding by helicopter operations over at least 25 months), and increased accss for hunting. Quantitative data on wildlife population sizes are not available. The nationally and internationally threatened status of many of the species involved suggest that these mssescotld be significant nationally.

CHAP&FW 33 ARUNlll HYDROELECTRICPRWECT. ENRoNMENTAL EXECUTvESUMMAY 5. POTENTIALENvIRONMENTAL IMPACTS

Birds Habitatlass andground and alr dsturbancewIll also affectbirds partculrl territorialbreedng birds. In addiion, the ArunValley appears to be a llyway for manyautxnn and spring riTgrants,but daa are limited. Someof the spadesinvolved are endangeredand rare. The bwer Arunriver appears to serve as a restingplace for migratorybirds duringwinter and spring. There may be impactson nmgratorybird speciesdue to loss of hatitat and disturbance. From south to north, sensitivebird habitatareas that couldbe affectedare:

- open mixedforest at Diyaleand tropicalriverine forest at the LeguwaKhola; - hill sal forest on the left bank of the Arun river south of Tumlingtar (SabhayaKhola, Gandhepani,Khahare and Damar); - evergreen riverineforest and hill sal forest on the left bank of the Arun from Satighat northwards(Jholunge, Betyari, Kaikebhir, Thijo Andhereand Khyuta; - tropical deciduos nvenneforests of TLunbetar,south and northof Tumbetar,Pukhuwa (the powerhouse site) and the area immedriatelyto the north; - tropicalevergreen forest at Phyaksinda.the Intake site.

Impactson birdsand bird habitatduring the roadconstruction phase are regardedas being potentially locallysignificant and potentiallynationally significant for somespecies.

(iii) Fisheries

Duringconstruction, the roadwill have minimaldirect impactson aquaticbiology. However,indirect impactscould be significantlocally due to a grealy increasedmarket for fish. Fishingintensity will increaseto meetthe demandsof the labourforce and incomers.Detrimental fishing technologies may be used,specifically the ecologcaly damagingones of explosivesand insecticides.

The abilityof the river to sustainhigher rates of fish offtakeis not known. Reducedfish populations and disturbanceassociated with fishingcould affect shy iish-dependent speciessuch as otters and somepredatory birds (raptors).There will alsobe economicconsequences for fisherfolk.Impacts will vary accordingto the level and sustainabilityof the catch.

52.2 Impacts of RoadConstruction on the Socio-EconomicEnvironment

(1 Land Take

Estimatedland take for the roadis givenin Table 5.3 below. The totl permanentland take for the 30 m Right of Way will be approxdmately375 ha (plus 19 ha for temporaryuses). There will be direct effectson some 1146 households.Of these, approximately100 standto lose buildings,either their houses,cattesheds, or both. Surveysindicate that some 4550timber trees, 2900fodder trees, and 500fruit treesare likelyto fall withinthe RoWwhen it is peggedout. In regionalterms the loss of less than 400 ha of land, of whichsome 169 ha is culfivated,is of only moderatesignificance. However, for marginalfamilies including formal and informaltenants, loss of land can be disastrous,triggering a downwardspiral ir"o absdlutepoverty.

Furtherloss of productiveland will be causedby severanceand fragmentation,particularly around hairpinstacks such as at Sholakhani(Adit No. 2). Off-sitedamages may also occur - land and crop damagedue to rollingdebris, erosion and sedimentatiorLThis impactcould be signfficantlocally.

Landwill be neededtemporarily for pilot tracks, canips,quarries, storage and handlingyards, and helipads.These impactswill be particularlysignificant at Tumlingtar,where the cumulativeeffect of temporaryand permanentland requirementsfor the roadand powercomponents (road reserve22.5 ha; permanertroad camp 3.1 ha; temporaryproject facilities estimated at 6.9 ha) will take up an appreciableproporton of the agriculturalland onthe plateau(12 %), withoutallowing for associated txbarisatiom

O4AP5w: 34 ARUN 11 myDROELECRmICPRojECT, ENVIRONAENTALEXECUTlvE SUMAw4RY 5. POTENflALENVIRONMENTAL IMPACTS

Table5.3 LANDUSE BY ARUNACCESS ROAD | Land UmPJeVgtUonType land Tak Distance Pce I

1. Fores 106 33 27 2. Shjb mndGmzing . 119 37 30 3. Culilvted ) LWvelTerrace 106 33 27 b) SlopingTerrace 63 20 16 Total 394 122 10

* Figuresrounded

(ri) Employment and Income

Labour AvalbilIlty Surveys indicate a high level of labour under-utDisationin the area. of the order of 50 %. Consequently, there should be no knock-on effect on agricultural productiorL However, women's houhold workdoadsmay increase further if men are absent on constructon jobs.

Employment Income The road contractor will employ on average an estimated labour force of 6720, rising by 50 % during peak dry season periods, falling by 50 % during the monsoon, and spread over some 7 workcft smultaneously. Assuming a 75 25% sprit in laboLr force empoyment behweenlocal and outside mbour,road constui wAllhave a significant Inpact on average per capia income in Sankhuwasabha DistricL It is estimated that this wil rise by up to 15 % over the 40 monrh road constuction period (1994-1997)due to road-related employe Some $4 to 5 million in wages will enter the Valley's economy each year duing this period soley irom road cntrion, a massive figure. Increased incomes will result in increased import to the arem and consequent Increases in empoyrmert for porters (until the road opens).

The value of the employment income to the local populationvAll be dependerit on hiring practice and constructiontechnology. Assuming a high level of local recruitmert for a labour-intensivecornstuction efort, the impact of road construction employment on lcal cash availability will be highly signdicarL

(ii. Food Availability, Prices and Nutrition

The hills are a food-deficit area Currerntlymany farm householdsin Sankhuwasabha District are not self-sufficint in food production and depend on additional sources of income to purchase food. Virtually all imported food is brought into the drict by porters. This will continue until the new road is completed

An increased per capita income plus an influx of migrant lbour plus incomers to supply services will make the food balance siubtion worse. Modelig indicates an annual food defcit increase for the period of construction from 1.51 kg to 19.35 kg per capita in the project impact zone. Sone porters are expected to take up paid pbs on the project, so tat the number of available local porters will be reduced while the demand for their services will increase. This is likely to be reflected in increased portering charges, higher food prices, and possibly temporaryfood shortages. Poor families could face reducedfood availabiity. The nutrtional standards of tose not able to access the constructon-related cash stream are likely to fal further.

For those affected, these impacts could be sgnificarn Surveys for the Basinwide Impacts Study indicate that one third of families in the area have already mortgaged some of their land to buy food.

CAP5JEW 35 ARUN I1iHYDROELECTRIC PRIWEC: ENVIRONMENTALExECUTIVE SUMMARY 5. POTENTIALENVIRONMENTAL IMPACTS

Qv Settemnt

The impactsof road constucto will be felt mostIrmedlate in exsting settlementsalong the alignmnert Aready, land speculationhas acceleratedgreatly and new constructionprojects have increased.Wdh initiation of the constructionprogramme, the popultions of the majorroadhead villages andthe powerfacility construction cetres will swellwith the lnfiluxof contractor,engineer and worker populations,their dependants,and incomers.

The most dramatc effectswill be at TLunlingtar(Plate 9), which will becomea boomtown. Other growthpoirns will be Hile,the powerhousesite and the NumVPhyaksindrHedangnaarea around the dam. These impactswill be highlysignificant localy.

tt.

Plate, Tuwlngtufrom tlie Norh Phot: Jams Rammay

(v) Health

The concentrationof workersand incomersand their dependantswill create a greater demandfor health re. Existng healthfacilities have never beensufficert in the area

The concentrationof a labourforce of somethousands will encourageprostituion, which will assistthe spread of AcquiredImmune Deficiency Syndrome (AIDS) and othersexually-transmitted diseases. Particular risk groups are long-distancetruck drivers, who are often responsiblefor disease transmission,and returningNepali prosttutes from outsidethe country.

Anotherhealth related problem is likelyto be malaria,which is prevalentin the Teraidespite eradication campaigns.Inrected incoming workers could transmit the diseaseto the vectormosquitoes in the ArMun Valey, which couldthen affectthe labourforce and local residerts. However,although the impactof malariaon individualsis high, the disease is normallytreatable and vector control measuresare feasible.

CANE 36 ARuN W1wCRoEECRIC PRaECT ENVRONMENTALoECUTvE SUMMAR 5. POTENTIALENVIRONMENTAL IMPACTS

The cidence of waterbome dseases and acute respiratory hitnctis Is already very high. However, schistosamisls will not be a problem since It does not occur wihin Nepal, due to the absence of appropriate conditions. Oher diseaes likely to be increasedare alcoholism,and possiblytuberculosis.

Together with the stress an health facilities, these Impacts are considered to be potentially highly slgnMicanrlocally.

(v Inratutions and Services

WaterSupplies An adequatewater supply is rarein mostareas of thehills. The concentrationof road labourwill add furtherpressure to localwater systems, particularly in Hile andTumlingtar. The effects wll be felt mostly by womenand children,who are normnallyresponsible for supplyingfamnilies with water. Frequentlywater sourcesare polluted,with the result that diarrhoeaand other waterborne diseasesare common. Pressureon water supplysystems will increasethe risk of spreadingthese diseases.These impactsare consideredto be of moderate,local significance.

Education Roadconstruction is likelyto increasedemand for educationin the Projectarea. The main impetuswill be providedby increasesin the incomeof familieswith membersemployed in construction or anciilaryseivices. To the externthat the contractor'sworkfhrce is drawnfrom local communifies, additionaldemand for schoolplaces exerted by incomingworkers and their familieswill be avoided. This impactwill be temporaryand of relativelylow sigrificance.

GovernmentServices The suddenand intensiveconstruction effort and rapid pace of changewill placeexceptional demands on goemrnmentservices at all levelsin the Valley. This will be a highy significantimpact locally.

(vil) Women

Some womenwill benefitfrom economicopportunities arising from road construction,through both directlabour and the provisionof servicesand commoditiesto the workforce. Womenof some ethnic groupsare quite independent- Kiranti,Gurung, Kar Bhote,Bhote, Newar - and are likely to take up opportunitiesoffered, especially if assistedby appropriate programmes. Others, particularly from poorer lamilies, will be adverselyaffectedl Numberson both categoriesare hardto estimate.

There will be three principalnegative irmpacts on women. Firstly, road constructionernployment opportunitieswill be grantedmainly to men. Theywil gainaccess to the casheconomy, and sincein mostfarm families it is the menwho controlthe moneywhile women look after the tinily andthe food, womenwill tend to remainin the subsistencesector. This is an equityissue. Secondly,male labour absentor occLupedon roadconstruction may increasethe alreadyhigh worWdoadof the womenand childrenleft at home,particularly on agriculturalduties. Thirdly,when compensationis paid for land it is the headof household- the man if there is one - who getsthe money. Moneypaid to the male householdheads may be usedto pay off loans,purchase consumer goods, or hold expensiverituals such as weddings,rather than for the purchaseof replacemerntland. Women,especially in poorer househDods,would then be left tryingto feed their familieson less land.

For the familiesand individualsaffected, these couldbe significantimpacts.

(viii) Vldnerable Groups

In the Valley,some groupsof formerlyurtouchable occupational castes - Kami,Dhamai, Sarki, the Kumhalsof Turlingtar - are characterisedby chronicpoverty. Theirsurvival depends as much on a set of close socialand economicties with their neighboursand kin, as on individualfluctuations in forturneIf sucha groupis dispersedthrough dispossess;on of its lands,its membersbecome extremely vuer*able. Since they are unusedto handlingany but the smallest amountsof money, cash compensationseldom enables members of these groupsto rehabilitatethemselves.

CHAP5AM 37 ARUN m HYDROELEcTRICPROJEcT ENVRONMENTALEXECuTvE SUMMARY S. POTENTIALENVIRONMENTAL IMPACTS

The nunber of Serously Project Affected Familles (see Section 7.3) IdentIfied by iland acquisition surveys Is 132, out of 1146 estimated to be affected by road-relatediland take.

(bx Social Fabric and Security

Community Relations Although mot res affected by the road are etnically diverse, many groups have formed a set of relatively stable relationships. These are normally based on a combination of kinship, residental proximity,economic cooperationand mutuality, and are essential to the subsistence of manw households, especially poorer ones. These social relationships and patterns will be disturbed by the influx of the large number of labourersand job seekers expected during road construction.

The intensity and significance of these impts will be directy proportional to the percentage of labour hired non-locally. Construction of the labour-Intensive Dhankuta-Hile road was possible without disruption of existing seasonal agricultural labour inputs since almost all labour was recruited locally and many workers were able to travel home .i night. This scenario is likely to be repeated on the southern half of the larger access road project, but will not be possible for the northern sector (north of Btunling) due to low local population densities.

Security The project's large, anonymousand transierntworkforce is ikely to cause an increase in the level of crime and social disturbance: theR, gambling, alcohol and molestation of women commonly occur in these circumstances. Such problems have already been reported from Hile, and can be expected around any establishment comprising single men with money. The capacity of local corm.unities and of the police to cope with an increase in the incidence of crime and social disorder is limited.

Overall, potential impacts on the social fabnc are regarded as of moderate, local significance.

5224 Impacts of Road Construction on the Cultural Envronment

The Valley Route passes through an area of considerableethnic diversity and near a number of sites of religious importance. The variety and the culturalintegrity of local commrunitieshas remained largely intact because of their isolation. Road construction would influence indigenous culture by, firstly, introducing more money and terefore more freedom of individual choice into traditionally oriented communities; secondly, introdudng new peoplefrom other more cosmopolitan cultures.

Culural change is occurring in ary case, and cannot be reversed. The road will greatly accelerate these changes. 52.3 Access Road: Potential Impactsafter Opening to the Public

These impacts will be the major consequenceof the Arun Ill Project and so are described at some length.

Direct Impacts Following construction and public opening in 1997, the direct impacts of the road will include (i) conrtinuingimpacts on and from water, soils and slopes depending on maintenance inputs; iH)a continuing risk of accidentalfire for roadsidevegetation (ii) disturbance to any remaining wildlife due to traffic noise end night-time lights; (i) healfthimpacts through accidents and () employment opportunities in road maintenance. These impactsare all localised, but will be long-term. The irdensity of the impacts will be largely dependent on managemrentdecisions on road design and on maintenance regimes and inuts. The significance of these direct impacts is regarded as moderate, but low in relation to the major indirect impacts that will result from opening the road.

Indirect Impacts The indirect impacts of the road are regarded as much more significant than the direct impacts. Without comprehensivedevelopmrent programmnes in the Valley. some existing negative trends are likely to be accelerated. aw- 38 ARUN ft1HYDROELECTRIC PROJECT. ENVIRONMENTAL EXECUTiVE SUMMARY 5. POTENTIALENVIRONMENTAL IMPACTS

52.31 Impact of Road Opwaton on the Physical Environment

During operation, the road will be affected by as well as itself affecting the physical environrent.

(Q Erosion: Slope Falluoeand Drainage

Slope Saure Is a major hazard to all roads In Nepal's hills. Soil creep and slow flow can produce deformation and disrupt drainage. Major slope failures can result In complete blockage of roads and loss of roadbeds. Minor failures, and high rates of sediment and debris production from unstabilised cuitlopes, frequenly block side drains and cuhvts. The resulting flow of water over the roadbed can cause damage out of proportion to the scale of the initial blockage.

Major unavoidable geomorphological hazards along the access road are the Dandakharka mudslide between the Leguwa and Kenwa rivers soutih of Tumlingtar, arnda variety of stability problems on the northern section, from debris torrents to rockfail. Periodic road loss due to slope failure is certain over 1.3 km and probable over at least a further 1.0 km. This will necessitate a relatively high level of maintenance input. fi) Floods:GLOFS and other Catastrophes

The road design has recognised that a GLOF passing downstream from the dam is a major potential hazard since such occurrences can have devastatingeffects on both the valley floor and lower slopes, including post-flood falures. JV studies have predicted the magnitude and durabon of the GLOF immediately downstream of the dam. Computer modeling predictsthat between the IntakelDam and Powerhouse,a GLOF wil cause an increase in water level not exceeding 10 m. Downstreamfrom the Powerhouse and where the widening of the valley is more sigrificant, the rise in water level reduces rapidly, and is negligible about haff way between the Kaguwa and Chyawa Kholas. The chosen road alignment is generally well above predicted GLOF levels, dropping only near river crossirgs. Over the ength of the river paralleed by the road, there is a danger of washout by extreme floods over some 7 km.

52.32 Impacts of Road Operation on the Biological Environment

Onoe open to the public, and if not mitigated, the access road could result in significant adverse environmental effects through accelerated degradation of natural resources.

{i) Vegetation and Habitat

The road will represent a major new opportunity for earning cash by selling open-access goods, principally forest products such as timber, fuelwood, medicnal herbs and orchids. The increased commercial (non-domestic) demand for biomass for local and external markets will accelerate forest degradaton in the vicinity of the access road. Cardamom production is likely to increase, resulting in clearanceof some lower temnperateforest.Households marginalised by adverse price adjustments loss of portering opportunities and/or inadequatecompensation may expand slash and bum cultivation into forest areas, and will also sel forest products. There will be a continLmngrisk of fire for roadside vegetation.

These potential indirect impacts are regarded as being highly significant nationally owing to their likely scale, effect on the local economic resource base, impact on biodiversityvalues, and irreversibility.

(5) Wildlife and Fisheries

Along the road, remaining wildlife will be disturbed by traffic noise and night-time lights. This is a minor impact comnparedto the indirect effects of improved access and higher levels of economic activty: wildlife throughout the Valley will be affected directy by increased disturbance and hurting, and

GaPvtW 39 ARUN HYDROELECRICPRojEcTr ENAiRoNMENrALEXEcUTiVE SUMMARY S. POTENTIALENVIRONMENTAL IMPACTS

In*ectly by loss of habitat arsig from accelerated forest degradation and clearance, particularly in the vIcirntyof expandingslements along the valby botom. In addition, fisheries wig be more heavily exploIted for rnw markets.

These potendialimpacts will acceleratethe decirne of endangered speciesand are regarded as being potentialy significart in the national conteKL

56233 Impacts of Road Operation on the Socdo-Economic Environment

(I) Economic Adjustment

Price Adcustoent When the Access Road Is opened to the public, there will be very large price adustments. The road will connect the hills with the Terai. Freight costs will no longer be a major factor hi separating the economies of the two regiorns,and prices will rapidly change to reflect this. The price of staples will be greatly reduced, but there will be fewer portering opportunities and lwer sale prices for some locally produced goods. There will also be greatly increaseddemands on tho forests of the basin to supply now markets,and changes in settlementpatterns and cultual activity. The plains have a relative economic advantage for the production of most commnodities,and prices of similar locally produced goods in the hills will drop. The most significant immediate effect wil be a dramatic decrease in the price of rice, some other food staples, cement, kerosene and fertilizer. These price reductionswill affect sale prices of locally-producedgoods. The impact of the adjustment on any family or group will depend on the availability of cash and relative requirements for, and prices of, commodities.

The price of land is likely to rise rapidly, partic 4.arlyalong the right-of-way. Speculative purchases are already occurring in advance of construction.

Production Sectors and Food Balance The road will provide access to southern markets for hill produce. Agriculturally, the most important cofmmodities will probably be livestock products and cardamom,for which the hais have a relative advantage. There will also be a massive demand from the south for forest products from the relatively abundant hill forests. In Sankhuwasbh District, the long run impact of the road is likely to include net reductionsin the contribution of the crop sector, and net increases in the contribution of the livestock sector, to total income. Uvestock product prices are expectedto rise, and livestockexports will increase,enhancing livestock income Nevertahe, without conplementary investments, economic modelling by the Basnwide Impacts Study indicates hat the overall food balance scenano will become worse than before the road.

(IQ Employment and Income

Employment Wthout cornplemertary investmerts, the overall long run impact of the road on local employment is likely to be negative. This is largely due to two factors: loss of long-haul portering opportunities between Hile and the north, and a roadinduced depression in local food prices which reduces cropped area and therefore labour use. Anticipated increases in employment from, e.g., increased cardamom production are not sufficient to offset this decline. Labour use is predicted to decrease from 50 % in 1995 to 47 % in 2010 without the road, and from 58 % (Nhghdue to Arun Ill employment) down to only 38 % with it.

In the upper Arun area portering is a mainstayfor mrany arnilies. Much of the work involves forwarding subsidised rice to Hatiya for the Nepal Food Corporation. For this task, porters' wages are paid in nce, notcash. Roadconsrution will wipeout long-haulportering opporturnties, although there will be a continuinglow-level need for roadmaintenance crews. Wagesmay be paid in cashrather than in kind. Cashmay be no substitutefor food. Therecould be increasedseasonal outmigration of peoplelooking for work in the Terai and elsewhere. This wouldoccur especiallyin the northempart of the Project areawhich is now 5 to 7 dayswalk from Hile.

CHAPJAM 40 ARuN IfHYDROELECTRIC PRoJECl EVRoNMENTAL EXECuTE SUMMARY 5. POTENTIALENVIRONMENTAL IMPACTS

Houshold Incom There will be a sigriicnt Increase In the contributon of the export sector to houehold Income. The livestock sector will replace the crops sector as the dorinant cori[butor to householdincome. However, the kheaseIn Income from livestockIs notexpted to outweighthe loss In Income from reduced sale prices of locally-producedcrops and loss of long-haul portering Income.

(HQ Povwty and Margflnlleatlon

Economic modelling by the Basirwide Impacts Study indicates that (i) poy Is Increasing; (ii) the Access Road Project will not, by ltsekt,halt this process; pIl small compkementaryInvestmerits In effective Income-generatingprogrammes will give major economic benefits to cusNon Project impacts. The reasons for these concusions are complex They Include a predicted Increase In population, a declne in cropped area, a reductionin crop prices,an increase in labour surplus, and a marked dedine in income from portering.

If the econornic model is valid, those who are able to avail themselves of the economricopportunities during and after construction will prosper, while the majority will initially be worse off, and could take twenty years to improve on their present marginalsituation. Marginalisationis most often characterised by a household slipping into tenancy, and then attempting to make up for the loss in access to production by employment in the non-farmsector. The landless are likely to seek areas for cultivation by converting remainingforests. Fuelwoodsales from open-accessforests offer another bright prospect to the poor.

Motgaging and selling land and other asse is only done as a last resorL In the project area, 30 % of householdssurveyed had mortgagedtheir land to meet food needs. ff mortgaging and selling lard is taken as a sign of severe economic stress, and if the predicted econromicimpacts of the project spread throughout Sanrhuwasabhar as would happen without mitigation, then rn this District about 9,000families could be too poor to weather the periodof economic hardship foreseen following opening of the road. If these findings are correct and withou mitigation, the Project wil impose severe costs on the poorest people of the Arun Valley, who already live on the margin of subsistence. cm) Setenment

New Setmlenents The access road will attract increased settlement at many points along its length. especially near footbridges over the Arun. An estimated 60 % of the population incease would be migrants from surrounding rural areas; the remaining40 % would be incamers, mainly entrepreneurs.

Settlement Form Given the usual desire of landownersto present their faces to the road, traditional forms of village settements may be radically re-orderedto a roadside ribbon of commercial orientation (Plate 4). Some of the effects would be temporary(i.e., for several years), but many can be expected to be permanent. These impacts will be highly significant localy.

(v) Health

Curently paients have to walk or be carried to hospitals with surgical facilfies, or to the roadhead at Basantapur. The presence of the road wil greatly improve access to hospital facilities for serious cases. In additon, the road wil encourage an upgradingof local health facilities, as well as improved levels of literacy and improved water supplies which both have major impacts on standards of public healthL However, there will be a continuing health impact through traffic accidents which would not have occurred in the absence of the road

(vi) Institutions and Services

Government Road impacts on local governmentorganizatiors are expected to be both positive and negative. The road will provide easier access to natural resource management and law enforcement agencies, while also increasing demnandson the resources. Communication between regional, district

CIAPNEW 41 ARLjvNI HYDROELECTRICPROECT. ENIRONmENTALEXEcuTE SummARY 5. POTENTIALENVWRONMENTAL IMPACTS

mnd fild offices will be enharned as will communicatlon between these offices and ocal communmites, but mAnyfield offices win be reqdred to expandtheir servicesto keep pace wih demands.

LocalGroups Therewill be bothdirect and Indirect Impacts on communitymnaged activities.Direct knpacts will occurwhere consructionIs undertakenIn areas currentlyoccupied by Irrigationcanals, potablewater sources, fbrests and other resources that havebeen mrnaged by adjacentcommunifies. The mIgraion of villageelites to the rew road, to take advantageof econornicopportunities, cotld underminethe effectivenessof communityorganizations In the villagesleft behind.

(viQ Women and OUr Dibadvantaged Groups

The immediateeffect of openingthe roadwill be drasticprice adjustmerts for both Importsand export from the area(see ( above).Impacts on women will varyaccording to the economiccondition of each householdand its abilityto weatherthe chwagesand take advantageof new opportunities(e.g. in adaptingcropping patterns to exploitnew markets)(see discussion at 5.2.23 vii above). In the long run, insofaras newwage labouropportunities tend to be taken up by men,there may be increasing absenceof malesfrom the homeand therefore further Increases hi alreadyvery high homesteadwork for females. However,the presenceof the roadwil also acceleratethe culturalchanges that may evertuaily Improvewomens' status, particuialy through improved educational serices end therefore the chanceto attain literacy.

(viii) Social Fabric

The roadis expectedto encouragegreater disparity in socioeconomicconditions between communfties closestto and farMestaway from the road. Householdsclosest to the roadwill have greateraccess to newemployment and incomegenerating opportunities, transportation to marketcentres, education, healthand otherservices.

