Nepal: Building Climate Resilience of Watersheds in Mountain Eco-Regions— Final Report

Technical Assistance Consultant’s Report

Project Number: TA 7883-NEP January 2013

Prepared by NIRAS

Kathmandu, Nepal

For the Government of Nepal

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design.

I. THE DRAFT PROJECT PROPOSAL

1. I submit for your approval the following report and recommendation on (i) a proposed loan, and (ii) a proposed grant, both to Nepal for Building Climate Resilience of Watersheds in Mountain Eco-Regions Project.

2. The project1 aims to improve access to and enhance the reliability of water supply for domestic, livestock purposes and irrigation among communities living in the watersheds of Nepal river systems which are significantly vulnerable to climate change. The watersheds selected are climate sensitive and contain climate vulnerable communities. Project implementation will commence in two watersheds which lie in 6 hill districts in Far West Region: Achham, Baitaidi, Bajhang, Bajura, Dadeldhura and Doti. It may expand to adjacent watersheds. Access and reliability to water resources will be improved through a participatory program of integrated watershed management with interventions in upland areas to increase surface water storage and groundwater recharge, and to deliver water to locations where the community can use it. The communities in the project area will have more reliable water supplies in dry season. Major beneficiaries will be women and disadvantaged groups2. As the first large-scale intervention by ADB in watershed management in Nepal, the project will demonstrate participatory watershed management planning and build the capacity of all levels of the government for integrated watershed development specifically focussing on water resources. Institutional capacity for watershed planning, and for plan implementation and maintenance, will be increased by the project. Sub-watershed management committees3 will be established by drawing on the experience and resources of existing agriculture forestry and environment committees and community forest and other user groups. Training in watershed management planning will be provided to government staff.

II. THE PROJECT

A. Rationale

3. Watershed management is important for Nepal’s national economy to maintain upland areas as sources of water. These watershed areas comprise about 77 percent of total area and are home to just under 50 percent of total population of Nepal.4

4. The project is founded in the Nepal Strategic Program for Climate Resilience (SPCR) as well as the Government of Nepal’s (GON) National Adaptation Programme of Action (NAPA) in response to climate change, which was finalized in September 2011. CC studies in Nepal identify changes to climate patterns which will result in critical shortages of water for drinking, irrigation, and other uses. NAPA recommends urgent action to focus on effective and multipurpose use of water resources, conservation of watershed areas and upgrading and expanding hydro-meteorological stations. NAPA proposed an environmental action plan on management of watersheds and aquatic ecosystems and priority actions for forests and biodiversity. The plan includes (i) climate change adaptation /water conservation /education /awareness program, (ii) climatically sensitive watershed management programs, including vegetation management to increase infiltration and a decrease in evapo-transpiration and improved recharge through conservation ponds and other mechanisms, (iii) community participation in the management of

1 The Asian Development Bank (ADB) provided project preparatory technical assistance. 2 Disadvantaged groups are defined in the supporting document, Gender and Social Inclusion Plan 3 The recommended structure, responsibilities and linkages for sub-watershed management committees are set out in Annex 2 of the PAM 4 Government of Nepal, 2011. National Population and Housing Census 2 watersheds to enhance climate change adaptation, (iv) control of landslides, erosion and other disturbances, (v) institutional capacity building of Government agencies at the central and local levels, and (vi) an institutional framework for coordinated and integrated development at the basin level. The Project will include these six elements.

5. Sub-watershed management plans have been prepared as pilots in 3 sub-watersheds during the PPTA period, including feasibility studies for 3 subprojects within the scope of these plans. Further sub-watershed management plans will be prepared and subprojects aimed at increasing water availability will be implemented and outcomes monitored and evaluated. Sub- watershed management committees (SWMC) will be established and involved in plan preparation and implementation. The SWMC will be linked to resource management arrangements at the district level through the District Management Committee. Project investments in infrastructure will be protected and enhanced by land use management which will increase ground cover and reduce soil erosion in the storage catchments. Actions will be taken to stabilize slopes and prevent land slips where these may affect the water sources. Planning processes have been documented and training developed. The project's interventions will be underpinned by watershed management capacity building at national, district and community levels. An awareness program on climate change issues related to water resources will be implemented at different levels. Two new District Soil Conservation Offices (DSCOs) will be set up - Achham and Bajura, the existing Dadeldhura DSCO office building will be reconstructed and additional office accommodation will be provided for the existing DSCO at Doti.

6. The project is in Nepal's confirmed project pipeline for Asian Development Bank (ADB) assistance and contributes to three of the country sector outputs, 2012–2014: (i) sustainable rural infrastructure, and (ii) accountable service delivery, and (iii) increased representation of target groups in governance structures. It is based on experience and techniques developed by DSCWM through a series of donor supported interventions, on lessons from international NGOs including International Centre for Integrated Mountain Development (ICIMOD), and on international experience in watershed management. It aims to link in with work by Nepal’s Local Adaptation Plan for Action on climate change which is being implemented at the village development committee level.

B. Impact and Outcome

7. The design and monitoring framework is in Appendix 1. The expected impact will be that climate resilience in Nepal mountain communities is improved. The project’s outcome will be that communities significantly vulnerable to CC in watersheds in middle hills will have improved access to and enhanced reliability of water supply for domestic, stock and irrigation uses. By the conclusion of the project in 5 years and construction of improved water supplies, there will be improved access to water supplies of all types/uses for communities within the project area. In sub-watersheds where sub-projects target drinking water, the average time spent by women to collect water in dry season will be reduced by 50%. Water storage infrastructure will be implemented in at least 60 sub-watersheds and used for irrigated production, and 15% of forests and grazing areas will be regenerated in selected watersheds.

C. Outputs

8. Three main outputs are envisaged: (i) Participatory watershed management planning to improve water security demonstrated; (ii) Subproject water storage and watershed management (that addresses the specific vulnerabilities of women and DAGs) implemented in priority

3 watersheds; (iii) Lessons for improving access to and reliability of water resources in vulnerable middle hill regions generated and used by DSCWM in strengthening its management of watersheds.

9. Watershed planning for improved water security. In each sub-watershed, the community will be encouraged to set up a sub-watershed management committee to act as a focal point for plan development and implementation. The committees will be structured so that they represent all the community in the sub-watershed. Draft sub-watershed management plans will be prepared through office studies and field inspections. The draft plans will be developed through consultation with communities at the village development committee level. Options for increased water storage and for use of improved water supplies will be discussed with these communities in the context of these comprehensive plans for managing land and water. The plans will be confirmed with the sub-watershed committees, approved by DSCWM and subprojects to improve water supplies implemented. Three pilot sub-watershed management plans were drafted during the PPTA as examples. Sub-watershed management committees will be established to discuss and confirm the 3 pilots. The pilot sub-watershed management plans will be replicated in sub-watersheds throughout the sample watershed areas, drawing on lessons learnt from implementation of subprojects.

10. Subproject water storage and watershed management. Subprojects will be designed within each sub-watershed plan as it is developed to achieve output (i).The subprojects will provide increased water storage thus improving the reliability of water supply in the dry season. Water is to be conveyed to the storages by a combination of pipelines, channels and surface flow from the local catchment as appropriate to the local situation. Necessary actions will be designed to protect the sources, pipelines and channels, and to prevent erosion impacting the water storages. Some storages will aim to hold water, while others are designed to recharge groundwater systems. The choice of storage type is site specific, depending on hydrogeologic conditions. The selection of the subprojects will be made in conjunction with the community to gain the benefit of local knowledge and to ensure the infrastructure meets community needs. Implementation of subprojects will improve water access and reliability for communities at risk from climate change and particularly address water shortage issues that result in additional labor for women and difficulties for disadvantaged groups such as the Dalit and Janajati who are often required to subordinate their water needs when there is water shortage. Increased water availability will also allow additional crop production, and reduce animal disease from polluted water.

11. Three example subprojects have been designed for the pilot sub-watershed plans. Suitable storage locations have been identified, water sources defined and water access agreed with communities to fit within customary water use rules. Watershed management activities within the 3 pilot sub-watersheds for which plans have been drafted have been identified through community consultation. Small scale improvements to village infrastructure (pathways, water taps, and irrigation channels, community stock watering locations, landslide, gully, slope and embankment stabilization, revegetation and other measures) will be implemented through provision of organizational support and small grant assistance.

12. Lessons for improving access to and reliability of water resources. Training will increase capacity for watershed planning and particularly for identifying and designing options for improved water supplies. The documentation of strengthened watershed management planning and implementation procedures along with capacity building will allow extension to country programs. An awareness program on climate change issues will be further developed within prepared guidelines. The program will aim to bring together the knowledge and resources

4 of the government and selected donors and NGOs on climate change as it is affecting the middle hill regions of Far West Nepal and present it in the context of lifestyles and agricultural activities of the watershed communities.

13. The project will have components of planning, designing and implementing sub- watershed plans and subprojects, institutional development and capacity building and project management, monitoring and evaluation.

D. Investment and Financing Plans

14. The project is estimated to cost $47.6 million (Table 1).

Table 1: Project Investment Plan ($ million) Item Amounta A. Base Costb 1. Watershed Planning and Implementation 3.6 2. Community Watershed Improvement Works 3.8 3. Enhancing Access to Water 25.7 4. Project Management 8.0 Subtotal (A) 41.2

B. Contingenciesc 6.3

C. Financing Charges During Implementationd 0.1 Total (A+B+C) 47.6 a Includes taxes and duties of $5.4 million equivalent to be financed from government resources. b In second half 2012 prices. c Physical contingences of 10% for civil works and land acquisition and resettlement, 0% for staff and consultants and vehicles, and 5% for all other categories. Total physical contingencies amount to 7.8% of base costs. Price contingencies computed at 2.2% and 1.9% for the first two years and at 1.8% for remaining years on foreign exchange costs and 7% per year on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. d Includes interest during construction for the ADF loan of 1% per year and for the Climate Investment Fund credit of 0.1% per year. Source: PPTA

15. The government has requested a loan in various currencies equivalent to SDR {insert amount} from ADB’s Special Funds resources to help finance the project. The loan will have a 32 year term, including a grace period of 8 years, an interest rate of 1.0% per annum during the grace period and 1.5% per annum thereafter, and such other terms and conditions set forth in the draft loan agreement.

16. The government has also requested a grant and loan from the Climate Investment Funds Pilot Program on Climate Resilience equivalent to $18.5 million and $14.4 million, respectively. The loan will have 40 year term, a grace period of 10 years and an annual service charge of 0.1%.

17. The financing plan is in Table 2.

Table 2: Financing Plan Source Amount ($ million) Share of Total (%) Asian Development Bank - ADF 5.0 10.5 CIF/PPCR - grant 18.5 38.8 CIF/PPCR - credit 14.3 30.1 Beneficiaries 2.9 6.1 Government 6.9 14.5 Total 47.7 100.0 ADF - Asian Development Fund; CIF/PPCR - Climate Investment Funds/Pilot Program on Climate Resilience Source: PPTA

E. Implementation Arrangements

18. The Ministry of Forests and Soil Conservation (MFSC) will be the executing agency for the project. The Department of Soil Conservation and Watershed Management (DSCWM) will be the implementing agency. A Project Coordination Unit (PCU) will be formed in DSCWM and all project implementation will fall under that unit. DSCWM will appoint a Project Director (PD) to coordinate project implementation with activities between DSCWM and District Soil Conservation Offices (DSCO). Policy direction will be provided by an interagency Steering Committee and a Technical Working Group. Both were established for the PPTA. At the district level, a Project Management Unit (PMU) with senior advisors will be attached to the District Soil Conservation Offices (DSCO) at Dadeldhura. At each DSCO, government staff will be supported in project implementation by several Sub-watershed Management Teams (SMTs) staffed by a mix of government staff and consultants. The DSCOs will undertake sub-watershed plan (SWP) preparation, the engineering work of planning of subprojects (feasibility and detailed design), approving SWPs, and supervising construction and implementation. The DSCOs will report on project implementation to the PMU which will report financially and technically to the PD at the central level. For consulting services, one package will be required from either a nongovernment organization or an engineering firm(s). The consultants will assist the PCU at the central level in monitoring progress and overseeing preparatory and implementation technical assistance by the PMU and DSCOs/SMTs.

19. The implementation arrangements are summarized in Table 3 and described in detail in the project administration manual.5

5 Project Administration Manual (accessible from the list of linked documents in Appendix 2).

Table 3: Implementation Arrangements Aspects Arrangements Implementation period {Month 2013–{Month 2018 Estimated completion date {Date} Management (i) Oversight body Project Steering Committee {Name} TBA (chair) {Name} TBA (members) (ii) Executing agency MFSC (iii) Key implementing agencies DSCWM (iv) Implementation unit Kathmandu, 1 staff Achham, 11 staff Dadeldhura, 11 staff Bajura, 11 staff Doti, 11 staff Procurement {International {#} contracts $ {amount} competitive bidding} {National {#} contracts $ {amount} competitive bidding} {Shopping} {#} contracts $ {amount} Consulting services {Selection method} {#} person-months $ {amount} {Selection method} {#} person-months $ {amount} Retroactive financing and/or 1. Recruit a team of specialists to (i) prepare a prefeasibility advance contracting design for soil and water management interventions at the sub-watershed scale (one of more sub-watersheds), and (ii) packaging of interventions for bidding through preparation of a bill of quantities, a unit price bid form and tender documents for procurement of construction services, materials and equipment; 2. Recruit consultants to facilitate formation of the PCU and establish baseline information for the project. Disbursementa The loan and grant proceeds will be disbursed in accordance with ADB's Loan Disbursement Handbook (2012, as amended from time to time) and detailed arrangements agreed upon between the government and ADB.

