SASEC) Power System Expansion Project (SPEP) (Renewable Energy for Rural Energy Access Project (REREAP) Component
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Initial Environmental Examination February 2014 NEP: South Asia Subregional Economic Cooperation (SASEC) Power System Expansion Project (SPEP) (Renewable Energy for Rural Energy Access Project (REREAP) Component) Prepared by Nepal Electricity Authority for the Asian Development Bank. This initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. i CURRENCY EQUIVALENTS (as of 31 Janaury 2014) Currency unit – Nepalese rupee/s (NRs) NRs1.00 = $0.01043 $1.00 = NRs95.91 Abbreviations and Units ADB Asian Development Bank AEPC Alternative Energy Promotion Centre CDM Clean Development Mechanism CER Certified emission reduction CFL Compact fluorescent lamp CFUG Community Forest Users Group CFUG Community Forest Users Group COPB Country Operation Business Plan DDC District Development Committee DEEU District Energy and Environment Unit EA Executing Agency EARF Environmental Assessment and Review Framework EHS Environmental, health and safety EMP Environmental Management Program GESI Gender equity and social inclusion GoN Government of Nepal GRM Grievance redress mechanism GWh Giga-watt hour IA Implementing Agency IEE Initial Environmental Examination IUCN International Union for Conservation of Nature kW Kilowatt kWp Kilowatt peak MMH Mini-micro hydropower mini-grid MoE Ministry of Energy MoEnv Ministry of Environment, Science and Technology MoF Ministry of Finance MoWR Ministry of Water Resources MW Megawatt NGO Non-government organization NRREP National Rural Renewable Energy Program PIU Project Implementation Unit PV Photovoltaic RE Renewable energy REA Rapid Environmental Assessment RSC Regional Service Centre RoW Right-of-way SCF Strategic Climate Fund SPS Safeguard Policy Statement SWM Solar and/or wind mini-grid tCO2e tons carbon dioxide equivalent ii UC User Committee UNNFCC United Nations Framework Convention on Climate Change VDC Village Development Committee NOTE In this report, “$” refers to US dollars. iii Table of Contents 1. INTRODUCTION 1 1.1 Background 1 1.2 Name and Address of the Proponent 1 1.3 IEE Preparation and Objectives 1 1.4 Scope and Method of the IEE 2 1.5 Structure of the IEE 2 2. PROJECT DESCRIPTION 3 2.1 Project Rationale and Objectives 3 2.2 Project Location 5 2.3 D. Project Cost and Lending Instrument 5 2.4 Project Implementation 5 2.5 Project Components 6 2.6 Sub-Project Development 7 3. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK 8 3.1 Legal Framework 8 3.2 International Environmental Agreements 10 3.3 ADB Policy 11 4. SUMMARY OF PROJECT IMPACTS 12 4.1 ADB Environmental Categorization 12 4.2 Typical Sub-Project Adverse Impacts 13 4.3 Typical Sub-Project Benefits 19 4.4 Net Impact of the Project 21 5. SANI VERI HYDROPOWER SUB-PROJECT 23 5.1 Project Description 23 5.2 Description of the Environment 24 5.3 Impacts and Mitigation Measures 33 6. SIMRUTU HYDROPOWER SUB-PROJECT 41 6.1 Project Description 41 6.2 Description of the Environment 42 6.3 Impacts and Mitigation Measures 50 7. BHORLENI SOLAR-WIND POWER SUB-PROJECT 58 7.1 Project Description 58 7.2 Description of the Environment 61 7.3 District, VDC and Project Area Socioeconomic Profile 65 7.4 Livelihoods 66 7.5 Energy Supply 66 7.6 Water Supply 67 7.7 Transport and Local Services 67 7.8 Impacts and Mitigation Measures 67 7.9 Socio-Economic Impacts 71 8. CHISAPANI SOLAR-WIND POWER SUB-PROJECT 74 8.1 Project Description 74 iv 8.2 Description of the Environment 76 8.3 District, VDC and Project Area Socioeconomic Profile 80 8.4 Livelihoods 81 8.5 Energy Supply 81 8.6 Water Supply 82 8.7 Transport and Local Services 82 8.8 Impacts and Mitigation Measures 82 9. KYANGSINGH SOLAR SUB-PROJECT 89 9.1 Project Description 89 9.2 Description of the Environment 90 9.3 VDC and Project Area Profile 95 9.4 Livelihoods 95 9.5 Energy Supply 96 9.6 Water Supply 96 9.7 Transport and Local Services 96 9.8 Impacts and Mitigation Measures 96 10. ENVIRONMENTAL MANAGEMENT PLAN 101 10.1 Implementation Responsibilities 101 10.2 Environmental Management Measures 103 10.3 Environmental Management Cost Estimates 108 11. CONSULTATION, INFORMATION DISCLOSURE, AND GRIEVANCE REDRESS MECHANISM 110 11.1 Consultation and Information Disclosure 110 11.2 Grievance Redress Mechanism 110 12. INSTITUTIONAL ARRANGEMENTS AND RESPONSIBILITIES 113 13. MONITORING AND REPORTING 114 14. CONCLUSION AND RECOMMENDATION 114 Appendices 116 v Appendices Appendix A: Mini-Micro Hydropower Mini-Grid Sub-Project Development Procedure .................. 