Humla Renewable Energy Service Centre Project

Community Assessment

Summary

Currently, many of the water-power (micro hydro) and solar energy facilities installed in the Humla district of Nepal are only partially working or are non-operational due to past political chaos, a lack of trained manpower, education and effective maintenance and service delivery.

The planned Service Centre will facilitate the local maintenance of existing and future installations and offer much needed electrical, mechanical and related services, spares and repairs. It will provide the means for mountain villages to improve and sustain their livelihoods through clean energy technologies and to benefit from the consequent employment and business opportunities that develop alongside. Indirectly the Service Centre project will also contribute to conserving the environment and forests, which are depleting fast.

Humla District HUMLA DISTRICT

Humla District Nepal - Proposed Service Centre project location

Nepalgunj Kathmandu

Simikot - District Head Quarter - The Nepal Trust Guest House and Regional Office

1 Working with the people of Humla, the aim of the project is, through a central workshop providing training, skills and resources, to challenge them to embrace a new culture towards maintaining and sustaining community projects - primarily community electrical power facilities. The intention is that it will provide the means for mountain villages to improve and sustain their infrastructure and for locally trained staff keep these assets maintained and operating.

Establishing a sustainable workshop in Simikot the District HQ and administrative center of Humla is the immediate goal of the project. This center will provide the facilities and the capability to encourage and teach the local communities on the importance and processes necessary to proactively maintain existing and future micro-hydro, solar and wind power installations; it will also support new install projects including project surveys, training, limited fabrication, building and plumbing work, installation of clean water facilities, furniture fabrication, mechanical services and repairs.

Hopefully the Centre will become self-sustaining within 10 years by contracting its services to villages, government offices, manufacturers, NGOs, schools, hospitals, guest lodges and local entrepreneurs. It will however be supported, monitored and managed by the Nepal Trust for the first 10 years to give the people of Humla and their increasingly educated and demanding population the opportunity, confidence and know-how to face the challenges of the future.

The project started in January 2013 with the construction of the centre on land acquired for the purpose by the Nepal Trust and was funded through a grant from TRAID. There is limited funding available from the TRAID grant to purchase in 2014 some workshop equipment and to fund the initial costs of the technicians. However substantive additional funding is still needed to bring the Service Centre into full operational status.

The Need

Humla district, Nepal’s highest and most inaccessible district, is located in the far northwest of Nepal and has a population of around 45,000 living in scattered enclaves in the lower valleys of the Himalayas, between 1,500-7,300m altitude. Humla straddles the deep gorges of the Karnali River, as it runs from the Tibetan plateau south through Nepal towards the Gangetic plains of India. There are principally two ethnic groups in the district - the Chetris (including Thakuris), who are Hindu and the Bhotias (Buddhists), who are exclusively of Tibetan stock.

Simikot, the district headquarters, has an airstrip that lands only a few flights per day in good weather. The closest road-head in Nepal to Humla is approximately 10 days walk to the south; and from Tibet 6 days walk away to the northeast. These isolated mountain communities rely on subsistence farming and trade with Tibet and India.

Humla is one of the poorest and least developed districts of Nepal and, by definition, one of the poorest regions in the world. It ranks 73/75 in Nepal’s Human Development Index and 73rd, 72nd and 73rd in Poverty & Deprivation, Infrastructure Development and Women’s Empowerment Indexes respectively1. Life expectancy rate is 58 years2, mortality rate is 32/1000 (WHO, 2008)3 and child mortality rate is over 30%4. Despite several decades of development programmes, the population growth rate of Nepal continues to outpace agricultural production and parts of the country continue to

2 be food deficit areas; only 1% of Humla is arable (DDC, 2004)5. Only 22% of the population is literate 6% of women and less than 30% of homes in Humla have electricity supplied by micro-hydro or solar energy schemes.