MFSC = Ministry of Forestry and Soil Conservation; DSCWM = Department of Soil Conservation and Watershed Management a For guidance, refer to the Loan Disbursement Handbook and the Technical Assistance Disbursement Handbook (2010, as amended from time to time). Source: PPTA

20. The lack of locations for large storages, scattered water demands and poor access result in implementation of relatively small-scale works. Private contractors will be engaged to implement the works in suitable sized packages through national competitive bidding. It is anticipated contractors will use a labor-based approach resulting in most interventions employing communities near the locations of subprojects.

III. {TECHNICAL ASSISTANCE}

21. {Describe technical assistance loan(s) and grant(s) accompanying the project, if any, including major outputs and activities, cost estimates, financing plan, and implementation arrangements.}

IV. DUE DILIGENCE

22. The selected watersheds are in the West Seti Sub-basin of the Kanali River. The population of these two watersheds is estimated as 496,2056 and the mean per capita income level for the 6 areas sampled in the household survey is NRs 21,934/year7 . More than 85% of households in these watersheds live in scattered dwellings close to natural springs and patches of sloping land. They have subsistence lifestyles based on mixed agriculture, grazing activity and collection of non-timber forest products. Water scarcity is a significant and widespread problem among these communities, occurring every year in the dry season following the monsoon. There is an expectation that climate change will bring reduced rainfall during the dry season and of increased rainfall intensity in the pre-monsoon season, which will further exacerbate water shortages since this will reduce infiltration recharging groundwater and will also increase erosion and downstream flooding.

23. The watershed areas are steep mountainous country with average slopes of almost 30 degrees, narrow valleys with perennial streams. There is limited cultivatable land in river flats and on the hillsides where there is some land with a slope of less than 20 degrees. Transport and other services are severely limited; most settlements have foot track access only; each of the five districts in the two watersheds has a small town with road access but these roads may be blocked during monsoon periods by washaways and landslips. There are agricultural markets only in the district centers; and the towns have electric supply but generation shortages limit its provision to between 5 and 10 hours a day depending on the location and season. Villages generally do not have access to electricity except possibly for light supplied by solar photo-voltaic panel. In villages, water mills are commonly used.

A. Technical

24. Many small water storage and distribution systems in the hill districts suffer from early failure because of siltation, fracture of the lining material from earth movement, use of fragile and impermanent materials such as earth, logs, or brushwood for construction of diversion structures that may be washed away by floods. The installation of rudimentary distribution systems also leads to unreliable performance and high operation and maintenance costs. The project emphasizes a higher standard of design and construction for infrastructure 8 . A participatory plan approved by the SWMC will specify infrastructure that provides longer design lives. Durable materials will be used to minimize the need for repairs. The relative merits of different types of materials in terms of cost and ease of maintenance will be assessed on a case-by-case basis. Organizing the local community for maintenance of facilities will be incorporated into the early stages of subproject development.

6 2011, Population and Housing Census, Central Bureau of Statistics 7 2011, Nepal Living Standards Survey III, reports mean and median per capita income for communities living in rural hills in Mid and Far West Region at NRs 23.893 and NRs 16,094 respectively 8 Soil and water infrastructure will include diversion structures, cross-drainage works, improved water distribution systems, erosion protection facilities and water catchment improvements.

B. Economic and Financial

25. The economic and financial analyses focused on the economic feasibility of the three sample subprojects. For all three subprojects, quantified benefits were assessed by comparing present crop production with the production expected after the introduction of new or more reliable irrigation water supply through the development of water storage facilities. For the Doti and Dadeldhura subprojects, benefits also accrue from the time savings for households collecting water during the dry season. The EIRRs estimated for the three subprojects are 14.9% for Doti, 14.2% for Bajura and 21.4% for Dadeldhura. All are not highly sensitive to changes in key cost and benefit variables but for Doti and Bajura some changes of key variables tested in the sensitivity analysis lead to EIRRs below 12%.

26. The sample subprojects will benefit up to 835 farm households. While more than 280 households will benefit directly from the development of water storage facilities, either through opportunities for irrigating some or all of their respective landholdings or through improved access to water for domestic use, especially during the dry season, other households will only directly benefit from measures to improve watershed planning and management, protect water sources, stabilise eroding and unstable areas and other similar interventions. Together these measures will improve the resilience of watersheds and those living in them to changing climatic conditions.

C. Governance

27. A substantial amount of capacity building and training will be delivered by the project; within the implementing agency, at national level and district level, in strengthening coordinated planning at district and VDC level, and in increasing skills, interest and involvement in local government within the sub-watershed communities, including establishing and empowering a sub-watershed management committee in each of 65 sub-watersheds in the 6 project districts. Training for project implementation will increase the capability for future service delivery by DSCWM and strengthen its internal management systems. Budgeting and accounting will be improved. Conflicts between individuals and communities over water will be lessened though the project’s interventions.

28. ADB’s Anticorruption Policy (1998, as amended to date) was explained to and discussed with the government and the Department of Soil Conservation and Watershed Management. A range of measures proposed for the project will reduce the risks of corruption. The specific policy requirements and supplementary measures are described in the project administration manual.9

D. Poverty and Social

29. The project will provide opportunities for increased agricultural production and small- scale market gardening, hence improved food security and income. It will reduce the time spent, mainly by women, in collecting drinking water. Other disadvantaged groups (mainly Dalit) will be particular beneficiaries as they must currently subjugate their needs for drinking water to others in the community. Social harmony will be improved through participatory planning processes and institutions. The project also aims to influence traditional and discriminatory practices for women such as Chaupadi. Improvements in community health are anticipated from better water

9 Project Administration Manual (accessible from the list of linked documents in Appendix 2).

9 supplies and improved food security. Implementation will be labor-based with preference given to local communities.

E. Safeguards

30. Subprojects to be constructed during the project are expected to fall into Categories B and C. Experience with feasibility study for the pilot subprojects and results from the socio- economic baseline survey indicate that resettlement costs will be minimal and indigenous people were not encountered. Therefore category C has been assigned for safeguards for both resettlement and indigenous people. Impacts in all cases are expected to be small to non- existent. Nevertheless, guidance frameworks have been prepared and implementing agency capacity assessed, and training proposed. Staff of the implementing agency will be supported by senior national social and environmental specialists appointed under contract to the PMU. Details are in the Environmental Assessment and Review, Resettlement (Land Acquisition) and Indigenous Peoples’ Planning Frameworks10

31. Completion and approval of any social assessment, land acquisition and environmental safeguard documentation required for subprojects will be the responsibility of a Senior Social Safeguards Specialist (SSSS) and the Watershed Management/environmental Specialist, respectively within the PMU and a Watershed Management/environmental Specialist and Social Safeguards Officer in each SMT who see to the environmental and social issues on project development and monitoring.

F. Risks and Mitigating Measures

32. Major risks and mitigating measures are summarized in Table 4 and described in detail in the risk assessment and risk management plan.11

Table 4: Summary of Risks and Mitigating Measures Risks Mitigating Measures Weak compliance with public financial management Implementing agencies will maintain separate project systems and procedures in DSCWM and districts accounts to identify goods and services financed by ADB. Annual training for DSCWM and DSCO accountants ADB and DSCWM will address and remedy any issues raised by the auditor. Weak institutional capacity in DSCOs for project Project staff / consultants will provide implementation budgeting, resulting in implementation delays support to DSCO staff Insufficient counterpart funding for the project in the MFSC will follow up with the Ministry of Finance annual budget Project consultants will assist DSCWM with annual budget forecasting Weak capacity and lack of understanding of Public At start-up and annually thereafter, DSCWM will provide Procurement Act and Regulations in DSCOs training in procurement procedures, with ADB support. Weak procurement controls in DSCOs threaten The PCU and ADB will undertake regular random post- transparency and effectiveness facto reviews of contracts awarded by DSCOs and remedial action will be required where the proper procurement procedures have not been applied Low institutional and management capacity in user Works to be undertaken by user groups will be groups. determined during subproject feasibility assessment in consultation with the groups and project staff will provide

10 Environmental Assessment and Review, Resettlement (Land Acquisition) and Indigenous Peoples’ Planning Frameworks are accessible from the list of linked documents in Appendix 2 11 Risk Assessment and Risk Management Plan are accessible from the list of linked documents in Appendix 2

advice during contract execution. Malfeasance in bidding for civil works and materials Each user group will establish a committee to monitor supply contracts. contractors undertaking any works. PMU will monitor subproject implementation, including annual audits to check for irregularities and will report findings to DSCWM and ADB. ADB’s anti-corruption policy will be disseminated among project staff and user group committee members. The PCU will blacklist contractors and suppliers proven to be involved in malfeasance and the chief district officer, who has anti-corruption authority, will receive and act upon genuine complaints. Poor level of technical and management skills and Project training program will aim to improve management motivation among DSCWM and DSCO staff will and technical skills of DSCWM and DSCO staff. adversely affect project implementation. DSCO: District Soil Conservation Office; DSCWM: Department of Soil Conservation and Watershed Management; PCU: Project Coordination Unit. Source: PPTA

V. ASSURANCES {AND CONDITIONS}

33. The government {and the {name of the executing agency}} has {have} assured ADB that implementation of the project shall conform to all applicable ADB policies including those concerning anticorruption measures, safeguards, gender, procurement, consulting services, and disbursement as described in detail in the project administration manual and loan documents.

34. {For projects: The government {and the {name of the executing agency}} has {have} agreed with ADB on certain covenants for the project, which are set forth in the {loan agreement and project agreement.}} {For MFFs: The government {and the {name of the executing agency}} has {have} given ADB certain undertakings for the MFF, which are set forth in the framework financing agreement. Specific covenants agreed by the government {and the {name of the executing agency}} with respect to individual tranches under the MFF are set forth in the {loan agreement and project agreement} for the respective tranches.}

35. {Describe conditions for loan effectiveness and conditions for disbursement only if nonstandard, project-specific conditions are included.}

VI. RECOMMENDATION

{Select the appropriate wording from template.}

Appendix 1 11

DESIGN AND MONITORING FRAMEWORK

Performance Targets and Data Sources and Assumptions and Design Summary Indicators with Baselines Reporting Mechanisms Risks Impact Assumptions Climate resilience in By 2023: DSCWM and Nepal middle hill Poverty incidence in Government statistics communities continue communities climate vulnerable to maintain watershed improved watersheds decreased. management Climate related disasters Government statistics investments are reduced by 10% Outcome By 2018: Assumptions Communities Improved access to water Beneficiary assessment Projected CC impacts significantly supplies of all types/uses confirming project are estimated with vulnerable to CC in for communities within the outcomes adequate level of watersheds in middle project area accuracy hills have improved Reports of water-borne Socio-economic Risks access to and disease in communities of monitoring program enhanced reliability of the selected watersheds established under the water supply for reduced by 25% project domestic, stock and irrigation uses. 15% of forests and grazing Satellite imagery before areas regenerated in and after sub-watershed selected watersheds management plan implementation 100% of sub-watershed Socio-economic management committee monitoring program are represented on District established under the Management Committees project At least 30% of Sub- Socio-economic watershed Management monitoring program Committee members are established under the women and DAGs project Outputs Assumptions 1. Participatory Sub-watershed Socio-economic watershed Management Committees monitoring program Risks management plans established and operating established under the Agencies are reluctant prepared and in 100% the selected subproject. to adopt watershed implemented to watersheds. management principles improve water 100% of selected Beneficiary assessment and approaches security and watersheds adopt the derived from the project enhance watershed participatory planning resilience approach developed by the Project. Women and DAGs Project monitoring and involved in relevant VDC progress reports sub-committees and user groups regularly consulted in watershed management and planning 50 DSWM staff trained in Project monitoring and watershed management progress reports and climate adaptation principles

12 Appendix 1

Performance Targets and Data Sources and Assumptions and Design Summary Indicators with Baselines Reporting Mechanisms Risks 2. Small scale, Water storage Project reports Assumptions community infrastructure implemented managed in at least 60 sub- Risks improvements to watersheds by 2018 village In sub-watersheds where Socio-economic {Activities + infrastructure. in sub-projects target monitoring program Assumptions – Risks = selected sub- drinking water, average established under the Outputs} watersheds time spent by women to project collect water in dry season reduced by 50% (baseline: 4 hrs/day) Water storage used for Beneficiary assessment irrigated production confirming project outcomes. 3. Sub-project water Water storage Project progress reports Assumptions source and storage infrastructure implemented improvements and in at least 60 sub- Risks catchment watersheds. 2018 management In sub-watersheds where Socio-economic implemented in sub-projects target monitoring program priority watersheds drinking water, average established under the time spent by women to project collect water in dry season reduced by 50% (baseline: 4 hrs/day) Water storage used for Beneficiary assessment irrigated production confirming project outcomes. 4. Lessons for Communities adopt Socio-economic Assumptions improving access to effective and enhanced monitoring program and reliability of water use practices for established under the Risks water resources in agriculture and other uses project vulnerable middle that are responsive to the hill regions specific needs of women generated and and DAGs. used by DSCWM in Incidence of disputes Socio-economic strengthening its linked to watershed stress monitoring program management of reduced by 50% (intra- established under the watersheds and inter-village) project Number of households in Pre- and post sub- communities engaged in watershed management sustainable natural plan surveys resources management activities

