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Study on the Impact of the Upper Trishuli-1, 216 Mw Hydropower Project on the Indigenous Communities of Rasuwa

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Study on the Impact of the Upper Trishuli-1, 216 Mw Hydropower Project on the Indigenous Communities of Rasuwa 2017 STUDY ON THE IMPACT OF THE UPPER TRISHULI-1, 216 MW HYDROPOWER PROJECT ON THE INDIGENOUS COMMUNITIES OF RASUWA LEAD RESEARCHERS SUBHA GHALE & SHRADHA GHALE LAWYERS’ ASSOCIATION FOR FIELD SUPPORT HUMAN RIGHTS OF NEPALESE BIBA TAMANG, BOM BAHADUR TAMANG INDIGENOUS PEOPLES BUTI TAMANG, KARSANG TAMANG I Published by Lawyers’ Association for Human Rights of Nepalese Indigenous Peoples (LAHURNIP) Anamnagar, Kathmandu P.O. Box 11179 Contact: +977-01-4268510 Email: [email protected] Website: www.lahurnip.org © LAHURNIP 2017 Printed in Nepal ISBN 978-9937-9135-6-0 Design and Layout Ramesh Maharjan, Utkarsha Design Cover Photo Shradha Ghale STUDY ON THE IMPACT OF THE UPPER TRISHULI-1, 216 MW HYDROPOWER PROJECT ON THE INDIGENOUS COMMUNITIES OF RASUWA FOREWORD This publication provides an assessment of the impact of the Upper Trishuli-1, 216 MW hydropower project on the indigenous Tamang community of Rasuwa district. The study has succeeded in unveiling the situation of Tamang in the project-affected areas, particularly Haku, Ramche and Dhunche of Rasuwa. International human rights instruments pertaining to indigenous peoples (IPs) provide IPs the right to free, prior and informed consent (FPIC) and meaningful participation in development projects carried out in their lands and territories. Similarly, private sector actors are also obliged to respect the human rights of affected communities prior to, during and after the implementation of the project. But both the government and private sector often ignore the presence of IPs in the project site and engage in violation of rights of IPs and local communities in the project area. The Upper Trishuli-1 project is a representative case where provisions of international human rights instruments including the principle of FPIC have been violated. Many other projects being run across the country fall into this category. The study has revealed the lack of implementation of international human rights instruments pertaining to IPs. The larger question it raises is: How can we ensure that such instruments are implemented to protect their rights? A lot more work is still needed to make the government and private sector respect the rights of marginalized IPs and redress past and ongoing violations. LAHURNIP would like to thank the research team for putting together this valuable document. We would also like to thank the Global Greengrants Fund (GGF) and the Asia Indigenous Peoples Pact (AIPP) for their technical and financial support for this study. We are grateful to the community members of Rasuwa for providing a wealth of information and insights. Last but not least, thanks to all the LAHURNIP team members involved in the study and publication process. Shanti Kumari Rai Chairperson I ACRONYMS CC Concern Committee CIAA Commission for the Investigation of Abuse of Authority CPN-UML Communist Party of Nepal-United Marxist Leninist EIA Environmental Impact Assessment EPR Environment Protection Rules FDG Focus Group Discussion FPIC Free, Prior and Informed Consent FPP Forest Peoples Programme GGF Global Greengrants Fund GLOFs glacial lake outburst floods HH household IDP Internally Displaced People IEE Initial Environmental Examination IFC International Finance Corporation ILO International Labour Organisation IPOs Indigenous Peoples’ Organisations IPPAN Independent Power Producers Association IPs Indigenous Peoples MoE Ministry of Energy MoHA Ministry of Home Affairs MoSTE Ministry of Science, Technology, and Environment MW megawatt NC Nepali Congress NEA Nepal Electricity Authority NGO Non-Governmental Organisation NPR Nepali Rupees NWEDC Nepal Water and Electricity Development Company PDA Project Development Agreement PS Performance Standards UNDRIP United Nations Declaration on the Rights of Indigenous Peoples UT-1 Upper Trishuli-1 VDC Village Development Committee II CONTENTS Foreword I Acronyms II 1. Context of hydroelectricity development in Nepal 1 2. Research objectives 6 3. Methodology 7 4. Overview of the project 9 5. Salient features of the project 16 6. About the inhabitants in the project area 18 7. Relevant legal framework 22 7.1. Free Informed Prior Consent in relation to the project 23 7.2. Physical and economic displacement related to land acquisition 26 7.3. Displacement and damage related to project’s access road 31 Impact of access road – Personal testimony of Dawa Gyalbo Ghale 36 7.4. Inadequate participation of women 38 8. Conclusion 40 9. Key recommendations: 42 9.1. For UT-1 project 42 9.2. For IFC and World Bank 44 9.3. For the Government of Nepal 44 9.4. For existing and prospective international lenders 45 9.5. For