Many of the problems facing Nepal and Humla district can be attributed to a 10-year long Maoist insurgency that claimed the lives of 14,000 people. The political turmoil ended in June 2006, but its overall affect left hundreds of thousands of families displaced and devastated; effective development especially in the remote areas was set-back by years.

PROFILE NEPAL AND HUMLA S.N Data Description . Nepal Humla 1 Total Area 147181sq. km. 5,655 sq. km 2 Altitude Range 90-8848 m. 1500-7300 m 3 Total Households 4,253,220 6,953 4 Total Population 23151423 44,400 5 Average Birth Rate 2.25% 3.20% 6 Gross National per Capita US$ 269 US$ 186 7 Human Development Value 0.526 0.367 HDI Rank 136/177 68/75 Districts 8 Countries 9 Human Poverty Index 38.7 63.8 10 HPI Rank 74/177 Countries 75/75 Districts 11 Life Expectancy 66.6 54.37 12 Literacy Rate above 15 Years 48.6 21.3 13 Gross Domestic Product US$ 1420 US$ 900

Profile Nepal & Humla

In Humla district, aside from the aftermath of the insurgency, there are many challenges: inaccessibility and immobility - there are no roads and most people are only taking care of their day- to-day needs for survival. In this food deficient region a subsistence economy runs on inter-village trade, basic labour, livestock, the cultivation of food-grains, increasing mountain tourism and remittances sent by relatives living in other parts of Nepal or abroad.

Lack of government support, educated and skilled people, income generation, adequate primary healthcare, education and electrical power are among many factors that adversely retards the progress of the area. NW Nepal will most likely never be connected to the national power grid due to the expense, remoteness, and rugged terrain.

The Humla district is however rich in renewable resources – sun, wind and waterpower – and if these energy sources are tapped and maintained properly they will provide a way out of the grinding poverty that afflicts so many lives in Nepal’s remote regions.

3 To date the Nepal Trust, with the support of Rotary International, has implemented 6 micro-hydro plants in Humla, 4 solar projects and installed solar equipment in the district hospital and 6 village health posts and at its office and guesthouse in Simikot. With Rotary funding it has secured completion of a 50 kW micro-hydro scheme that is providing electricity and power for 4,500 people in south Humla. There is a critical need for a Service Centre in Humla as there are over 20 micro– hydro and peltric-set plants (small water turbines) and dozens of solar installations in the district and more than double planned for the next decade. Recent surveys show that all are in a poor state of repair or even non functional due to the need for repairs and servicing. This is despite the projects having been formally handed over to the communities and the communities having been taught the essentials of maintenance. The heart of the problem is the lack of awareness and poor understanding of villagers of what is required if they are to organise themselves to routinely maintain their own facilities including energy facilities.

If they are to survive an increasingly technical world of globalization and diminishing natural resources, the people of the ‘Hidden Himalayas’ must shift culture and learn how to organise themselves to maintain their community energy projects. The Service Centre workshops will directly facilitate the maintenance of installed facilities. Of greater importance though will be the capability that the Service Centre will give the Nepal Trust to support the fundamental process of the communities learning how to organise and plan for the routine operation and maintenance of installed facilities and to oversee over a long period the proper and systemic implementation of the plans.

It is expected that western volunteers will play a significant role in this aspect of the work of the Service Center. A core aspect of the project is for donors and other volunteers, such as foreign engineers, to work with local people to utilize the most cost-effective combination of appropriate technologies combined with effective training and management. There is strong local support for a Service Centre in Humla and indications are that with a sensible choice of charging rate it should eventually operate with a moderate surplus without being subsidized financially from outside the district. The bulk of the work will be undertaken by local people supported by foreign volunteers and will be supervised by the Nepal Trust. As the project is already part funded agreements have been made with key stakeholders and an experienced project engineer/supervisor has been identified. The Service Centre concept is fully supported by the Government of Nepal.