Appendix 1 13

Activities with Milestones Inputs 1. Participatory watershed management SCFCIF PPCR: planning to improve water security Grant: $18.5m demonstrated Credit: $14.4m 1.1 Organize communities and conduct awareness Item Amount ($ million) campaigns to enhance participation of watershed communities and other stakeholders (government and non-government) in watershed management (2014- 2015) 1.2 Develop/ revise watershed management plans for critical watersheds taking into account CC impacts and ADB/ADF: $5m using state-of-the art planning methodologies (2014- Item Amount ($ million) 2015) 1.3 Clarify the roles of watershed stakeholders and their rights in relation to watershed management, and improve watershed management governance (2015) 1.4 Strengthen institutional arrangements to involve watershed communities and other stakeholders Government: ${amount} TBD (government and non-government) in watershed Item Amount ($ million) management; provide capacity building where needed (2014- 2015) 1.5 Revise/ develop appropriate cost and benefit -sharing arrangements for watershed investments and their maintenance (by 2015) Beneficiaries: ${amount} TBD 1.6 Strengthen DSCWM capacity to implement the Project Item Amount ($ million) in particular and watershed management initiatives in general (2014-2018) 2. Sub-project water storage and watershed management (that addresses the specific vulnerabilities of women and DAGs) implemented in priority watersheds {Grant} {Technical Assistance Loan} 2.1 Implement measures to enhance surface water {ADB} {Cofinancier}: ${amount} conservation and storage (2015-2018) Item Amount ($ million) 2.2 Implement measures to enhance soil moisture and groundwater recharge (2015-2018) 2.3 Implement measures to control landslides, gullies and soil erosion affecting infrastructure (2015-2019) 3. Lessons for improving access to and reliability of water resources in vulnerable middle hill regions generated and incorporated into country programs 3.1 Monitor the impacts of project interventions, especially in terms of watershed hydrology and hydrological services (2016-2018) 3.2 Document project implementation approaches and experiences (2014- 2018) 3.3 Share project experiences, impact assessments and lessons learned within Nepal and globally as part of SPCR global learning support program (2014-2018) CC: climate change; DAG: disadvantaged group; DSCWM: Department of Soil Conservation and Watershed Management; PPCR: Pilot Program for Climate Resilience; SCFCIF: Strategic Climate Fund / Climate Investment Fund; TBD: to be decided; VDC: Village Development Committee (area) Source: PPTA

Building Climate Resilience of Watersheds in Mountain Eco-Regions (RRP NEP 44214)

SECTOR ASSESSMENT: WATERSHED MANAGEMENT

Sector Road Map

1. Sector Performance, Problems, and Opportunities 1. Watershed management brings a holistic approach to managing watershed resources, integrating forestry, agriculture, pasture and water management. It aims to minimize natural resources damage and coordinate social institutions using land and water resources for the benefit of the national economy. Its objective is to ensure proper land use and to promote interactions among multiple stakeholders within and between the upstream and downstream locations of a watershed. The interest and involvement of local people are necessary for successful natural resource management. To gain the interest of the community, watershed management is often linked with community development, poverty reduction and actions to increase local incomes.

2. Watershed management is often considered as part of the forestry sector as forestry is frequently practiced in upland areas, and in common with forestry it has an objective to manage rural land for multiple uses. But equally watershed management is often considered as part of the water sector because of the importance of upland areas as water sources. Biodiversity management through the governing of national parks, environment and forests and the administration of local areas are each important in watershed management, stressing the need for coordination of strategies and actions. There is no coordination of forestry, watershed and biodiversity programs since national agencies aspire to retain independent programs and budgets. Limited cooperation as is achieved at district level to supporting inputs for locally demanded services.

3. There are no agreed performance measures for the watershed sector. Watershed management in developing countries mostly focuses on the community’s agriculture and forest livelihoods, and adopts a participatory approach supported by applied science to prepare and implement community-based socio-economic activities. In developed countries, greater emphasis is given to natural resource management, science and to management of water quantity and quality. 1 A further major issue is a move from community participation to multi-stakeholder involvement.2

4. The purposes of current watershed management in Nepal are multiple (social, economic and environmental). The overall objective is sustainability with an emphasis on livelihoods, poverty reduction. Interventions are small scale and the outcomes of watershed management are given only qualitative assessment. The project objectives address water security issues in mountain eco-regions in Nepal and managing the predicted situation of deteriorating water security from climate change, emphasizing water resource aspects of watershed management.

5. Studies3 have estimated the benefit of watershed management in Nepal in conservation farming, community forestry, agro-forestry, and conservation engineering (upstream measures).

1 Krishna R. Tiwari, Roshan M. Bajracharya and Bishal K. Sitaula, Jun.2008 Natural Resource and Watershed Management in South Asia: A Comparative Evaluation with Special References to Nepal, The Journal of Agriculture and Environment Vol:.9, http://www.nepjol.info/index.php/AEJ/article/viewFile/2120/1953 2 Food and Agriculture Organization (FAO), Rome 2006. The New Generation of Watershed Management Programmes and Projects, http://www.fao.org/docrep/009/a0644e/a0644e00.htm 3 Wagley, M.P. and Bogati, R. 2000. State of Art and Status of Watershed Management in Nepal. In: K.S. Bendtan and K. Stapit (Eds.), Danida Watershed Development. Proceeding of Danida Third International Workshop on Watershed Development. Kathmandu Nepal: Sewa Printing Press (available on request)

The Bagmati Integrated Watershed Management Project reported4 a 40 % increase in yield of maize (Kg/ha/yr) from terrace improvement, 25% increased use of previously unproductive land, 40% increase in female membership in groups, 80 % decrease in offseason migration and an increase in user group participation by disadvantaged groups (DAGs – 80% and women – 50 %), although such results may not be transferrable to the Far West Region. Downstream benefits, while much discussed in the literature, are not reported as outcomes.

6. Analysis coming from CC studies in Nepal5 identifies changes to climate patterns which will result in critical shortages of water for drinking, irrigation, and other uses. CC is forecast to result in less reliable streamflow, more intense and potentially more erratic monsoon rainfall and increased impacts from flooding. Weather is expected to change with increased number of cloudy days, and changes in precipitation from snow to hailstones. Nepal’s National Adaptation Program of Action (NAPA) in response to climate change recommends urgent action on effective multi-purpose use of water resources, conservation of watershed areas and upgrading and expanding hydro-meteorological stations. Its environmental action plan on management of watersheds and aquatic ecosystems and priority actions for forests and biodiversity included the following: (i) map climatically sensitive watersheds, (ii) implement climate change adaptation/water conservation/education/awareness programs, (iii) implement climatically sensitive watershed management programs, (iv) promote community participation in watershed management to enhance climate change adaptation, (v) protect water sources from landslides, erosion and other disturbances, and (vi) develop watershed management policy. Under institutional mechanisms it included items of relevance to watershed management: (i) institutional capacity building of Government agencies at the central and local levels, (ii) an institutional framework for coordinated and integrated development at the basin level and (iii) enhanced institutional capacity and coordination.

7. A study of the vulnerability of communities in watersheds in the middle hill and mountain regions showed that the most vulnerable were in the Far West Development Region with a significant concentration in the Karnali River basin6. The focus of project interventions was subsequently selected as the Lower West Seti sub-basin.

8. Settlement patterns in the middle hill region of the Karnali River basin are controlled by the availability of sloping land which is able to be terraced and is suitable for agriculture. The majority of such land is at about half the height of these 2500m hills. Water scarcity in this sub-basin is a significant and widespread problem for the 85% of households living at these elevations and not on or close to the rivers. Reduced rainfall during the dry season and increased rainfall intensity, particularly during the pre-monsoon season, is expected with climate change which will exacerbate water shortages since this will reduce infiltration of rain and reduce flow of water from springs, on which these communities rely. Water insecurity and shortages of water occur during the extended dry period commencing in October and extending until the arrival of the monsoon in June. The severity of shortage and its duration varies from settlement to settlement with water shortages being greater in those settlements higher up the hill sides away from the perennial flowing streams in the valley bottoms. In some settlements the duration

4 Tiwari K.R., Bajracharya R.M., and Sitaula B.K., 2008. Natural Resource and Watershed Management in South Asia: A Comparative Evaluation with Special References to Nepal http://www.nepjol.info/index.php/AEJ/article/viewFile/2120/1953 5 Government of Nepal, September 2010. National Adaptation Program of Action to Climate Change. http://www.climatenepal.org.np/main/ 6 International Water Management Institute (IWMI), 2012. “Climate Change and Vulnerability Mapping in Watersheds in Middle and High Mountains of Nepal” http://www2.adb.org/Documents/Reports/Consultant/NEP/44214/44214-023-nep-tacr.pdf

2 of water shortage has been reported to last 3 months, requiring lengthy water collecting trips by women and children (the primary water collectors) lasting up to three hours a day. Similar situations are understood to exist throughout the middle hills in the West and Far West Regions.

9. Water shortages during the dry season for middle hill communities throughout Nepal have been reported as worsening by international NGOs and bilateral agencies7. The cause of this deteriorating situation was not clear. Various sources reported changed climatic conditions as the cause. Others blamed increasing water demand (variously for irrigation, stock and domestic supply). Yet others opined that degraded catchment conditions were to blame. It is likely that all these factors are involved.

10. Rainfall in the selected watersheds has been recorded lower than average in recent years and may be one of the reasons for reported water shortage. The extent to which this lower rainfall may be natural variation or climate change cannot be determined because of the short period of record available but is consistent with expectations of climate change. Climate change studies for this area suggest that the area will receive a slight increase (+1.4%) in annual rainfall in future. Changes in the annual rainfall pattern were also reported, although model results show a large variation across the area of the two watersheds (winter -13% to +40%; pre-monsoon +6% to +44.6%; monsoon -36% to 0%; post monsoon -19% to +25%). Annual water yield of these watersheds is forecast to reduce slightly. Again there is a marked variation across the area in seasonal response (winter -68% to +64.1%; pre-monsoon -67.9% to +65.9%; monsoon -80.3% to +15.4%; post monsoon -76.2% to +21.8%). Another change reported was increasing intensity of rainfall, particularly during rain showers in the pre-monsoon period. This increased intensity would reduce the amount of infiltration and groundwater recharge.

11. Excessive rain during the monsoon also causes problems of flooding, erosion and landslides. With climate change increased rainfall intensity and increases in total monsoon rainfall in some sub-watersheds are expected to exacerbate these problems and lead to more requests for watershed interventions to mitigate adverse effects.

12. Water source disputes arise due to increasing competition for water, inappropriate planning and improper use of water sources. Water supply has traditionally been planned and managed at the community level. Supplies of irrigation water in the middle hills are still organized largely by the farmers themselves, without the involvement of irrigation line agencies. Poor management of water resources, including failure to protect catchments, prevent stock polluting water sources and storages, a lack of coordinated participatory planning of drinking water and sanitation schemes at local level, is a cause of many problems in drinking water supply and sanitation. A water source generally has to serve several communities for multiple purposes. Often, a community is reluctant to share water from their source with other communities and they may extract the maximum volume of water from the source leaving no or less water for others downstream.8

13. Infrastructure to address domestic water scarcity is limited. Generally traditional water sources from naturally occurring springs are used. These sources are protected to a limited extent through the construction of ‘stone spouts’ (Dhunge Dhara), which allow the water to be

7 International Centre for Integrated Mountain Development (ICIMOD), WaterAid, Helvitas, Nepal-Finland Cooperation 8 Madan Raj Bhatta, Helvetas, 2011 Experiences of Water Use Master Plan in Nepal, Rural Water Supply in the 21st Century: Myths of the Past, Visions for the Future, 6th Rural Water Supply Network Forum 2011 Uganda http://www.solutionsforwater.org/wp-content/uploads/2012/01/WUMP_HELVETAS_NEPAL_RWSN-FORUM_2011. pdf

3 collected without disturbing the ground from where the water emerges. Rainwater harvesting at the household level is seen in some areas and is gaining popularity under promotion by the international and national NGO community.

14. Landslides and gully erosion are widespread and serious problems that displace homes, and cause valuable agricultural land to be lost. The landslides and gully erosion result from pre-existing topographical features, changing climatic conditions, badly designed and maintained water infrastructure which concentrates flow and from poor land use. Watershed degradation is worsening due to increased intensity and change from grazing cattle/buffalo to goats which have a wider diet and are more agile resulting in more vegetation being browsed. There is a resultant loss of vegetation cover and change in vegetation species. Trampling and browsing prevent re-vegetation and erosion follows. In steep country, gully erosion then leads to landslides.

15. The majority of the population is engaged in agriculture but productivity is low. Adoption of improved technology is limited and even though most cultivated area is devoted to cereals, there is a food deficit9 and malnutrition is high10. The communities at greatest risk from climate change in the middle hills are on hill slopes, undertaking rain-fed agriculture and not able to develop water resources and benefit from year-round irrigation. In addition, the opportunities for market based agriculture are limited by transport systems constrained by portage. The Agriculture Development Strategy now under development reasonably focuses on the Terai where the production potential is higher. Cash cropping in the middle hills will require support from value chains, marketing and transport arrangements.

16. About one third of Nepal’s forests are in the middle hills. Forestry production has decreased but there are signs that loss of tree cover is under control with adoption of community forestry. Pressure on forests will continue to decrease due to increasing urbanization, economic growth and strengthened institutions for community-based forestry. Forestry institutions and policies will become more inclusive, democratic and transparent, generating more employment opportunities and contributing to reduced poverty. Opportunity exists for greater income generation from non-timber forest products (NTFP) if market systems are developed.

17. Nepal’s political and social context lead to failure of top-down planning and the Government has adopted a mandatory requirement to involve local citizens in conservation activities. DSCWM requires direct contributions from local communities to the jointly planned watershed management activities but has not been able to prepare participatory plans for areas larger than 25 km2. While participatory planning for small areas is effective in addressing local issues, it fails to give cognizance to the interests of stakeholders in downstream areas outside these limited areas. The small scattered communities with poor transport and communication linkages. The type and size of development possible is constrained by settlement patterns and topography.