523.4 impt of Road Operationon the Cultural Environment

The road's possibleimpacts on the culturalheritage of the Valley may be summarisedas

- Erosionin traditionalsocial and reiigiousvalues, although this is alreadyoccurring without the road,and is not all rngate. - Greaterinvasion of external media and communications, leading to lessemphasis on traditional songsand danceforms. - Invasionof consumerproducts that may dispiacetraditiona crafts and cottageindustries. - Houseswill becomemore substantive, with greateruse of non-traditionalmaterials. - A majorgrowth in constructionactivity in the marketcentres. - Greater Use of temples and shrines alongsideor close to the road, possiblyleading to increasedincome for effectivemaintenance. - Changesin the physicalform and socialpatterns of settemernts,including greater economic disparitiesand stresseson communityinfrastructure.

5.3 HYDROPOWER COMPONENTS

After listingimpacts which will not occur, this sectiondescribes possible impacts of the hydropower components(dam, irnake, desanding basins, headrace tunnels, powercavem, outlet, permanernt camop) on the physical,biological and socioeconomicenvironment during constructionand operation. An impactmatrix is atached at AppendfiS.

5.3.1 Impacts Which Will Not Occur

The AunmIll project is a run-of-riverscheme. Thereore, impacts typicallyassociated with large reservoirhydropower projects not relevantto this projectinclude: cHAP&w 42 ARLiN W HYDROELECTRICPRWECT- ENVIRONMENTALEXECUTIE SUMMARY 5. POTENT1ALENVIRONMENTAL IMPACTS

No resettlementof people or signifficat los o' agricultural land due to inundation. * Minimal Inunaon of riparmanvegetation (30 ha) due to steep valley sides and small impoundment (50 ha suface area). No proifNerationof watbore diseae vecors like schistosomiasis or water weeds, due to ursutable condifions. Downstream dewateringwill not affect agricitwre. * No potential for inducad seismicity due to water impoundment * Umited sediment trapping potential behind dam, minimising the potential for downstream erosion. There would be no loss of flood-bornesednerits to downstream riparian areas. * Project life will not be reduced by resrvoir sedimentationsince it is a run-of-river facility. * Negligible alterations In water temperature and biochemical oxygen demanr due to impoundmrientgiven the minimal water retention time. * No disruptionto navigability,since damsite is locatedin a non-navigableriver stretch. * Minimaldanger of destuctivedowrnstream Iloodirig in the event of damfailure becauseof the small amountof waterretained behind the dam. 5.3.2 Hydropower Components: Potential Impacts During Construction

5.3±21 Impacts of HEPConstruction on the Physical Environment

(i Air Quality Locallysignificant impacts on dry-seasonair qualityare expectedfrom dust over some four years. Theseimpacts will ceasefollowing completion of constructionand the vegetativestabilisaion of slopes and bareground.

Q) Water Quality

Leakageof oil and hazardousmaterials from projectconstruction and operatingfacOities cOL d have an impacton local water supplies,tributary strearns and the Arun River. Concretebatchilig plant operationsat the damand powerhousesites will produceliquid wastes from mixers,washing of trucks andother equipment, and solid wastes in the formof sub-standardconcrete. Liquid wastes, diesel oil, lubricag oils, grease,paints and oter chemicaland ol basedmaterials will be usedas well as stored in the tunel shops,fuel storageareas and other operationalfacilRties. These impactscould be significantlocally. fiii) Topography and Soils

Quarry and Borrow Pits Quarry,borrow pit and spoil disposalarea requirements are estimatedat 23.1 ha at the dam site, 6.0 ha at Adit No. 2, and 14.0 ha at the powerhouse.There will also be requirementsfor temporaryroads, storage and handlingyards, and Contractor'scamps. Opening quarry and borrow pits and constuctingtemporary roads will result in changes in local drainage systems,loss ofvegetation cover, cutting of slopes,creation of steephighwall sections, erosion hazard, andloss of cultivatedland. Theseirpacts will besignicant locallyin terrnsof land use andavailability, unti all consructionactivities have ceased (Stages I and2) andthe land reclaimed. fiv) Spoil Disposal

Disposalto River An estimated1.43 millionm 3 of excavatedrock (spoil will need disposalat the powerhouse,adit and damsites duringStage 1 construction.Of this some 490,000m 3 can be used in the works, as quarry and borrow-pitbackfill, and for costruceionof raised terracesfor service buildingsat the powerhousesite. The absenceof suitableIccations for spoil dumpsand the high sediment-carryingcapaciy of the ArunRiver during the monsoonsuggest use of the riverfor disposal of the remaining940,000 e 3.

CK4APNtW 43 ARUNi11 HYDROELECTiC PROJECTr- ENVIRONMENTAL EXECUTnvE SUMMARY 5. POTENTIALENVARONMENTAL IMPACTS

The averageannual bediod transportcapacity of te Arunfor represedave debris dcametersof 83 aMd180 mm is estimatedat 35.1 migiontyr and 19.8 ffillion Wr respeively. The actual load bansportedIs not more than 50 % of the bransportcapacity. Under-utilisedannual capaciy is calcudatedat between9.9 milliontonnes and 1.7 milliontomes, wiich is well In excessof the total volumeof spoilreqtiring disposal over the enlireconstruction period (abot 2.5 miiliontomes for Stage 1). The reservir behindthe dan wil its retainmore sedimenttan is to be disposedof during conruction. The compositionof the spoil Is no differentto that of the existing bedload. Thus conrroiledspoil disposal to the riverover three monsoon seasons (1998-2000) (max. diameter 500 mm, no dumpingwhen tlow is is lesstan 160 m0/s)is not consideredto be likely to cause significant impactson eitherwater qualityor downstreamchannel form.

TemporarySpoil Dumps Temporaryspoil dumps wil be requkedto storespoils at the damsite, Acit No. 2 and the powerhouse ruitilmonsoon flows permitriver disposal. Thesewill containa maximum of 309,000m3 of materialin 199B,with lesseramounts in 1999and 2000. Of necessityth temporazy spoil dumnpsare locatedin both rivenneforest and cultivatedland. This land take is significantlocally, but not in a nationalcontexk Reinstatementof the temporanydumps will be a challengeowing to the localtopographyr and Infertilesubstrate; they are likelyto be reactvatedfor Stage2, afterwhicn final reclamationcan be carriedout.

5.322 Impacts of HEPConstruction on the Biological Environment

Althoughoverall facility impacts on rareor endangeredspecies are not thoughtto be significantin the nationalconrext, data are limited.

() Vegetation and Forests

The majordirect impactson naural vegetationcover will occurat the dam site, in the areasselected for quarryingand spoil disposalactivities (approx 30 ha of riverineand sub-tropicalforest), in the floodedzone of the reservoir(15 ha of riverineforest), and along access roads on steep slopes. Elsewhere,construction activities will utiUseareas of fairly level land which are generallycleared of atral vegetationand have beendeveloped for agriculture.Dust is hilcelyto coat vegetationduring the dry season,and therewill be fire risks. Thesedirect impactson forests will be significantlocally, at the majorconstruction sites - the dam, powerhos and acits.

Indirectimpacts an forest cover wilI occur as a result of increaseddemand for forest products, clearancefor newhousing and slash and burn by marginalisedfamilies. Th3se impacts are considered to be potentiallyvery significantlocally.

(il) Mammals and Birds

During construction,mrammals and birds are likely to suffer from dcshirbancedue to construction activities(including air supportuntil roadaccess is providedin 1996),increased hunting and trapping pressurefrom the work force and incomers,and the creationof more discontinuousforest habitat. Normalmovement, feeding and other activities wil be disrupted.This will be significantlocally, but not nationally.

(ii? Butterflies and Moths

MheArun Valleybetween the Numand Hedangnaridges (the Intzkesite) is a centreof Lepidoptera dversity and endemismbterulies and mots). Consrucion and economicactivities in this areaare Ekelyto result in majorchanges in vegetationcover. Impactscould indude loss of plantsrequired for insectlifecycles, and problemsdue to attractionof mothsto HEParea Ulights at night,with subsequernt death,dsorietato or behaviouralchanges. In terms of the possiblereduction of nationalbiodiversily, these impactscould be significarnt

-au 44 ARUN 111HYDROELECTRIC PRoEc7 EwIRONMENTALEXCuVE SuMARY 5. POTENnAL ENVIRONMENTALIMPACTS

F32 3 Impacts of HEPConhtructuon on the SocIa-economicund Culural Environments

(I Land Take

Proj consbuctionis expectedto have a sigicant impact on local farming comnmnities. The project'spernanent facilkies at te hydropowersites will requiresome 48 ha of land pnduding16 ha cutived), with a furthr 69 ha neededfor temporay use by the Contractors including 46 ha cutivatd: Table5.4). Landacquisition for proect usewill resultin the displacementof approximately 170households. When combiried with the land take for the accessroad, these impafcswill be highly significantlocally.

[ Table5.4 LANDTAKE BY HYDROPOWER FACIUIlES Permanent Temporary Total ProjectAffected Families 21 130 151 SerbuslyProject Affected Families 19 - 19 Total 40 130 170 LandTake (ha) 47.8 69.1 116.9 LandUse (ha) Cultivated 15.7 46.3 620 Shrub 8.B 5.9 14.7 Sub-tropicalForest 23.3 16.9 40.2 LandOwnership (ha) Private:76.7 I Public: 40.2

(II) Employmentand lncohe

Labourrequirements for the hVdropowercomponents are estimatedat a minimumof 3700. In general, the skills requiredmDll be higherthan those for accessroad constrution, andthere will thereforebe a greaterneed for skills not availabe locally. Nevertheless,there will be extensivelocal employment opportunitiesover the four and a half year Stage1 consructionperiod (1997-2000). This will havea substantialeffect on local averageincomes for males. Furtherincome wil be generatedby servicing the workforce. Theseimpacts will be highlysignificant locally.

pii) Other SocIo-economicand Cultural Impacs

Duringconstruction, other socio-economic impacts will be similarto those alreadylisted for the access road- priceinflation, possible increased food deficits.rew housing,stress on healthfacilities and other governmentservices, impacts on womenand vulnerablegroups, stress on communityrelations, and culturalerosion. Theseimpacts wDll concentrated around Tumlingtar, the powerhe, andthe intake site, and will be highlysignificant locally. 5.3.3 Hydropower Components: Impacts during Operation

5.331 Impacts of HEP Operation on the Physical Environment ai Hydrology

Duringoperation a short stetch of the Arun river belowthe intakesite will be dewateredfor a short periodeach dry season(mid-November - mid-May). Flowcontributions frorn tributariesbegin within 100 m of the irtake, and are estimatedto total a muinimumnof 16 m3/s at the powerhousesite (abo 10 % of the normaldry seasonflow). Flow reductios will have effectson aquaficlife (see 5.3.32 below).

aww 45 ARN M1HYDROELECRIC PROJECT: ENVIOMENTAL EXECUTIVESUMMARY S. POTENTIAL ENVIRONMENTAL IMPACTS

During Xt wet season(June - October)periodic reservoir tishing will causerapiod rises in water level downstreamas the sedimertsluices inthe damare opened This is unlikelyto causesafety problems downtream since there are fewnf any river users duinngthe monsoondue to naturallyhigh and dangerousflows.

(a) Sedlmts

After the conruction of the dam, duringan Initialperiod d 3-5 years all of the bed load and part of the suspendedsediment wit be trappedin the reservoir. Thereafter,the reservoirwill be flushed periodicallyduring high flowswhen sediment lvels are naturallyhigh. Full flushingwill take about30 hours. Duringthe wet seasonthere will also be a requirementfor about 2 hours flushingof the desancingbasins every day. This is not a sigrificanterrvironmental impact.

#IQ Water ualgty A reservoirof approxdmately4 km length and 50 ha surfacearea will be createdbehind the dam. Watervelocity in the reservoirwill still be relativelyNgh, andthe short reterntiontime wil preventary significantchanges to watertemperature or otherwater qualityparameters. This is not a significant impact. 5.332 Impacts of HEP Operaton on the Biological Environment

(i) Mammalsand Birds

Duringproject operation, there is a remotepossibilit that lights could causedisorientation to birds .migratingat right Otherwiseimpacts on mammalsand birdsduring operation will be minimal.

(I) Fish The ArunIlIl damwill be a permanentbarrier to all ftishmovemrent upstream in this sectionof the river. In thewet season, some fish from upstreamnpopulations will movedownstream, travelling with released flowsthrough the spilhwaygates. Somefish wnllbecome entrained in the intake,but designedwater velocitieshere are lessthan typicalfish swimmingcapabilities.

As well as someothers, two importantspecies of fish,the threatenedKate (CopperMahseer) and the Dorecommon and econornicallyimportant Chuche Asala (Mountain Snow Trout), will be affectedby the project. Kate is a migratoryspecies, utilising spawning grounds in the Arun tributariesas far upstreamas the Barun River, and is consideredto be underthreat throughoutits range in the Himalaya The majorthreats to fish popudationsand species diversity in all Himalayanrivers are dams and weirs. It is likely that KaUewill not remainestablished upstream of the dam. Katle migrate upstreamat the beginningand downstreamat the end of the monsoonseasonm The survivalof Katle downstrm of the dam,and in particulardownstream of the powerhouse,is notconsidered at risk due to the projectbecause flow betweenthe dam and powerhousesite will not be reducedsigrnlicantly duringthe nonsoonseason, and will remainunchanged downseam of the powerhouse.

Asalais a locallyresident fish principallyinhabiting upper sections of the Arun,with a smallpart of the populationextending downstream of the dam. Upstreampopulations of Asalawill not be significantly affectedby the dam or reservoir.

Furtherimpacts on aquaticlife are expectedfrom &) occasionalflushing of sediments,and pi) periodic reducedflows in the Arunbehween the intakeand the powerhouseduring the dry season,a lengthof some 20 km. Flowfrom tributariesin this sectionis some 10 % of the total. However,there will be impactson nurseryhabitat and locallysignificant changes in river biologyin this sectionof the main river channel.

CaMWA 46 ARUN /i1 HYDROELECTRICPROJECT- ENVIRONMENTAL EXECUTIVE SUMMARY 5. POTENTIAL ENVIRONMENTAL IMPACTS

53.33 Impct of HEP Jperatlon an SodcoEconomic Environment

When operating, the hydropower components wlt need a small pmane skilled staff (to be based at the permanent camp site at Amrang, rmidway bstween the powerhouse and the Intake), and an occasonal or ursidlied labour for maintenance actvities. The perrnanent camp is likely to attract some services, partcularly shops, owihg to the relatively high spending power of the site. There may be Increased demands on local resources, particularly fuelwood, to meet Increased demands. These impacts are not considered to be of any wide significance, but local forest managemerit will require strengthening. 5A TRANSMISSIONUNE SYSTEM

5A.1 General

The proposed 220 kV transmission line system to link the Arun Ill developmert with Kathmandu and other load centres is a major project in its own right. The direct impacts could be significant locally if not mitigated, but overall impacts of the transmission line system will be low. Matrix tables giving details of expected impacts, planned mitigation measures and responsibilities are reproduced at Appendix 5.

Eectric power transmission lines are linear facilities. As such, the impacts of transmission lines occur primarily within or adjacent to the right-of-way (RoW). The magnitude and significance of the impacts ncreases with higher voltages, which require larger strucures and wider RoWs.

Evenrually. the lines will run for some 390-420 km all the way to Kathmandu through a geographically, ecologically and socially diverse landcape (Map 3). Key features and processes are landsliding in the hills; river erosion in the Terai; forests as habitat for endangered wildlife, for watershed protection, and as a subsistence resource in all areas; the interrationally imporant wetand of Koshi Tappu on the Sapta Koshi River; and ethnic, social and economic diversity ranging from very poor indebted farmers in the hills through large scale lard owners in the Terai to the urban settlements of the Kathmandu Valley. However, for Stage 1 power outputs, only the 120 km connection douth from the powerhouse to Duhubi wil be reqjired (Map 3). 5A.2 Potential Transmission Line Impacts During Construction

During constructon the principal impacts will be related to permanent and temporary land take, to clearing vegetation in the RoW, and to the construction of access roads, tower pads and substtions. Potentially significant impacts of the Arun Ill transmission line system during construction include:

Physical - slope stabtliy, erosion and drainage problems from temporary access roads.

Biological - clearance of forest along the RoW, and consequent effects of habitat loss and disturbance on wildlife, especially (under Stage 2) at Koshi Tappu Wildlife Reserve;

Socio-economic and Cultural - permanent and temnporary land take for access roads, substations, tower pads, and other facilifies: effects on farmers (Table 5.S); - employment opportunities; - crop and other damage from construion activties; - impacts of the lbour force on food and fuel supply and prices; - impacts of labour force on local social systems and culture.

QAP5JEW 47 ARuN Ill HYDROELECTRICPROJEcr: ENVIRONMENTALEXECU77VE SUMARY S. POTENTIALENVIRONMENTAL IMPACTS

Table5.5 LANDTAKE AND LABOURFORCE FOR FULL TRANSMISSION UNE SYSTEM PennanentLand Requiremern Right-of-wwy: 2000ha appraw Towerpads: 20 ha Substations: Duhubl 4.0 ha Dhalkebar 1.0 ha Kathmandu 6.0 ha TemporaryLand Requirement Accessroads and labourcamps Variable Towererection, line stringing,storage, distribution centres: 20 ha approx.per 30 km line length LabourForce Arun III - Duhubi 450 Duhubi- Dhalkebtr 375 Dhalkebar- Kathmandu 450 Families PermanentPAFS 23 Affectedby PermanentSPAFS 4 120km Stage1 line TemporaiyPAFS 549

5A.3 Potential Transmission Une Impacts During Operation

n operating, the physicil presence of th line, the current flowing through it, the operation of the substaions, and line and RJW maintenance procedures are all souwees of environmental impact. Potentially significant impacts ideried include:

Physical

Biological - iorest degradation adjacent to RoW; - hazards to birds (avian hazards) at valley crossings, and at breeding sites such as Koshi Tappu Wildlife Reserve. Sociao-economic - employment on RoW mairtenance - hazards to aircraft (aviation hazards) at valley crossings and possibly in the Tumlirgar area; - safety hazards to public; - property devaluation, especially in the Kathmandu Valley; - encroachment onto RoW by landless squatters; - effects on radio and TV reception; - possibly, health risks from exposure to electromagnetic fields. Cultural - none. 5.5 CUMULATIVEIMPACTS 5.5.1 Other Projects

The Amn AccessRoad and HydropowerProject will be the first elementin bringingmajor change to the Arun Valley. Furtherprojects studied indude the UpperArun HydroelectricProject (UAHP)and LowerArun HydroelectricProject (LAIP). The LAHP, sited betweenthe Arun Ill powerhouseand Kharbaji, would be in an areaalready opened zjpfby th Arun 1.!project. The UAHPis in a region more physicaly,ecologically anrd socially sensitivethan Arun Ill. No date has been set for the developmrentof these projects.

GKAPNEW 48 ARUN 111HYDROELEcTRIC PRoECT.r ENVRONMENTAL ExECuTIVE SUMMARY 5. POTEu(NnlALENVIRONMENTAL IMPACTS

5.5.2 Dams, Dewaterlng and Fisheries

Constructionof addtonal darnsand wars on the Amn would add significantlyto the divisionof fish populationsand degradatonof aquatichabitat. The Lower Arun Projectwould probablybe more Importnt in this respect,since the stretchof riverand tributaries between Tumlingtar and Phyaksinda (theArnm III damsite) is thoughtto beparticularly importent in the life cycleof a numberof fish specdes. Dry-seasondewatering would add to this impact,which overall could be highlysignificant for this river system,difficult to mitigate,and irreversible. 5.5.3 Roads

Constructionof the ArunAccess Road for Arun Ill will give opportunitiesfor futher roadconnections to (i) Khandbari;(e Chainpur;(iii) Bhoipur;(iv) otherareas in the Valley. The cumulativeimpact of these newroads on the Valleywould be very large and irreversible

Constructionof the accessroad for the UpperArun Projectwould give an opportunityto continueup to the border with China at Kimethanka.This would atact trade .'romthe north,with consequent impactson. the newlyestablished Qomolangma Nature Reserve in the Tibet AutonomouLsRegion. 5.5.4 Transmission Unes

Upper Arun

The UpperArun transmissionlines are likelyto followthe eventualaccess road to the Upper Arun project.Curenly thsis plannedfor the right (west)bank of the aiverin the Makalu-BarunConservation Area The lineswill crossthe river at the ArunIll intakesite (Phyaksinda),and then take a direct route overthe ridgeat Num,through the Hururecloud forest, and then turn west acrossdifficult terrain near the Arun Ill powerhouse.

RoWdearance for these bnescould havesignificant impacts on both the renainingcloud forests on the Ntxn ridge,and on any remainingbutterfly and moth habitatin the Phyaksindaarea, a centreof Lepidopteradiversity. There could also be a hazardto birds, particularlymigrants, at the valley crossings.

The export of nearly 800 MW from the Arun Ill powerhousearea would necessitatefurther 220 kV circuit southof the Arun Ill powerhouse.This linewould be built in the same corridoras the original circuits,with consequentincreases in impact on biophysicalresources, particularly forests. This possiblecumulative Ir..pact is regardedas moderatelysignificant and long lasting.

Lower Arun

The 308 MW LAHPis expectedto requireits ownpower transrnission system. When combinedwith the odhertwo Arun projects,the total powerrequirirg transmission from the Tumlingtararea would be 1045MW. Again,the addedimpact would result in a significantcumulative effect, particularly on any remairnighill sal ecotypes.

Overall,potential significant impacts of the transmissionline systemswill be (i) vegetationclearance and loss of habitat (i) constructionof accessroads; (ii) possibleavian hazards; (iv) possiblevisual impactsin relationto the iternational touristtrade and heritage.

aw:wAM 49 ARUN mIHYDROELECTRIC PRoECr ENIRoNmENTALExECLmvE SuMmARY & PROJECrALTERNATIVES

6 PROJECTALTERNATIVES 6.1 INTRODUCTION

Internally,Nepal has a major unsatisfied demand for electricty. Externally,the country is in a unique positionto supply power to the burgeoning South Asian economy. Nepal has enormous economically feasible hydroelectricpower potential, of the order of 25,000 MW. Therefore, the logical choice for some rual and most urban and industrialuses is hydropower.

The Arun IlIlHydroelectric Project was identfied as the best major hydropowerscheme for early addition to the NepalInterconnected System under a least cost generation expansion plan (LCGEP)completed by the NEAin 1967, with the assiance of the CanadianInternational Development Agency (CIDA)and the InternationatDevelopment Agency PDA).

The choice of Arun IIIwas reconfirmedby an LCGEPUpdate Study completed in 1990. again with IDA assistaoe. This study included estimates of resetlement costs in its comparative analysis of the various projects, but not the costs of other environmentalimpacts or economic bernfts. In reconfirming Arun IlIl,the Update also considered the dificult subjects of "crowdingour (displacement of other development investment by one large project), the recoveryof local costs through signrcant electricity tariff increases, the risk of inflation,and the effecs on Nepal's balance of paymerds, and finally speculated on future debt servcing requirements to pay for the overall power expansion plan (one third of the total annual budget in 199293).

HMGIN as now initiatedanalytical work tc improve efficiencyin financialresource allocation and to pioritise the expenditure portfolio,so that investmrentin Arun IlIlwill not crowd out other projects, partiularly those in the social and rural infrastruture sectors. At the sane time, HMGCNis taking steps to open up the electricitysupply system to competitionby encouraging private sector participationin power generation.

This chapter discusses alternative technologies and sites considered in selecting and designing the Arun Ill ProjecL

62 ALTERNATIVE TECHNOLOGIES

62.1 Energy Supply

Currentlyfuelwood and other forms of biomass supply 94.7% of Nepal's energy reeds. It is widely accepted that harvesting of remaining forests in Nepal's hils is unsustainable, and even so there is massive unsatisfied demand in both rural and urban areas. Given adequate capital and expertise, solar pomvercan substitue for fuehwoodfor some uses (eg. water heating), and biogas for others (e.g. cookingin the lowIrands).All fossl fuels must be imported,resulting in a drain on fbreignexchange and high transport costs. As yet, geothermal electricitygeneration has not been explored in Nepal, and wind energy has yet to provea success. Nuclear energy is not a realistic option on cost, seisrmicsafety and institutionalcapacity grounds. This leaves thermanstaions and hydropower as the remaining options.

Nepal has an installedelectrical generation capacity of some 250 MW,but the reliable capacity is only about 200 MW. Demand now exceeds this level, and continuesto increase. The cheapest form of rnew supply is usually demand management - load management, energy conservation, energy-efficiency-

CHAP3s-71Ew 50 ARUN If/ HYDROELECTRICPROJECT: ENVIRONMENTAL EXECUTIVE SUMMARY 6. PROJECTALTERNATIVES

mnd cutting system iss and Illegal connectons. In conjuncon with relevart agencies. NEA Is undertaking these tasks, assisted by the World Bank through Its *Power Sector Efficiency Project. Allwing for these Improvements, projected demand levels stil exceed supply, and rnewgenerating sources are needed.

The 1987 and 1990 LCGEP exerdses looked at the optimal mix of thermal (diesel and gas), run-of-river and storage hydropower projects, and concluded that Arun Ill should be bULitas a priority, followed by the Upper Anun scheme. Tested for robustss, the LCGEP analysis confirmed that Arun Ill should go ahead whether or not intermediate schmes were implemented. The leading candidate for an irtermediate project was identifiedas Kali Gandaki A (102 MW run-o-river), which is now entering its detailed engineering phase with assistancefrom the ADB, UNDP and Finland.

62.2 Access

The sites for the Arun ill power lacilities are some 50 km north of the nearest roadhead. Alternative access technologies include air (helicopters,fixed-wing short-take off and landing. dirigibles (powered balloons), ropeways, inclined railways, river transport, and a new road.

Helicopters are used widely in the Himalaya, but in general air support is expensive and subject to disruption during the four-month monsoon season. Dirigibles are capable of heavy lifts and precise positioning,but are an untestedanrd therefore riskytechnology in the region. Indined raftwaysare only suitabe for specific steep sections of the access route, and become redundarntif road access can oe provided at reasonable economic and environmental cost. The use of jet barges for transport on the Arun River south of Turdingtar was investigatedseriously, but was abandonedas practical constrairns became apparent relating to variabe flows, obstades in the river chanrnl, and limited carrying capacity.