Without the implementation of a Service Centre in Humla the investments from donors and the government as well as the hard-won project contributions and sweat equity from the villagers could be at worst wasted. At best the lack of a community workshop will incur much higher on-going costs to a disadvantage population and the service provider alike.

The solution is a self-sustainable community training and service delivery business that will save costs, generate income and build local capacity.

4 The Nepal Trust

The Nepal Trust is the sole (I)NGO that worked in the field during the height of the Maoist conflict on food security initiatives, health, education & sanitation programmes and renewable energy development.

The Nepal Trust (http://www.nepaltrust.org) has been working in Humla with partners like UNICEF, UNESCO, UNWTO, SNV, STEP Foundation, GTZ, DANIDA, AEPC (Alternative Energy Promotion Center) / HMG/ with DANIDA/ Norway Government (ESAP - Energy Sector Assistance Programme), Cornell University and Rotary International (various Rotary Clubs in UK, Germany, Holland and Nepal) and established a chain of 6 village health posts, upgraded Government-led health posts and Simikot hospital, trained local people and conducted 3 major health camps in the past 5 years in coordination with MoHP and DHO.

Current NT partners in Nepal harbour a wide range of specialised skills and utilize a range of viable approaches in their work. For specialized skills, training and problem solving, NT is able to call on the Nepal partners that are not part of this grant application to assist and contribute specialized skills, or as trainers and technical/ management expertise as required.

The map below shows the current installed energy systems and soon to be constructed plants in Humla District:

Map - Energy Systems in Humla District (2008)

5 Community Benefits

The Service Centre will create a platform to sustain local infrastructure and in particular energy schemes. Sustainable and clean energy systems will not only give local people a healthier home environment that will reduce the level of respiratory diseases and deforestation, but also will promote local tourism development (home stays), literacy and hygiene, support food production, create local employment (machine operators, handicraft production by women) and will increase development - and investment activities in the area.

The expected project outputs and benefits can be categorised into direct and indirect ones. The project’s direct benefits will:

. Improved availability of power and light for some 44,400 people throughout Humla; . Give local people the training, skills and confidence they need to maintain their community projects; . Support improved mechanical, electrical, construction and plumbing activities in the district; . Support improved food production; . Provide sustained power for food grinders, grain & saw mills, oil extraction, etc. = income generation; . Maintain power and lighting for schools (approx. 60), guest lodges, tea houses, monasteries, community halls, NGOs, micro-hydro/solar/wind power schemes and health facilities (approx. 40); . Create local employment; . Bring needed products, supplies to Humla; . Promote increased development and investment activities in the area; . Be a unique project in NW Nepal that can be replicated in other remote districts.

Indirect outputs and benefits are more included into non technical aspects; the Service Centre will be interlinked with other Nepal Trust projects and therefore will also benefit village health and hygiene (energy saving light bulbs, rather than wood fires and oil lamps), better sanitary infrastructure (hot water), literacy and education (light to study, environmental education), food production and security (electricity for food grinders, oil expellers). The Service Centre will also create social cohesion and inclusion among local people, different villages, business concerns and marginalized groups through community participation and the project implementation process. The centre can contribute in a positive way to the availability of light and electricity in community houses, which will greatly enhance social interaction and a sense of positive change in these remote villages.

The implementation/ maintenance of renewable energy schemes in order to keep them operating will decrease the use of fire-wood for lighting, cooking and heating, which will have a positive impact on the environment, deforestation and the over use of natural resources. This will also lead to minimization of the carbon emission from replacing the ‘Jharo’ (inner part of pine tree which is flammable and is used for household lightening), imported kerosene or Chinese torches and costly dry-cells, but also will cut down the amount of firewood needed for cooking.

The Service Centre will also provide at a profit the necessary components, supplies and services that otherwise have to be contracted in from Kathmandu at great expense thus losing the individual user and community group money, time and resources. In the first 2 years of operation the Service Centre will make great efforts at marketing its services and products throughout Humla.