18. Seasonal and semi-permanent migration driven by the lack of and worsening livelihood opportunities is resulting in feminization of agriculture and land management. Women remain in the villages to work the land but do not have land ownership or the social standing to make decisions about land use management required for the planning. Land owners may also migrate

9 PPTA Household survey found in watershed study areas 40.1% of households were in food deficit for more than 9 months and about 32.3% had food deficit between 6 to 9 months in a year. Only 1.2% of the households were in food surplus. 10 In the Far Western Hill Region in 2009, the undernourished population (below 1810 kcal/person/day) was 26.40%, the number of underweight children under 5 was 44.4% and the child mortality was 9.40%. http://reliefweb.int/sites/reliefweb.int/files/resources/490C0C28F66C8B7A492576170024B1FC-Full_Report.pdf

4 out of the area hence are hard to communicate with and involve in watershed protection planning process. People leasing land have less motivation to protect the land and its resources.

19. Infrastructure services in the middle hills are very limited. Throughout Nepal, only about 5 percent of the rural population has access to electricity and access to other commercial energy sources is also very low.11 When available supply is intermittent. In the watershed areas, some 64% of households had some electricity supply but it was almost exclusively used for minimal lighting and less than 25 of households used electricity to supply energy requirements. As a result, any intervention to improve water availability must be designed to operate without external energy inputs, such as electricity. Lack of good transport facilities in the middle hills is also a major impediment to development. Much of the sample watershed area is limited to human and animal porterage, resulting in high development costs and limiting market opportunities. There are few roads and some are badly constructed. Road construction is difficult because of the unstable nature of the landscape. Poorly constructed roads destabilize slopes, can cause landslides and may become significant sources of sediment.

20. The major threats to biodiversity are lack of sensitivity and awareness of the general public and inefficient management of natural resources. Conservation of biodiversity with the active participation of concerned stakeholders for improving the socio-economic and cultural conditions of the local communities is essential.12 Kaptad National Park (224 km2) lies within the project area.

21. An opportunity exists among many middle hill communities for interventions for surface water capture and storage combined with source protection and management to ensure water quality and persistence. For sustainability, these physical interventions will need to be supported by community management arrangements. While water is still perceived to be a free public good, the development of infrastructure involves expenditure even if limited to a simple gutter and drum used for water harvesting, and some form of payment for use is essential if water supply systems are to be maintained.

22. To date private sector investment in natural resource management has been limited to actions of the NGO community, which might be attributed to the poor institutional arrangements and lack of outcome monitoring to show a potential return. Strengthening both these areas would allow development of payment for environmental services.

23. Nepal has a few more-or-less successful experiences in PES: when a contractual arrangement between custodians of an area (typically a watershed area) and downstream beneficiaries of watershed services has been created. Such an arrangement requires (i) that beneficiaries are prepared to pay for an environmental outcome; (ii) there is a clear link between the management of resources in an upstream area and the benefits derived in a downstream area, (ii) compensation provides incentives or revenue to improve the management of an upstream resources, and (iii) a means of quantifying management inputs and downstream benefits can be set up to serve as a basis for a payment agreement. PES has been found successful where (i) there are beneficiaries that constitute an institution or group, (ii) beneficiaries receive monetary value from an environmental service, (iii) there is a well understood relationship between environmental benefits gained in a downstream area and the

11 South Asia Regional Initiative for Energy, 2012 http://www.sari-energy.org/pagefiles/countries/nepal_energy_detail.asp 12 2002, Nepal Biodiversity Strategy. Ministry of Forests and Soil Conservation. Kathmandu, Nepal. http://www.ansab.org/UserFiles/Nepal%20Biodiversity%20Strategy%202002.pdf

5 management of a watershed, and (iv) there is a rapid response by the environment so that the lag between agreement and start of payment and the improvement in environmental services is small or at least predictable. In general these conditions do not exist as a result of the interventions set up under the Project. Predominantly there is no separable institutional player that benefits from upstream services to the extent that payments could be made. Typically both beneficiaries and custodians within the project area are one-and-the-same.

2. Government’s Sector Strategy

24. Watershed management is important for Nepal’s national economy to maintain upland areas as sources of water. These areas comprise about 77 percent of total area. About 52 percent of total population of Nepal occupied this area in 200113 but has now reduced to just under 50%14. Much of the upland area is highly erodible. The impacts that erosion and changes in hydrology in the mountains and hills can have on the lower Terai (or plain) areas may be severe resulting in blocking of waterways and flooding, changes in stream courses, and damage to bridges and other infrastructure. Studies of watershed management in Nepal have shown that improvements in livelihoods of mountain and hill communities can go hand in hand with greater stability of these important catchment areas.

25. The Nepalese government gives overall responsibility to manage and conserve watersheds and their resources (water, land, forests, biodiversity, etc.) to DSCWM. The national goal for watershed management is “to contribute to livelihood and well-being of people through sustainable watershed management of river basins”15. The main objectives of DSCWM16 are: (i) to assist in maintaining ecological balance by reducing pressure from natural hazards such as floods, landslides and soil erosion through conservation and development of important watersheds of the country; and (ii) to maintain land productivity, reduce soil erosion and contribute in development infrastructure protection by scientific management of watersheds.

26. Together with a number of donors, DSCWM has developed a highly intensive and consultative approach to watershed management. A small watershed approach has been found to be more successful than the large watershed approach in terms of incorporation of user group demand and input into planning and implementing an activity. DSCWM assesses land capability and encourages appropriate land use and uses appropriate (low cost, locally available) materials in the design and construction of infrastructure, and increased awareness, gains local cooperation for long term protection of an area. The small scale approach allowed development of visions for a future which included awareness of the need for resource conservation, and within the limited geographical area, a greater focus on fewer objectives for smaller, affordable activities.

27. The basic strategy of DSCWM17 in watershed management and conservation is to divide major river basins across Nepal into sub-watersheds within each district with sizes of between 15 to 25 km2; and identify, select and implement priority sub-watersheds plans according to level of

13 Institute for Integrated Development Studies (IIDS), December 2010. Upland Poverty in Nepal: the Role of Environment http://www.iids.org.np/Upland%20Poverty.pdf 14 Government of Nepal, 2011. National Population and Housing Census 15 Department of Soil Conservation and Watershed Management, Logframe of Soil Conservation and Watershed Management Programme. http://www.dscwm.gov.np/files/Logframe%20of%20SCWM-Nepal.pdf 16 Department of Soil Conservation and Watershed Management, Website. Kathmandu: Government of Nepal. http://www.dscwm.gov.np/objective.html 17 Department of Soil Conservation and Watershed Management, Working Procedure of Department of Soil Conservation and Watershed Management, 2061 BS. (in Nepali) (available on request)

6 need and status of degradation, particularly erosion potential using the land use and land system characteristics defined by Land Resource Mapping Project, 1980 and by population pressure. DSCWM has prepared guidelines for prioritizing and planning sub-watersheds, trained staff in use and prioritization analysis, established a multidisciplinary core group of planning experts at the centre with capacity to coach and train district and project level staff, and prepared and implemented sub-watershed plans. Such sub-watershed management planning processes have been adopted by other related sectors and projects. As needed, inputs of other government agencies have been arranged to deliver small integrated watershed management projects.

28. The government proposes to expand the soil and watershed management program throughout the country through a basin approach to enhance land productivity, maintain soil fertility and check floods and soil erosion. Resources, difficulties in expanding planning areas while continuing a participatory approach and level of interest by private sector limit achievement of this objective.18 Opportunities to increase land productivity are being explored through the Agricultural Development Strategy.

29. Watershed management is an exercise in decentralized integrated natural resource management. Several donors have supported the Government of Nepal in developing and implementing policies and plans on decentralization since 1990. Experience in these projects has been that poor local governance, including corruption and patrimonialism, which appear to be deeply entrenched in many village development committees, have been limitations, as have attitudes to women and the inclusion disadvantaged groups. Additional hindrances have been the lack of institutions of formal justice (e.g. courts or paralegals) across all communities regardless of caste, ethnicity, gender, geography or religion. The requirement to bring the legislative basis for watershed management into line with the government’s sector strategy for a decentralized, integrated and participatory approach has also been a limitation, although less so. Despite these difficulties, donors have concluded “the decentralized program relatively has better performance and, therefore, supporting a decentralized implementation modality for watershed management would increase the likelihoods of effective implementation including 19 better reach to the poor and marginalized social groups.”

30. A key weakness in the current watershed management strategy is the lack of attention to institutional arrangements. Plans have been developed and implemented on the basis of formal committees but without on-going support and with only limited capacity building. In addition, links to other programs, particularly to water resource management and agricultural development, have not been provided.

31. Watershed planning and management, like water resource planning and management, is best done on the basis of hydrologic areas. Emphasizing water issues within watershed management provides an opportunity to commence sustainable management of watersheds as water sources, as proposed in the Nepal’s Water Resources Strategy 20 which promotes integrated water resources management and river basin management, and has as Output 2,

18 Government of Nepal, 2007. Three-year Interim Plan, (2007/08 – 2009/10) http://planipolis.iiep.unesco.org/upload/Nepal/Nepal_TYIPEnglish.pdf 19 Naya Sharma Paudel, 2010, Responding to Climate Change in a Transitional Politics: A Review of the Political Context of Nepal in Relation to Designing Local Adaptation Plans for Action, prepared for Climate Adaptation Design and Piloting Project - Nepal 2011. Kathmandu: Forest Action (page 14) http://www.forestaction.org/app/webroot/js/tinymce/editor/plugins/filemanager/files/4.%202010_Nov_political%20ap praisal%20-final%20Naya%20sir%202.pdf 20 Water Resources Strategy Nepal, January 2002 http://www.wec.gov.np/downloadfile/water_resources_strategy_1320235438.pdf

Sustainable Management of Watersheds and Aquatic Ecosystems.

32. Institutional mechanisms are critical for success of the NWP. The NWP proposed sub-basin committees of community representatives which would appoint delegates to the District Water Resources Committees (DWRC), which in turn is represented on the District Development Committee (DDC). The sub-basin committees and the DWRC were proposed to be supported by the District Technical Office. These institutional arrangements recommended for river basin and sub-basin management have been implemented in some districts but the water management related role envisaged for DSCWM to manage sustainable watersheds and support action to reduce water induced disasters, for which restructuring of DSCWM was proposed, is not yet active. The sub-watershed is a smaller area than sub-basin water resource management and several sub-watersheds should be represented within a sub-basin’s institutional arrangements. Watershed users’ groups should be established under simple but robust arrangements, utilizing the Agriculture Forestry and Environment committees or, where an AFEC is yet to be formed, by inviting existing natural resource user groups, such as Community Forestry Users Group, Water Supply and Sanitation Committee, as members of sub-basin committees. Sub-basin committees then might be linked by representation and planning to District Water Resources Committees. The arrangements must take into account the current efforts in other Ministry and donor programs to increase the limited capacity at local levels. Work to develop such arrangements should also be cognizant of priorities for local coordination to take precedence over upstream/downstream management within a river basin, given results of a recent modeling study21.

33. The last National Plan set targets to implement watershed management in 34 sub-basins through 300 local body partnership programs, to formulate a long-term soil and watershed management strategy, identify 5 watershed areas which are nationally important for water resources use, develop a watershed management information system and establish an Emergency Natural Disaster Management Fund. It allocates NRs 753.5 million to this program.22 Watershed management was implemented in 32 sub-basins in partnership with 401 local bodies, an MOU was signed with the Department of Water Induced Disaster Prevention, and a design for a watershed management information system was prepared.

3. ADB Sector Experience and Assistance Program

[ADB will complete this part] 34.

21 IWMI, Scenario modeling for watershed management, January 2013 (available on request) 22 Government of Nepal, 2007. Three-year Interim Plan, (2007/08 – 2009/10) http://planipolis.iiep.unesco.org/upload/Nepal/Nepal_TYIPEnglish.pdf

Problem Tree for Watershed Management Sector

Reduced food Increased workload security and Decrease in Deteriorated to women, elderly livelihood Main effects public health ecosystems and children opportunities – out- migration

Reduced water availability for communities in watersheds of river systems that are significantly Main problem vulnerable to CC

Increased Water source Reduced sedimentation Loss of springs and development and storage of water in Causes of water water sources use not planned and watersheds infrastructure managed properly

Increase in land Weak management Accelerated soil Reduced slides and gully and operation by erosion groundwater formation stakeholders recharge

Insufficient focus on Multi-stakeholder multi-use water issues not planning addressed Changing climate Reduced soil Increased rainfall impacting water Limited agency moisture runoff sources (and capacity and agriculture) financial resources

Higher rainfall Higher Less rainfall during intensity (during Climate change temperatures summer season Monsoon only?)