civil society organizations, NGOs, and media 45 9.6. For donor agencies 45 9.7. For the UN Human rights bodies & mechanisms specific to indigenous peoples 46 References 47 1. CONTEXT OF HYDROELECTRICITY DEVELOPMENT IN NEPAL Nepal is considered an ideal location for large-scale hydropower development because of its numerous perennial rivers and steep topography. Nepal has estimated potential to generate 43,000 MW of hydroelectricity. However, only a fraction of this amount has been developed so far. The bulk of the energy need is met by biomass. As of 2010, only 48 percent of Nepal’s population had access to electricity.1 Since 2005 until recently, Nepali people faced 10-16 hours of daily load shedding, including in the capital city Kathmandu. In this context the government of Nepal has identified hydropower development as a national priority. The government, private sector and international donors see hydropower development not only as a means to end the energy shortage, but also as a definite path to Nepal’s economic growth. National and foreign companies and global financial institutions such as the World Bank, the Asian Development Bank and the International Monetary Fund have made large investments in hydropower development in Nepal. The government plans to generate 10,000 MW of electricity within the next decade.2 Currently 63 hydropower projects with a combined capacity of 907 MW are under operation; 144 projects (3891 MW) have obtained construction licenses; 214 projects (11,155 MW) have obtained survey licenses; 118 (3857 MW) are in the “government basket” category.3 The total number of displaced families and households affected by hydropower projects across Nepal remains unclear. Similarly, there has been no assessment of the cumulative social, cultural and environmental impact of hydropower projects. The majority of hydro projects in Nepal are diversion run-of-river schemes. Run- of-river hydropower is promoted as a “low carbon” solution to the energy crisis, 1 Water and Energy Commission Secretariat, Energy Sector Synopsis Report, Kathmandu, Water and Energy Commission Secretariat, 2010, p. 86. 2 National Planning Commission, ‘Plan and Programme for FY 2073/74–2075/76 BS (2017 to 2018)’, 2017. 3 Ministry of Energy, Department of Electricity Development, 2017, www.doed.gov.np (accessed 25 October 2017). 1 but studies have shown they are not as “green” as their proponents claim.4 Tunnels are dug into mountains to divert the river flow and long stretches of the river get dewatered as a result. This not only fragments the river, but also causes changes in its temperature, velocity and depth, threatening to destroy aquatic life. Further, as run-of-river projects depend on consistent river flows, they are particularly vulnerable to climate-induced changes in rainfall patterns. In Nepal such projects are mostly located in remote mountainous areas with fragile geological conditions and high seismic activity. The terrain is highly vulnerable to geo-hazards like landslides, flash floods, and glacial lake outburst floods (GLOFs).5 Tunnelling and construction of access road involves blasting and deforestation, which makes mountain slopes unstable and increases the risk of landslides. The 7.9 magnitude earthquake of April 2015 has raised further questions about the safety and feasibility of large hydropower dams. The quake damaged hydropower facilities at 19 sites,6 and killed workers in at least 3 sites (Upper Trishuli 3A, Mailung and Rasuwagadhi). Out of the total installed capacity of 787 MW (including on-grid and off-grid) hydropower facilities in Nepal, facilities with a combined capacity of 115 MW (14.6 percent) were severely damaged, and facilities with 60 MW (7.6 percent) were partially damaged.7 An environmental assessment conducted in the aftermath of the earthquake found that “additional safety assessment is needed at all major hydropower dams in the earthquake-affected areas” to ensure full recovery and minimize future risks.8 But such assessments have not been carried out, and most projects have resumed construction or operation. 4 International Rivers, ‘Swindling Rivers: Run-of-River Hydro Fact Sheet’, 2016, https://www. internationalrivers.org/sites/default/files/attached-files/run_of_river_fact_sheet.pdf (accessed 7 April 2017). 5 Ministry of Science, Technology and Environment (MoSTE), Nepal Earthquake 2015: Rapid Environmental Assessment, Kathmandu, MoSTE, 2015, p. 5. 6 ‘Energy Sector Suffered Losses of Rs 18.75b due to Quake’, The Kathmandu Post, 10 June 2015, http:// kathmandupost.ekantipur.com/news/2015-06-10/energy-sector-suffered-losses-of-rs1875b-due-to- quake.html, (assessed 8 April 2017). 7 A.B. Shrestha, S.R. Bajracharya, J.S. Kargel, and N.R. Khanal, The Impact of Nepal’s 2015 Gorkha Earthquake-Induced Geohazards, Kathmandu, International Centre for Integrated Mountain Development, 2016, p. 16. 8 MoSTE, op.cit. 2015, p.
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