The Nepal Trust will take local orders of needed stock and establish competitive bids from suppliers in Nepal and India for energy system products to buy in bulk for pre-arranged orders. The Service

6 Centre will then sell these products in Humla at an appropriate mark-up all tied into the workshop’s training, maintenance and repair services that will create a win/win for all parties.

A community workshop is necessary, otherwise most of the energy systems will appear to be unsustainable and several of them could become defunct and/or may already have been closed down for years after completion. This project will not only support local skills building, income generation and community development but also will help the Nepal Trust, the most reliable and oldest service provider in the district, to support its current and future micro-hydro and solar schemes, most of which have been financed by Rotary International.

The Service Centre will also deliver other services to the district, e.g. repair of mills, buildings, machinery, wiring, plumbing, training, computer, fax & telephone, cook stoves, welding, lathe work, home & Gov. office improvements and contract jobs to support other NGOs.

These needed services and products will make the workshop a sustainable social enterprise that will help lift people out of poverty. The whole concept can be adapted cost efficiently and later incorporate other new technologies and work aspects to include applications connected with agricultural, irrigation, bridge building, transport, education, health and communication.

The Nepal Trust will co-operate and work through registered local service providers, NGOs, CBOs, village-based cooperatives and private sector partnerships; and the Nepal Trust will respect and follow all government regulations and Nepalese laws as well as local customs and laws as regulated by the Humla District Development Office (DDC) and Village District Committees (VDCs).

The Nepal Trust’s goal is to strengthen and upgrade the ability of the communities of NW Nepal to fulfil their basic living needs and to help raise their living standards but in a way that fosters improvements through hard work, commitment and self-sufficiency. Useful and ethical development is all about sustainability. Without a significant element of self-sufficiency built into a project then the donors may not only be promoting dependency but a culture of handouts. This is not what the Nepal Trust is about and this is not what the Service Centre project is about.

The people of Humla require support but in their minds and souls they yearn for independence and the type of assistance that will lend dignity through opportunity, education, training and jobs. This project is about sustainability and is a forward thinking blueprint to teach people the skills they will need to support themselves and their families. The project will have a significant and positive impact on the lives thousands of local people and generations to come.

The Service Centre will provide opportunities, training, skills and the means for local people to take charge of their own lives and development. By installing and sustaining clean energy systems this initiative will not only create trade and income generation but also a healthier home environment that will reduce the level of respiratory diseases and eye problems and promote literacy and hygiene.

The associated end-uses of this project, i.e.: electrical power and home lighting - will make a significant positive impact on the working environment for women in particular. It will vastly improve women’s livelihoods and thus their children’s well being by reducing the hardships of fuel- wood collection and the daily hard labour of pounding grains by hand. Home lighting and mechanized food processing will save families time and allow both women and men to concentrate on other activities such as education, village development and finding more time for their children. In addition, the Nepal Government in cooperation with UN and international donors, initiated the construction of a road that will link the China and the Tibetan plateau with Simikot, Humla. This will allow the Service Centre within the next 10 years to possibly expand its technical assistance and services to motorised vehicles.

7 Sustainable and cheap reliable energy will allow the development of industrial uses, initially for - power saw and flour mills and grain processing, computers for education as well as machines to produce handicrafts and make repairs to local resources. Proper training and repair and supply mechanisms for micro-hydro projects will help reduce the drudgery and demands of the present life- style and over time create village income. Modern energy schemes will be a welcome replacement for very expensive kerosene, which normally only the richest families can afford and it is non- sustainable. Solar lighting and micro-hydro power will dramatically help cut down on burning firewood and other timber products and thus benefit the environment too.

Community development can only happen when a community is healthy. And health can only be improved or sustained when a community has the power and resources and the belief that life can be better for all. This project will help accomplish this by creating opportunities, training, jobs, reliable services and products and by supporting clean renewable resource – sun, wind and water!