Sector Results Framework (Agriculture and Natural Resources, 2012–2014) Country Sector Outcomes Country Sector Outputs ADB Sector Operations Outcomes with ADB Indicators with Targets Outputs with ADB Indicators with Incremental Planned and Ongoing ADB Main Outputs Expected Contribution and Baselines Contribution Targets Interventions from ADB Interventions Increased agricultural Agricultural gross Higher agricultural Cropping intensity increased Planned key activity areas Planned key activity areas productivity through domestic product per productivity. by 12% from baseline of 1. Enhancing agricultural 30,700 hectares of new and diversification, capita increased Baseline: 193% productivity improved irrigation commercialization, and NRs8,505 (2009); Target: Sustainable rural 2. Commercializing agriculture command area improved access to NRs9,441 (2012) Current infrastructure in place. 50% of irrigation subprojects through value-chain Establishment of HVC agricultural inputs value: NRs8,928 (2010) pass post-construction development agribusiness value chains Stronger enabling technical audit. 3. Improving access to in 22 districts Population with access to environment and agricultural input and markets Incomes of beneficiaries improved drinking water institutional At least 25% of farmers with through investments in increased by at least 20% increased Baseline 76.6% framework to deliver direct access to extension expanding rural transport Pipeline projects (2007), Target: 85%, services with services and agricultural infrastructure and irrigation 17,000 hectares of new and 24,327,000 people (2010) accountability. inputs are women or facilities improved irrigation – Three-year Interim Plan members of socially excluded command area 8,000 (2007/08 – 2009/10) More representation groups by 2012. Pipeline projects, estimated hectares of new HVC of members of amount production from 10 districts; targeted groups in Increased representation of 1. Water Resources Project 8,000 new off-farm jobs in various levels of women and socially excluded Preparation Facility ($11 million) rural districts governance groups in irrigation water user 2. Bagmati River Improvement Ongoing projects association committees. Project ($30 million) 13,700 hectares of 3. Food Security Investment improved irrigation Project ($50 million) command area 4. Building Climate Resilience of Export of HVC increased by Watersheds in Mountain 16% Ecoregions Project ($40.1 million) 5. Irrigation Management Transfer Project ($25 million) Ongoing projects with approved amounts 1. Commercial Agricultural Development Project ($18 million) 2. Community Irrigation Project ($26.4 million) 3. Community-Managed Irrigated Agriculture Sector Project ($20 million) 4. High Mountain Agribusiness and Livelihood Improvement Project ($20 million) 5. Raising Incomes of Small and Medium Farmers Project ($20.1 million) 6. Decentralized Rural Infrastructure and Livelihood Project–Additional Financing ($25 million)

ANR SECTOR PROBLEM TREE (draft)

NATIONAL Poor sector contribution to sustainable food security, socio- IMPACT economic and inclusive growth

Food insecurity, low farm Limited access to SECTOR Loss of natural resources level profitability and poor economic and IMPACTS and ecological benefits food system development social opportunities

CORE Low productivity and income, increased human vulnerability and fast SECTOR degradation of the natural resource base PROBLEM

Weak natural Increased water Low agricultural Weak resource insecurity for productivity and infrastructure and management and communities and commercialization rural connectivity increased disaster MAIN eco-systems CAUSES risks

Weak policy & strategy environment Limited capacity for water Poor infrastructure and Weak institutions for natural and weak regulatory implementation resources infrastructure utilities: inadequate road resource management planning, project network and poor road Limited institutional capacity for preparation and connectivity Inadequate capacity to services, relevant research and implementation. plan, implement, monitor extension Unreliable and expensive and evaluate NRM at Climate change leading transport services national and local levels Lack of investment from poor to higher flood peaks enabling environment and low and reduced summer Rapidly growing demand for Inadequate, incomplete and profitability. flows, with deadly flood rural road transport weakly enforced resource events and landslides management laws and Weak land tenure arrangements for Lack of funds for regulations landowners and lessees Watershed land investment and operation degradation leading to and maintenance Under-development of Male dominant land ownership and higher runnoff, and hence resource conserving unequal distribution of land due to less infiltration, and Lack of technical skills and agricultural production social structures reduced soil mositure capacity of local systems and groundwater government institutions. Male outmigration resulting in lack of recharge Improper land use labor and feminization of agriculture High cost and unreliable management and zoning Underlying Water resources power supplies Causes Shortage of quality agricultural inputs infrastructure damage Poor rangeland from higher sediment Increased risk of management with policy Irrigation water is insufficient and not loads and higher peak infrastructure damage due not articulated into a timely delivered flows to increased flood events strategy from climate change. Low capacity to manage production Inadequate infrastructure Denudation from cutting of risks for irrigation, flood Low quality road trees for energy protection, water storage construction Weak internal market organization and drainage Unsustainable harvesting of and regulation (standards, quality wild medicinal and assurance, transactional oversight) Increased catchment aromatic plant resources and lack of market information pollution Illegal logging Limited export market information and lack of export facilities and services

Absence of internationally-accepted quality standards

Undermined competitiveness from pegged exchange rate

Limited investment in capacity for handling, storing and processing agricultural products, small and inefficient agro-industrial enterprises

SUMMARY POVERTY REDUCTION AND SOCIAL STRATEGY

Country: Nepal Project Title: Building Climate Resilience of Watersheds in Mountain Eco-Regions

Lending/Financing {Project/Sector/Multitranche Department/ South Asia Department Modality: Financing Facility/ Policy- Division: Agriculture, Natural Resources and Social Based/ Others} Services Division

I. POVERTY AND SOCIAL ANALYSIS AND STRATEGY A. Links to the National Poverty Reduction and Inclusive Growth Strategy and Country Partnership Strategy The project will improve access to and enhance the reliability of water supply for domestic, livestock purposes and irrigation among communities living in the watersheds of Nepal river systems which are significantly vulnerable to climate change. The watersheds selected are climate sensitive and contain climate vulnerable communities. Project implementation will commence in two watersheds which lie in 6 hill districts in Far West Region: Achham, Baitadi, Baijang, Bajura, Dadeldhura and Doti. Poverty will be reduced through improved access and reliability to water resources through a participatory program of integrated watershed management with interventions in upland areas to increase surface water storage and groundwater recharge, and to deliver water to locations where the community can use it. The project directly supports the government’s poverty reduction strategy as outlined in the Government’s Three-Year Interim Plan (2010-2013) and in the ADB’s Country Partnership Strategy (CPS -2011) outcomes that include (i) increased agricultural income and employment opportunities with emphasis on poor and socially excluded groups; (ii) diversified and commercialized agricultural production; (iii) social, political and economic empowerment of women and other socially excluded groups. The communities significantly vulnerable to CC in watersheds in middle hills will have improved access to and enhanced reliability of water supply for domestic, stock and irrigation uses. By the conclusion of the project in 5 years and construction of improved water supplies, women will spend less time daily in collecting water, irrigation areas close to the benefiting communities may be expanded and agricultural production and increased from expanded irrigation and application of the saved labor of fetching water to agriculture. Disadvantaged groups are expected to have proportionally more benefit as a result of breaking down the current exclusion

B. Results from the Poverty and Social Analysis during PPTA or Due Diligence

1. Key poverty and social issues. Within the project design area are found isolated communities with low thresholds of resilience to upsets that might come from the effects of climate change. IWMI study has selected and recommended this area to address these issues on immediate basis. IWMI has selected this area because districts in the project area suffer greatly from malnutrition and poor public health conditions that are worse than the national average, with the incidence of undernourishment among the population of about 50%. The percentage of absentee migrants in the area is around 22%, leaving many households to be run by female family members. More generally, the poverty rate in the Far- Western Region is 46%, the highest rate among the five development regions of Nepal. The project area districts are situated in the poorest part of Nepal, with the poverty index for the five districts ranging from 0.37 to 0.52. As determined by the household survey, caste affiliations run as follows: 58% are from the Chhetri/Thakuri ethnic group, 26% from the Dalits, and the rest at 16% are from Brahmin/Sanyasi. The surveyed area had no other ethnic population, indicating a very minor presence of indigenous groups in the project area. The key issues/reasons for higher poverty in the areas are: a) Limited or no employment opportunity in the proximity; b) Seasonal and annual out-migration to India; c) High workload for women, elderly and children; d) Inequality in land ownership or tenure, so less motivation for land management; e) Poor agricultural yield due to remoteness, lack of market facilities for goods and services; f) Gender and Dalit discrimination and unjust oppression of women with Chaupadi system during menstruation and delivery. The proposed solutions to alleviate poverty situation are: a) Provision of skills development training and income generation activities; b) Support for the provision of safe drinking water sources; c) Suggestions for enforcement of policies on land management; d) Awareness campaign on gender and Dalit equity between male and female, as per the national and international rules/policies/standards/ guidelines; support for the improvement of sanitation and personal hygiene conditions; e) Prioritize employment in any development work with same daily wages for men and women. 2. Beneficiaries. The main beneficiaries will be upland communities living around 1,400 meters that are forced to cope with water shortages during dry periods of the year due to the lack of storage capacity in upland areas. The majority of people (85%) is clustered near springs and flatter land at elevations between 1100 and 1800 meters. These people suffer water shortages for several months a year during the peak of the dry season. The Budhi Ganga and Lower West Seti watersheds (the project design area) comprise some 123 VDCs with an estimated population of about 487,000 and total beneficiary household numbers of about 70,580. The outcome of the household survey carried out in six representative sub-watershed areas indicate small landholdings, dependency on agriculture and wage remittances, limited food self-sufficiency, and marginal conditions related to the availability of water for household, livestock and agricultural uses. The time taken to fetch water can be significant for the average household, a burden that falls disproportionately on women. The results of the household survey bear out the generally difficult livelihood situation in the area. 3. Impact channels. Water scarcities in project sub-basins are a significant and widespread problem for the 85% of households which are not on or close to the rivers. Reduced rainfall during the dry season and increased rainfall intensity, particularly during the pre-monsoon season, is expected with climate change which will exacerbate already difficult living conditions for vulnerable populations of the area. The national DSCWM goal for watershed management is “to contribute to livelihood and well-being of people through sustainable watershed management of river basins” and the project continues in this direction, with a shift of emphasis toward water storage for household and on-farm use. Ongoing programs of DSCWM aim at sustainability in watershed management with an emphasis on livelihoods improvement and poverty reduction. The project addresses water security issues in mountain eco-regions in Nepal through managing the deteriorating situation for water security from climate change, emphasizing water resource aspects of watershed management with an emphasis on water storage in upland areas where communities are most in need and who are most vulnerable and poor. Since livelihood opportunities are being deteriorated day by day, compounded mainly by the increasing water scarcity, the project aims at directly hitting this core issue and so is expected to have a very significant impact on poverty reduction. 4. Other social and poverty issues. Besides the direct poverty issues there are several other related issues in the project areas. Lack of livelihood opportunities, other than those related to agriculture, hides under-employment and unemployment. Unemployment is a core problem that has caused malnutrition and outmigration from the area. Temporary out-migration has also led to contamination through HIV/AIDS being brought back to the communities by the absentee males on their return. The poor transport network and scattered habitation patterns in the middle mountains in the Far West Region create isolated communities which must be largely self-reliant and are unable to easily benefit from modern development. Child and maternal mortality in the sample watershed areas increased during the Maoist Rebellion but has not yet fallen with the onset of peace in 2006. Landlessness, resulting in an inability to access economic resources and lack of decision making power isolates some households within the area. Besides social malpractices such as Deuki and Chhaupadi are other traditional customs making women feeling worse. Project therefore would seek to coordinate with a relevant social and economic program in the project area to minimize any adverse impact on project activities due to these issues not being addressed. 5. Design features. The project aims at increasing climate resiliency in remote watersheds in the upper hill region of Nepal. Communities primarily benefited are located in the mid-range elevation of generally small and difficult to access catchments, where most sources of water for household and farm use come from springs that are closely shepherded, yet increasingly threatened from climate variability and shifting landforms. This geographical dimension of poverty is the basis for the targeting classification. The project benefits from working with communities that highly value their meager water resources, have traditional means for equitably distributing water supplies among community members, and will attend to maintaining systems once they are in place. A method has been developed to prioritize the 65 sub-watersheds based on vulnerability to climate change. Further, within those areas, potential water storage subprojects have been identified based on available non-agricultural land for the storage facility, a site within 1 km proximity to agricultural land that would benefit from irrigation; a slope less than 20 degrees to facilitate construction; elevation of more than 1300m so as to locate the storage at higher elevation than that of settlements and facilitate gravity flow to points of use; and no more than 6 water storages in a sub-watershed to facilitate distribution of benefits. The selection of the subprojects will be made in conjunction with the community to gain the benefit of local knowledge and to ensure the infrastructure meets community needs. Implementation of the subprojects will improve water access and reliability for communities at risk from climate change and particularly address water shortage issues that result in additional labor for women and difficulties for disadvantaged groups such as the Dalit. Increased water availability will also allow additional crop production, and reduce animal disease from polluted water. C. Poverty Impact Analysis for Policy-Based Lending NA II PARTICIPATION AND EMPOWERING THE POOR 1. Summary of the participatory approaches and the proposed project activities Stakeholder consultation and participation during project preparation included different types of people at the community level within each of the five districts. It focused on the six pilot catchments and on the three sub- watersheds chosen for development of subprojects. During PPTA study, the total of 527 participants in focus group discussions consisted of 109 females (from Dalit, Chhetri and Brahmin), 47 Dalit, 0 indigenous people, and 371 of the Brahmin and Chhetri castes. Consultation involved community level interaction and discussion in VDCs in all five Districts during identification; and community meetings conducted with beneficiary groups during subproject participatory design. Indicators pertaining to participation of stakeholders are included in DMF that is also a part of PAM and Loan agreement. The civil societies are included during public consensus building & sharing of program plans, They are involved in awareness building, training, coordination & support to program implementation and monitoring. The project preparation and plan, implementation & monitoring is designed in coordination with the stakeholders and finally endorsed and agreed by them. A CPC plan is embodied in the project design

4. Forms of civil society organization participation is envisaged during project implementation? marking high (H), medium (M), low (L), or not applicable (N) based on definitions in ADB’s Guide to Participation. H Information gathering and sharing H Consultation H Collaboration M Partnership 5. Project level participation plan to be prepared to strengthen participation of civil society as interest holders for affected persons particularly the poor and vulnerable?