The design team concluded that it would not be feasible to build and operate the Project without road access.

62.3 Construction Schedules

Currently,the construction period for the 122 km road is projected at 40 months starting in 1994, and for the hydropower componerntsat some 60 months starting in 1996. The speed of construction of a project can have a considerable effect on its ervironmental impacL Slower construction of the access road would allow a less capital-intensiveapproach with a higher ocal labour d-mand (and therefore local berefits), and modified construction techriques with lower physical impact. Slower construction of the hydropower components of Arun IlIl would reduce the size of the labour force required, reduce the volumes of spoi to be excavated and disposed of annually, and permit more gradual institutional developmert.

However,the provision of road access is on the critical path for completion of the power cornponents. Delay in opening the road would have unacceptable effects on the comrnmissioningdate, and therefore on the project's (and national economic position. The stringent env;ronmentalrequirements built into the design, and related mitigaton measures,should ensure tWatthe impacts of building to the planried construction schedule are acceptable. 6.3 ALTERNATIVESITES 6.3.1 Power Site

The merits of the Arun Ill Project versus other hydropower sites in Nepal were considered in the two LCGEP exercises o 1987 and 1990. On the Arni itself, Arun ill has to be built before the Lower Arun scheme since the latter is supplied by water from the former. The Upper Arun scheme will take advantage of the access road already built for Arun Ill.

CHAFS7.NEW 51 ARUN Il HYDROELECTRCPRojECT: ENVRoNMENTALEXECuTE SUMMARY 6. PROJECrALTERNATVES

6.3.2 Access RoadAlignment

The Route Options The rod's ailgnmentand speciications are compromisebevween (i) the need for minimumdisturbame of thefragile landscape,() the benefit of labourintensive metods versus the speed of constructonof capitaintensive methods, (1i) the relativeweighting of higherconstruction castsversus a lowerIrnial specification and highermaiWrernmce costs, and (hv)connecting existig left bank settlments versusshorter driving times to the projectsites and the benefitsof a fasteraxis for future regionaldeve:opment.

The 1986Arun IlIl feasibilikystudy recommended a routedescending from Hile to the river,and then folloiang the Valley throughot to the Irtake site. However,in 1987 a detailedfeasibility study of possiblealignmenits for the accessroad was carriedot for the Departmentof Roads. The terms of referencefor this study emphasisedthe objectiveof maxlmisingeconomic and socialbenefits to the region,as weli as providingaccess for the project. It was alsostiputated hat the roadprovide access to Khandbariand Chainpur.Within these constraints,all possibleroutes were considered,and the alignmentrecommended was the "HillRoute'. This ran from the existingroadhead at Basantapur throughManrling to Chainpur,Kharang and Tumlingtar,rising through Khandbari to the Chhyangkuti ridge beforedesc-ending through Num to the Intakesite at Phyaksinda. Detaileddesigns and tender documentswere completedin 1988,in articipationof an earlystart to construction,and further refined in the followingyears. The totallength of new constructionwas 188-197km (dependingon access optionsto Adt No.2 northof thepowerhouse). The finalalignment chosen, designs, and construction rmeods specifiedwere regarded as ernironrentally stateof-thetart for a majorroad project in Nepal.

In 1992,following a decisionto reviseArun IlI's developmentconcept and reduceinitial expenditure, and giventhe solecriterion of providingaccess to the powersites as quicklyas possible,the feasibility of a 'Valley' routewas investigatedagain. Enginseringand construction planning studies have shown that althoughthe constructioncosts would be similarto thoseof the Hill Route,there would be a lime savingof oneyear anda totallength of newconstruction of only 122kmrL Comparative data on the two routesare gven in Tables6.1 and 6.2.

Land Take The directsocial impacts of the Valey Routewill be of the order of two-thirdsof those of the Hill Route,affecting mnany fewer famiilies. Project Affected Families (PAFS) are estimatedat 1146 comparedwith 1661known PAFS for the Hill Routae.This is a very significantbenefit. Althoughthe numberof familiesaffected per kilometre of road is morealong the river,the reducedoverall length results in a lower total of PAFS. Land take of cutfivatedland for the Valley Route RoW will be approximately169 ha, comparedwith 286 ha for the Hill Route(Table 6.1).

In addition.selection of the ValleyRoute hasalso permittedrationalisation of NEA'soerrmanent camp facilities:a singlesite is nowfeasible, with consequertreductions in land take and overallimpact.

Compensation Compensabonpaymrents have alreadybeen made for much of the Hill Route. However,the total compensationpayable for the ValleyRoute will be approximatelyhalf that payable for the Hill Route. The Hill ROUlteRoW will be retainedin governmentownership for future road cosruction purposes.Detailed engneering for a Chainpur-TumOnglarlink road is underway.

Spoil Disposal The disposalof spoil arisingfrom excesscut and from slope failureswill be much simplerand less environmentallydamaging for the ValleyRoute, owing to the proximityof the river.

Constuction Damage Duririgconstruction the Valley RWe is likely to result in less damageto propertyand fewer injuriesof-site than the HInRoute, owing to its procxiity to the river (not lar for rocksto roll), and lowersettlement density (ess to damage).

Cor.trucbon Materials Consuction naterialsare more easity availablealong the Valley Route. Consequentlythere will be lesslandscape disturbance specifically for consructionmaterials in tiie Valey.

CWAPSBONEW 52 ARUN il HYDROELECTRICPROJECT: ENRONMENTAL EXECUTIVESUMMARY 6. PROJECT ALTERNATIVES

Table 6.1 ARUN ACCESS ROAD - COMPARATIVE CHART: DISTANCES,LAND USE,LAND TAKE AND FAMIUES AFFECTED ROUTEOPTIONS

(Includingpower cavern loll

Dence (km) Newconstructon 121.9- 197.2 Travel(Hte-In4ake) 116.8w 171.4 Foret 27 28.5 Shnrband GazIng 30 16 CultIaon: Khot 27 41 Lafd Is CultiIon: Bal 16 15 Totalcultivation 43 56 Abandoned/Other 0.5 Total 100 100 Forget 106 145 Shnrband Grazing 119 81 Cultivation:ls l 106 209 LandTake Cultivation:Borl 63 77 Totalcultvation 169 286 Abandoned/Othr - 3 TotalLand Take 394 510 AverageLend Take hWAkmm 3.2 2.59 Aveage Househddsakm 9.4 8.6 Totd Famirt Affected 146 1661

Thaecolumn from dmft ACRPReport April 1993 Rocommendedalignment fbr aeitacee. alongdgght bank of Arunriver -- Thisfigure Is basedon preliminwyengineenng and couLdlncreaa by 1%to 2% duringdetailed engineering 375ha puianent plus 19ha temporary YlMl Rout RoW changesfrm 30 m to 20 m d Chhyengkuti.alo powshoueespur n.d. No date (avafabledate not deggrgated)

Geomorphological Hazards The Valley Route is more exposed to flooding and debris torrent hazards, including the possibility of GLOFS and landslide dam failure floods. Scour of vulnerableslopes duing an extreme flood event could cause failures over some 7 km of the road. Topographical constraints also force the valley alignment to traverse areas at risk from potential deep-seated slope failues. These are lkely to give rise to pericdic loss of the road over a minimun of some 2.3 km. The coresponding figure for the Hill Route is 0.8 km (the hairpin stacks which are a maporfeature of the Hill Route are al located on the most stable terrain available and are not liable to severe landslide damage). This 0.8 km distance is mnadeup of two sections of road, at the powerhouse and Adit No. 2, which are common to both routes. From the point of view of geomorphologicalhazards the Valley RoLte is feasible, but will requre a higher maintenanceinput over some stretches.

Ecological Impacts Both routes will directy affect areas of high ecological value. The hill sal and lower temperate forests aroundTumlingtar and the subtropicalforests on the descentto the Intakeske will be affected equally by both routes. Therefore the comparison has to be made between impacts on rivenrinehabitats and wildirfe and impacts on the three cloud forests on the Chichla Ridge.

CQAP-46-7.F&W 53 ARUN /i1HYDROELECTRIC PRWECT- ENWRONMENTAL EXECUTIVE SUMMARY 6. PROJECTALTERNATVES

Few quantatdve date are vaivabeto assist ttis evaluaion. Even without the Project, the doud tarns are under severe threat due to urwistalnable use. However,there are reasonable prospects for user- group mnagement end conservation, partally owing to tr spiritual sigrificance. Although the Hill Route would attract settlneerts, aln the Cchila-Num ridge their size would be constrained by very limted water supplies. The rverine forests north of Tumlingtar are being degraded slowly, but corsructlon of the Valley road and enstAng impacts will accelerate their decline. Prospets for user- group managementof these foress could be lower thn far the cloud forests owingto lower setlement densiies and a greater tendency for open access.

On balance, the significance of lorg term impacts on ecological values in the Arun Basin w0i probably be higher on the Valley Route, due to the better regionalaccess provided along the river, and therefore higher levels of future economic activity and demrandfor forest products.

Indirect Impacts The indirect imrpactsof both routes will be similar in nature, scale and interisiy. Although the Hill Route would directly connet more people and settlements, construction of the road along the Valley wouddcreate a relatively short.last access for future regional developnernt The Valley Route would also improve access opportunities to Bhqipur as well as to parts of the Makalu Barun Conservation Area. The Tumlingtar stretch is common to both road options.

Conclusion Apart from giving earlier access and being shorter, the principaladvantages of the valley Route are socio-economic:the Valley Route will directly affect an estimated 500 fewer families than the Hill Route, and it will also form a better long-termnregional growth axis. The disadvartaged Kumhals of Tumlrigtar will be affected equally by both routes. Ahough a relatively high level of maintenance is likely to be required to clear occasional landslides, the lower direct social impacts and long term, strategic benfts of the Valley Route weig!i heavily in its favour. This conclusion is supported by the opinion of the Panel of Experts.

The higher direct ecological impacts of the Valley Route should be partially offset by improved managementof remaining habitat areas on the right bank by the Makalu-BarunConservation Project, and indirect impacts minirnised by improved user-group management of other areas

Table6.2 ARUNACCESS ROAD: HILL VERSUS VALLEY - A QUALITATIE ASSESSMENTI Topic ValleyRout.e HillRoutfe Length: Shorter Longer PhysicaImpacts: High Moderate soils, slopes, naturalhazards BiokogicalImpacts: Direct: Moderate Direct:Moderate/Low forests,habitat, wildlife Indirect:High Indirect:Moderatelltigh SocialImpacts: Moderate .iI land take,families affected (approxtwo thirdsHill Route) High Construction: fi) time Shorter Longer (ii) costs Equal Equal {lii) constructiondifficulty High Moderate Oivrisk of eff-sitedamage/injury Moderame/Low Moderate/High EconomicBenefits (i) immediateconnectivity Moderate High 00long-tern regional access High Modere Condluson: ValleyRoule is preferable,assuming sound management of impactsand risk

CfAPS0-.EW 54 ARuN IX HYDROELECTRICPROJECT: ENVIRONMENTAL EXECUTIVE SUMPA4RY 6. PROJECTALTERNA9VES

6.3.3 TransmisslonUne Routes

DirectConnectIon to Kmthtnu KathmanduIs a maporoad centre. Fromthe Arun IIl powerhouse the most directroute to KathmanduIs duewest, a distanceof some200 km. However,the terrain is mountainous,gomorphologlcally active, and largely without road access. The construcbonof a transmissionline acrossthis landscapewould be slow, difficultand expersive. Consequentlyonly connectionsto the existingpower transmission system to the southIn the Teraihave been considered.

Powerhouseto HUe Initial planswere to run two separatesingle circuit 220 kV lines south from the powerhouseroughly parallel to the accessroad, along the Hill Route. Shiftingthe road alignmentto the Valleyhas resuLtedin a re-alignmeritof the transmissionline overthe Tumlingtar-Hilesector, with a savingof 20 km length. Furtherminor refinements to the alignmentcan be expectedwhen the design and buildcontract for the powertransmission system Is let

Stage 2 Unes: the Sapta Koshli Crossing BetweenDuhubi and Dhalkebarthe lines pass tIwough the level terrainof the Terai, in generalfollowing the line of the East-WestHighway. There is one majorobstacle, the SaptaKoshi River. Wherethe Highwaycrosses the river on top of a long flood controlstructure, the KoshiBarrage, the riverbedis about9 km wide. The Indianborder is immediately downstreamof this structure,so that locatingthe line futher south is not possible. Upstreamof the barragean 18 km lengthof theriver hasbeen set asideas the KoshiTappu Wildlife Reserve, the most ecologicallyvaluable wetland in Nepal. Betweenthe Barrageand the pointat whichthe riveremerges from the Siwalikhills, a distanceof about30 km,the river is heavilybraided, and during the monsoon is tast runring and unstable.It is confinedbetween two man-madeembankments somne 12 km apart.

Two crossingsare possible,north and south. The southernoption runs parallel to the existing132 kV transmissionline from Dhalkebarto Duhubi,which was erectedin 1986. It is routedinside the wildife reserve. The crossingsecfion is approximately10 km long and comprises12 spanseach of 800 m. This has been in servicefor 5 years and no structuralproblems have beenrecorded. Vegetation clearancehere would tDelimited, but constructionof the deeptower foundaionsneeded for this route wouddinvolve extensive works over a numberor mornths. The associateddisturbance could be significantfor wildlife,especially during key breedingand migrationseasons. For wildfowlthe peak seasonis February- March,when very large rumbers of birds congregatehere en route for their summreringgrounds in the north. In addition,there are residentendangered species, e.g. Black-necked Storkand SwampPartridge. The directimpacts of the constructionprocess would be short-term,but couldhave medium term effectson susceptiblewildlife populations. During operation, there would be a riskof birdcollision damage. There are no dataon frequenciesof birdcollision with the existing132 k%Ylines, which are lowerthan the proposed220 kV lines

The northernopton runs approximatelynorth-west from Duhubito intersectwith the river where it emergesfrom the Siwaliks. At this location,the ChatraGorge, it would be possibleto crossthe river in a singlespan of500-600 m. Fromthe west bankof the river,the linewould run south-westunil it again intersectsthe East-Westhighway, roughly paralleling the embankmenl This route (northern alternative)would be approximately30 km longerthan the southernalternative.

Althoughlonger, the northerncrossing might be at less riskfrom hydrologicalhazards and wouldavoid disturbanceto KoshiTappu. However,the lines across the entranceto the gorgenight pose a hazard to migratingbirds, especiallyin fog andat night (whenwildfodwl fly). A decisionon whichcrossing to buildwill includeinputs from ornithologicalsurveys to be carriedout at both KoshiTappu and in the ChatraGorge (see Chapter9).

Stage 2 Lines: Hetauda versus Sindhuli BetweenDhalkebar and Kathmandu(Map 3) two route optionswere considered.Firstly, following the line of the proposedSindhuli - Baneparoad (130km). Secondly,following the existinghighway and 132 kV line via Hetaudaand Kulekhani(215 km). The first route offers substail cost advantagesif the proposedSindhuli highway is built before the transmissionline. However,if the road is not builtfirst, difficultaccess may makethis option less atractive. Constuctionof the Banepa- Sindhulihighway was approvedby HMG,Nin February1993.

CHAfO.EW 55 ARUN1ll HYDROELECTRICPROJECT>: ENARONMENTAL EXECUT7VE SUMMARY 7. IMPACTMIlIGATION

7 IMPACT MITIGATION

7.1 INTRODUCTION

The ArunValley is remote,diverse, and poor. Currenttrends indicate Increasingly unsustairiable use of naturalresources, particularly forests, and Increasingpoverty. The Arun IlIl Project,particularly the road,will bring major changes. Withouteffectve irtervention,the impactsof the projectcould be severe,particularlyonthepoorestfarnUies,theforests, andthewildlife. However, if handledsensitively, the projectcould result in a sustainedeconomic improvemrent in the lives of mranyof the peopleof the Valley,athough somenegative impacts an the forests,wildlife and fisheries will be irreversible.

Negativeimpacts idenrified by the Projecrsenvironmental assessment procedures have been dealt with usingthe followingprinciples: prevent where possible;mtgate whereunpreventable; and for residual effectswhich cannot be entirelyelirrinated or mitigated,compensate. In mranycases, positive impacts canbe enhanced. Direct Impacts Direct impactsare best mitigatedby refinementsto projectdesign and controlsand duties laid on the contractors.Direct impactscan be mitigatedat three stages of an infrastructure project during design,by incorporatingspecific measures in the designsand specificaffons;during caontcon, by placing controls an the Contractor;and during operation,by adjustingoperating proceoures.All three approacheshave been used for the Arun lIl project.

Indirect Impacts Indirecteffects of the projectlargely stem from marketforces to be unleasMedby projectconstuction and the creationof roadaccess. Theseindirect impacts are bothmore important, morefar-reaching, and muchmore difficultto deal with.

Organisationally,the Arun IlIl Projecthas developeda dual approachto copingwith impacts:firstly, an EnvronmentalMgation Plan (BMP)which is an inter part of the project,and dealswith direct impactsincluding land acquisitionand compensaffon; secondly, a RegionalAcion Prngramme(RAP) whichaddresses indirect impacts and inducedeffects. Together,these consitUe the Ernvironmental ManagementPlan" requiredby donorappraisal procedures.

An indexto errvironmentally-relatedclauses of the tenderdocumerts is attachedat Appendix6. 72 ENVIRONMENTALMMGATION PLAN

Note: NEAwill be fully responsiblefor implemrentingthe EnvironmentalMitigation Plan, as an integral part of the constction process.The RegionalAction Programme will be implementedindependently but in coordinationwith the EMP. 72.1 Selection of Competent Contractors

With their tender,each Biddermust submitan EnvironmentalProtection Statement and Healfth and SafetyStaement The quality of these statementswil affect the final choiceof Contractors. The successfulBidders will then developtheir statemertsinto a Full Enirmnental Protection Plan and a Full Heal and SafetyPlan covenringall relevantaspects of their proposedacbvities, to be submitted to and approvedby the Employeras an enforceablecordion of contract

aCWsSMIEW 56 ARUN 111HYDROELECTRIC PROJECT7 ENVRONMENTAL EXECUnVE SUMMARY 7. IMPACr MMGATlON

722 MitdgatIonMeasures for the Access Road

7.211 Consucon Pelod

lbe design of the road draws heavily on lesns learned from the environmertally-sensltive Lamosangu-Jlri road buit during the late 1970s and early 1980s wfth Swiss assistance, and on experice from the Dharan-Dhanlcutaand Dhankuta-Hlleroads. Many aspects of the design details were inftuenced by this experince. end environmental Impact mitigation measures were built in both at Fe design stage and l the Conditions of Contract (Appendbc6). SpecIfic mitigation measures are noted below.

(I Physical Environment

AMrQuality The road will be sealed, which will prevent dust nuisanceas wel as reducing maintenance costs and imfpacts.

Water Quality The Contractor is required to undertake good 'housekeeping which includes a duty to prevent fuel and oil leakage and dispose of used materials properly. The Contractor will also be required to compensate for and reinstate off-site sedirent damage to property such as irrigation supplies, and so wil have an incentive to avoid this type of impact.

Slopes and Solls The road has been designed to minirmise both land take and slope disturbance, by limiting width to a single track wfth passing places and by careful choice of alignment to avoid unstable slopes wherever possible. Particularattention has been paid to the Ilcation of the centre line, with full cut, half cut and full fill secfions bteingspedfied according to detailed geomorphological investigations. In senskive sections, strict cortrols wnll be placed on the earhworks sequence to minimise off-site drage during excavation of the formation. Eanhworks will be minimised by balancing cut and fill as far as possible and by providirg economic incertives for the Coraractor to use cut material as fill. There are also strict controls on the location and design of pilot tracks, and on the location and methods of spoil disposal.

Surace erosion will be minimised by the use of state-of-the-artbioengineering techniques, principally using indigenous planting stock. The Bill of Quantities includes provision for exensive slope stablisation measures, including agricultural terracing, special vegetation measures, walling, slope drainage, planting or sowing of seedings and grass, fencing, and plant nurseries.

The road and headrace tunnel are in one Lot (C-3). After completion in 1997, the road will be maintained by the contractor until completion of the tunnel.

(0) Biological Environment

Vegetation Direct impacts on vegetation will be minimised by rninor adpustmertsto the final alignmerit to avoid specific ecologically-valuableskes, strictly limiting the area of vegetation to be cleared to that of the permianentworks, and care with fire.

Indirect impacts arising from the Works will be minimised by banning the use of wood to heat bitumen, strict controls on the use of wood for any purpose, the provision of subsidised kerosene to the workforce to minimise demrandsfor fueIwood, and the provision of labour camps using Right-of-Way or out-of-area timber, or non-wood materials. for their construction. Separately, the Regional Action Programmewill work to establish and strengthen local forest managementgroups along the alignment, particularly around Tumnlingtar, Heluwabensi, the NEA permanent camp site, and the PhyaksindalNum/Hedangnaarea, under a prioriy Consenation Programme. In addition, the new Makalu-Barun Conservabon Project prormises improved management and protection of remaining ecotypes on the Arun's right bank.

CHASO-7.NEW 57 ARUNID HYDROELECTRICPROVECT ENVRONENTAL EXECUTIV SUMMARY 7. IMPACT MITIGATION

Wildlife The Conrctor Is required to Instuct and control his workforce in rebtion to environmentally sourid behavbur, includng not huting or harassing wildife. The Regional Acion Programme wil be caryirng out a blodlvWery researchprogramne to which may assist in conservationof remaining wildlife popLuatIons,and wUlalso lmplemert consenvatio awareness acfivifles.

FIhdrbs Explosives on site will be under the control of the Royal Nepal Army, and therefore should not become available to the workforcefor dynamite-fishing.

IQl Socdo-Economic Environment

Land Take Although the width of the road has been minimised, and settlementsand buildings avoided where possible, there will still be a need for compensaion. Extensive compensation measures have been developed specifically for this project, and are described In Section 7.3 below. Land required temporarily will be leased subject to minimum payment criteria specified In the tender documents. As well as controls on ocationsfor and workirg methods in borrow pits and quarries, the Contractor will be required to fully reinstate all land used temporarily to a stable and productive use, and pay cmpeaion for and reinstate any damage caused to land and property.

Employment and Income The tender documnentscontain a detailed statement on the preferential tiring of local iabour (Clause 16.4 of the Conditions of Particular Application). Each contractor is expected to hire locally, where appropriate skills are availble. The tender documents also note that it is illegalto hire chidren below the age of 16 in the Kingdom.

Food Availability, Prices and NutrlUon Price inflation will be minimised by the provision of subsidised staple food comrrnodies and kerosene to the workforce.

Setements There are extensivecontrols on the location,design and operationof Contractor's camps. In addition, RAP will strengthenthe administrationof setlements such as Tunlingtar to assist them to cope with the rapid expansion caused by the project.

Health The contractors are required !r' prcrAdehealth facilities for the workforce, including malaria prophylaxis and control.

nsitutions and Services The contractors are required to consult with local communitiesconcerning the design, location and operation of their facilities This should ensure that both local impacts are minimised, and that the facilities can be handed over to communities later if required.

RAP will implemernta priority programme on Strengthening Government Instittions.

Women RAP will undertake specific wamens' programmes, including education and training, the establishment of cooperatives and user groups, support for micro-enterprises,health education, and male sensitisation.

Vulnerable Groups *SeriouslyProject Affected Families' (SPAFs)will receive special atterition under the Land Acquisition Guidelines, including permanent employment for one family member by gvrnment (see Section 7.3). NEAs Environmental Managernent Unit will pay particular attention to SPAFS from vulnerable groups. In addition, RAP will implement specific programmesfor vulnerable groups not directly affected by the project

Social Fabric The contractors are required to hire labour locally as far as possible. RAP will implement a priority programme to assist communities to service road construction requiremnents especialy in relaton to demands for timber and fuelwood.

OIAPS7.NEW 58 ARUN ItI HYDROELECTRICPROECr: ENVIRONMENTAL EXECUTIVESUMMARY 7. IMPACTMITIGAMON

(lv) Cultural Environment

RAPwill implementa programrmespeically for the preservationof mnonuments,sacred sites and fdk hartape.

722-2 OperatlonalPeriod

Whenthe roadis openedto the public,the majorindirect impacts wit be dealtwith by RegionaeAction Progranmesraher than falling underthe project'sErMrronmental Mitigation Plan. However.RAP mitgadonmeasures are notedhere to simplifycomparison with the impactsidentified in Chapter5.

(i Physical Environment

The roadwill reqiuirea continuingmraintenance input both for normaipreventive care (sealingcracks, claning drains) s well as adequateequipment on handto clear periodiclandslides and rebuildthe formationafter majormovement

piQ Biological Environment

Until demobilisation,the contractorfor Lot C3 (accessroad and headracetunne) will mairtaincheck posts on the roadto minimiseillegal road exportof wood. These postscouLd be continuedlater i required.

RAP will undertakeconservation programmes ranging from environmentaleducation through the conservationof crop geneticdivesity, to supportfor the establishmentof a majornew conservation areaalong the unprotectedMilke Danda, the ridgewhich forms the easternboundary of theArun Basin and whichhas exceptionalbiodriversity values. RAPwill also undertakeecological research.

Q1Q Socioeconomic Environment

Price Adjustments and Food Availability It is not consideredfeasible to irruence the price adjustmentsthat will occur when the road is opened. However,RAP will institutea programmeto monitornutritional levels and determinewhether the provisionof subsidisedrice to the northernareas of the Basinshould be continued.

Poverty and Marginalisation RAP will implementa seriesof programmesaimed at assistingthe inhabitantsof the Valleyto take advantageof neweconomic opportunities, particularly by revisingtheir croppingprogrammes and agriculturalcoxnmodity marketing mechanisms, and participatingin the expandedecotourism industry that is likelyto followroad opening.