Project Plan & Funding Requirement

The management plan is that the Nepal Trust will franchise the running of the SC out to a third party organisation (e.g. LIDS) with an initial set up phase. The Nepal Trust will retain ownership of the building plant and tooling. The franchisee will be responsible for the employment and supervision of the technicians and will run the Service Centre to pre agreed service levels. With this approach the Nepal Trust will gain a depth of management and also have a local manager responsible for and motivated to keep on top of the cash aspects of the project. To drive performance the franchise would be subject to annual review and renewal every 3 years.

Under the service agreement the Franchisee is required to:

. Inspect the installed micro hydro basis across Humla annually and provide the communities and NT an annual report on such highlighting maintenance and repair issues . Provide annual, on-site training to the operators of the installed micro hydro base . Stock an adequate but modest supply of spares (drive belts; 12 volt batteries; light bulbs; solar lamp batteries and LEDs; etc)

8 The following broad schedule is planned:

. 2014/15 o Complete building and connect to local electrical and water supply o Enter franchise agreement with LIDS or another partner o Commence year one start up phase o Employ service centre manger: electro mechanical engineer o Employ 2 technicians o Commence initial service operations

. 2015/16 o Complete start up phase o Procure work benches and initial items of ‘heavy’ plant o Set up workshops o Expand service operations

. 2016/17 o Commence commercial operations o Employ a 3rd technician o Review and re-tender the franchise

. 2017/18 onwards o Routine operations

The funding for 2014/15 is secured. The specific tasks that will be investigated from a recent survey of most of the systems include:

. Fixing the micro hydro supply to the Kermi clinic . Fixing the solar lighting at Halji clinic and supplying/installing new 12v batteries (at a commercial rate) to the Halji community . Supply and installation of electrical power to SC itself (3 phase supply is available: a back up scheme to protect against load shedding needs addressing in the future), the Bargaun and Sarkegad clinics . Engage in a project to supply Solar Lamps to Dojam, Thehe and the more isolated Lower Humla tea shops . Look into releasing and lubricating the various flow rate control valves that are stuck open and replacing leaking gaskets. . Generate a list of equipment to be purchased in 2015 . Operator training . Place on hut walls of all micro hydro systems notices setting out the main principles of how it works and the associated safe operational procedures . Create a supply capability for: o Solar Lamps o Smokeless stoves o Solar showers o Micro hydro units o PV panels

9 2015 will see the workshop capability being created: the budget for this is £35,000, subject of this Global Grant Submission

The tooling includes facilities for:

o General Mechanical Workshop

o Sheet metal and Rod workshop

o Carpentry Workshop

o Plumbing workshop

Where possible second hand machines will be sourced and purchased from e.g. Kathmandu and/or Nepalgunj.

We will investigate the need for an UPS power supply for 2016 but it is anticipate that 2016 and beyond routine running costs will be covered from income generated by the Service Centre

Funding Requirements 2015 and 2016

2014/15 (Funding Secured) Staff Salaries 2 Technicians for 9 months each £3,000 1 electro mechanical engineer for 6 months £2,000 Building work £5,000 Hand tools and Work Benches £1,500 Running costs £1,500 Travel & Admin £2,000 Service & repairs Budget £4,000 £19,000 2015/16 Staff Salaries 2 Technicians £4,000 1 electro mechanical engineer £4,000 Workshop plant £16,000 Running costs £4,000 Travel & Admin £3,000 Service & repairs Budget £4,000 £35,000

2016 and beyond costs expected to be covered by revenue

10 Notes to Funding

1. 2014 & 2015 represent transition years where NT helps fund Franchisee in getting operations off the ground by supporting staff salaries and funds the capital investments in plant and facilities 2. Income re-invested into the Service Centre from sales is not included: this provides the contingency 3. £4,000 per annum Service & Repairs budget is money to directed by the NT to facilitate/lubricate community will in servicing and/or making repairs to community projects: this money would be spent through the SC and used to leverage Community contributions