An initial Communications Plan has been prepared in the pre-design phase. It provides a basis for developing a more detailed CPC Plan during the design phase covering both project design and project implementation, including a stakeholder’s analysis. The CPC plan focuses the communities’ attention on critical issues related to water availability within the watershed area in order to align planning with long range livelihoods needs in the face of climate variability. Its objectives are: (i) to ensure local ownership; and (ii) to ensure inclusion of all stakeholder categories as users to be engaged in the participation process and achieve greater equity in the distribution of benefits. Budgeting for the cost of consultation and different types of surveys is included in the cost allocated for preparation cf PPTA costing’s and here to be reflected in the GESI plan and subject to update during design phase. The CPC financial requirements for the implementation will be formulated when the design of the project is finalized. III. GENDER AND DEVELOPMENT Category: Effective Gender mainstreaming A. Key issues. Key gender issues in the project area are several. Discrimination against women remains dire. Patriarchal systems, caste discrimination and other types of exclusion are prevalent. The character of women’s needs, demands, constraints and opportunities depends very much on the household, caste, ethnicity, region and location of their community. The constraints that women face when participating in, and benefiting from, project activities include conservative cultural traditions, lack of ownership of land, lack of employment opportunity, experience and competency, and excessive workloads for women both in household affairs and agriculture/livestock management. Due to regular out-migration of male members, the women face additional livelihood problems. B. Key actions. Measures included in the design to promote gender equality and women’s empowerment—access to and use of relevant services, resources, assets, or opportunities and participation in decision-making process. Enforcement for equal right for women for employment at the same rate. Equal right to own the land. Gender action plan Other actions or measures No action or measure BCRWME project and its stakeholders will adopt practices that lead to increased and equitable access to opportunities and resources, as well as meaningful participation in decision-making, particularly for women. The main features of the plan include development of awareness and common understanding on gender empowerment and social inclusion issues within BCRWME; promotion of a diversified workforce at the organizational and project level; promotion of, and assurance for, the effective participation and equitable access to project benefits by women, IP and DAG; and promotion of a less discriminatory society and improved sustainability of GESI initiatives through advocacy efforts. These four areas will be addressed through a number of components and specific interventions that the BCRWME project will apply to achieve its purpose and objectives. This will include overall capacity building of project stakeholders to understand differing needs, constraints and opportunities for women, indigenous people and DAGS; the gender impacts of the project; and the strategy designed to improve project outcomes. The Gender Empowerment and Social Inclusion Plan with measures to be taken and Gender Action Plan (included in the GESI Plan) are prepared as separate documents. IV. ADDRESSING SOCIAL SAFEGUARD ISSUES A. Involuntary Resettlement Safeguard Category: A B C FI 1. Key impacts. The project will have limited impact of involuntary resettlement (IR). The IR comes in form of a minimal requirement for land acquisition for construction of water tank reservoirs and some delivery system and this mostly is expected to come from public land. Limited private land could be also acquired. 2. Strategy to address the impacts. Land required from private owners will be subject to social impact analysis to determine its value for compensation as per market rate or acceptability as a donation under provisions of the land acquisition framework. 3. Plan or other Actions. Resettlement plan Resettlement framework Environmental and social management system arrangement No action Combined resettlement and indigenous peoples plan Combined resettlement framework and indigenous peoples planning framework Social impact matrix B. Indigenous Peoples Safeguard Category: A B C FI 1. Key impacts. Insignificant Impact. IPs were not found in the three pilot subproject areas during preparation of the feasibility studies for subprojects. Is broad community support triggered? Yes No 2. Strategy to address the impacts. A procedure will be followed in the screening, social impact assessment and preparation of IP plans for subprojects in case IPs are found among the population. The procedures ensure that indigenous people are informed, consulted and have the opportunity to participate over the entire subproject cycle. 3. Plan or other actions. Indigenous peoples plan Indigenous peoples planning framework Environmental and social management system arrangement Social impact matrix No action Combined resettlement plan and indigenous peoples plan Combined resettlement framework and indigenous peoples planning framework Indigenous peoples plan elements integrated in project with a summary V. ADDRESSING OTHER SOCIAL RISKS A. Risks in the Labor Market 1. Relevance of the project for the country’s or region’s or sector’s labor market. Indicate high (H), medium (M), and low or not significant (L). L unemployment L underemployment L retrenchment L core labor standards 2. Labor market impact. No impact or limited impact. Implementation will be through project labor-based arrangements, with labor by community members and equal wages for women and men. No action plan on labor. B. Affordability Limited affordability. Poor and disadvantaged households’ contributions of cash and labor will be made through consensus building. No action plan. C. Communicable Diseases and Other Social Risks 1. Indicate the respective risks, if any, and rate of impact as high (H), medium (M), low (L), or not applicable (NA): HIV Aids L Communicable diseases NA Human trafficking NA Others - Political instability and implementation capacity.

2. Describe the related risks of the project on people in project area. Issues related to implementation will be included in the risk management plan of the project. VI. MONITORING AND EVALUATION 1. Targets and indicators: Indicators related to participation, gender/ women empowerment and poverty are included in DMF.

2. Required human resources: DMF is inclusive of evaluation and monitoring framework with budget, manpower and proper accountability indicated for reporting and appraisal.

3. Information in PAM: DMF

4. Monitoring tools: DMF

Building Climate Resilience of Watersheds in Mountain Eco-Regions

ADB TA 7883

Social and Poverty Analysis of BCRWME (draft)

January 2013

For Government of Nepal

1 Contents 1 INTRODUCTION ...... 1 1.1 Project Approach ...... 1 1.2 Objectives and Scope of Social and Poverty Analysis ...... 1 1.3 Initial Poverty Social Analysis ...... 1 1.4 Methodology for Social Analysis ...... 2 2 RESULTS OF THE SOCIAL ANALYSIS ...... 2 2.1 General Socio-Economic Situation of Project Area ...... 2 2.2 Result from SE Household Survey ...... 5 3 GENDER DISPARITIES AND SOCIAL INCLUSION ...... 9 3.1 Gender Issues in Project Area ...... 9 3.2 Gender Action Plan ...... 10 3.3 Disadvantaged Groups and Social Issues ...... 10 4 STAKEHOLDERS CONSULTATION AND PARTICIPATION PLAN...... 12 4.1 Main Aspects of the Consultation, Participation and Communications Plan ...... 12 5 SOCIAL SAFEGUARD INSURANCES ...... 14 5.1 Main features of the Land Acquisition Framework ...... 14 5.2 Main features of the Indigenous People Planning Framework ...... 15 6 OTHER RISKS AND VULNERABILITIES ...... 17 6.1 Vulnerabilities and Problems Raised During Community Consultation ...... 17 6.2 General vulnerabilities and risks in the watershed areas ...... 18 6.3 Poor People’s Priorities are Context-Specific ...... 20

Tables Table 1: Participants consulted by PPTA Team during Field Assessment ...... 13 Table 2: Stages of interactions and active participation ...... 13 Table 3: Scope of Impacts for 3 FS subprojects ...... 14 Table 4: Indigenous People and their Level of Marginalization ...... 16 Table 5: Vulnerabilities and Solutions ...... 18

Abbreviations

ADB Asian Development Bank BCRWME Building Climate Resilience of Watersheds in Mountain Eco-Regions CBS Community Baseline Survey CDO Chief District Officer CIF Climate Investment Funds DPC District People’s Committee DTO District Technical Office (and Officer) EMA External Monitoring Agency ADB Asian Development Bank AP/AH Affected Person / Affected Household CBS Central Bureau of Statistics CPC Consultation, Participation and Communications (Plan) DAG Disadvantaged Group DDC District Development Committee DMS Detailed Measurement Survey DRCs District Resettlement Committees DSCO District Soil Conservation Office DSCWM Department of Soil Conservation and Watershed Management EA Executing Agency EIPs Endangered Indigenous Peoples FTC Field Team Coordinator GESI Gender Empowerment and Social Inclusion (Plan) GRC Grievance Redress Committee HH Household IPSA Initial Poverty and Social Analysis IP Indigenous Peoples IPDP Indigenous People Development Plan IPPF Indigenous People Planning Framework IoL Inventory of Loss LDO Local Development Officer MoFSC Ministry of Forests and Soil Conservation NAR net attendance ratio NGO Non-Governmental Organization NLSS National Living Standard Survey (2010/11) PIO Project Implementation Office PIU Project Implementation Unit (district level) PAF Poverty Alleviation Fund PPTA Project Preparation Technical Assistance PRA Participatory Rural Appraisal RF Resettlement Framework RP Resettlement Plan SAH Seriously Affected Household SDS Social Development Specialist SWMC Sub Watershed Management Committee ToR Terms of Reference USD United Stated Dollars VDC Village Development Committee VWU Village Women’s Union

1 INTRODUCTION

1.1 Project Approach 1. Social, economic and environmental sustainability, with emphasis on livelihoods and poverty reduction are the overarching multiple purposes and objectives of the Nepal Watershed Management Project. Interventions are small-scale and the outcomes of watershed management are given only qualitative assessment. The project objectives mainly address water security issues in mountain eco-regions of Nepal, including managing the predicted situation of deteriorating water security from climate change, with emphasis on the water resource aspects of watershed management. 2. Building Climate Resilience of Watersheds in Mountain Eco-Regions (BCRWME) is a project which was formulated for Nepal to support the implementation of the Strategic Program for Climate Resilience (SPCR)1. SPCR was developed by the Government of Nepal in partnership with the Asian Development Bank (ADB), International Finance Corporation (IFC) and the World Bank. It was endorsed on 28 June 2011 by the Sub-Committee on Climate Investment Funds (CIF), under the Pilot Program for Climate Resilience. Within the overall framework of the SPCR, the project is expected to enable Nepalese communities in mountainous ecosystems that are significantly vulnerable to the impacts of climate change to have improved access to, and reliability of, the watershed and water resources. 3. The Project Preparation Technical Assistance (PPTA) consulting team for BCRWME started work in April 2012. The PPTA aims to prepare a watershed-related interventions program, taking into account specific local conditions and capacity of local communities to construct and maintain the infrastructure built under the program. The interventions are to be developed with the participation of local government agencies and the watershed communities. Two pilot watersheds have been selected for detailed feasibility studies by the PPTA, the Budhi Ganga and the Lower West Seti, both within the Karnali River Basin. 1.2 Objectives and Scope of Social and Poverty Analysis 4. The assessment of the project’s social and poverty impacts is part of the work required for preparation of the project plan. The objectives of the social and poverty assessment are: (i) to review socio-economic information of the project communities and districts; (ii) to determine the socio-economic features of the affected people/communities; (iii) to define the project’s socio-economic impacts and issues for which management is required; and (iv) to provide useful information for the proper determination and establishment of appropriate measures for the restoration of living standards, incomes and livelihoods of affected people/communities.

1.3 Initial Poverty Social Analysis 5. During preparation of the project concept paper, an Initial Poverty and Social Analysis (IPSA) was carried out. The IPSA recommended that a comprehensive poverty and social analysis should be carried out during the project preparation phase to identify the socio-economic profile of communities in the sample watersheds, including the following indices: (i) expected benefits;

1The Pilot Program for Climate Resilience (PPCR) Sub-Committee approved $0.9 million in project preparation grant financing, on 28 June 2011.

(ii) competing needs and constraints; and (iii) ability of poor and vulnerable groups within the communities to participate and benefit from the Project. 6. In addition, poverty and social criteria should be developed for subproject selection; and a project gender analysis should be undertaken, as well as a gender action plan prepared, to address constraints and other concerns on the participation of women and other vulnerable and disadvantaged groups in the design and implementation of the watershed interventions. Finally, considering that indigenous peoples may reside in the selected watersheds, the extent to which such groups are vulnerable shall be assessed in accordance with the ADB Safeguard Policy Statement (2009), and an Indigenous People’s Planning Framework prepared. 1.4 Methodology for Social Analysis 7. The methodology involved collection and analysis of secondary information relevant to the social and poverty situation in the project area in the context of policies and programs of the Nepalese government and ADB. Visits by the study team and consultation with field level stakeholders also were important means for information gathering. 8. A socio-economic household survey was carried out in six selected representative sub- watersheds of Budhi Ganga and Lower West Seti watersheds. The survey was conducted in preparation for a watershed management plan and project. One aim of the survey was to establish a socio-economic benchmark for the potential project and to provide data that could be used in various project related documents. In total 600 heads of households were interviewed in six selected sites in Bajura, Achham, Doti and Dadeldhura districts during September and October 2012. 9. The household survey was complemented with six VDC level key informant surveys and 12 community level focus group discussions forming the key source of information for the social analysis, which was reconciled with information from other sources.

2 RESULTS OF THE SOCIAL ANALYSIS

2.1 General Socio-Economic Situation of Project Area 10. The PPTA social assessment team was able to form a general perspective on the project area based on a review of secondary information. The project is to be implemented in two watershed areas, the Budhi Ganga; and the Lower West Seti in the Karnali Basin. This is an area of mid- and high hills in the Far West Region. Within these two watershed areas, there are 120 VDCs falling within six districts which are fully or partly within the watersheds. 2.1.1 Land Use and General Demography 11. Within the six project districts, the dominant land use category is under forest, except in Bajhang where the two highest land use categories are for other (or non-economic) and then for forest use (ISCR 2010). Cultivated land mostly comes as the second category, followed by pasture and other uses. 12. The estimated population of the two watersheds is 496,000 in 97,800 households, with an average household size of 5.0. Population density ranges from 56 to 177 persons per kilometer among the districts (CBS projection 2010 in ISRC 2010). The female population is slightly greater than the male population. The range of household size is between 4 to 7. 13. The literacy ratio ranges from 28% to 69% across the project districts (ISRC 2010). 2.1.2 Caste and Ethnic Structure 14. A generalized review of caste and ethnic structure of project districts (CBS projection 2010 in ISRC 2010) shows that Chhetri and Brahman form the major castes and ethnic groups in the project area. The Dalit population varies between 10% to 29% in Achham, and over 25% in Doti.