Health Governmentwill be encouragedby RAPto enhancehealth provision in the area

SetUements RAPwill discouragecommunibies from abandoningtheir currentlocations and moving to the roadsideby prormotingthe constructionof accessroads to existingsettlmems andby supporting the strengtheningof CommunityDevelopmrent Committees.

Institutions and Services RAPwill supportlocal administratWeagencies and assistin formingand developingCommunity Development Committees.

Women and Other DisadvantagedGroups RAPwill incorporatespecific activities for these groups in all its programmes.

(in) Cultural Environment

RAP will implementa programnmeto conservethe builtenviromrient, sacred sites, andfolk heritage.

cHAPSO-7 EW 59 ARUN 11HYDROELECTRIC PROJECT: ENVRONMENTAL EXECL77VESUMMARY 7. IMPACr Mfl1GA1nON

72.3 MlUgatIonMeasures for the HydropowerComponents

7231 Construcdon Period

(I Physicl Envlronmne

Air Quality Air pollutin will be mitigated by liters and other pollution control equipmeit on vehicles and costruon plant, and by dust control an roads and at crushing plants.

Water Ouality Mitigation measures Include:

- convying of all batching plant operation waste water and tnrck washdown runoff to setting basins for treatmerntprior to discharge; - burying of all concrete waste in pits located at each batch plant site; - waste water volumes to be treated to remove oil, grease and cemrent; - storage areas to be bunded to minimize the potential for surface water contamination in the event of a spill accident; - hazardous substances from maintenance of mechanical, electrical and air conditioning equipment to be collected and disposed of properly off-site; - no direct discharge of any potential pollutants to be allowed.

Slopes and Soils Impacts an slopes end soils will be minimised by:

- designing erosion corrol measures ito housing sites; - contring the design and location of temporary access roads, and ensuring full reinstatement after use; - salvage of soil pniorto grading; - revegetationof all disturbed slopes with soil stabilising plant species.

Quarries and Borrow Pits Mitigation measures to be implemented include:

- prior approval of the Engineer needec'for the location and working methods of all borrow pits and quarries, including plans for eventual reclamaton; - backfillrngborrow pits and quarries with spoil; - saiage of sol for reclamation purposes if appropriate; - if in agricultural land, reclamnationof pits and quarriesto include benches wide enough for later cultivation; - careful attention to surface drainage at the rear of each bench to ensure that excess run-off is diverted into appropriate structures leading to a natural drainage line; - all disturbedslopes to be stabilised and revegetated.

Spoil Disposal The Contractors wAllbe required to use suitable spoil for concrete aggregate, road maintenance, coffer-dam construction, and as backfill for quarries and borrow pits. Land disposal of spoil rernairnig after maximumruse for tiese purposes would cover 18. ha to a depth of 5 m. The most environmentally acceptable alternative is to dispose of the excess spoil in the Arun River. Disposal to the river will be limited to the monsoon period of April-November,when the rver's transpon capacity is highest, and will be carried ouAto a scheduderelated to river flows. This will require some intermnediatestorage of spoil on temporary disposal areas.

(ii Biological Environmert

Vegetationand Forests Mitigationmeasures to be implemertedinclude:

- provision of subsidised kerosene to the workforce to amid use of fuelwood; - promolion of forestry managementconservation measures by the Regional Action Programme;

CHAPW7JEW 60 ARUN 10HYDROELECTRIC PROJECT: ENVIRONMENTALEXECUTIVE SUMMARY 7. IMPACTMITIGATION

- making the Contractors resposible for the behviour of their staff and workforce, including firr awareness and control.

Wildlife The Contractors will have a duty to ensure the responsible behaWourof teir labour. In addition. RAP will implemerit a programme of blological research and conservation awareness educatlon.

(I) Socio-economicand Cultural Environments

Land Take Measures to minimise the impacts of permannt and temporary land take include:

- pre-selection of the temporary construction camp sites: - Engineers prior approval required for any altemative anid additional sites proposed by contractors; - leasing land required short-term; - adit and powerhouse construction caMps coMbined into one; - reduction of area requiremert by specifying two storey buildings wherever possible; - reclamation of sites to previous land use; - compensationfor and reinstatement of damnageto land and property.

Employment and Income The employment of local labour where feasible is stipulated in the tender documents.

Health Mitigation measureswill includetreatmnentand surveillanceby malariatechnicians and provision of adequate health facilties, water supplies, sanitation systems and waste disposal methods.

Other Socio-economic and Cultural Impacts The Contractors for the hydropower Lots will be required to undertakethe same socially-related measures as the Contractorfor the access road. These wil include, for example, provisionof logistical support for the work force by the contractors,to minimise price inflation and consequent oca hardship. In addition, since the camps may be in place for longer Fan the more transient road cramps,the Contractors will be required to provide adequate recreational facilities and programmesfor the workforce to minimise the attraction of off-site actvities.

72.32 Operational Period

(I Physical Environment

Hydrology Mininum instreamflows for the survival of fish fry in the main river could be of the order of 16 - 30 m3Is. It will not be possible to provide this level of flow behveen the intake and powerhouse during the dry season without affecting power generation.

(ii) Biological Environment

Birds and Insects If the proqect'slights prove damaging to insect populations ancVorappear to affect birds, the design of the lights will be adapted accordingly.

Fish There are no econornicaly or biologically feasible measures to mitigate the barrier effect of the dan on migratory fish populations.

(mii) Socio-economic and Cultural Environments

NEA Camp NENs permanent camp at Amrang will become a mini-growth centre owing to the spearing power oa the employees stationed there. Impacts on the community and surrounding resources will be mitigated by the strenghening of local intions by RAP

C.HASe-NEW 61 ARUN fit HYDROELECTRICPROJECT: ENWVRONMENTALEXECUTIVE SUMMARY 7. IMPACTMlGATION

72A MMtigationMeasures for the Transmission Une System

724.1 Constructon Peiod

() Physicl Environment

Slope Stability and Flood Hazards The Tender Documents will include information on geomorphologicalhazrds, and will require the Corator to carry out geomorphologicalmapping along the alignment corridor beforetower spotting. Special attention will be paid to the Sapta Koshi crossing.

Access Roads The design, location, construction meods and reinstatement of temporary access roads will be subject to the Engineer's approval.

(al) Biological Environment

Vegation Whereverpossible the lines will be routed across agricultural land and not through forests. Spacial attention will be paid to line design and location in the vicinity of key ecological areas such as the lower Sabhaya Khola forests near Tumlingtar. Right-of-Way clearance will be dosely supervised to minimise unnecessary cutting. Construction crews wil be trained in minimum damage techniques for line stringing, and in fire awareness.

Birds Special attention will be paid to line locaton and design in the vicinity or the Sapta Koshi crossing.The choice of the northern or southern options will take full account of the long-term impacts of the lines nn endangered resident and migratory bird species- Visibility aids will be installed at all valley crossings.

(iiQ Soclo-economic and Cultural Envirofnent

Land Take A variety of mitigation measures will be used:

* Compensation for land acquired permanentlr will be paid in accordarne with the Land Acquisition Guidelines 2045, and all recommendationsof these gL:idelinecwill be implemented. Land required temporarily wDllbe rented, with certain minimum rental criteria * Informal tenants and squatters affected by the project will be incluced in the rehabilitation scheme, which should accord with the Land Acquisition Guidelines 2045. * A Condition Suvey wil be carried out along the ROW before construction commences. * Compensation will be paid for any physical damage caused by the contractor or any sub- contractor operating on the project, according to an agreed and publicised clims procedure. * Persons affected by the project will be fully informed of their rights in relation to the cormpensationscheme.

Price hiflation In some areas of the Arun Valley the contractorwill supply his labour force with staple foods and kerosenetrough fair-price shops. Supplies for these shops will be purchased in the Terai.

Community Relations and Infrastructure Temporaryaccess roads on public land wil be handed over to communities rather than being reinstated, if this is requested.

(v) Controls on the Contractor

Contractorsfor the transmission line system will be subject to environmentally-relatedcontrols simiar to those imposed on the oher Arun IlIl contractors. These will include tender evaluation in the light of the bidders' approach and experience in dher sensitive areas, requirements for the successful contractorto submit his proposal well in advance of works to alow thorough vetting by the Engineer, use of pre-existing Arun liI camps where feasible, and careful working methods including detailed atention to erosion and drainage issues, labour force activities, and site dean-up and reinstatemenL

CHAO-7.NeW 62 ARUNN HYDROELECTRICPRWECr ENVRONMENTALEXECUTIVE SUMMARY 7. IMPACT MITIGATION

(v) Rmvlaons and Additions to the Draft Tnder Document ir i'h1' lrenemlsion Line Systm

Information Before tendering, the exitng draft transmission lne tender documents will be modified to include the Informraion secton from the Arun IIl CMI Works Lots, either verbatim with addriions to suit conditions in the Terai and central hils, or wdtten afresh and including inforration on the following four key topics:

* Geotechnical hazards. * Biodiversty features and issues. * Social and cultural leatures and issues. * Ouality-of-life features and issues, particularly viwsua amenity.

Conditions and Specifications The existing draft transmission line documents will also be modified to include new or expanded clauses on the following subjects:

- a "Full Environrmental Protection Plan"; - a OFLdlHealth and Safety Plano; - the type and scope of suLveys required prior to line fixing; - line location in relation to geomorpholiogical and hydrological hazards, forests, and identified areas of ecological, cultural or visual interest; - alignment, design and working method variations necessitated by nrew information becoming avaabbe during project implementaton; - incorporation of bird collision hazard mitigation measures, both at the Sapta Koshi crossing and elsewhere; - the alignment, design and corstruction of access roads; - working methods to minimise damage to vegetation, including tire prevention; - selective ROW dearing, and disposal of timber; - working metnods to minimise disturbance to wildlife during the breeding season; - ROW confition surveys dunrig the constuion period; - temporaiy use of land; - commrnim relations and compensation for damage and crop loss; - borrow areas and spoil disposal; - photographic monitoring of key areas; - tidying of work sites to prevent darnage to livestock; - cdean-up procedures; - ROW reinstatement; - reinstatement of other areas disturbed by the works; - access road reinstatement or handover, - slope treatment techniques; - labour engagement, conditions & etc. - disorderly conduct - provision of fust ad and health care; - provision of Ofair-price food shops (in selected till areas); - transformer oil constituents; - transformer oil retention facilities (expand existing paragraph); - substtion sanitation.

72A.2 Operational Period

Physical * NEA will develop and initiate a regular line inspection programme. including recognition of incipient slope stability problems.

CAPSU7EW 63 ARLtN HIfYDROELECTRIC PROJECr: ENVWRONMENTALEXECUMVE SUMMARY 7. IMPACTMITIGAl1ON

Biologlcal NEAwDI undertake a icoo tive monitoringprogramme with the Departnlt of Naional Parks and Wldlife Coervation to establishlevels d bird collisionand identify and Implement appropraterespowes. * N-NAwill dwelop appropriateROW vegaton managementtechnius to ensuresafety whilst taking Intoaccount sociad and environmentalobjectives.

Social All towers will be flntedwthh anti-climbing devices and warning signs; all substationsand switchyardswill be securelyfenced and gated. NEA will appointa CommunityRelations Officer whose job is to inform th&dpublic of the hazardsof high voltage electricity. The officer will also have duties in relationto ROW management

Rural Electrification NEAwill providestep-down transformers to allowthe 33 kV constructionpower supply lineto be usedto supplylocal communities.

7.2.5 EnvironmentalMitigation Plan ImplementationSchedule and Coordination

(i) Prior to Tendering (1985-1993)

Duirig the projectslengthy design phase, exensive miffgation measures have been introduced through refinementsto designaspects and incorporationof appropri3tedcaues in the tenderdocurents. Also duringthis period,NEA establishedits in-houseEnvironmental Unit and HMGINbegan to establisha frameworkfor national-levelenvironmental management and adminisration,centred on the National PlanningCommission.

(") Tendering (1993)

Duringthe tender periodin 1993,the Bidderswill submittheir bids whichwill includeEnvironmental Protectionand Healthand Safety Statementr. Thesewill be evaluatedby the Engineeron behalfof the Employer,and corntractsawarded on the basisof performanceand price.

Followingaward of the contract,the Contractor(s)will developand submit for approvaltheir Full EnvironmentalProtection and Healthand SafetyPlans. liie Construction (1994-200)

The Anun ProjectEnvironmental Management Unit (APEMLUwill start operationsin 1993, initially drawingits staff from NEAs exdstingEnvironmental Unit, and then buildingup wit new appointees. The RegionalAction Programme will commencein 1994,with establishmentof the Boardand Arun BasinEnvironmental Management Unit (ABEMU),and initiation of the coreorogramme for dealingwith priorityindirect impacts. CoFnpensationpayments for land to bWtaken will be paid as little in advance of constructionrequirements as possible,to ensurefair prices.

72-6 Costs and Funding

In the Conract,some errvironmertally-relatedworks such as slopestablisation are costitems. Others will be absorbedin the Cortractors'general estimates. The Bill of Quantitiesin the tenderdocuments includesan item relatingto implementationof the agreedEnvironmental Protection and Healthand Safety Plans.

Supevision of the ErNirorne MitigationPlan is a projectcost to be borneby the Employer.This mnllinclude staffing,traning, equippingand operatingthe project'sEnvironmental Management Unit (APEMU)over the constructionperiod, the provisionof specialistenvironmentai staff on the Engineer's

aCFPM7.NEW 64 ARUN fWHYDROELECTRIC PROJEC: ENVRONMENTALEXECUTIVE SUMMARY 7. IMPACTMITIGATION

team, contngenciesfor specialistconsultsa;ces and otherinpts. Estabisimnentof APEMUwill co61 arouid $ 026S M Includingstart-up specialist training, wih annuai runningcosts for salariesand transportof approxdrnaly$ 0.1 Mi/yr.The Engineer'scost can be expectedto run at some$ 0.1 MA,r for the provisionof speciaiistenvironmerkal staff. The total cost of supervisionof the Environmental Miation Pianto the Employerover theeight yearconsrtion pedodwill be approach$ 2 M. This expenditureIncludes a major bneft to the NEA through professionaistaff training and capadty building. Costswill be bome by NEAn donorassstance is not forthcoming.

A mnajorfuther mitigationcost Is the land acquisition,compensation arnl rehabilitationprogramme (ACRP see next section). The estimatedtotal direct cost of this for the three Stage 1 project componnts is $ 1.488M. madeup as follows:

- accessroad $1.224 M - hydropowercomponents: $ 0.216M - transmissionfine system: $ 0.048M

The costs of the RegionalAction Programmehave beententatively estimated at $ 14.6 M over 10 years. HMGINis seekingdonor contributions to assisttiis work.

The overallcosts of the EnvironmentalMitigation Plan, ACRP and RAPare estimatedat approximatley 3 % of total Stage 1 projectcosts.

7.3 LAND ACQUISITION, COMPENSATION AND REHABILITATION

7.3.1 Background

The Prqects road, hydropowerand transmissionline componentswill directly affect a numberof families,some of whorn will lrse their houses. To compensatefor such losses,the projecthas developedand adopted a canprehensmveland Acquisition,Compensation and RehabilitationPlan (ACRP).The ACRPis basedon the officiallyapproved Land Acquisition Guidelines 2045. Thesewere developedwth World,Bank assistance to guide the land acquisitionprocess for the accessroad, and are beingextended to the hydropowerand transmission line componmts. The plan'sprocedures are a greatadvance on any usedfor previousmajor infrastructure projects in the Kingdom. 7.3.2 The Acquisition, Compensationand Rehabilitation Plan

Purpose The purposeof the ACRPis stated as:

She principalobjective is to ensurethat the peopleaffected by the propertyand land takingsof the roadproject will be at leastas well off in termsof assetsand [ivelihood afterthe projectas theywere beforethe project A secondaryobjective is to assistthe communitiesin the settieerits ...... to understandthe opportunitiesand hazardsarising from the . project and to assist them in the developmentplanning of their selemernts.-

CompensationMeasures for Permanentand Long-Term Lrnd Take Hardshipcaused by land acquisitionis to be mirnimisedthrough the followingcompensation packages:

A thoroughexamination of individualhousehold conditions before determinrng cornpensation packages,which include a land-for-andopbon: households are dMded into ProjectAffected Families(PAFs) and Seriously Project Affected Families (SPAFs), depending on the proportion of their incometo be lost becauseof the projectand whether the principalresidence is to be acquired. This is determinedthrough detailed household surveys.

CHAP38-7JEW 65 ARUNm HYDROELECTRICPROJECT ENVIRONMENTAL EXECUTIVE SUMMARY 7. IMPACTMIlTGATION

Compensationfor PAFS will be paid In two trances: Armal Companstion and a Rehabilittn Grant. Normal compensationis to be paid 2-4 onths ahead of work commerning,and cmers the valueof the landand btildingsaffected. Lundvaluaton Is done by district LandValuation oficers and undertMe Guidelines must be based on comparative marketvalues The ReohabiltationGrant is not paid urtil the time when the land is actually requiredand Is Intendedto cover sufferingand hardshl caused. It Includesthe value of stading trees and crops, ore year's loss of incomefrom truit and foddertrees, and a small foodthardshipallowance for 60 days.

O PAFSwill receiveNormal Compensoation and the RehabillationGrant.

* SPAFS (familieswhose house is taken or who are to be let with holdings,assets and prospectsinsufficient for ragainingtheir previous living standard) are to be offered () equivalent assets'o those lost (the iand-for-landopion); (ii) the RehabilitationGrant (whichwill include a 4-ronth rent allowance);(iii) employmentfor at leastone Iftnily member(interpreted as a job on constructionor similarfor the duxationof the project);and (iv) training(a. appropriate to undertakethe errploymentoffered).

Compensation Measuresfor Temporary Lund Take Landto be usedtenporarily, for one or two years (e.g.for accessroad camps, quarries),will be rented. The Condifionsof Contractinclude stipulationson the frequencyand minimumnlevel of rent to be paid, and the projectwill develop standardrent agreementforms. The rent will be basedon the land'sagricultural productivity, ano will be adiustedannually in line with locakprice variations. Liandused tcmporarilywill be fully restored beforebeing retumedto its owner.

Procedures Compnation moniesare paidto registeredlandowrers, who are almostinvariably men. Grievancesmust be remediedthrough the local administrationand thereater the courts.

The Projectis workingurgently to developmechanisms for dealingwith the issuesof compensationfor formal and informaltenarts, commonproperty, guti kands (religioustrusts), and land devaluedby fragmentation.The Frojectis also takingsteps lo ( developan iaformationpackage for PAFS and SPAFSin the vernacularso that these familiesare dear abouttheir rightsand the proceduresto be followed;(i) deveiopa programmeto provideassistance in moneymanagement to help affected familiesre-invest in productiveassets rather than use cashfor nor-productivepurposes. NGOswill be contractedto carryout this work. Finally,the Pfojectis irnestigatingreasons for delayedpayment of RehabilitationGrants for land alreadytaken up for roadand engineers'camps.

Responsibillty hr Implementation The land acquisitionand compensationprocess is being undertakenby the Projectunder delegatedpowers from speciallyconstituted district Acquisitionand RehabilitationCommittees. NEA is recruitinga localReseteiemert Advisor to assistin implementation of the ACRPand strengtheningthe ErvironmentalManagement Unit's social wing.

Costs The costsof compensationmeasutes for the accessroad can be calculatedbased on work carried out to date and currentvalues. Compensatroncosts for the hycdropowerfacilities can be calculatedbased on currentvalues inflatedappropriately. The nunbers of PAFSfor the transmission linecomponent are harderto estirrmatesince the finalroute of the linewill notbe fixed untilthe laterpart of the decade. Compensaioncosts for this componentcan only be estimatesat this time.

As notedabove, the estimateddirect comnpensationcost for the threeproject components totals some S 1.5M.

Noteon Hill Route Normal Compensationhas already been peid for msot of the Hill Route. Goveinmentwill retaintitle to this land for futiwelink roadconstruction.

CW*PB&7&NEW 66 ARUN I11HYDROELECTRIC PROJECT ENVIRONMENTAL EXECUTIVE SUMMARY 7. IMPACTMITIGA1ON

7A REGIONAL ACTION PROGRAMME

7A.1 Background Measuresto minimisethe indirect Impacts of theaccess road and hydropower pro9ect. and to capitaise an the economic opportunitiesprovided by improvedaccess such as tourism, have been idenifWiedby the Mnagemernt of Basinwide EnvirormnentaImpacs Study carded out by the Krig MahendraTrust for Nature Conservation for HMQIN (Appendbi 3). Together, these measures constituLtethe Regional Action PFogamme. This major programme will complement the Arun IlIl Project's Environmental Mitigation Plan, and will continue well after the Project has been cormmissioned.

For the short-medium term, the Basinwide Impacts Study proposed an Interim managemerit structure for the Valley centred on the National Planning Comrission. HMG/N is now stidying these options to determine the most effective implementationsystem for the Regional Action Programme. It is likely that an Interim Management Board will be established,with RAP activities promoted and coordinated by an executive management unit (see Chapter 8).

7A.2 RAP Programme Areas

The Basinwide Impact Study's report lists 21 recommended sectoral programrnes in six major programmeareas (see Table at end of Appendix 3). These programmesare designed to address both the immediate requirementsbrought about by the constructionprocess, and the longer-term needs for sustainable development within the valley.

The six major programme areas are:

Conservation * Income Generation * Institutional Strengthening * Extension and Training * Infrastructure and Energy * Research, Monitoring and Information

In trms of scheduling, five sectoral programmes were regarded as priorities for pre-emptive implemertation ahead of road construction. These relate to:

1. Strengthening local forest managemert 2. Helping local communities service construction-relateddemands, particularly for wood 3. Strengthening government institutionsto cope with impacts 4. Training and education for local human resource development 5. Environmental monitoring

These activities comprnsea 'Core Programme to be implemented by HMGIN as a prioriY, initially ttrough existing orga *isations, particudarlythe Ministry of Forests and Soil Conseivation. Local consuttarns and NGOs will be contracted to expedite the work.

7A.3 Costs

The total cost of the RAP programmes has been estimated at $14.6 M over 10 years. Wthin this, the cost of the Core Programmefor priority implementationis estimatedat $ 2.6 M.

awIAs-EW 67 ARUN 111HYDROELECTRIC PROJECT: ENVRONMENTAL EXECuTiVE SUMMARY S. EWVMRONMENTALMANAGEMENT RESPONSIBIUTIES

8 ENVIRONMENTALMANAGEMENT RESPONSIBILITIES 8.1 INTRODUCTION

HMGCINhas determined that implementation of theProject's overall ernvironmental management strategy will be most effective f separatedInro two parts: firstly, ths constructionteam comprisedof the Employer.Engineer and Contractor,who betweenthern implement the EnvironmentalMitigation Plan whichwill cope with direct impacts;secondly, under NationalPlanning Commission leadership, the administrativemechanism responsible for the RegionalActfon Progmmmewhich will act as an independentmonitor of the EnvironmentalMitigation Plan, deal with Indirectimpacts during the constructionphase, and basin-widechange thereafter.

Both componentsof the strategyrequire increased Institutional capacity, and thereforewill be the subjectof appropriateinstitutional strengthening programmes associated with the project. 82 PROJECTENVIRONMENTAL MANAGEMENT: IMPLEMENTINGTHE ENVIRONMENTALMITIGATION PLAN

The Projects arrangementsfor environmertalmanagement during and aftef constructionare shown in Figures8.1 and 82. Adrninistrationof the RegionalAction Programme is shownschematically in Figure8.3. 8.2.1 Engineer

On behalfof NEA(the *Employerm),the Engineeris responsiblefor ensuringthat the Contractorbuilds the projecton time, to budget and in accordancewith the TechnicalSpecilications and Condrrionsof Contract. This includes ensuringcompliance with all the environmentally-relatedclauses of the documnents(Appendix 6), andwith the agreedFull EnvironmentalProtection Plans and Full Healthand SafetyPlans to be drawnup by the Contractorsand apprwvedby the Engineer.

The Engineermust also (i) evaluateand approvethe Contractors'proposals for, e.g.,camp sitingand design,pilot track roulting,working methods for borrowpits and quarries,etc.; (ii) direct that specific techniquesand measures be implemented,e.g. for slopetreatmrent and land reinstatement; (iii) analyse monitoringdata and orderan1y necessary corrective actions, e.g. for spoddisposal sites.

To do this,the Engineerwill includeon histeam at leastone full-timeprofessional envirornmentalist for the durationof the works. This individualwill havefull authorityto issueinstructions to the Contractors to ensureimplementaton of the specificafionsand Plans, and will report to theChief Resident Engineer. In additionto his supervisoryfunction, the environmentalistwill havea formaltraining role for national environmetal staff (see below). 82.2 Nepal Electricity Authority: Arun Project EnvironmentalManagement Unit

Becauseof the scopeof the dufiesinvolved and site logistics, the Engineer'sernvironmentalist wil not be ableto workeffectively without a supportingteam of professionals.These will besupplied by NEA, on secondmeftto the Engineersteam (Figure8.1). The purposeof this arrangementis (i to supply te professonal staff needed to implemrentthe projecrs EnvironmentalMitigation Plan; (ii to developmentnational capacity through both on-e-job trarung and a moreformal series of training exercises,to be developedby the Engineer'sernirorunentalist for the NEA environmentalstaff.

CHPVEW 68 ARUN III HYDROELECTRICPROECT ENVIRONMENTAL EXECU77VESUMMARY 8. ENVIRONMENTALMANAGEMENT RESPONSIBIUITIES

lbe Arun 111Proed Environmen Managemef Unt (APEMU)will havesix principaltasks:

0 Wth the Engineer,supervise the Contractors'operations to ensue compliancewith the contractualprons and approvedEnvironental Proectionand Healthand Safety Plars.

pi) Work relatedto land acquisition.Indcuding follow up activitiessuch as trainingfor SPAFS, assistingwith temporaryiand take arrangements,dealing with disputes,appeals and claims. and monitorngthe progressand effectivenessof the rehabilitationmeasures.