116 Appendix B: Sub-Project Selection Criteria ......................................................................................... 118 Appendix C: MMH Rapid Environmental Assessment Checklist ....................................................... 120 Appendix D: IEE Table of Contents (for Category B sub-projects) .................................................. 123 Appendix E: Environmental Assessment Checklist (for Category C sub-projects) ........................ 124 Appendix F: Micro-Mini Hydropower Fish Impact Scoping Study .................................................... 126 Appendix G: List of Important Animal Species in Dhorpatan Hunting Reserve .............................. 135 Appendix H: List of Important Plant Species in Gaurishankar Conservation Area ......................... 136 Appendix I: Public Awareness Safety Pamphlet ................................................................................. 137 Appendix J: References ......................................................................................................................... 138 vi List of Tables Table 1.1: REREAP Sub-Projects Assessed ............................................................................................ 2 Table 2.1: Sub-Project Types and Estimated Installed Capacity and Beneficiaries ............................ 6 Table 3.1: Environmental Regulatory Framework Relevant to the Project ........................................... 8 Table 4.1: Estimated Project Annual Generation ........................................ Error! Bookmark not defined. Table 4.2: Estimated Annual Reduction in Greenhouse Gas Emissions from the Replacement of Kerosene and Fuelwood Use ................................................................. Error! Bookmark not defined. Table 6.1: Villages to be Supplied by the Project .................................................................................. 42 Table 6.2: Average Monthly Rainfall - Rukumkot (1986-2011) and Shera Gaun (1986-2000) ............ 43 Table 6.3: Estimated Mean Monthly Simrutu Khola Flow Rate ............................................................ 43 Table 6.4: VDC Population ....................................................................................................................... 48 Table 6.5: Ethnic Composition by VDC ................................................................................................... 48 Table 6.6: Ownership of Agricultural Land and Livestock in Project Area VDCs .............................. 49 Table 6.7: Average Monthly Sani Vera Khola Flow Rate – Existing and Project Operation .............. 50 Table 6.8: Project Land Area .................................................................................................................... 52 Table 6.9: Land Use on Proposed Simrutu MMH Sites ......................................................................... 53 Table 6.10: Excess Spoil Volumes .......................................................................................................... 55 Table 7.1: Main Project Components ...................................................................................................... 59 Table 7.2: Demand Forecast .................................................................................................................... 61 Table 7.3: Estimated Average Daily Electricity Generation .................................................................. 61 Table 7.4: Average Monthly Rainfall - Hariharpur Gadhi Valley (1991-2011) ...................................... 62 Table 7.5: Average Daily Hours of Sunshine.......................................................................................... 63 Table 7.6: Average Monthly Wind Speed ................................................................................................ 63 Table 7.7: VDC Population ....................................................................................................................... 65 Table 7.8: Ethnic Composition by VDC ................................................................................................... 65 Table 7.9: Ownership of Agricultural Land and Livestock in Project VDC ......................................... 66 Table 7.10: Estimated Annual CO2 Emissions Avoided by Project Power Use (kerosene and diesel replacement) ...................................................................................................................................... 71 Table 8.1: Main Project Components .....................................................................................................