The Janajati population is very low in the area. Similarly, the indigenous ethnic minorities are typically less than1% of the total population. 15. In all project districts, traditional societal norms, values and practices are still strong. Women have low socio-economic status, low mobility, very limited control over resources, and less decision-making power despite some improvements that are said to have been achieved through awareness campaigns. 2.1.3 Economic Activities and Livelihood 16. The economically active population ranges from 49.86% in Dadeldhura to 60.31% in Baitadi. Within this percentage, the population engaged in combined farming and fisheries sectors ranges from 34.29% to 51.00%. The child dependency ratio is significantly higher than elderly dependency ratio in all districts. 17. The main livelihood sources are agriculture, combined with livestock. Other limited off-farm work opportunities available are day labour; firewood collection; semi-skilled work and work resulting from seasonal migration to India. In 2009-10, all project districts had food deficits ranging from 12,079 tonnes for Dadeldhura to 34,944 tonnes for Achham (ISRC 2010). 18. Agriculture and livestock are the traditional occupations and remains the most important sources of livelihood in the project districts. Crops like paddy, upland paddy, maize, millet, wheat, barley, oilseed, pulse and potato are among the important crops in the project area, with the average landholding about 0.88 ha, of which about 70 - 85 % is rain-fed farming. Most households own livestock, predominantly cattle. The total head count ranges from 68,900 for Dadeldhura to 102,625 in Achham, with lesser numbers of buffalo, goat, sheep and pigs (MOAC 2008/09 in ISRC 2010). 2.1.4 Education and Health Institutions 19. All districts have educational institutions starting from pre-primary to campus level (DOE in ISRC 2010). Primary schools are found in the greatest number compared to other school levels in all districts, ranging from 212 in Bajura to 382 in Achham. All of the districts in the project area have at least one government level hospital and some health posts, ranging from nine in Dadeldhura to 12 in Achham. A greater number of sub-health posts and other health service units are also recorded in the districts. 2.1.5 Seasonal Migration and its Implication 20. Seasonal migration to India from the Mid- and Far Western hills is high. The National Living Standard Survey 2010/11 (NLSS 2011) has indicated that in Nepal the absentee population accounts for about twenty percent (20%) of the total, including absentees now living abroad. The percentage of absentee migrants in Mid and Far Western hills is around 21.5%. This percentage of NLSS 2010/11 seems low perhaps because many of family members that go to India for temporary work do so for a period less than 6 months and these numbers are not included in the NLSS survey. 21. One of the important sources of HIV transfer in the Far Western hills of Nepal is said to be the migratory movement of youth to India. Presently HIV is a growing problem in the poor hill families in the far western region. 2.1.6 Nutrition 22. Available information suggests that districts in the project area suffer greatly from malnutrition and poor public health conditions (RVWRMP 2011). At the national level, the proportion of under-nourished population is estimated at 41%, with a minimum caloric intake requirement of 2,124 kilo calories per day, as set by the Central Bureau of Statistics (CBS) of Nepal. Unsurprisingly, the Far Western rural areas have a much lower mean dietary energy consumption of 2,250 kcal as compared to 2,405 kcal of the national average, and consequently the highest incidence of undernourishment of about 50%.

2.1.7 Road Networks 23. Road networks are better in Dadeldhura, Doti and Baitadi compared with networks in Bajhang, Bajura and Achham, which is also reflected in the lengths of the road types in these districts (ISRC 2010). Bajhang and Bajura, in particular, have only recently been connected with networks. Hence, their internal road networks are not yet to the level of the other districts. 2.1.8 Water Supply and Sanitation 24. A large portion of the population is covered with some sort of water supply scheme in all of the project districts, except for Bajhang where only about 58.23% of the population is covered (ISRC 2010). The highest water supply coverage has been observed in Baitadi, where coverage is about 89.66%. Actual water availability is very low despite continued efforts from NGOs and local officials. 25. The sanitation coverage is very poor in all of the project districts, ranging from 10.67% in Bajura to 43.08% in Dadeldhura. 2.1.9 Energy and Power Supply 26. Some sort of power supply can be observed in all of the project districts (ISRC 2010). However, the coverage looks very low, with many households lacking any power supply source. Alternative energy has also been an important source of power supply in all of the project districts to supplement the national grid or isolated hydropower system. 2.1.10 Industries and Cottage Industries 27. A few industrial establishments are present in Achham, Doti, Dadeldhura and Baitadi districts, although in very small numbers (ISRC 2010). These districts also have better road networks. All districts in the project area have some kinds of small livelihood activities and cottage industries. Highest numbers of these industries are found in Bajhang, followed by Baitadi and Dadeldhura. The majority of industries are manufacturing/productive types of industries followed by construction and services. 2.1.11 Financial Institutions 28. In most rural areas of Nepal, access to financial services remains limited to a small segment of the population (ISRC 2010). Out of the six districts, three (Bajura, Bajhang and Baitadi) have only one branch of a commercial bank or financial institution. The three other districts benefit from higher numbers of commercial banks or financial institutions. All of the project districts have some cooperatives in operation. The majority of these cooperatives are either multipurpose or of saving/credit types. In Doti however, other types of cooperatives exist. 2.1.12 Non-governmental and Community Organizations 29. Substantial numbers of Non Governmental Organizations (NGOs) are working in all of the project districts, ranging from 68 in Dadeldhura to 126 in Doti (ISRC 2010). Most of the NGOs are working in community development/organization areas followed by youth activities, environmental protection, and moral development. A few NGOs work specifically with women and child welfare, and with disadvantaged groups2. 2.1.13 Poverty Situation 30. Poverty is an alarming issue for the project area districts. The Nepal Living Standard Survey 2010/11 (NLSS 2011) has calculated the overall poverty rate of Nepal at 25.16%. Poverty measured for different geographical regions of Nepal indicate the Far-Western Region has a poverty rate of 45.61%, the highest rate among the five development regions of Nepal. 31. For the project area districts, the poverty rate calculation falls under the Mid and Far Western Rural Area Hills category, which has a calculated rate of poverty at 36.83%. This is the

2 http://dev.globalpressinstitute.org/global-news/asia/nepal/despite-government-decree-bonded-labor-tradition- continues-nepal

4 highest calculated rate among all the hill-region categories. In other words, the project area districts are situated in the poorest part of Nepal. As per UNDP Human Development Report 2009, the project districts Bajura, Bajhang and Doti have poverty incidence indexes of 0.473, 0.482 and 0.464, respectively. Among the remaining districts, the highest poverty incidence index is in Achham with 0.516 and lowest is 0.368 in Baitadi. 2.2 Result from SE Household Survey 32. A baseline socio-economic household survey was carried out in six selected and representative catchment VDCs in the project area. Six hundred households of selected wards from each of the selected catchments were interviewed using a structured questionnaire. A local NGO was appointed to interview the systematically selected households from each of the six sample sites. The data and detailed tables from the survey are preserved and can be provided on request. 2.2.1 Summary of Demographic Information 33. The results of the household surveys showed that the average size of households is 6.9/hhs in the entire sample size of 600hhs3. About 21% of households are headed by women. Household surveys indicated that Chhetri/Thakuri is the largest ethnic group (58%) in the sample, followed by Dalit (25%), and Brahmin/Sanyasi (16%). About 62% of the total household heads were able to read and write and 87% of households sent their school-going aged children to school. However, in watershed study areas, higher education level was found to be low with 39% of the total surveyed households which is an average of 1.5 persons per household. About 19% of the total surveyed households were skilled/semi-skilled with an average of 1.3 persons whereas 43% of the households have members working abroad with an average of 1.4 persons per household. The surveyed area had no other ethnic population, indicating a very minor presence of indigenous groups in the entire project area. 34. About 87.2% of households responded that all school-aged children go to school, indicating an awareness of the need for education. Of the total respondents, 78% comprise households with persons educated up to primary level; 62% educated up to secondary level, and 38.8% educated higher than secondary level. Only about 18.8% of households have some members with knowledge of a skill; while 28.8% of households have some members that are seasonal migrants; and 43.3% of households have some of their members abroad for employment opportunities. 2.2.2 Possession of Household Facilities 35. About 69.9% of households reported to have access to a safe drinking water facility; while about 77.3% of households have access to a mobile phone; 64.8% have access to electricity; and 26.8% have access to a solar lighting system. 2.2.3 Training and Awareness to Development 36. About 35.3% of households had some sort of training within the last two years; 47.4% visited government offices; 37.3% visited NGOs; and 31% report having benefited from NGOs and their programs. 2.2.4 Land Holding and Tenancy Situation 37. About 95.6% of households are owner-tenants (0.76 ha being the average holding of owned land); 6.6% are tenants as well; 15.6% are share croppers; and 13.4% have land also leased out. It is reported that about 6.6% of households are landless households and only about 4% of households reported land owned by female members. About 60.8% of households have land with irrigation facilities; whereas 78.8% of households reported being mainly rain-fed farmers. 2.2.5 Holding of Livestock 38. Almost all households own some sort of livestock. Milking animals are owned by 64% of

3 This number per household at 6.9 is higher than that recorded in the 2011 National Census which was 5.0.

5 households (average size 1.4 animal/HH); draught animal by 60.5% (average size 1.7); goat/ship/pig by 49.9% (average size 3.1); and poultry by 16.7% (average size 2.8 birds/HH). 2.2.6 Food Self Sufficiency 39. About 40.7% of households have food production sufficient for 1-3 months; 32.3% have sufficiency for up to 4-6 months; 13.4% have sufficiency for 6-9 months; 13.0% have sufficiency for 9-12 months; and only 1.2% of households have a small surplus production from their farms. This shows very poor food security from the households’ main occupation in the project area. 2.2.7 Types of Houses Owned by Households 40. A majority of households, 61.6%, own houses with soil-stone walls and zinc sheet roofs; 35.1% own houses with soil-stone walls and thatch roofs; and only about 3% own houses with cemented walls and roofs. 2.2.8 Crop Production, Area Grown and Use of Products 41. Paddy is produced by 99.6% of households within an average area of 0.18 ha of land. The average amount of total use of paddy crop in households is about 552 kg/annum/HHs; whereas production per household is 514 kg/annum/HHs. The deficit is met by non-self produced crops. 42. Maize is the second most important crop in the summer season. It is grown by about 87.8% of households on an average area of 0.053 ha. The annual use of maize crop is 180 kg/HHs; whereas production size is 149 kg/HH. 43. Millet, as the third most important crop in late summer, is grown by 78.8% of households on an average area of 0.081 ha/HH. The amount of maize used per annum is 207 kg/HH; whereas 177 kg of it is met with through household production. 44. Wheat is the main crop grown in the winter season and is cultivated by 99.4% of households with an average area of 0.16 ha/HH. Households’ annual use of wheat is 378 kg/HH, about 285 kg/HH of which is met with through self production. 45. The majority of households in the project area also produce some small amounts of oilseeds, pulses, vegetables and root crops - like potato and cocoyam, which fulfill some part of household needs. 2.2.9 Contribution to Household Income 46. The general structure of household income indicates that the average annual income of households from agriculture alone is NRs 6,574/-.(US$ 75.56/HH). A larger portion of household income comes from the non-agricultural sector (e.g. from business/remittance/pension - 47.3%, and wages - 33.5%), rather than from agriculture and livestock – 19.5%. 2.2.10 Water Availability and Water Fetching Situation 47. About 86% of the overall sample households agree that the available sources of water have been drying and 8% disagree with this argument. The average number of times for water fetching in one day in the dry season was 3-4 times and there was not enough water for 5.1 months of the year. There was a conflict for water availability in the local communities and this caused disputes every year. About 49% of households were involved in water disputes in the local communities with the average number of disputes per year estimated at 36. About 57% of the surveyed households reported having to wait for 1-3 hours and 42% for less than 1 hour time at drinking water sources. Similarly, about 39% of the households had to walk for 15-30 minutes to collect water while 13% households walked for 2-3 hours. About 51% of the persons involved in collecting water from the source were female, and only 17% were male. Additionally, about 20% of female children and 12% male children were involved in water fetching. Overall, about 99% of the surveyed households used fetched water for cooking purposes, 95% for cleaning, and 74% for livestock purposes. Waiting Time and Distance in Water Fetching 48. On the average, about 42.1% of households have to wait for less than one (1) hour at source while fetching water; whereas 56.6% of the surveyed households have to wait for 1-3

6 hours; and only about 1% of households have to wait for 3 to 6 hours. Similarly, about 39% of the households had to walk for 15-30 minutes to collect water; while 13.1% households had to walk for 2-3 hours to bring water from source. About 12.3% of households walk for less than 15 minutes in fetching water; whereas about 1% of households have to walk for more than 3 hours. All these figures show a tough situation in bringing water from the source for the majority of households. 2.2.11 Change in Water Source for Drinking and Irrigation Water 49. About 81.5% of the surveyed households reported that decreasing sources of drinking water was due to encroachment; about 77.8% responded it was due to climate change; and 62% said it was due to increases in population and water demand. Similarly, the major encroachment on watersheds was reported to be due to irrigation by 56.6% of households; due to climate change by 74.8% of households; and due to increases in population and water demand. 2.2.12 Suggested Measures to Protect Water at the Source 50. Since most households reported that water sources are drying up, 65% of households suggested growing tree plantations around the water source, 24% of households suggested constructing a small reservoir tank for dry season, and 1.2% suggested constructing rain water harvest technologies to be used for different purposes. 2.2.13 Priority Use of Water Source 51. In general, the majority of households in all of the six sample sites determined the primary use of water to be for drinking purposes: 96% of households in Toli; 62% in Kalikasthan & Pachnali; 74% in Kalika; 99% in Mangalsen; and 98% of households in Kuldevmandu VDCs. 2.2.14 Status of Use of Energy Sources 52. Presently, the main sources of energy are fire wood for 75.7% of households; farm woods for 17.5%; plant residue for 3.3%; and others sources (e.g., kerosene, dung cakes, solar electricity) for the rest. 53. The preferred source, however, is electricity/cooking gas by 61.3% households; followed by farm woods for 9.8% of households; fire woods for 6.3% of households; plant residues for 6.2% of households; and other sources for the rest. This shows that the farmers’ priority is the use of electricity/gas energy, although at present, they have relied mostly on fire wood being collected from nearby forests. 2.2.15 Farm Credits 54. The survey findings indicate that about 61% of households had taken credit at the time of survey. The reasons for not obtaining credit by farmers usually are: no need felt by 68% of households; difficult to take by 11% of households; and high interest rates by 21% of households. 55. Sources of existing credit are friends/relatives for 35.5% of HHs; cooperatives for 29.1% of HHs; merchants/village lenders for 24.9% of HHs; banks for 2.1% of HHs; and others for 8.2% of HHs. 56. The prioritized purpose of credit needs are household uses for 56.1%; business for 17% of HHs; for land purchase for 11.7% of HHs; for livestock purchase for 8.6% of HHs; and other purposes, such as for cash crops, grain purchase, for the rest. 2.2.16 Change in Forest and Climate Parameter 57. In the sample watershed study areas, about 82.3% of the respondents revealed that forest areas were being degraded due to lack of protection and overgrazing; 77.7% said it was due to the overall population and demand; and 61.3% said the cause was natural disaster. 58. Similarly, about 85.8% of the households expressed that rainfall patterns had been changing because of more prolonged/delayed/uneven rainfall; 74.3% explained this was due to more drought/floods rainfalls; and 69% said rainfall was decreasing.