(lii) lUisan(coordirationwith concerned District administrations, especially Sanrkhuwasabha, Village DevelopmentCommittees, the RegionalAction Programme, the Makilu-BarunConservation Project,NGOs, etc.

(iv) Iwonitoringimpacts on disadvarntagedgroups, and arrangingfor neededcorrective action.

(v) Undertakingor arrangingany furthersurveys and research. e.g. futher workon aquaticbiology and the Sapta Koshibird surveys.

(vi) Communityand publicrelations.

In conjunctionwith the RegionalAction Programme, the APEMU will establisha geographiciniormation system(GIS) for use in impactmonitoring and resourcemanagemert.

The Units sociologicalstaff will be assistedby a locally-recruitedprofessiona Reselement Advisor, and will work closelywith local NGOs. 82.3 Contractor

The Contractorshave a dutyto carryout their workin accordancewith the provisionsof the contract, includingall its environmentally-relatedcordtions and specifications,and in particudarthe approved ErnvironmentalProtection and Health and Safety Plans. Theirstaff will includeat leastone bioengineer or forester, and one ervironmentalmonitoring officer. The Cortractorsfor the road and main hydropowercomponents will also have to supplysome monitoringdata (as specifiedin the contract documents)to the Engineer. 8.2.4 Environmental Managementduring Project Operation

After Commissioning,NEA will maintaina small Field Environmental Unit at the site to carry out necessaryperiodic monitoring, and act as a contactpoint for any bcal issues. The staff of this unit wil be drawn from NEA'sstrengthened central Environmental Unit in Kathmandu(Figure 82). 8.3 REGIONALACTION PROGRAMME 8.3.1 RAP ImplementationDuring Project Construction

Duringthe progect'sconstruction phase, implementation of the RegionalAction Programmewill be cardedout by an organisationsimilar to that shownin Figure8.3. In this, a policy-makingboard is assistedby a multidisciplinaryexecutive unit. The Board,the Arun Basi InterimManageefnt Board (ABIMB), would be comprised of representatives of the principal concerned government agencies (NPC, Forests,Water Resources,and LocalDevelopment) and fundingagencies, and would includeelected local representationfrom concernedDistricts.

awe 69 ARUN HI1HYDROELECTRIC PROJECT: ENVRONMENTAL EXECUTIVE SUMMARY S. ENVMRONMENTALMANAGEMENT RESPONSIBIUTIES

The Board'sexective arm or Amn BasinEnvimental ManagementUnit (ABEMU)will work closeV withthe Districtadmnistratons. its dutse wiil Include:

Providetechnical support and professionaladice to the Board. * Coorainateand monitorthe impemenaion of the RegionalAction Programme. * Act as an Independetcheck on implementationof the AnunIll ErvironmentalMitigation Plan. Advisethe Engineerof manersof ernvronmentalconcern upon which he shouldact. 0 Gather,evauate and act on newinformation.

Becauseof the diversenature of ntsrespornsbibties. its relationshipwith ABIMB,and the needto be seen to be Independentof the Arun Ill Projectconstructon organisation, ABEMU will be attachedto the NationalPlanning Commission'sEnvironment Protection Division. It will maintain offices in Kathmanduand at the projectsite 8.3.2 Confirmation of the Regional ManagementSystem

Recognisirgthat ongoing processes of changein the ArunValley will be greatlyaccelerated as a result of the project,HMQWN has initiatedthe processof determiningappropriate long-term management stutures for the area. The NPC has commissioneda Macro-managementStudy to examineand refiriethe management recommendations ofthe BasinwideImpacts Study, and resultswill be presented in mid-May1993. Subsequently,further work will be carried out to turn the agreedproposals into inplemertableprogrammes, wih a reportingdate of April 1994. This timetablewill givesix mnonthsin whichto establishpriority programmes on the ground,in time for the start of roadconstruction after the 1994monsoon. 8.3.3 Priority Programmes

The five sectoralprogrammes recommended by the Managementof BasinwideImpacts Study for inkiationprior to roadconstruction (Table A3.1) will be implementedas follows:

(, pl) Enhancing Community Participation In Forest Managementand Conservation and Involvement of Local CommunitiesIn Servicing Road Construction Requirements(for wood).These two programmeswill be implaented by the DistrictForest Office with technical supportfrom the NepaVUKConmurity ForestryProject, now in preparabon.Activities will commenceat the latestin early 1994. Total estimatedcosts overten years (coreprogramme in first six): $ 0.71 M.

(iii) Strengthening Govemment Institutions. This programmewhich aims to improve locad governmentcapacity to foster communityresource management and developmentwill be implementedby the regionalplanning office (RPO) of the NationalPlanning Commission with technicalsupport from the UNDP-sponsoredStrengthening Decentralised Planning Project. Activitieswill begin in 1994. Costsare estimatedat $ 0.47 M overten years(core activities in te first three).

(iv) Training and Education. Ths importantprogramme will be implementedthrough a Training andEducation Section to be establishedwithin the ArunBasin Environmental Management Unit (ABEMU).Activites will beginwhen the uni is establishedin 1994. Costsare estimatedat $ 0.66 M over ten years (coreactivities concertrated in years2-5).

(v) Ernironmental Monitoring. ABEMU will establisha MonitoringSection covering key indicatorsof the Basin'sphysical, social, cultural and economic environment, as a management tool. Actvities will beginin 1994. Costsare estimatedat $ 0.75 M over ten years.

The oU costof these priorityprogrammes is estimatedat $ 2.585M overten years,or approximately 0.4 % of total Stage I projectcosts. aIAPuew 70 ARUN W HYDROELECTRICPRaJECT. ENVIRONMENTAL EXECUTIVE SUMMARY B. ENWiRONMENTALMANAGEMENT RESPONSIBILMES

SA INSTITUTIONALSTRENGTHENING 8A.1 NEA's Project EnvironmentalManagement Unit

EffectvBimplementation ofthe prolectserwirwnmenal management strategy requires a considerable increase I institulionalcapacity. NEA will set up a rnw projecterMronmernt unit (APEMU)to assist the Engineerin implemfentationof the ErnrvironmentalMitgation Plan. At the sametime, and in parallel with strengtheningthe APEMU, NEA will take steps to improve the capability of its central ErvironrmentalUnit to cope wih Its increasingwor-doad and responsibilities.

Establishnernof APEMUwill necessitatehiring and training additional staff. APEMUwill require a work plan and operatingprocedures, and new appoiriteeswill requireorientation to their dutiesand training to upgradetheir professionalskills. Since the Unit will be operatingon seconcmrrentto the Engineer as part d his staff, this work will be done joirtly by the Engineer'senvironmental specialist and the Urit's leader,in a counterpartcapacity.

NEA regardsit as essentialthat the organisationbenefits as an institutionfrom the projectsupervision exercise,with an increasedcorporate capability left behindwhen the facilityis commissioned.For this reason,NEA will ensurethat its APEMUstaff receivethe professionaldevelopment training they need to carr out their dutieseffectively.

5A.2 NPC: Regional ManagementStructure

Estaishment and operationof the regionalmanagemrent structure is a majorexercise in institutional developmernLThis aspectof the managermentprocess will be recognisodin the forthcomingfeasibility stdy, and appropriatemeasures defiined and implemented.Training will be requiredat a nuraberof wvels.UNDP is alreadyassisting the NationalPlanning Commission with an institutionalstrerngtening programme,and has expressedan interestin furtherassistance in relationto the RegionalAction Programme.At the local level,NGOs will be heavilyinvolved in trainingand monitoringprogrammes, as well as participatoryevaluation of programmeperomance, and will themselvesbe eligiblefor assistancethrough the RegionaAction Programrme. BA.3 Other Organisabons

The RegionalAction Programme incorporates a numberof projectsfor strengtheninginstitutions at the local level. These rangefrom line agency programmesto initiate and strengthenuser groups in irrigationand forest management, through assistance to VillageDevelopment Committees and NGOs to mobiliseto copewith local project-relatedimpacts and opportunities.

Qaft.iIw 71 ARUN IIIzHYDROELECTRICPRiECT-ENwRONMENTAL EXECUnVE SUMMARY 8. ENVIRONMENTALMANAGEMENT RESPONSIBIUMES

| IIfARUN11HEP Projec Director I

ENGINEER NEA SITE TEAM Chief Resident Engineer Depuly Project Director

...... _ ...... _ REGIONAL ACTION ENVIRONMENTAL _ _ _ PROGRAMME MANAGEMENTUNIT L Environmental ~EnvironmentalfiW~ Speiaalst ManagementSpeclalst - CONSERVATION | BIologist(s) i Sociologist(s) GIS Specialist H . ______~~~~~~NGOsAlNGOs

...... _._.._.._.__......

[coNTD:iS TRCT ADMINISTRATION, CONTRACTOR I VDCs, PUBUC

Reporting relatlinship -UalsorVadvisorylink

FIGURE 8.1 PROJECT ENVIRONMENTAL MANAGEMENT DURING CONSTRUCTION

F I~~~~~~~~~~~~~~~~~~~~~~~~~~~~

|NEA ENVIRQONMENTAL PR*OJECT OPERATIONS TEAM | UNTr (Kthmandu) (Site)

REGIONALACTION FIELD ENVIRONMENTAL UNIT PROGRAMME ~MBCP I.-NGOs etc

DISTRICTADMINISTRATION VDCs, PUBUC

Reponing relationship Laison/advisorylink

FIGURE 82 PROJECT ENVIRONMENTALMANAGEMENT AFTER COMMISSIONING

CHAMMOW 72 ARUN 111HYDROELECTRIC PROJECT: EAMRONMENfAL EXECUTIE SUMMORY 8. ENVRr -NTALMANAGEMENT RESPONSIBIUTIES

UNDP AGENCIES REPRESENTATIVE FORESTDEPT. RSOURCES DEVELOPMENT

ENVIRONMENT BOARD(ABIMB) PROTECTION DMSION

ENVIRONMENTAL DISTRICTADMINISTRATION MANAGEMENTUNIT , _ ~~~~~~~(ABEMU)

L - -- T-----T ------~~~~------T r------r------T--r------______------___

VILLAGE 1 NEA/ARUNIII MAKALUWBARUN DEVELOPMENT LINEAGENCIES HEP CONSERVATION PUBUC NG0s COMMITTEES APEMU PROJECT

Formal administrative relationship

Advisory/coordinatingrole

FIGURE 8.3 MODEL FOR ADMINISTRATIONOF THE REGIONAL ACTION PROGRAMME

73 ARUN ui1HYDROELECTRIC PowECTn ENVRONMENTAL EXECUTVE SUMMARY 9. ENWRONMENTALMONITORING PLAN

9 ENVIRONMENTALMONITORING AND EVALUATION

9.1 INTRODUCTION

Monitoring is required during both major phases of the project - construction and operation. Monntoring consists of measuring changes In one or more parameters with time. A parameter .y be physical - extnt offorests, agicultural production - or less tangible- improvedhealth, changed parceptions. Data that is collected must be evaluated, and appropriate action taken. *Evaluation' refers to, firstly, the periodic evaluation of monitoring data by project managementto ensure both Contrctor compliance and the effectiveress of mitigafion measures, and secondly, to an eveniual evaluation by concerned agencies of the success ot the envirornmentalcomponerts of the whole project from its Inception through to the early years of commissioning. Together, monitoring and evaluation are essential management tools.

The Arun [il Project will operate dual environmental monitoring and evaluation programmes, through the ErvirornmentalMitigation Plan for direct impacts, and through the Regional Action Programme for incdirectimpacts. 9.2 ENVIRONMENTALMITIGATION PLAN: MONITORINGAND EVALUATION 9.2.1 Environmental Monitoring and Evaluation during Project Construction

() Procedures and InsUtutions

In addition to the usual checks made by the Employer/Engineeron materials, worknanship, and progress, monitoring, in the form of checks on errvironmertal factors, is required at several stages of construction:

o Firstly, at start-up, to ensure that the designs and working metods proposed by the Contrts have taken account of the environmental constraints specified in the tender documents (geotechircal, ecological, social, heritagefeatures, safety).

O Secondly, to ensure that the Contractors' arrangemerts regarding temporary use of land are sabsfactory.

o Thirdly, during construction,to ensure that the agreed working procedures are followed with respect to, e.g.. earthworks,trafficking, vegetation clearance,wildlife disturbance, and similar factors. Ths will includeevaluation of any monitoringdata providedto the Engineerby the Contractorunder the terms of the contract(e.g. photo-monitoring of sensitiveareas).

O Fourthly, during construction,to identify the need for changes to make the mitigation programmemore effective, and to dispensewith redundantmeasures.

O Fdfty, on compltion, to check that all requirementsregarding clean-up and reinstatement have beenmet, especially with respectto temporaryaccess roads, borrow pits, quarries,spoil tips, camps,and workingareas.

CHAPSS.X.N&W 74 ARUN In HYDROELECTRICPRWECr, ENAIRONMENTALEXECE SUMMARY 9. EfWRONMENTALMONrrORING PLAN

Monitoring and evauaton d the environmenta provisions of the Contract will be Fe responsibility of the Ernginer, assisted by the Project's In-house environmental urit APEMU. Some aspects of monitoring will Involve local NGOs and user groups, eiftheron behalf of the project or as indepernden checks on project activties. Major aspects of the montoring programme are noted below.

GIS for Monitoring The physical data collkcted under the TRRL project, as well as other environmentaland socio-econormicdata onthe Arun catchmentarea, should be handled and interpreted In an integrated fashion. This can be done most effectively by usirg a Geographic InformationSystem (GIS). This allows spaidalregistration of both environmertal and econormicdata, which can then be analysed and Interpretedfor monitoring and plannirg purposes. Much of the data collected under the TRRL study, as well as other data related to the access road, has already been entered into the Engineers GIS database.

Q1) Acquisition, Compenation and Rehabilitaton Plan

APEMU wnillmonitor a rarge of topics relating to land take, compensationand rehabilitation. In relation to permanent land take, which falls under the land acquisition guidelines (Section 7.3), APEMU ronitoring (and evaluation and necessary correctve action) will include subjects such as:

- the disbursemert of compensation monies and the implementation of related measures such as training and employment for SPAFS; - the progress and condtion of disadvantaged groups within the SPAF category (e.g. the Kumhals of Tumlingtar and other occupational castes); - the levti and nature of disputes and claims relating to compensation; - perceptiin of the ACRP process by those affected and other members of the public.

For land used ternporarily, APEMU will carry out annual far-rent surveys to fix reasonable rents. and monitor payment of the agreed rentals. APEMU will also monitor ACRP disputes and perceptions, relations with affected communities, and the reclamation and return-to-owner process for land used temporarily.

However, since APEMU will actually be executing ACRP and related procedures on behalf of NEA, independent monitoring will be necessary. This will be carried out by the Regional Action Programme which is likely to contract the field work to appropriate NGOs or local consutarncies.

(fil) Access Road

The Project will monitor a variety of physical, bidogical and social parameters and processes relating to road construction.

Physica Physical factors will include:

- location, design, operation and restoration of temporary facilities - e.g. camps, work areas; - lcation, design and impacts of pilot tracks; - road-induced erosion and sedimentation. including monsoon drainage; - the implementation and success of slope stabilisation measures, particularly bioengineering; - the locaion, operation, stability and reclamation of spoil disposal areas.

For his, the Project will take advantage of relvant work carried out by the U.K's Transport and Road Research Laboratory (rRRLq which Ls involved in road impact studies in the area

C*UUA89&INM 75 ARUN 111HYDROELECTRIC PwECr ENVRONMENTALExECUnVE SUMMRY 9. ENVIRONMENTALMONITORING PLAN

BIologIcalBiological factors to bemonitored by APEMU indude the conditionof vegetation along the rghtof-way and In the vicinityof majorcamps, and Intnsiy of flsting. Vegetaionmonitoring wil be assitd throughthe cotractual requirementfor photo-monitoringof sensitivesites by te Contractors. APEMUwil also monitorimpacts on the habitat pndpopulations of any endanereedspecies directly affectedby the road,should ftse be idenfied duiringthe courseof construction.

Social andFEconomic Social factors monitoredwill Includeadherence to the requirementsfor recruitmentof local labour,camp and atherfacility *housekeepingu(waste dispoa etc.),health and safetyconditions, operation of controlled-prieshops and local price Inflation,and ro;ect/Contractor relationswith affectedcommunites.

() HydropowerComponent

Envircnmentalmoniloring of the constructionof the hydropowercomponents will cover the same featuresas the AccessRoad, but with particularemphasis on:

Physical - dust suppression; - properdisposal of used oils, chemicalsand otherwastes; - locationand operationof quarriesand borrowpits; - locItion and designof accessroads; - location,design and operationof spoil disposalsites. Biological - vegetationand habitatsat the powerhiouse.adit and intakesites; - final designand transmission line adignrmentof the ConstructionPower Supply. Socio-economic - contractors'camp locationand design: - land rental; - levelsof localemployment by the contractors; - community/contractorrelations; - land reciamation,reinstatement and return.

(v) Transmission line System

The Arun Ill transmissionline system will be bWiitin stages, reflecting staged instaiition and commissioningof the tubines at the powerhouse.One or morecontractors will be involvedat each stage,with the work being carriedout on a *designand buildt basis. Geomorphological,ecological, social,economic, cultural and landcondiion swveys will be carriedout as inputsto the final designand consructionof the system.

Duringconstruction, APEMU will monitoreach Contractor s compliancewith the environmerntalclauses ofthe contract,with specialemphasis on implementationof the compensationprocedures for landused for bothpermnanent and temporary land take, impactson sensitive ecological and heritage features, and implementationof bird collisionhazard avoidance measures. This will be good practicefor Stage2, whenthe line may crossthe ecologicalysensitive Koshi Tappu Wildlife Reserve. 9.272 Environmental Monitoring and Evaluation during Project Operation

(;) Acce Road

Onceconstec monitoringof the physicalcondition of the roadwill be carriedout by the responsible agercy (Departmentof Roads) in order to plan and inplement a cost-effectivemaintenance programmnre.

CHAPS04UMV 76 ARUN IrIHYDROELECTRIC PRoWECT: ENVIWRONMENTAL EXECuTnIVE SUM. 44RY 9. ENVIRONMENTALMONITORING PLAN

(Q) Hydrpower Facility Duringproject operation NEA's Field Envronmernt Unit will montork

- sedimentbehaviour In the rhier (reated to desandngaid reservoir rlusNrg); - fish populaffions,fishing Interiky and practices,and the conditionof ocallisherfolk. (ill TransmisionULir System

Duringsystem operation, NEA will requireirnormation on a variety of subjectsin order to plan and implementsafe, environmertallybeneficial and cost-effectiveworking practices.These subjecs will include:

- RoWvegetation managemert techniques; - bird collisionfrequency and location(in very limited locationsand for limited (but critical periods); - socialaspects of ROWmanagement. including encroachment by squatters,house construction withinclearances, any accidents,and relatedmatters.

9.2.3 Post-Construction Environmental Impact Audit

TheAmn Ill Projectis verylarge infrastructure project. when suchlarge projects have been completed and operatedfor some Ume,it is helpfulfor ins0inionaidevelopment purposes and to assist future planningto carry out a post-constructionevaluation or audiL This exerciselooks at the wholeproiect cycle fron initial identificationthrough the pre-leasibility.feasibility, design, constructionand early operationalstages. Its purposeis to identify areaswhere improvementscoudd be made, eg. by fmfprovedintegration of enrvironmentalconsiderations with engineeringand economic analysis at earlier stages,so shorteringthe projectcycle and increasingdevelopmental benefits. NEAregards this exercise,which will be carriedout in cornunctionwith concemedagencies around the years 2002-2004,as an irnportnt input to its corporatestrategy for improvedeffliciency and effectivenessin proect designand implementaion 9.3 REGIONAL ACTION PROGRAMME: MONITORING AND EVALUATION

9.3.1 Coverage

Coordinatedby the Arun BasinEnvironmenrt Management Unit, the RegionalAction Programme will establishan effectivemonitoring and evaluation system covering a wide rangeof issues,reflecting the broadcoverage of the BasirnwideImpacts Study and the varius othererrvironrurertally-oriented projects andactivites relatedto the Arun Ill ProjecL

RAPwill undertakcethree typesof monitoring.Firs0y, independent monitoring of Projectactivities to give an early warning of under-performance.Subjects covered will irclude the physical, e.g. hydrologicalconditions in relationto spoil disposal,maintenance of temporaryaccess roads, waste disposalpractices; biological,e.g. vegetation condition, harassment or huntingof wildlife:and socio- economic;and socio-econornic,e.g. camp locations,labour recruitmentpractices, adequacy and distributionof compensationpayments for all landaffected by the project,including construction-relted damnage.

Secorxny.moritoring of project-relatedimpacts not dealt with by NEXs EnvironmentalManagement Unit,such as the rate of forest degradationin the vicinityof demandcentres such as Tunlingtar and Phyaksinda,as well as elsewherealong the road alignmnent,rates of urbanisation,impacts on comunity facaitiessuch as water supplies,the successor otherwiseof local managementsystems (goverriiert andcommuniy) to cope with te impacts,inpacts on vulnerablegroups, specifically the Kanals of Tumringtarbut alsoother groups identfied in socio-economicsuvoys to date, irnpactson oCwaS9vUE 77 ARUN 111HYDROELECTRIC PRWEC7: ENVRONMENTAL EXECUTE SUMMARY 9. ENVARONMENTALMONITORING PLAN

wxnen and children - within Projw Affected Families, within familes where men have taken up contuction fobs, and In rr -i nal farrdiies alfacted by price irflaion - community relations.

Thrdiy, monitoring of wider Issues relating to change In the Basil is a whoie. Conditins In the Valley are not static. There aW3ofer factors x Nch are causing environmertal stress and change. It will not alway be practicable to defino the boundaly between the changes induced by the development projects and those occurring as a resut of other forces and circumstances. In practice, there Is little reason to attempt to make this distinction. The key issue is that the physical, social, cultural and economic environment of the Arun Basin is aed will increasingly be under stress and pressure for change. Basin-wide moritoring by the Regional Action Programme will include:

* watershed condtion * ecosystemnconditions * forest use and productivity balance * water quality (including Arun River sediment oad) * acaquaticbiology (to complement and extend APEMU's fisheries surveys) * wildlife-people interactions (damageto crops and livestock, and consumptive use) * economic conditions * tourism * social and cultural conditions * smov9mentof traffic and goods * land use change

Land use change during and after road constructionwill be inevitable, both along the route corridor and in neighbouringareas. The most appropriate methoddogy for evaluating this change would be through:

- a consolidation of the existing Acquisition, Carmpensationand Rehabilitation Programme (ACRP) survey da; - a second ACRP survey following road construction to identify land use change in the vicinity of the arignment; - a comnparisonof air photography taken before and after construction.

1994wig see the establishmentof ABEMU, inducing a monitoringcapability with an informationstorage nd rerieva system, and the identification of issues requsiingpre-ernptive baseline mnonitoringprior to consruction. Also in 1994, pre-emptve monRtoringwill begin, and details of the long-tr-rrn monitoring programme developed.

During the main conaruction period (1995-2001)ABEMU will conduct a full monitoring programmeon a regular schedule, and will &iso undertake periodic reviews of the conterit and coverage of the monitoring programme.

9A FURTHER SURVEYS 9A.1 Fisheries

The aquatic biology of nost Himalayan rivers, includingthe Arun, is not well knowrL The river is used by both resident and migratory fish species, and the aquatic life forms the basis of a food chain including reptiles, mammals, birds, and of course man. The increased fish offtake to meet increased demand, the physical presence of the dam and annual flow dry-season low reductions between the intake and the tailrace will all affect the aquatic ecosystem. Consequently APEMU will undertake further work on fish acology and related parameters in order to measure impacts and identify feasible mitigation measures. This work will be undertaken cooperatively with ocal fisherfolk and fisheries speciaists, and wil commence in 1994 to give last two seasons prior to construction of the coffer darm at the Intake site.

0HAPu9W 78 ARUN il HYmOELECTRICPRaWECrl ENWRONMENTAL EKECwVE SUMMARY 9. ENVIRONMENTALMONITORING PLAA

9A.2 Omithology

An orihological survey will be carried out as an Input to final trfnsmission] line lcation and design. The Inlformaon Is required to minimise possible negative impacs on the birds migratigr alorg the probable Intemational tlyway in the Arun Valley. The survey will cover other areas alon the transmission line route where avian hazards might exist, end Ilentify and deign appropriate mitigation measures.

For the survey, observers should be In the field at the beginning of the annuai sprlng bird migration. The first season of observations wil be preliminay, and will allow the design of more detailed programmes for the next seasons. The surveys are an excellent opportunity to train Nepali nationals In bird identification and oher aspects of avian field biology. Staff may be seconded from the Departmrentof National Parks and Wildlife Conservation, from NEk's Environmenta Unit, and from Irterested NGOs such as the Nepal Birdwatchers' Club. Advice on the design and Implementation of this work will be obtinedr from Birdlife Irternational (the new name for the InternationalCouncil for Bird Preservation, ICBP). Final design of the 220 kV line system will not be carried out urtil the latter part of the decade. Consequentlythere is a long lead time in which to carry out appropriate field research.

These surveys will provide excellent trainirig and experience for the more detailed studies which will be needed to determine appropriateline routing and design for the Stage 2 transmission line system. These will need to investiga,tethe current status and breeding behaviour and season of endangered residert bird species in the KoshiTappu Wildlife Reserve;determine the incidence of bird collisions with the existing 132 kV line at KoshiTappu; and determine the likelihood of birdline collisions at the Chatra gorge from observations of residerit, locally migrant and internationally migrant species.

BA.3 Other Surveys

As the project is implemented,APEMU and ABEMU will undertake or iniiate any survey work required to improve the effectiveness of planned mitigation and enhancement measures. At this stage it is not possible to idenfy these, but both units will keep a watching brief on developments in he Valley and will have a mandate to respond appropriately.

An important elemerit of APEMUs fther work will be reviawing the effectveness of the various measures in order to incorporate appiopriate clauses in the tender documerts for subsequent lots, firstly the construction power supply, secondly the hydraulic, steel structure and electrical lots, thirdly the transmission line system, and fourthly. Stage 2 of the power scheme.

awMNE 79 ARUN 1/ HYDROELECTRICPRojECr7 ENVIRONMENTALEXECurlVE SUMMARY 10. CONCLUSION

1 0 CONCLUSION

It is clear tW a most unusual and perhaps unique conbination of circumstanes exists in the Arun Valley. To summarise same of te main points, the Ani Valley Is:

* The location for a maJorprogramnme of Wnrastructuredevelopment

* The site of natural and biological valuesd glbal significance.

The home for several hundred thousand people of great sociothnic diversity, most of whom live in poverty in a rigorous subsistence lifestyle that has changed little ovpr hundredsof years.

* An area where the economy Is in decline, and nalural resources are already under stress and sufferhIg degradation.

* Possibly the deepest valley in the wodd, with a unique scenic character and, as the gateway to some of the world's highest mnrtains, significmit tourism potential.

As a run-of-river project, the Arun IlIl hydropower scheme will have comparatively limited and manageabledirect environmental impacts. The associated road infrastruchre will create significart opporturities for the people of the Valley, in addibon to bringing increased pressures on natural resources, accelerated cultural change, and the risks of inequity.

The various environmental studies noted in this document have revealed poternial envirornental impacts that are sufficierdly large to suggest that the projectshould ordy proceed with geat care and attention to detil. It is essential that effecive managementad mitigation measures are implemented, firStly, to ameiorate the negave impacts of the prqect wndto ensure that ersting negativetrends are not exacerbated, and secondly, to ensure that Me potential benefits of the project for bcal people are mnaxmisedand distributed equitably.

The proposalsand programmesdescribed in this Summarywill be implementedwith skill and commitment,wh-ch will givean opportunityto arrestenvironmtertl and econormicdegradation in the ArunValley, to protectits uniquecharacter and values,and to permanentlyimprove the qualityof life of all its peoplethrough sustainable developmenL

A projectas large and complexas the Arun ill projectis boundto have impacts. NEA'sresponse is to treat these as anopportuniry, and to beginto developthe rntional instiutionalcapacity that, in the 21st centuy, may be caNedon to implementhydroelectric schemes twenty times as large.

a uwS.af s0 APPENDICES ARUN 111HYDROELECTRIC PROJECT: EAMRONMENTAL EXECUTIV SUMARY APPENDICES

Appendix 1. REFERENCES

The foiwng threelists of referencesare an introductorybibliography of environmentalmatters relevart to the Anm Ill Project. NEAshould b9 contactedto supplymore ecensivereference Usts.

1. GeneralBibliography 2. Reportof the Managementof BasinwideEnvironmental Impacts Sxtdy 3. Publicaons of the Makalu-BarunConservation Project

1. GENERAL BIBUOGRAPHY

Joint Venture Arun IlIlConsuling Services (JV). 1990a Arun 1l HydroelectrIc ProfecaEnvironmental and Socio- eownomicImpact Study Report Volume 1 - Main Report. Nepal Electrcity Authorky, HMG, Kathmandu.

Joint Venture Arun Ill Consuling Services (JV). 1990b. Aun Ill Hydroelectric Project Environmental and Socio- economic Impact Study Report - Volume 2 - Figures and Annexes. NEA, HMG, Kathmandu.

Joint Venture Arun liI Consulting Services (JV). 1992a Addendum to te June 1990 EnvIronmentaland Socio- Economic Impact ShadyRtport Volume 1: Environmental Addendum, Final Report Jan. 1992. Nepal Electricky Authoriky,HMG, Kathmandu.

JointVenture Arun liI Consuling Services (JV). 1992b. Addendum to the June 1990 Envhonmental and Socio- Economic Impact Study Report Volume 2- Aun Access Road - Summary of Environmentallnformaftn. Jan. 1992. Nepal Electricity Authority. HMG. Kathmandu.

Joint Venture Arun IlIl Consulting Servkes (JV). 1992c. Addendum to the June 1990 Envmonmentaland Socio- EcownmicImpact Study Repoat Volume 3 - EIA of te Transmisson Line System. Jan. 1992. Nepal Electricity Authority, HMG, Kathmandu.

Joint VentureArn Ill ConsultingServices (J). 1992d. EnvironmentalimpacrAssessinentforArn Access Road- Valley Route. September 1992 2 volumes. Nepal EiectdcdtyAuthority, HMG, KathmanduL

2. MANAGEMENT OF BASINWIDE ENVIRONMENTAL IMPACTS STUDY

The following 13 volumes comprise the full report of the 18-month Managemerd of Basinwide Environmental Impacts Study, completed in Octaobr 1991:

Volume 1. EnwvronmentalManagement and Sustainable Developmrentin fhe Arun Basin: Sunmary and Syrnthesis KIng Mahendra Trust lor Nature Conservationas Consultant to the World Bank

Volume 2 Action Programs. KMTNC.

Volume 3. Management of Natral Resourc Bhadra, B., S. Sharna, N. Khanal. A Joshl & B. Sharma

Volume 4. Biodiverslty. Gri M.K., P. R. Shakya, H.S. Nepali, & KB. Shah

Volume 5. Susta Vltyand Economic Growlt Banskata, K. M. Upadhya. B. Sharma

Volume 6. Cultural Systems and Resources. Sharma, P.R, D.R. Dahal, & J.M. Gurung.

Volume 7. Soaaland InsituAbnal Factors. Gurung, U.B., I. Neupane, AR. Pandey.

Volume 8. Trade and Traffic Survey. Khanal,N.R

Volume 9. Sefnement Guidelines. Kentro, L

Volume 10. Roaeof Women. Shrestha, I., A. Shrestha

APPSW-NEW A-1 ARUN moHYDROELECT?RC PRojECT: ENVIRONMEvTALaEcuTIVE SUMARY APPENDICES

Volume11. AmaNwie EnergyPmposal Rijal, K

Volume12- Tourism. Fleming,W.B.

Volume13. MacroManmement System. Dhungel.D.N., S.N. Mananc_ar. 3. PUBUCATIONSOF THE MAKALU-BARUNCONSERVATION PROJECT

Shretha, T.B.. LN. Sherpa.K Barnskota,& R.N. NepalL1990. Makalu-Bawu Natonal Park and Conservaton Area: Maasement PAn. DepL of NaL Parksand WMidlifeConservatillonoodlands Mountain Institute

This ManagemerntPlan was basedon 1hefollowing publications and worldng reports produced during the plannirg and fieldsurvey phase (1 988-1 99MM: Component Plans

1. ScientficResearch Plan, by Dr. rlirhaB. Shrestha, Dr. Keshab Raj Rajbhandaril,Mr. RodneyJackson and Mr. NarendraR Khanal

II. ParkManagement Plano by Mr. LhakpaNorbu Sherpa, Mr. Ang Rita Sherpa,and Mr. JayapalShrestha

Ill. Tourism Maragement Plan, by Dr. KamalBanskota and Mr. MurariUpadhyay Iv. CommunkyRosourcManagementPlan, by Mr.Rohk Kumar Nepali, Mr. KhagendraSangarn, Dr. Charies Rambleand Mr. Chandi Chapagamn Woridng Papers Report 1: TaskForce Starup Workshop,by Mr. RobertDavis Report 2: BrefingSeminar Goas and CurrentStanus of Acives, by Mr. MuranUpadhyay Report 3: TaskForce Review Meeting

Repot 4: Rewewof NabonalPlanning Documents: Seventh Five- Year Plan and Fostry MasterPlan, by Dr. KamalBanskota

Report 5: Field TdpRepot and DiscussionPaper an Conservaton and Management of te Makalu-Banm Area, by Mr. LhakpaNorbu Sherpa and Mr.Ang RitaSherpa

Report 6: Tousm Managementand Socio-EconomicSurvy:Field Rport forSankhuwasabha DLsIct by Mr. RohitKumar Nepali and Mr. KhagendraSangam

Report 7: Stas ofCommun Needs,Resouces andDevelopment Sankhuwasabha Dlstrict by Mr.Rohit KumarNepal and Mr. KhagendraSangam

Report 8: Scientfic Report on 1989Field Survey:General and Phyto-Ecology,by Dr. Tirlha Bahadur Shrestha,Dr. PuspaRatna Shakya, and Mr. Hari SaranNepal

Report 9: The Effbctsof Browsingand OtherDistubances on the Forestand Shrub Vegetationof the longu, lnkhu and Dudh KoshiValleys, by Dr. ChadwickD. Oliverand LhakpaNorbu Sherpa

Report10: PreliminaryNotes on the CulturalDiinension of Conservation,by Dr. CharlesRamble and Mr. ChandiCapagain

Report11: Aspectsof Widlife Protectionand UJtdizationin the Makalu-3anunConservaton Area by Dr. RodneyJacksn and Mr. Hari SaranNepali

Report12: ThreatenedWddlfe, Crop and Wildife Depredationand Grzng In the MakaltuBarn ConservationArea. by Dr. RodneyJackson

APPrEPdMEW A-2 ARUN ItI HYDROELECTRICPROECT. ENVRONMENTAL EXECUTVE SUMMARY APPENDICES

Appendix 2. RECORDOF CONSULTATIONAND MEETINGS

1. NEPAL ELECTRICITYAUTHORITY Status Reports

NEA distributes Arun III Project status reports on a regular basis to the following government agencies and Industrial organisations in Nepal, for their commeits and recommendations:

- Ministry of Water Resources - Departmentsof Roads - Ministry of Finance - Ministry of Industry - National Planfing Commision - Ministry of Law and Justice - Department of Civil Aviation - Nepal Industrial DevelopmrentCorporation

Similarly,the Arun Ill Project office provides relevant informationto the following international agencies and embass.es

The World Bank - United Nations Development Programme (UNDP) - Asian Development Bank (ADB) - Kredtanstalt fur Wiedeaufbau (M

= Swedish Embassy - French Embassy - British Embaswy - Embassy of Federal Republic of Germany - Embassy of Japan - Royal Belgian Embassy - Embassyof Finband - Ermbassyof United States of America

2. THE CONSULTINGENGINEERS: JV ARUN Ill in association with SCOTT WILSON KIRKPATRICK & PARTNERS

During the project design studies a variey of govemment agencies, local and intenational non- government instittes have been consulted. The reports have been reviewed in draft by IDA and ADB and their comments taken into account in the final versions. 2.1 1990 Environmental Impact Assessment Study (Hydroelectric Power Components)

Mhe following persons and organisatons were consulted during preparation of this report (FebrM March 1989.

1. Buges Watson, R. 2. Chand, Mr- H.M. Ambassador Deputy Project Manager British Embassy Marsyangdl Project

PGODEW A-3 ARUN i11HYDROELECTRIC PROECT: ENIRONMTAL EXECuTIVESUMMRY APPENDICES

3. Crulkshank, E 7. Rosser, C. Dr. Deputy Resident Represenltatve Director, ICIMOD World Bank, Kathmardu 8. Shrestha, J. Dr. 4. Garbut, G. Zoolgy Department,Tribhuvan ProgrammeAdvisr/Director Uriversity Koshi Hlls Deveopment Programme 9. Williams, D. 5. Maila, U.M. Prof. ErMironmentaist HMG Plnning Commission World Bank, Washington

6. O'Leary, D. Arun 3 Task Manager World Bank, Washington

2.2 1992 EnvironmentalImpact Assessment Addendum

Organisations consud on aspects of the EIA Addendum study (June-August 1991):

- Departnent of Archaeology, HMG/N - King MahendraTrust for Nature Conservion: Managementof Basinwide Impacts Study team - Makalu Barun Conservation Project - Koshi HDls DevelopmnentProgramme, Dhankuta - Nagar Bikash Samitee (rown DevelopmernBoard) - Natural History Museum, Kathmandu - Support to Special Public Works Programme (Hill Irrigation Project) - Water and Energy Commission - Rural Housing Company (formerly the Nepal Resettlement Company) - Tribhuvan University - Electricit do France (NEA Tvwnnirg Project) - The World Conservation Union llUCN), NCS Support Office, Kathmandu - Overseas Development Administration (Bangkok) - International Coundl for Bird Preservation (U.K) - NationalGrid Company plc (UJ.K) - Powerwatch (U.K.) - World Conservation Monitoring Centre (U.K)

Tumlingtar 26 local teachers, businessmen,thteliers, farmers, and students Hile: 4 local businessmen and hoteliers Basantapur 5 local businessmen and traders, a banker and a forest ranger 2.3 Access Road- Valley Route: EnvironmentalImpact Assessment 1992

Persons and organisationscontacted during fieldwork for the revised access road and transmission line alignment (Valley Route) (August 1992):

- Koshi Hill Development Programme - Regional Statistics Office - Cadastral Survey Office

Hile: 8 local persons including Village Development Committee members, hoteliers, policement, and shopkeepers Basartapr: 4 local persons, including businessmen, a banker, and a hotelier

APFEWKt*-W A-4 ARuN 111HYDROELECTRIC PFwtOECT ENwRONMENTAL EXECUmVE SUMMARY APPENDICES

Betwen Basartpur and Tumlingtar:8 local personsindudng a teacher,farmers, hotel keepers and houswwves

List of argarsalon consultedduring office work in Kathmankr

- Waterand Energy Commission - MakaluBarun ConservationProject - Departmentof Hydrologyand Meteorology - RuralHousing Company - StrengtheningDecentralised Planning in Nepal (a UNDPproject) - The WorldConservation Union QUCN) - IntermaionalCentre for IntegratedMountain Development (ICIMOD) - MedicalResource Centre - MalariaControl Division - Koshi Hills Developrent Programme

3. MANAGEMENT OF BASINWIDE ENVIRONMENTAL IMPACTS STUDY 1990-1991

This major study involved extensivelocal consultationfor data collection. To assist in defining appropriatemitigation measures, two workshopswere held in Dhankuta. Participantsincluded goverment officersfrom the four surroundingdistricts, and representativesof local NGOs.

In addition,two discussionseminars were held for top officials,one in Kathmanduand one nearby,in Dulikhel.

4. PUBLIC CONSULTATION

A public hearingon Arun IlIl was held in Kathmanduon 12 February1993, organisedby the Nepal ForumoF Environental Journalistsand otherNGOs. Followingpresentations on the ArunValley and its features,NEA officialsfurnished replies to questionsfrom the 1loor.

APPBWMNM A-5 ARLIN IN HYDROELECTRICPRojEcr: ENWRONMENALEXECUTIVE SUMMARY APPL.NDICES

Appendix3. BASINWIDEIMPACTS STUDY 3.1 Introduction

The Arun IlI Hydioelectric Projectis rikelyto be a cata for significant changes in the biological, social ard economic erironmeint well byond the immediate enirons of the power facilities and road aligrmnenLRecognising this, in 1989 the United Naions Development Programme (UNDP) funded a major, 18-monthsuy of envirornmentalmanagement and sustainable developmentin the Arun Basin, intended to complement the more conventional environmental impact stuies undertaken by NEAls din team.

Stated in simple terms, the goal of the sbtdy was to ensure that negative impacts of Fte Arun IlIl Project are minimised, and local and regional benefits madmised. The study was not an environmental impact assessmern in the normal serse, but was in effect a regional development stdy which focused on ways in which managementof the resources, economy and environment of the Arun Basin might best respond to the processes of regional charge brought by the hydroelectric developrnent programme.

The exercise. the Manageanentof Basinwide Environmental Impcts Study (MBEIS)Pwas executed by the World Bank. which commissioned a national NGO, the King Mahendra Trust for Nature Conservation (KMTNC) to undertake the work. The team engaged by the KMTNC to undertake the study on its behalf was comprised almost entirely of national experts. The study was completed in October 1991. and its findings presented h English in 13 volumnesunder the title Ernironmental Managementand Sustainable Development in the Arun Basin.

The team's recommendationsare now being discussed by Government,and steps are being taken to tanslate the recommendedmeasures into implementare programmes. The following notes summarise the approach and main findings of the study, and outline its major recommendationsand proposals. 32 Approach

In undertaking the study, the MBEIS team identified four *Key Planning Areas (KPAs) as a basis for orgarusation. These formed the four main themes wittin which work proceeded. They were:

* Natural Resources * Sustainable Economic Growth * Cultural Resources * Social and Institutonal Factors

In addition, importnt supporting studies were undertaken in the following subject areas:

* Regional developmentframework * Trade and trafic * The role of women * Settlement guidelines * Alterate energy sources * Monitonrig and evaluation * Macro-level instiutonal management

For analytical purposes, the basin was divided into "high impact areas (HIA) and Olowimpact areas- (UA), with the HIA defined on the basis of experience elsewhere in Nepal as the area within a half day's walk of the proposed road alignment. Ot should be noted that at the time of the stuy, the proposed road alignernt was the old Hill route).

APPBIOWUEW A-6 ARUN 111HYDROELECTRIC PROJECT ENVIRONMENTrAL EXECUTvE SUMMARY APPENDICES

The basinwas alsodivided Into three zones north to soulh,the "Upper Arun, *MiddleArun and 'Lower Arun'. A comprehensivehousehold survey provided basic data for manycomponents of the study.

3.3 Objectlves

mhefolaWing olectives wereidentffied as guidingprinciples for the developmentand Implementation of podidesand acon programmes.

* Mitgationof negativeimpacts on naturalresources.

* Wise use and managementof naturalresources.

* Protectionof biodiversity.

* Mairntenanceof sustainablesupplies of naturalresources

* Achievementand mairtenanceof sustainableeconomic improvement and avodance of economicmnarginalisation lor all residentgroups.

* Equtable distributionof benefitsamong all socio-economicgroups and betweenmen and womern

* Alleviationof poverty.

* Provisionand mairtenanceof mears by whichthe peopleof the valleycan participatein and determinedecisions affecting their future.

* Mairtenanceof valuedcultural norms, practices, sites and structures. 3A Regional Development Framework

A Trade andTraffic Survey predicted the probablefuture traffic andtrade patterns. Settlementsand marketcentres that will suffer as a result of the new road were identified,and likely futuregrowth centrespinpointed Buildingon these predictions,the study defineda 'growth corridor' with nodal growthpoints centred on the new roadas a *ameworkfor regionaldevelopmert, and for the planning and implementabonof future developmentprogrammes. 3.5 Natural Resources: Land Use Changesand Biomass Analysis

This componenof the projectanalysed land use and land use changesand studiedthe biornass balancein the impactarea, drawingon existinginformation, forest inventorysurveys, the household survey,aerial photographyand other sources.

Comparativeanalysis of 1978and 1990aerial photography of partsof the middleand lower Arun Valley revealedthat overthis periodthe areaof cultivatedland grew at a rate of 1.35% per year,with a total of 773 ha convertedto cultfivatedland from forest,shrub and grazinglands. Expansionof cudtivated land into every classof forest cover was observed.

A computersimulation model was devebpedto facilitateanalysis of biomass data and to indicatetrends and impactswhich wouldd occur as a resultof the newhill road. Of greatimportance is the 'destuction at the margin' processwhereby users deplete the forestsat the edges,rather than travellingfurther from nomeand spreadingthe harvestingimpacL The openaccess nature of the resourceexacerbates this process,since users have no incentiveto use the forestson a more sustainablebasis.

APPBSONEW A-7 ARULINl HYDROELECTRICPROJECT ENVIRONMENTAL EXECUTIVE SUMMARY APPENDICES

The simulaton model pointed towards some Imporant conclusions. In summary, these are:

Under current and procted demnnds, the process of biomass deplepionIn the Middle and Lower Arun HIAs Is such that It is presently not on a sustainabe path, even wihout the Arun Ill project and without the destrucion at the margin process.

* With the Arun IlI project, the increased non-domestic demand for biomass wil accelerate bbmass depblion, and therefore the deforestation process.

* If the forest use regime in the low impact regions is changed from open access to regulated use, the resource use patterns in these regions can be made sustainable.

* The destruction at the margin process must be elirrinated so that the forests can sustain the hill farming system through a steady supply of biomass to the farms.

For some hot spots" high priority pre-emptive programmes prior to the construction period are essential.

Pre-emptive and longer term action programmesare defined to address these issues. The nature of the forest management systems, tenure and management is seen as the fundamental issue. Consequently,the programmes are based on a general strategy which is:

So gradually irnvestgreater property and use rights to forest and pasture resource user comnmunities.0

3.6 Biodiverslty

The biodiversity cornponentof the MBE3Ssought to identity wildlife and plants of significant intrinsic or economic worth, and to develop implemrentablerecommendations for their conservation. The Basin was cofirmed as an area of considerable significancefor its biodiversity values, with populationsof a variety of endangered birds, mammals, reptiles, insects and fish, as well as having a high diversity of tradifional crop plants, and high levels of indigenousknowledge of fbrest product use (ethnobotany). Without effecie mitigation,these values are likely to be severely jeopardised by the Arun III ProjecL

Major recommendationswere:

* Establishment of a Milke Danda Conservation Area to cover Milke Danda, Ja5ale Himal and LumbasumbhaHimal, with the objective of conservingthe Arun Basin's last tract of relatively undisturbedforest east of the Arun River.

* Vegetation and land use mapping of the Arun Valley as a basis for future management, implernentationand monitoring.

* Community managementof natural forests, including cloud forestsb at Sukepatal, Hurure and Chichila (affected by the hDirroad aligrnment),sal and subtropicaVlowertemperate forests at Sabhaya Khola and sal forest at SatighaL

* Conservation of crop genetic diversity.

* Conservation awareness, education and training.

* Biodlversity research, and the creation of a biodiversitydatabase.

APPENDMPW A-B ARUNtI HYDROELECTRICPRojECT: ENVRONMENTAL EXCUTVE SUMMARY APPENDIC

3.7 SustalnablItyand EconomicGrowth The objectiveof ths componentof the MBEISwas to Identifyimport economicactivfies and liO gs, assessthe likely economicImpact of Fe accessroad on relativepries, identify major problems,assess the comparativeadvantage of new economicopportunities. and identifyways and mears of mtgating rngave economicImpacts and promotingpositive impacts. The studyreviewed previousexperience of newroads in Nepal,and developeda multi-marketcomputer simulation modal for anals.

Usingthe simulationmodel, forecasts of futureeconomic performance and developmentwere made, with endwithout the newaccess road. Theseshowed that, without the road,the economyof the valey wouldface furtherproblems in the nitue, witha gradualdecline in alreadylow realper capitaincomes. Mechanismsinclude, for example,an increasirigfood and calorie imbalancedue to increasing populationand decreasingproductivity, rising commodityprices relative to prices in the Terai, and a fall in the proportionof utilisedavailabe labourfrom the present44 %.

The Arun IlIl Projectis predictedto have major impactson the Valley'seconomry: firstly, duting the constuctionperiod by generatingcash income for locallyemployed labour, with consequentknrock-on effects on local demandand prices$secondly, foilowingthe openingof the access road and the cessationof construction,by exposingthe Valleyto the plainseconomy, greatly lowering the pricesof impord goods, eliminatingmost long-haudportering opportunities, and increasingaccess to hill resources.These impacts wll notrbe spreadequally between social and ethnic groups, or betweenthe sexesand ages

The simulationmodel precdctedthat real incomesafter completionof the Arun IlIl accessroad wit becomeworse than the baselinescenario (rable A3.1,Figure A3.1). These results confirm experience elsewherein Nepal that the potentialeconomic benefts of the new roadwill not be realisedurdess effectivecomplemeritary investment programmes are implemented.

||TableA3.1 ESTIMATEuDCHANGESIN REAL PER CAPITA INCOME IN SANKHUWASABHADISTRIzCT Tale A3.1 ESliMATEDWITH AND VWTHOUTPROJECT AND MmGATIOND REALINCOME YEAR 1 N 1994 1995 1996 1999 200 2002 2004 2006 2010

Bassauo 2418 2363 2 218 2071 1957 1949 1798 1578

VWithAnm 3 29Z6 2930 1858 1841 1753 1672 1524 1498 1394

WithmitIgi 2B96 2822 1995 2197 2576 2631 2650 2710 2783

The odl sumedroad corwsruction began In 1991,and finished in 1995 IncomeGenerating Programme - seeTable A3.1 for details

The study recommendeda range of action programmesto enhanceeconomic opportunities and minimiseproject-rs.;d hardshioand marginalisation.These includeemploying local personsin constructionto the maximumextent possible, importing food grainsduring the constructionperiod to reduceprice inflation,and assislingvegetable production to meet increaseddemand. In the longer- term, irrigationdevelopment the supply of agriculturalinputs such as fertilisers,seed producfion, promotionof promisingcrops, srengthening of localcooperatives, vegetable production, and livestock andfn.it developmentare seen as priorities.

APPBmUEW-N A-9 ARuN ImHYDROELECTRIC PRojECT: ENVRONMENALExECuIE SUMMARY APPENDICES

3.8 Tourism Tis studyidenfd a sigficant potentialfor increased tourism i theArun Basin, follWing the opening of the nowroad. However,It stressedthe needfor goodmanagement to avoidthe damagethat wunanagedtouism has createdin otherpalts of Nepal. Developmrentof tourism infrastructure, desgnatioof mnagementresporsibilty, and education of localirnabtantsr and tourists are critical to ensuringa self-sustainingtourism industry. Thestudy makes a rangeof recommendationscovering issues such as specificsites and actiies for touristuse and developmrent, lodge and hotel developmnent, infrastructure for ron-trekkringactivities, faclitiestominimise environrmertal damage from tourism, support for tourism-related income generating activities,and tourism-relted education and training.

3.9 Cultural Resources Thiscomponent of thestudy took an in-depthlook at culturalvariability, the Basin'scultural heritage, andthe particularcultural values of the ancienthilltop town of Chainpur,on the whill'road alignment Thectural variabilityinvestigation compared the varioussocio-ethnic groups in termsof distribution, ecologicaladaptations, traditional economies and other cultural traits. This permitted the assessment of likelydifferences in individualand group behaviour in responseto economicopportunites resutinhg fromthe constructionofthe newroad, and of the abiliy ofthe different groups to respondpositively to the processof change. The analysisconfirmed that there is a likelihoodthat the economicbenefits brought by the newroad will becaptured by select groups. Some menbers of groupsalready disadvantaged wit sufferfurther trough lossof landand loss of theircurrent means of liveiihood(e.g. portering). Theshtud recognised that it is difficultand perhaps undesirable to propose direct actions in the cultural 1eld,as the cultureof anygroup evolves and responds to changedcircumstances, and any pressure for actionmust come from the peopleconcered. The studysuggests that the thrustof future programmesmust lie notin initatingactions directly, but in empoweringand assisting communities to determineard decidethe directionthey wish to take. It is thereforesuggested that the emphasisof futurecultural programmes shoudd be on faclitatingthe development and operation of effective*User Groupsat villagelevel. In addition,recommendations were made covering preservation or restorationof specifiedmonumernts andsacred sites, recording of folk heritage such as crafts,performances, beliefs and rites, preservation of ethnographiccultural itemns through establishment of an ethnographicmuseum at Chainpur,and heritageeducation. 3.10 Social and Institutional Factors Thiscmporet ofthe study focused on the adequacy and effectiveness of institutional arrangemeats forresource mranagement inthe Arun Basin. Information was obtained through case studies of existing resourcemanagement systens, interviews with governmentline agenciesand householdand communityquestionnaires. The analysisrevealed serious deficiencies in the abilityof governmentline agenciesto handletheir currentworkloads effectively, and throws severe doubt on their ability to copewith the increasedand changeddemnands which wil comewith the constructionprocess. Case study results indicated that projectswhich work through properly established and functioning user groups have several advantges over purelygovernment-run projects. The recommendationstherefore place strong emphasis on communiyparticipation and the establishmrentof user groups as a meansof effectiveresource

APPENDLPNW A-10 ARUN 111HvDROELECTRIC PROJECT: ENVRONMENTAL ExEcuTivE SUMMARY APPENDICES

management. This approach capises on hstorica land mnanagementsysterns (A and the re- emergene of informal c mnagert groups (orest security committeesl. 3.11 The Role of Women

A specialstudy of this subjectshowed that, inthe nrralsubsistence lifestyle of the AwunBasin. women's total work burden Is high compared to that of men, both In producton activibes and in household chores. Their totai contributionto householdIncomes is higherthan males,bt thay usuallydo not enjoyformal awnership or legalcontrd of productiveresources. In general,they have a smallerrde in decisionmaking than men, btthis variedconsiderably arong the dfferentsocio-ethic communities.

The study indicatedthat compensatonmoney paid for land taken by the project goes to male householdheads and is not necessarilyavailable to womenwho, subsequeniy, have to supporttheir familieson a smaler areaof land.

Recommendedprogrammes cover issues such as servicesector micro-enterprise initiaives, capacity buildingof self-helpand users'groups, agro-processing through improved techndogy, use of common propertyland resources, vegetabe products, herbs and spices, livestock producton, environmental and sanitaioneducation, and male sensiisationto genderissues. 3.12 Settlement Guidelines

This componentof the stucdyconsidered the form and growthof maor settermentsaffected by the nrow road. It focused prinarily on Tumfingtarand Chainpur.and to a lesser extent on Basantapur, Khandbarand Nwun.Chainpur received particular attention because of the qualrtyand appea of its architectureand villagedesign

Recomn addressland useplanning, physical infrastructure, environmental concers suchas taffic safety,fire safety,pollution and erosioncontrol, the built environmentand settlementplanning aministratiorL As in other cornponensof the study,considerable stress was placedon community paicpation anduser group decision making, with a recommendationfor the formationof a Commnunity PlanningCommittee in each seterement. 3.13 Altemative Energy Proposals

This componentof the stdy soughtto idertify and quantifythe benefitsand costs of providingenergy souces aher than fuehNood.It was undertakenbecause of the likelyincreased pressures on forests for firewood,the needfor newenergy sources for programnmesto improve socio-economic conditions, andthe likelyresentment and dissatisfaction among local people if the Arun IlIlproject proceeds wifout provisionof electricityto localcommunities.

The report recommendedthat the power generationcapacity that will be establishedto meet the constuction phase requirementsfor the Arun Ill projectis later divertedto providepower for major growthcenrres. Micro-hydroschemes are recommendedfor moreremote centres with smallerpower demands.

APPENwNM A-1 1 ARuN miHYRoELCTIC PRaECT. ERONMENTAL EXECUTVESUMMMY APPENDICES

3.14 Policies and Action Programme Policy Recommendations

The folowing poiicy recommndaIon were made to address matters of particular concern Identified In the course odthe study:

* -liat His Majesty's Government reviews urgently the potential Impact of the constuion process on the responsibilities of HMC/N agencies, and takes any necessary steps to strengn resources and personnel In the valley.

* That HMCj-Ngive urgerit and serious corsideration to establishmert of suiable interim and long-term institutionalarrangements for environmental implementationand management in the Arun Basin, including the early appointment of an Arun Basin Interim Management Board ancd establishmert of an Arun Basir%Ernironmental Management Unit.

* That resources be allocatedto allow the cadastral survey in the valley to [9 expedited, and that It be completed as soon as possible. (This is because of evidence that forests are being destroyed in anticipation of the cadastral survey).

* That every effort be made to encourage or require the use of the highest possible percentage of local labour in the construction projects.

* That the construction power supply system be located, planned and designed so that it is suitable for use as a permanent power supply to local growth centres when construction is complete.

* That effective negotiation and dialogue be encouraged or required among the Contractor, Engineer and affected sefflements about long-term work camp facilities, and what might be agreed to be shared in terms of labour, materials cost, maintenance and inheritance after completion of the project. Action Programme

The recommendationsemanating from various componerts of the MBEIS have been integrated and re-grouped under a thematic structure. They are presented in the form of detailed and largely self- contained action programmes which are set out in a separate volume of the study report These are summarised in the table overleaf which is reproduced from the study's summary.

The table also identifies fve recommended pre-emptive programmes for priority implementation, and gives an indication of the suggested tming and programme for each proposed programme.

Provisional budgets for the recommended progarmmesare given, totalling US$ 14.6 million. Of this, the pre-emptive measures require $ 2.6 million.

A-12 ARUN 1l1HYDROELECTRC PRroJECT: ENwRONMENAL EEct1vE SUMMRY APPENDICES

Appendix4. MAKALUBARUN CONSERVATION PROJECT

4.1 IntroductIon

The Makalu-Barun area contains one of the last pristine ecosstems of the eastern Himalaya. Elevaons range from 435 m to 8463 m over a distance of sofe 40 km. The resulting biophysical diversity is of global significance.

Recogrising this, and folowing a five-year planning and preparation period. In 1988 HMGIN signed a 12 year agreement (1988-2000) with the Woodlands Mountain Institute QMl),an intermationalNGO based In the U.SA, to establish and manage a new national park and conservation area as an eastwards extension of SagarmathaNational Park. The project, the Makalu Barun ConservationProject (MBCP), covers an area of 2,330 km2 acqjoiningthe existing 1,148 km2 Sagarmatha (Mount Everest) Natonai Park to the west and the 35,000km2 Domolongma (Everest) NatuweReserve in the Tibet Autonomous Region of China to the north. 4.2 ManagementPlanning

As the first staga of the cooperative programmebetween the Department of National Parksand Wildlife Conservation (DNPWC) and WMI, a major study of the area was undertaken by a special task force. Ths was composed of in-country experts supported by WMI specialists.

The study produced a large number of working papers and four management plans. These covered four subject areas: - Park Management,Tourism Management,Community Resource Managementand Sdaentic Research. The analyses and recommendationsof these four plans were presented and surnmarised in the Makalu-BarunNationat Park and Conservation Area Management Plan, pubished in November 1990.

The proposals of the Management Plan incorporatethe latest thinking in protected area zonation and comnunity development, including a variety of proposals which seek to integrate conservation objectives with enhancement of economic and social opportunities for the local population. As sunmarised in the plan itself, they are:

The Management Plan calls for the establishment of a new 1,500 km2 National Park and adjoining 830 km2 Conservation Area in the northeastern Solukhumbu and nortern Sankhuwasabha districts of eastern Nepal. Management Plan objectivesare to protect an area of unusual natural beauty and biological diversity, to improve the socio-economic conditions of local people, and to develop models for sustainable conservation and development.

wImplementation will be based upon a participatory model of land management and resource utilisation. This model incorporatesthe experience, traditional rmanagement systems, and recommendations of local people into project policies, strategies, and actions. Additional income-generatingopportunities will be developed, particularlyfor women, through production credit groups. Programmes have been designed to take advantage of the new produce and labour markets that will result from the Arun IlIl Hydroelectric Project and accompanying road construction. Socio-economic improvementswvllthus be balancedwith environmentalprotection and natural resource sustainability.

wFsDDuEnW A-1 6 ARuLN111 HYDRoELECTRI PROJECT: ENVIRONMENTAL REcuTvE SUMMARY APPENDICES

sheseprogrmmes are based on a parficipatory planning process snd have been developedto engae the local people in a muAuallysupportive learning proces. Thus, while detailed programs and targets have been developed, ftese are ne aily kdicatve. They are subjct to change throughon-going partcipatory planning and moring.

Both the National Park arid the Conservation Area will be arnagedby HMG's Departnent of National Parks and Wildlife Conservation (DNPWC). The MBCP is supported through a collaborativeagreement betveen the DNPWC and the Woodlands Mountain Institue, with funding from concerned international and private agencies." 4.3 Current Situation

The project completed its iritial planning phase when HMG/N formally gazetted the Park and Conservation Area in November 1991 (Map 4). A Park Warden and WMI Co-Managerwere appointed in 1992. 1993 saw the project begnning to establish its presence on the ground, commencingwith the estblshmeent of temporary offices in Khandbari, the Sankuwasabha District headuters.

The project is being co-managed by DNPWC and WMI project staff, with WMI providing firm funding of $ 42 million from a variety of sources. National and local cost sharing will be of the order of NRs 1.75 million.

Over the next decade the Department of National Parks and Wildlife Conservation is likely to benefit signicantly by way of in-service and on the job training in state-of-the-artmountain park management

4.4 Relationship of MBCPto the Arun Ill Project

Protection of the upper watersheds of the Arun River by the MBCP was identified as a benefit to the Arun lil Project in the MBCP Management Plan.

The Management Plan also states that major development proqects,indcuding hydroelectric schemes, will be prolhibted within the National Park, but does not extend this ban to the ConservationArea As indicated in Mas 2 and 4. the section of river on which the ArunlIl Project is to be sited forms the eastem boundary of the Conservation Area. However, it is noted that:

the Aun IlIl Hydroelectric Project and possible addifional Anun projects are of immediate concern and wil consttute a focus for MBCP monitoring and consultafive activities.

The Management Plan outlines some specific proposed activities related to the Arun lIl and Upper Arun projects, such as review and critique of studies and assessments, developmentof recormendations, impact morntoring,and assistance to local people in gaining project employment. Since consruction of the Arun Ill access road will not begin in earnest urnil after the 1994 monsoon, the MBCP has a lead time of some 20 months to establish appropriate mitigation and enhancement programmes.

The World Bank has proposed that MBCP should be a candidate for additional funding of $ 3.8 million from the Global ErnvironmentElFacility (GEF).

APPENODUAW A-17 ARUN i11HYDROELEC7RlC PROJECr: ENVIRONMENTALEXECUTVE SUMMARY APPENDICES

Appendix5. IMPACTMATRICES

Ths Apenix containsfive impactma tabbeskas fdlows:

A5.1 Impactsof RoadConstruction on Hile A19

A52 Impactsof Temporaryand PermanentFacilites on TuwlingtarArea A2D

A5.3 Impactsof ArunAccess Road 423

A5.4 Impactsof HydropowerComponerts A25

A5.5 Impactsd TransmissionLine System

A5.1 Stages1 and2 TransmissionLine Impacts- ConstructionPeriod A2B

A5.5.2 Stages1 and 2 TrarsmissionLine Impacts- OperationalPerod AM3D

A5.5.3 SubstationImpacts 31

APPE W A-18 ARUN / HYROELECTRICPRoECTr EVRONMENTAL ExCETivE SUMMARY APPENDICES

Appendix 6. INDEXTO ENVIRONMENTALSECTIONS OF TENDERDOCUMENTS

Normal good engineering practice indudes mary measures which qualify as seund ervironrmertal prtice as wetL In adcdibon,In preparing the Tender Documenitsfor the Arun III Project special attention has been given to draffing the Clauses where entironmental or socio-ecoriomicfactors may be involved. As the Project prceecds, this consideration is to be extended to all sections of the documents and for al Lout. While some Clauses may contain only minor references to environmental nmaters,they are nevertheless important,and where appropriatehave been cross-referencedto a more detaild dause.

The pinrcipal environmentally-relatedclauses, taken from CMi Lots Cl and C3 (the first two major lots to be tendered), are as follows:

A FORMS: C1/C3

The FORMS section provides proformas for the Bidders to complete, and allows rapid comparative evaluation of bids.

2.18 Description, Location and Drawings of Consruction Facilities and Temporary Camps 2.19 Health and Safety/EnvironmentalProtection 220 Muck Disposal

A INFORMAmON: C1/C3

This section of the docmnerztsprovides information about the project to the Bidders.

ai.1 General

32.5 Natural Ernvironment 32.5.1 General 325.2 Climate 3.2.5.3 Hydrology 3.25.5 Geology 32.5.6 Seisrricity 3.25.7 Topography, Soils and Land Use 32.5.8 Vegetation and Forests 32.5.9 Fish 32.5.10 Mammals, Birds and Reptiles 32.5.11 Other Prjects

32f6 Popudation,Social and Cultural Aspects 3.2.6.1 Introduction 3.2.62 Population Statistics 32.6.3 Education and Skills 32.6.4 Labour Force 32.6.5 Cultural and Religious Sites 3.2.6.6 Archaeological Sites 32.6.7 Health

AI'ewdEW 32 ARUN 111HYDROELECTRIC PROECT. ENVIRONMENTALEXECUTIE SUMARY APPENDICES

32.7 Rural Economy 3.2.7.1 Introduction 32.72 Agriculture and Livestock 32.7.3 Off-Farm Income 32.7.4 Fishing 32.7.5 Fuel and Fodder

32.8 Instituions

32.15 Labour Regulations

B GENERAL CONDmONS: C1/C3

Together, the GENERAL CONDMONS and CONDIONS OF PARTICULAR APPUCATION cornute the CONDMIIONS OF CONTRACT.

FRDIC: Standard Federation Irtermatnale des Ingenieurs Consedis Conditions (4th Edition, reprinted 1988 with editorial amendments)

C CONDMONS OF PARTICULAR APPUCATION: C1/C3

The CONDITIONS OF PARTICULAR APPUCATION qualifythe GENERAL CONDMONS and override both these and the TECHNICAL SPECIFICATIONS.

GENERAL OBUGATIONS

16.4 Employment of Local Personnel 16.5 Employmerit of Local Sub-Contractors 20.1 Care of Works 24.2 Insurance against Accidents to Workmen 27.1 Fossils 30.8 Mainenarnce of the Access Road

LABOUR

34.1 Engagement of Staff and Labouw 342 Health and Safety Plan 34.3 Rates of Wages and Conditions of Labour 34.6 Housing for lbour 34.7 Accident Prevention Officer; Accidents 34.8 Health and Safety 34.9 Measures against Insect and Pest Nuisance 34.10 Epidemics 34.11 BurialCremafion of the Dead 34.12 Supply of Foodstuff and Fuel 34.13 Supply of Water 34.14 Sanitation 34.15 Alcoholic Uquor or Drugs 34.16 Arms and Ammunriion 34.17 Festvals and Religious Customs 34.18 Disorderly Conduct 34.19 Labour Negotiations 3420 Infringement 3421 Records to be Kept

-W 33 ARUN n HyDRoELEcTRICPwEC. ENVIRoNMENTALExEcuTV sumAY APPENDICES

34.22 List of PersornelEmployed 34.23 Reparation of Labour

MATERIALS,PLANT AND WORKMANSHIP

36.7 Local Materials

ENVIRONMENTALPROTECTION

79.1 Ernironmental Protection Plan 792 EnvironmentalProtection and Care 79.3 PermanentSbuctures and Facilities 79.4 TemporaryStructures and Facilifies 79.5 Site Roads 79.6 Mairtenanceof OtherServices and Structures 79.7 SpoilDumrps 79.8 Pollutionof Waterways 79.9 Wildlife 79.10 Preventionof IllegalFelling and Transport of Timber 79.11 Land Reirstatement 79.12 ArchaeologicalSites 79.13 Control,Docunentation and Monitoring 79.14 AerialTransport 79.15 Measurementand Payment 79.16 FRrePrevenbon and FirefightingEquipment 79.17 RestrictedAreas 79.18 WasteCollection and Disposal 79.19 Relationswith Local Communitiesand Administrations

80. Liabirltyfor Maintenanceand RemedialWorks

D GENERALTECHNICAL SPECIFICATIONS: CI/C3 (but not C3-2 the AccessRoad)

The TECHNICALSPECIFICATIONS are in two parts:the GENERALTECHNICAL SPECIFICATIONS, and the PARTICULARTECHNICAL SPECIFICATIONS, which qualify and overridethemn.

1.1.2 Sitesfor Site Installaton 1.1.3 Removalof Site Instalabion 1.3.7 WaterSupply and SewageSysteriVDisposal 1.3.8 Frst-AidStation 1.3.13 Environmentaland Socio-EconomrcAspects 1.3.13.1 General 1.3.132 Conractoras Operations 1.3.13.3 Cotractors Superintendence 1.3.13.4 TemporaryStructures and Facilibes 1.3.13.5 Riversand Streams 1.3.13.6 WasteCollection and Disposal 1.3.13.7 Use of Woodas Fuel 1.3.13.8 Spoil Dumpsand Stockpiles 1.3.13.9 Relationswith Local Communitiesand Administrations 1.3.13.10 HealthCare and PreventiveActions

APEPBNEW 34 ARuN 11HYDROELECTRIC PRJwECT ENVIRONMENTAL E(ECUTIVE SUMMARY APPENDICES

E PARTICULAR TECHNICAL SPECIFICATIONS

The foloawn important Clause covers and cortrds spoil dunping into the Arun River.

Chapter 2 Cl/C2/C3

2.5.34 Dumping

The selection of Clauses below is taken from the Particular Technical Specifications for the Arun Access Road. Similar or idenfical clauses appear in te TechrmcalSpecifications for the oter Lots.

Chapter 3 ARUN ACCESS ROAD C3-2-E-3

100 GENERAL 101 Faclities for the Engineer 105 Pnvately or Community Owned Servces and Stru es 109 Land Required for the Works 111 Progress Photographs

200 SITE CLEARANCE 201 Clearing 202 Existing Vegetation and Roots

300 PLANTS AND PLANTING METHODS 301 Plant Materials 302 Pl-ating Methods 303 Fire Prevention

600 EARTHWORKS 601 Definition. Classification and General Use of Earthwrxws Materials 602 Explosives and Blasting 603 Excavation of Cuttings 611 Earthworksto be Kept Free of Water 612 Soiling arndRevegetaion 618 Environmental Pratection 619 Borrow Pits and Quarries 620 Spoil Disposal

900 SURFACE DRESSING 901 Materials

2000 MISCELLANEOUSPROTECTION WORKS 2003 Slope Treatrent 2004 Rip-Rap

2600 MATERIALS 2615 Fertirizer 2616 Grass Seeds

2800 MAINTENANCE

_ wN 35 TableA3.1 SUMMARYTABLE OF RECOMMENDEDACTION PROGRAMMES AND PROJECTS, MANAGEMENTOF BASINWIDEENVIRONMENTAL IMPACTS STUDY

r I i~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Bdempiementatlon $odor Major Recommended udg$ Shedule(ye ) LeOd eObltve. Action 1000'S 1 2 | 3 | 4 5 5.i 6 I7 0 19 0 Patcp

A. ConservationProgramme EnhancingCommunity Sustdlnableuse of forests;rnaintaln Estabish& supportuser groups; support ParticIpationIn Forest blodiversitylevels; minimise solleroslon: private planding; Introduce community 690 ' DFO Monogement& Conarvatlon betteruse of highlydegraded forest action .or..A...rur..development

'in volvementof Local Msetlabor camps' wood needs wilhout CommunltUeaIn Servicing Road severe forest damage; mInimize Formlocal commkitees to lIaise wihh& 20 ConstmitionRequirements potentialsoclal problems during road providewood to roadlabour camps > DFO building ______Managementof NationalForests Providefor Improved,exclusivel HMG/N Linkwith Institutionalstrengthening project andPlantations mngdofselectedforestsH U lforDFO to Improvenational forest mgt andPlantatios mngtof selcted forestsestablish forestmgt demonstration sites | 240 > > DFO

Conservelast extensive forests In the E.t.blisha ca.soaq km 'Conservation Conservation MilkeDanda Conservatlon Area easl;protet threatenedwldlie s Area';nature conserv.: pasture mgti 1.325 > -> NGO9 promoteecotourdsm, conserve tourismdevelopment; rural development . watersheds DNPWC

Promoteeconomic benefits from . Estabilshshort-term crop conserv. plots; Conservationof CropGenetlc domestic& wildplants for local short-termpreservation of material 805 x x x x x x x AgricuflureNtional Diversity communities & the nation abroad;aetablish local conserv. center RosearchCetre Presevatin ofMonuents,Presrve he Aun's ultual &folk Restore/upgradecultural site.; establish Arcaelogy Paredseraites ofFolkumeritage hreerietageArnscNalfk permanentfolk heritagerecord; establish SacreddSes &FolkHrag heritageuseum; 330 x " ' 3 Auchiamsolu heriageoducallon program Nalhlmsen LEGEND * Projects In itlics arereoommended for preemptiveaction prior to the x Plannlngfpreparctionperiod roadconstruction phase m Coreoivy > Continuingroutine operatlon I I I t~~~~~~~~~~~~~~~~~~~~mpletmnfatlon Meaor 8ector Oblotvwos RecommendedActlon BudgutUS$ | | | Sehedume| * ar.) 10 PadpLow ~~.faqubuV6U1______~~~~~~~1000's 11I 2 31.3416 i I i _ B. IncomeGeneration Programme

Agrcu Development-ural Improvepossibilities for long-term Irrigationdeveopment, promdlon of &DiversHflcatIon SankhLrwasabhaeconomicsustalnabilty District In cadfc;vgtbeproductioncardamom;vogetable productin; sedseod 1P77AC:N1,277 DAW

Minimizedegradation of forests, Cow& bufao milkproducton; mea; A LivestockDevelopment pastures& otherresources; improve production;plggery development; 841 >KHDP householdIncomes Improvedbreeds Developa strategicframework for EsalKHDsrc &VlaePors EcotourlsmDevelopment cotourlsmdevelopment which Is EMtalsh Dind Irt rastrudTureMot sensitiveto Onv. & cufture& provides Commitees;Provide Infrastructure, 350 .:d..trofxa M. localbenefits training& othe support Prormoteeconomically & environmentally Estabilsh business promotion officei SmallBusiness Promotion viablesmall business: provide providespecial loan programs. revolving 120 § > Devebpment assistanceto womenentrepreneur ftunds,etc.; link wRhmarket outlets C. Institutional StrengtheningProgramme

'StrengtheningGovernment Improveforest management; improve Institutionalstrengthening of DFO,support Irenglenstitutionsnt ImPlementationOfcommuniy-based ilakaagencies with physicalfacilltiesL 470 >.> developmentprojects manpower

Creation& Strengtheningof Improvecommunity-based resource Forn localuser groups; form and train . CommunityInstitutions mngt;Inilate L strengthenlocal CommunityDevelopment Committees; 530 x x > ABIMB economiccooperatives Increase& strengthencooperatives _. Extension & Tralning Programme Promolelocally-based actlon for EstablishTralnig & EducationSectlon; 'Training4 Educelion resourceconservailon, fund raising; tralnlocal HMt3N resource agencies, 655 x > >BEMU builda cadreof trained local people localpeople, women; fund-ralsing _

ForestryExtension Createattitudinal changes among Peopleregarding forest conservation local forestSupportextnsion DFO In developingprograms effective >330 | > |F0 F

Promoteeffective Informnation spot&poietann odsrc 0~UIE ArtsActlon Groups disseminationon conservatilon,health, Suppolr& providetralning to dldt| sanitation& otherthemes - - . Implementation SectorMalay Recommended Budget hdis (yem) Law Bodor ______~~~~Oblactves Aodon 1~~~~~~~~~~~~~~~~~1000,6US,$ 1 2 |3|4|S34 67910 5|§|S Partdeponb a~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~._. _ . I E. Infrastructure & Energy Programme

DlrectAccess Road Related Discouragetendency for communHlusto Providefor accessroad paving & link & DietAccess ProadRlaed abandontheir current locutions & move spurroads to largercommunities along 1.925 xNEA DevelopmenProject o the roadside the accessroad

8ettlement*RelatedSettleent-Reated EnableEable future uture developmentrof evelopert ofnecesriecessary developmentIdentify fundlng plansto supportto be preparedasetlement by 1,500 - ABIMB InfrastructureDevelopment Infrautructurewhin majorsettlements CommunityDevelopment Commitees

Improvesocial, polHical & economic Developrural eloctrification In hlgh Impact Insibutfn AlternativeEnergy Proposals conditlonsby tappingloea energy zone;develop micro hydropower 2,500 x _ I rural resources schemes;study energy subsiHutilon elecriflcation F. Research,Monitoring & InformationProgramme

BiodiversityResearch & Providedata to guideblodiversity mngt Ethnobotanlcalresearch, vegetation & wildlifeInventories & transacts:wildlife 250 WIlefF. . ABEMU Database & monitoringprograms depredationstudies

Trfil & Susp. Preparationof TrallNetwork Encourage& supportsafe & timely Preparea trall networkmap showing Bridg Dlv.; Map travelIn the basin settlements,market centers, etc., action 15 | TopographIal Maptravel In the basin ~planfor upgradlng/maintaninngtrails ISuiveypDept.W Identifyenvironmental trends & cendtiyevlnmf r al tefecriensdetion* Monitor& evaluatethe physIcal,social, *EnvironmentalMon horing codlosfrefciecnevto, cuitural& economicenivironment of the 750 EI ABEMU sustainabledevelopment of the Arun's ArunBasin resources TotalEstimated Budget over 10Years US $ 14.6Million LEGEND x PlanningVpreparationperiod * ProlectsIn Italilcare recommendedfor prempffvo *ctlon pifor to the road constiuotlonphar I Core activiy > ContinulngrouUne operatlon TableA5.1 IMPACTSOF ROADCONSTRUCTION ON HILE

DIRECT/ SIONIFICANCE DURATION TOPIC IMPACT INDIRECT H: Hlgh M : MmIATION REtIPONSBI" 0: DIrect M: Medium M: Modium IMOTO I:Indirect L: Low L: Long

PossiblepoilLtion and fires from spills and Normalcars and good housekeeping. HMO/ acidns 1 saniutatonand waste droms5pollsenda L s Adequaiesaniation facIlItles;controlled CMI Aviatko acctdrnts,sanRatlon and waste disposal disposalof waste Contractors NATURAL RE8OURCES Demandfor forest products I M S Improveforest management MOFSC

Disturbanceof livestockfrom helicopter D L S Restrtdlonson flightpaths; compensdion CMI Avlation,NEA noise

Concentratlonof approx.450 DP H 8 Prwvdeextra servlces Cordrador,RAP proJectemployees and labourers DEMOGRAPHY Infiluxof Jobseekers, unconnrolled D M S Providesevices supportlca admInIstration RAP settlement,social discription

Demandfor additlonalfood, commoditIes, 0 M M Provldegoods, kerosene& Weetiiyto Contractor fuel,price Inflation workforce ECONOMY Inhial boom: D H M StrengthenVDC & local services Later lose of trade D M L None _

Pressureon public healthservices D M steablIshhealth facilikte strengthenlocal faciliftIe for workforce, Contrador,RAP HEALTHwoderPressuraayatem on publia D H HEALTH Pressureon publicwater system D H ~~~~~~~ConstructionproJectforlractofacilities ofwater supply system .for Cortactor

Addhitonalwaste & sewage D M Waste to be buriedor burned,adequate Contractor sanitation

APPENOIXNEW A-1 9 TableA5.2 IMPACTSOF TEMPORARYAND PERMANENT FACILITES ON TUMUNGTARAREA

CONSTRUCTION/ DIRECT/ SIGNIFICANCEDURATION = TOPIC TOPIC IMPACT OPERATION INDIRECT H: Hlghu: MAMShort IMPACT ~~~~~~~~~~C:Construction D: Oirect M:MedIum M:Medium MIIAINSOSDUATION RE0PONS101LrT ______[o0:Operatlon 1:Indiret L: Low L: Long _ - NATURAL Erowlonfrom storm dralnage D L RESOURCES M Properdesign of outfaids Contractor Possibledamago from earthquake 0/0 D H S Properdesign of structures,foundation Contractor Possiblegroundwater contaminallon C/O I L L Bundingaround uel storage fromfuel spills and sewage Contractor Forestdegradedtion and clearanceto 0/0 I H L Avolduse of woodas fuel bylabour meetIncreased demand for forest Cortractor. force;supply subuidised kerosene; RAPINEAjNGO products;rdsk of fire; clearanoofor promote cultivation akernativesto woodfor by Incomersor displaced construoctonand pemons heatlraoooking; establishuser groups; education Wildlife: lossof habitat;disturbance so C/O I H L Proect/manageforests; reducingbreeding education: Cortractor4 success;direct extendand enforce hunting huntingfor newmarkets regulatlons; RAP/NEAINGO, flightpath restrictlons CHviiAvitin IncreasedflshIng pressure for new C1O I Uncertain L Avoidproviding arny bsleting materials to rmarket;use of destructivemethods Contractor public.Enoourage flshing by non- RAPINEAINGO. damagingmethods. DEMOGRAPHY/Displacement of families C/O 0 H SETTLEMENT L Mlnimizeland requirement; for CortradorMNEA acquistlonof landneeded permanently useACRP Concontrallon of approx.1000 proloct C D H S Fullyserviced camps workforce nearworkplace Cortractor Influxof hundredsof lob seekersand C H M Regulationof setlomenton publlo and RAPNDC/NGO entrepreneurs,uncontrolled settlements, private urban land;Trainingand strongthening growth of VDC Concentratlonof approx.170 road 0 D L L Nonerequired malntenanceworkforce

Furthergrowth as keytrading centre H L

APPENDIXNSW A-20 _ CONSTRUCTION/ DIRECT/ SIGNIFICANCEDURATION TOPIC IMPACT C COPERATION INDIREOT H: High : Short MMATION TOPIC IMPACT ~~~~~~~~~~~C:Construction 0: DIrect M: Medium IM: Medium MmATo RESPONSIBIUT 0: Operaion 1: dirctl L: Low L: Long

ECONOMY Losscl arableand grazing land, C/O D M L Mln!mlzeland requIrement; MlnimIze CortractortNEA decreased agrlcuiuralproduction and acquisitlonof swabteland; AcqulsNon d fodderresources landonly for permanentuse; Rent land requiredtemporarly eccording to recommendatlons(see.text): ACRP

Requirementof additlonalfood, CO D/P H L Encourageproduction of crops& RAPINGO/ commodities,fuel, price Inflation liestock; Providegoods, kerosene, Contractor esctricityto workforce(ar priceshops); Umiteduse of local uhewood,prohlbl unauthorisedfelling of trees;Forestry developmentprogrammes

Increaseof spatlaland economic C/O M L Integratedrural development pro- RAPtNOO dissimilaritlos gramme"

AddHlonalpressure on Infrastructure C/O Dtl M L Improvementd publicInfrructure RAPNDC Increaseof landvalues C/O Dl M L Minimizeland req JremotrL Rent land NEAConrsctor requiredtem poraul;y. Minimizedelays betwesn properly evaluation,compensation and acquisbion JobopportunthIs for localpenole C/O D H M Trainingof localpeople to fill approprlate NEAAP positions

HEALTH Additionalpressure on public heath care C/O DAl M L improvementof publichealth services; RAP/Contrador/ system Flrstaid facilitis for projct warlkorce. NGOVNDC Informadionand extension programmes Additlonalpressure on public water C/O Dl H L Watersupply for proJectfaciliies to be Contredor/ system constructed;Improvement of estng HMC/JV watersystem

Additlonalwaste & sewage C/o I M L Prject wasteto beburled or burned, CorlractoriRAP/ adequatesanitazy system; Extension NtOOJV programmesfor latrines

APPENeX.NEW A-21 CONSTRUCTION/ DIRECT/ SIGNIFICANCE DURATION TOPIC IMPACT OPERATION INDIRECT H: High 8: Short MMOATION RESPONSIBIUT TOPIC IMPACT j ~~~~~~~~~C:Constmuctlon D: Direct M: Medium M: Medium UTIATO 0: Opesalon 1: Indirect L: Low L: Long

Disruptilonof stable relationshipsand C/o I M L Trainingand strengtheningof VDC: RAP/NYO soCIO1 soclalpatterns In famOliesand Trainingand extenslonprogrwnmes, CULTURAL communties espec.female extentlonprogrammes SYSTEM Unequal Incomeopportunltes wHhin C/O D/1 M L Inoomegeeradion programmes RAP/N5O famillesand communHles M OTHER Disturbancefrom hellcopteroperations, C D M M Flightpaths, hours of wodc,sting of CortatorNEAd loss of livestock nolseaensiWvefalfltle, finandal CMlvAvition compensatlon

APPENDIX-NEW A-22 TableA5.3 IMPACTSOF ARUNACCESS ROAD

DIRECT/ SIGNIFICANCE DURATION TOPIC IMPACT TOPIC IMPACT INDIRECT0~~~~~~~~~~~:DIrect M: H: Medium High M: MediumMTIAONESOIIUYfShort MMATION RE8PON81BILITY ______1: Indireot L: Low L: Long

CONSTRUCTION

Destabillsatlonot elopes by cut and fill D HL Destablllsatlonctit and fill of slopes by0 H L sequenice,Care In routedrainage, eligrenentslope design,stablflsatlon constdrucion meastires ContractorErgine

Damageto slopes,stroam. and felds from spoil D H M lance etworks; locate nd operatedIspoa Engru/ disposal DH siteswIth care: avoid sldecasting: use rivers for oar

Cut only thoss trees stfeded by PermanentWorks; NATURAL Impactson forestsfrom land take and demands specifynontimber constructionmaterals: banu Ene RESOURCES of workforceand Incomers DAl H L of woodfor Iheatingblum en; controlworidorce and Cnrdri supplysubaldised kerosene; strengthen foret protectionand manegement

Severanceof wildlifehabhita, habitat destruction, Routeroad around hey ecologicalareas; ban Engin.v/ disturbance,hunting DPl H M Cortractor use of key a|ea: controlwoldoce; education

IncreaseIn fishing; use of damagingrriethods I M Supplysubidiese food to worldorce;control Contradw explosives,encourage sustainable fIsNng methods CoraoRA

Landtake for road D MMnimise compensateroadand length rehabilitate end Rlght of Way width: Enginew

ECONOMY Employmenton roadconstruction, and resultant ECONOMY~cash flo 0D MEnouag- Encourage lcatcrrmnlocal recrukment EngIneer/

Price Inflation,and lowered avallabIltyof food to I H M Providesubsidised food for workforce;assist poor In CoriradoriRW poor obtainingemployment and servke opportunits

APPENDIXNEW A-23 DIRECT/ SIGNIFICANCE DURATION TOPIC IMPACT INDIRECT H: Hih M: Medium MMGATION RESPONSIBILUTY 1I: ndirect L: Low L: Long

Accidenrsat workand on lhe road D/1 M/H Sateworking techniques; safety training:education dothing;drver Contractor/ HEALTH Possiblespread of marlari and otherdiseases D L Treatnew employee.; provIde prophylactic.; OortractorjRAP amongrstand by workforce maintainclnics; health educatIon Estres on existinghealth facilltles I Ml/H M Strengthenhealth system RAP OPERATION:WHEN ROAD 18 OPENED TO PUBLIC Long-termslope stability problemsalong some M L Provideadequate resources for effectve HMO sectionsof road maintenanceprogramme Greatly Increaseddemand for forestproducts, Improveforest management, especIaly NATURIAL by user resultingIn unsustainableharvesting od all I H L groups;target programmes for poorto RESOURCES productsover wider minimise MOFSC1A areathan at presentand needfor llegaVunsustinableharvesting and slCsh retreatof forest andbum by poor Loseof habitatof rare and endangeredspecies I H L Improveforest management; control hunting; MOFSC/DNPWC/ of mammals,reptiles, birds and Insects education;encourage eco-tourism RAP Verylargo price adlustments when road opens, H L Nonerequired or feasible thenlow prices for Imports

Lossof long-haul porteringjobs for poor I H L Incomegeneration programmes to createalternative opportunities RAP ImprovedIncomes from livestock products I M L Assistwlth neededInputs, ECONOMY marketing RAP Reducedprieas for locaily.producedcrops I M L Programmesto intensfty/diverslfyagricultutral producton P Increasedtourism I M L Programmesto maximbsalocal benefit and minimise ecologicaland cultural Impact Growthof settlementsnear road I H L Assistwith planning and services VDCs/RAP CULTURE Acceleratedcultural change I H L Heritageprogrammes; education RAP/VDCs

APPENOIXNEW A-24 TBbleA5.4 IMPACTSOF HYDROPOWERCOMPONENTS

CONSTRUCTIOWIDIRECT/ SIGNIFICANCEDURATION TOPIC IMPACT OPERATION INDIRECT H:Hlgh 8;5 hord Mt=TION 1E _IIY C:0:Constwfutlon OporIlon 1:Indiroad:Direct tM:L Loweim M:LMedium Long isads MfGTO SOSIt InsWIdust coledors (tilt), watr opryi a_ |AIR QUAUY Incre ofakbomdust romconsudncLonffo M embt equtpmha;Dust ou wtihwab In andpant durng dry season dry on; bbektop hFy use ; hing I ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~ _____ protecton Roadondnjcn mtehodsto becwbrlled: Reduce Sb road aonabcUonImpacb on draiage toextent posisb spoll dumps nd uaodaedromdr, systms,vOgetaton oru, wunOff, dopeS; bzi of C D M M Combhoead andpoehoeum canpam Slpe Conbur cukivtedland protWconmeasrs; Relakman rgstatd I______temporywedl; Sag sotfor u hIroedmobn Bacil boruwpb andquaris wkhcpol; Baddol to Impactsof quarriesnd borrow pbs on drainag eablcontours; PMie toped; Ent. by hWing yotems,vegeaton cover, sIope, and lnd; 0 D M M benchesw enoughfor lter cuUvi; Pmf4 for Conhtr croaonof deeprighwail oedons contold drahage;Rela & reset di ed spe";Make teporuy fade wsbe to apova TOPOGRAPHY, ra:Io fcliae ad Epldsoaminateepoll dumps by usin osected opal for VEGELATION VEGETATIacessbroadsph,;Pkcroationof el We; Construction Co_ _ *ternpoy 0 M M or, w Conracr sccsnroadstn tmporaryladHes remainderwbjc toof apprwlope In rtver Mael Priseled Ues,Altemrdho or addon dt proposdby Contractorto be subjed to EIghtserb approval;Combin adR and perorm cortuctn ContractorlCamps: temporwy bI of uidvaSed Camps;hnplenit erosinprot n mneass; land.:effctls on drainag ystsms;bas of H 1 minkmlzdlnce n camp& wok rs; vegetationcover; 'os of produciveforet knds; S eosoHmi s pn grndeg;capsR&p6 wor ares; constructnof accesswade; waste disposal asculad land;Inl dinage contol ytsmeftor longterm us; Rvegetaod dietrbed-o Ma, tmporaryfael subjedto approvlReduce spa equrmentbyspeing two doray buldigs

MATRXHEP A-25 CONSTRUCTION/ DIRECT/ SIGNIFICANCE DURATION ToPIc IIPACT C ztOPERATION INDIRECT H:Hlgh 8: short M TION IE N M 0: OperanIon 1:Indirect L: Low L: Long Salvageob tbto gradhg;Minmla hm ht d bendhes;khbl dmlnspaEl systemc;PAvode Pernwnt NEACamp: lose of land; slpe; Reducat" nuetydn a by elmhat free displacementolal changesIn tfdnredents;g obitanding famN staudirC drainagesystems: Incrase In erosion potential: L D L Devlopdot*o reybuldigswhe po tordiues creationof terraces;cuting of elopes buldkigsies Compensationpayment and addiWonal moeurva (see text). I Programmeofforesby conseston and d6ewlbpment IndkedImpacts, Demand for hualwood and other Provide f f ors eConnrao mert for"t prouctb CIO IH L prosideardeens for OA; makeContracor CanbtroftERANP responsbefor behaviour d his worce DamConstrucHon &Operatlon: changes to _ _ i _ hydroogkalregime; downstream dewaterlng; C/O D L L Hazardwrning qstemn for down*ream arewh n NEA HYDROLOGYAND resorWoiraedinentatlon andflushing llushhgr SEDIMENTS ConstructionActes: kitroducdonof olkgreoans Irom tunneling& other activlHes hIto water C D M S Coiktionof usd lubrbanbfr tconlddisposal Contraclor bodis _ DamnConstruction and Operaton: changes to FISH flowregime & sediment deposition paterns O D H L Noneyet lown to befeab; fnuwr changesto aquatchblat; Interuptlonof required surv NEA.APEMU migratorypattems _ BIRDSI& MAMMALS Cod lnof ProjectFachildes: lo ofhabfta; 0 M Mlnhnlselr!tedo tal andfoet clarace w*n*oon NEAoSlrciorlRAP disturbano of bredhng sloea __ _res_s _ worl_; prot Prje Conebucdon:conoenbraton ofapprox M Sktecampe nar wotmpace&at a diatancefrom 3500hydropower workforme; displacement of C 0 H Indigenousseelements: ACfRP; Frml Dewopoment& NEAW apprmx 190 households Training Programme DEMOGRAPHIC ProjoctOperation: permanent NEA saf of approx 203;deelopment of largereconomlc 0 I L L Strngtrwnbelo community orga nhmand VDC PAP centreresuing in Inereasedpopulation IndirectImpacs: Infux of 2*3000lob seekers & H M eultHonof men on pubican prh land; VDC#INGOwRAW entrepreneurs;uncontroled etWement strengen localorgansaMtio

MATRXHEP A-26 CONSTRUCTION) DIRECTI SIGNIFICANCE DURATION TOPIC IMPACT OPERA7iON INDIRECT H:Hlgh 9:Short 0:Construction D:Direct M:Mledlum M:Medium MMfATION fE I Y _ Oper- _tlon O :IIndirect L Low L Long Landtalke, o of ablelbnd C 0 M M Intendfprodut onf dmehm ngmnd; 80CIO-ECONOMIC NEA'RAP/Conbr|| Relim ANDCULTURAL. amblelnd afterconstutiont Los of forestresoures: C Dn M L Cobroldefoeon; oresty onmwvatlon& NEASC*ecbjRAP devloppmentprogrmme; Displacementofepprox 144 famlhs; C D H M MlnnIzeProctled requhemb;Comp6rl5ion & NEA rehabltalonprogmm me 1. Projd Intnpfon of normalfamig Ctvlee: C DA M M Intendfyproducton on meihhgknd; Coneudlon RAP Pvide aiwlhlg fhr mpblymetn _nstudn; NEMWV Requirementfor addtlional food for bcal people C D H M Encourageproducdon of crope & Odock pmduct RAPXoSotr &woWorre & Immrunb:; foreal to wottorceand oter outtst;Conactor b prod bogie fr hiswoddorc. Requirementfor addllonnl fuml supplbs C D H M Conhb Dtoprovide Wmu1 & eldky to C eonr/ woAforo.,Imk ue o localwfuood; Po MOFSCIRP | unuftode felhoof hsN uad- of openIe; Foreetydvwlopment programme. Disturbanc of radWonaleoclal & cuurl C D M M Tmhnlgsde irsrenh dg\Abge Devlopmsnt patterns RAP bykrge saesImmgridon CommUne;programmes fornon4digenous lbour SomeOb oppodunitesforlokl pope ; 01O Dl M TralngodbcsJpoople; o/ approp 2. ProjectOperaton ApodBA Us*pmposed 33 IY prer Insto prod bcal Possbbavalblrty of elctrckyIn Pmrojwea 0 D M L setlements&smaduudes w.lhpower. Dlop NEA ruralele7

MATFOXHEP A-27 TableA8.5.1: STAGES1 AND2 TRANSMISSIONUNE IMPACTS- CONSTRUCTIONPERIOD

f T ~~~~~~~~~~~~~~~~~~~EINIETNIET SIGNIFICANCE DURATION

TTRAI IzINDIRECT MMEIM M EDU TOPIC IMPACT | R| DIRECT H|HIHO MfITIOATION RESPONSIELiTY PHYSICALRESOURCES WaterQuality Sedimentfrom earthwo,*s H D L S Carefulworking methods: revegetallon. Contnactor Slopesand Sois Erosionfrom earlhworks, especally H D M/H M Carefuldeslin andalignment controb NEA'Englneer/ accessroads on borrowareas and spol disposal Contaictr ECOLOGICALRESOURCES Forests Vegetatlonclearance, fire rsk H/T D/ H L Routeline sway from formsts; minimise NEA/Enginor/ ROWwidth fre precaution. Contractor Wetlands Vegetatonclearance, disturbance, fire K. T.ppu DA Uncertaln S/M Altemativeline loatlon, goodworking NE&iEnornewr/ risk prc0ces Contractor Wildlife Disturbance,habitat lose H1T D Uncertain S/M Avoidwildlife awea and broeding NEAeginer/ sesons;control wor1force Contractor HUMANUSE VALUES L LandTake Permanentlose of arableiand; decrease H/T D (however,formSIi L MInimiseland requirement NEAnineer/ of aqdculturalproductlon farmer: H) MinImlseacquisiton of able land Contraclor

Temporaryloam of arablelend grazing H(T D H a AcquIsldonof landonly for permanent NEAlContracbr| land; decreaseof agriculturilproductIon use accordingto LAO2045 and andfodder resource. racommendations(comp.text)

Lossof houstes,displacement H/T D L L Rentland required temporarily according NEAlContractor (however,In to recommendatons(mp. text) Kathmandu Valley:M)

Damageto arableland, crops and H/T D M S Reinstatement,compensaton Contractor facillties Employment Concentrationof approx.375.450 prolect H D H a Campsnear Workplace Contractor, worikforce T 0 L a Engineer

Influxof lobseekers and entrepreneurs H I H M Controlof settlomenton pubic and VoCRAP | T I L M privateland; Training, strengthing VDCs

MATRIXUN A-28 REGINDIIECTNDIFECT SIGNIFICANCE DURATION TOPIC IMPACT UHILL | DEDIRECT H.HIOH | SEHORT MrITIGATION RESPONSIDIRTY THTERI lD=NIRECT MftMEDIUM M.MEDIUM

Health7 AddWonalpressure on pubic heasHhcare H/T DA M M Improvementof pubic hoalthserwicee; RAP/Contralcor system Providohealth facMtes for worlfore; Irnhrmatlonnd *xtenion progrmmes

AddWonal pressure on publlcwater H/T D/I M M WaterSupply for prolectto be Contraceor/RAP system constructed;Improvement of existing watersystems

Addtlonalwasle sewage Hrr DA M M Prolectwaste to be burledor bumed; Conrtor/RAP Adequatesanitary system Trade/tnrestructure Add' onelpressure on Infrastructure H Dl M M Improvementof public nfrustructure RAP T D/I L M

Requirementof addiwonalfood, H D/I M M Provodegoods, kerosene, eectrclity to Conbtacor, commodfthe,sful: Inflation T DA L M workforeo(fair priceshops); UmIt use of Enginer localfusivood, prohlbit unaunhorsed fellingof trees QUALITY.OF.LIFEVALUES SocibCultural System Disruptionof communityrelations H Oil M L Notfeasible T D/I L L

UnequalIncome opportuni es In families H/T DA M M Notfeaaible (except In the Anm Viey: RAPINEA andcommunWtes IncomeGeneton Programmes) Negativeatttudes towards govemment prolecb,Implicatlona for future H/T I H L Planningrural electrtifceation and roads HMO development

MATRIXUN A-29 TableA5.5.2: STAGES1 AND2 TRANSMISSIONUNE IMPACTS- OPERATIONALPERIOD

REGION DIRECTfINDIRECTBICIGNIFICANCE 1DURATION TOPIC IMPACT HcHILL I D=DIRECT Ha;HIGH SSHORT Mf|lATIO RESPONSIELNi TaTERAI 2INDIREC MuMEDIUM M:UEOIUM TeTERAIImINDIRECT Im~~~LLOW[LzLONCI PHYSICALRESOURCES

Slopesand Sols Eroslon/Sodlmentatonfrom accoss H D M L Maintenanceor NE. Vlage roads reinstatement Devekpmenl Commitlee ECOLOGICALRESOURCES Vegetaon managoment NEA Forests ROWvegetation management HIT 0 L L guidelInes Linelocation to avoid NEAlContecbrDeptof Blrds Collisionhazad H?/T 0 UncertaIn L flyways;design fears NatonalParks & to mihkmisecolsIons WdMh Conservation OtherWldlfe Utlilsatlonofibanler effect of RoW HIT D L L Nonerequ"kd HUMANUSE VALUES Linelocation & deelgn NEA/DepLof Clv AvIatIon Collisionhazad Tumllngtar D H L visIbiltyaids Aviadon

LandValues Decreas In landvalue In the vicinity KAthmandu I HOn densely L Compensationpayment NEA of the.lIne populatedareas) QUALITY-OPFLIFEVALUES Securtydevices; pubic NEA Publicand WorkerSafety Risk of electrocuton KIT D H L educatlon;bakmkng_ Spoilngkey views and landscapes; Linelocation lo avoid NEA/EnglneorI Vlual Amonityand HerItage SItes Allenfeature near heritage shes: effect H D M L sensIiv sites, Contracor on tourism camounage

MAThIXUN A-30 TableA5.5.3: SUBSTATIONIMPACTS

- ~~~~DIRECTflNDIRECTj SIGNIFICANCE DURATION TOPIC IMPACT D DIRECT r 1| s:FID | RESPONSLltY O.ONIREC1 M=MEDIUM M=MEDIUM ______MIOTO !PNIL1 I InINDIRECT LzLONQ ______~~~~~~~ ~~L=LOW_- ______C O N a T R U C T I O N P E R I O D QUALITY-OF-LIFEVALUES

Employment ProjeclWorkforce of 40-50 D L M Nonerquhsd HUMANUSE VALUES

LandTaken Permanont andtsmporawy lossof D H L AvoIdland acqubllon in NEA arableand grazing land, decrease of (for smallfatnerm) denselypopudated as agriculturalproductlon and foddemr resources Acqulaftinof landfor NEAronfrnclors pemianentus according lo Lossof houses,displacement ACRPkRent lnd requIred twrnporaly O P E R A T I O N A L P E R I O D PHYSICALRESOURCES SoIl andWater Transformerdll splls D M Oil rerntenonlump NEAEnqineer/ Contrestor QUALITY-OF-LIFEVALUES Heulth EMF exposureto neairy residents L L ApproprIabsting NEAEfnglner/ Contracfor Salety Lightningstrikes, transformer SH Appropte design, NEA/EnIrlr/ exploslons& elc. mdntenance,traning Contractor

MATFIXUN A-31