2.2.17 Household Prioritization in Surrounding Farm Area Protection 59. For the protection of surrounding farm areas, 64% of households in the Bajura-Toli site gave priority to controlling soil erosion. More than 46% of households in the Doti sites, 48% in Achham-Kalika and 74% in Kuldevmandu-Bajura gave priority to controlling landslides. However, protecting forest and greenery was given priority at the Mangalsen, Achham site by 70% of households. 2.2.18 Present and Priority Status of Dependency on Forest 60. In all the sample households within the watershed study areas, about 82.3% of the respondents expressed that forest areas were degrading due to excess grazing and the lack of protection. 77.7% of the respondents said it was due to the increased population and demand and 61.3% said it was because of natural disasters. Similarly, regarding rainfall structure changes (multiple answers possible), about 85.8% of the households observed prolonged/delayed/uneven rainfalls, about 74.3% of households said they faced more drought/flood rainfalls and 69% agreed that rainfalls had been decreasing in general. For the protection of surrounding farm areas, 64% of households in the Bajura-Toli sites gave priority to controlling soil erosion and more than 46% of households in the Doti sites gave priority to controlling landslides, 48% in Achham-Kalika and 74% in Kuldevmandu-Bajura. However, the protection of forest and greenery was given priority in Mangalsen, in the Achham site, by 70% households. 61. Household priorities on the forest are: livelihood, firewood for cooking, water source conservation, and controlling floods/landslide/erosion. 2.2.19 Access to Different Services by Households 62. Access to available services at household level is crucial for all of the households in the hilly areas. About 75.6%, 70%, and 68.7% of households responded that they have access at less than 1 km average distance to primary school, a drinking water source, and secondary school, respectively. 63. It seems that within this distance, only 6.6% of households have access to health; and 4.9% of households to markets for product and consumer goods. Other households must walk longer for these and various other services. This can make it significantly difficult for many households to access many social services. 64. As regards the quality of service in these institutions, 95.8% of households were quite satisfied with primary school; 73% with secondary school; 60.5% with higher secondary school; and 59.7% with drinking water sources. For other households and other services, they were less than satisfied in their quality of services. 2.2.20 Household Prioritization in Key Problems 65. In general, Far-Western hilly rural households face several problems in sustaining their usual livelihoods. Households were asked to prioritize their key problems. In Bajura-Toli site, about 50% of the surveyed households gave first priority to the lack of drinking water availability; about 65% of households to inadequate food grains for family, about 26% and 23% prioritized the lack of irrigation in Achham-Kalika and Dadeldhura sites, respectively. In Kuldevmandu-Bajura study site, 30% of households considered inadequate or no land for farming and about 54% households reported climate change to be a main problem. 2.2.21 Gender and Social Inclusion 66. In all the sampled watershed areas, overall women’s involvement in decision-making processes was in household expenses (38.9%), farming decisions (44.8%), and planning for the future (29.6%). About 31.5% of women participated in social events and in meetings in their VDCs. It was observed that women’s involvement at the household level was significantly high compared to their involvement at the institutional level, which was significantly low. About 37.4% of the households reported that traditional cultural practices are still strictly upheld during menstruation and delivery stages; and only about 17.2% of households reported these behaviors

8 no longer prevail in their areas. The rest of the households believe this behavior was moderately altered.

3 GENDER DISPARITIES AND SOCIAL INCLUSION

67. Earlier community interaction carried out in the pilot sub-watershed areas provided some familiarization and reality-checks with VDC areas and communities. This familiarization eased the collection of data on social and gender issues during the socio-economic baseline survey. Far Western Regions are the least developed regions in the Nepalese context. The study area districts have been ranked poor. 68. Agriculture, livestock and non-timber forestry products, particularly collection of high value herbal products, are the main source of income and livelihood for the people in the districts. These are food deficit districts which depend on external support to feed the population. Seasonal migration has evolved as a coping strategy for poor communities in these areas. 3.1 Gender Issues in Project Area 69. The character of women’s needs, demands, constraints and opportunities depends very much on the household, caste, ethnicity, region and location of their community. Many women’s issues are valid across the country and for various ethnicities and castes. Many of the constraints that women face for participating in, and benefiting from, project activities are similar to those of other socially excluded low-status groups like the Dalits and other indigenous peoples and remote communities. 70. Key gender issues in the project area are several. Discrimination of women remains dire. Patriarchal systems, caste discrimination and other types of exclusion are prevalent. 71. The practice of conservative cultural traditions, such as Chaupadi (a small isolated shed constructed for women to stay 5 nights during menstruation, either collectively or individually, or for 10 days after delivery of a child) is one major gender issue in the project area. According to community people, Chaupadi sheds exist within Kalika, Bardadevi and Toli VDCs of Achham and Bajura districts. However, discrimination during menstruation and other discriminatory traditions among Dalit communities have reportedly decreased by about 80% in these VDCs due to education and awareness campaigns by NGOs and experience gained by the communities through out-migration. Nowadays, many families allow women to stay in a separate room within the home during delivery and/or menstruation, but still do not allow them to do normal home duties. While most women who have recently given birth may already stay in a separate room of the house are considered purified on the 11th day and thus allowed to do regular household chores, there are still cases in some villages where women are required to stay in a cowshed for ten (10) days after delivery. 72. Widows are not allowed to remarry, must always wear a white dress and take care of children and the property of her husband. On the other hand, after one year from the death of his wife, a widower may remarry and wear colorful clothes. A 50-year old woman raised this matter during a community meeting saying that this tradition posed many constraints on women, but there was no comment from anyone present during the meeting. 73. Child marriage is still widespread in the project area. It is still being practiced in some villages within Toli VDC in Bajura district. Although government officers and NGOs are aware of cases of child marriage and seek to discourage the practice, some cases occur each year. In the last year, there were 4-5 child marriage cases in Toli. Although the legal age for marriage is 20 for girls, and 21 for boys, some love marriage cases between students and teenagers under 20 still occur. Government agencies and NGOs have been organizing awareness campaigns against child marriage. 74. The workload for women is tremendous, both in household affairs and agriculture/livestock.

The work load is higher for women whose husbands go out of the district, for example, to India or for overseas employment. She should manage all household and business such as banking, marketing surplus produce, hiring agriculture labor to plough the land, and dealing with school matters as required. Because of the heavy workload, most women of this area are very lean and thin, lack nutrition, marry young and have many children. 75. Within the study area, very few women own land or have a separate bank account. However, supported by the Poverty Alleviation Fund (PAF), women members of saving and credit cooperatives have opened savings accounts with a local bank, as have women who receive remittances. In one case, women became land owners because when the new land survey was done in Toli VDC, male household members were absent and so their wives were registered as owners. Other cases of women’s ownership may be a result of the following circumstances: a husband dies and children are small; the husband’s land ownership is transferred to his wife’s name and then, when his sons are older, the land is transferred again into their names. 76. The market for rural land is small. People with money buy land in market areas, in district towns or in the Terai (Kanchanpur/Mahendranagar and Kailali/Dhangadhi). Some of these people buying land register it in their wife’s name to avoid registration fees (which may be a further reason for some female land owners). 77. Very few females or Dalits are employed – only about 10-12 in each of the VDCs, surveyed. Mostly women are employed as teachers in early childhood development centers, primary schools and as social mobilizers and health workers through NGOs. In Kuldevmandu VDC, Bajura District, the VDC data available found 100 females and 60 Dalit were employed. This is because Kuldevmandu was previously the district headquarter (before 2031 BS or 1944). But in Toli VDC, Bajura District, only 1 female was employed. 78. Women are not employed since they lack experience, competency and access to opportunities. Participation of women in social and political organizations is ineffective, although women’s enrolment in committees is made mandatory, but often pursued only to fulfill the requirement. 3.2 Gender Action Plan 79. BCRWME project and its stakeholders will adopt practices that lead to increased and equitable access to opportunities and resources, as well as meaningful participation in decision- making, particularly for women. The main features of the plan are: (i) Development of awareness and common understanding on gender empowerment and social inclusion issues within BCRWME; (ii) Promotion of a diversified workforce at the organizational and project level; (iii) Promotion of, and assurance for, the effective participation and equitable access to project benefits by women, IP and DAG; and (iv) Promotion of a less discriminatory society and improved sustainability of GESI initiatives through advocacy efforts. 80. These four areas will be addressed through a number of components and specific interventions that the BCRWME project will apply to achieve its purpose and objectives. This will include overall capacity building of project stakeholders to understand differing needs, constraints and opportunities for women, indigenous people and DAGS; the gender impacts of the project; and the strategy designed to improve project outcomes (the Gender Empowerment and Social Inclusion measures and Gender Action Plan are prepared in a separate document). 3.3 Disadvantaged Groups and Social Issues 81. Untouchable persons and lower caste discrimination is high for the Dalits. In some remote villages, they are not allowed to enter the homes of upper caste, touch a spring water source used by upper castes, touch a pot of water of the upper caste, sit together, enter in the temple, or

10 provide any livestock product such as milk. Some upper caste people still complete a purification ritual before entering their home after they have touched a lower caste member of the community while working together. In some remote villages, Dalit castes have their own separate spring water source for drinking purposes. When their spring source is dry during the dry season they may go to the upper caste water source, but must first wait for the upper caste to come to allow them to get water. The upper caste must first fill their pot and then put water in the pot of the lower caste without touching their pot. Some lower castes get irritated by these attitudes and go to the river to fetch water during the dry season. There is also discrimination among the Dalit castes themselves, such as when they marry or share cooked food. There are three main categories of Dalit castes: (i) Sunar (goldsmith), Kami/Lohar (ironsmith) etc.; (ii) Damai/Pariyar (tailor), Aauje (band worker), Dholi (tailor/band) etc.; and (iii) Sharki/Bhul (leather worker), and Tamata (pot maker). 82. It was reported that Dalit discrimination against women during their menstruation period is decreasing slowly. Similarly, discrimination by the Dalit against other Dalit groups is also reducing. It is acceptable for Dalit to take tea in any Dalit teashop and to take water from the same pipe/tap. It is also acceptable in some villages for Dalits eat together outside the home. 83. These traditions have been reported to be slowly decreasing in the pilot VDCs. The young and educated Dalit people (below 35 years) do not give importance to these customs, but old men are very conservative about these practices and it is difficult for young people to change their attitude. According to old people, these traditions have been followed by their forefathers and failing to follow these traditions will cause their God or Goddess to be angry and their family will have trouble. In general the young generations believe that these traditions and practices will end with the lives of these older people because they don’t like such discrimination. 84. Some Dalit4 households which are Haliyas5 are landless and vulnerable in these pilot VDCs. The Dalit/Haliya are members of the Bhul/Sharki, Kami, Damai, Lohar, Seral, Pariyar, and Pode castes. During the insurgency period, some political parties made the Haliya people aware of their rights and they campaigned using the slogan “who tills the land will be the owner of that land”. In response, the Government of Nepal declared on 2056 Shrawan 2 BS. (18 July, 1999) that their landlords should free Haliya without requiring to repay their debt. Consequently many landlords lost some capital which they had advanced to Haliyas. 85. The Nepalese government has provided some land to Tharu/Haliya (Terai caste) living in Terai but not in the hill areas. From the community consultation in the field, it was reported that some trace of the Haliya system still exists in remote villages of Bajura district due to poverty, illiteracy and remoteness. 86. Beside the government declaration abolishing the Halya system, some projects such as Freed Haliya and Kamaiya Empowerment Project (FHKEP), funded by the Finn Church Aid (FCA), and implemented by local partners of the Lutheran World Federation, are actively engaged in campaigning for empowering and capacitating former bonded laborers that are freed Haliya and Kamaiya to claim their rights and develop their alternative livelihoods. That project supports the freedom of Haliyas in several Far Western districts (Baitadi, Bajura,Bajhang, Dadeldhura, Doti and Darchula). 87. According to community interaction, the wage for male and female labor is the same in almost all VDCs. Although in the Toli VDC, males are paid NRs. 250 per day and females get NRs. 200 for the same work. 88. Travel time to go to primary schools within 30 minutes has reached 90 percent and there is an increase in the school enrolment of girls (80%) in the watershed areas. The net attendance ratio

4http://www.humanrights.asia/news/alrc-news/human-rights-council/hrc15/ALRC-CWS-15-07-2010 5The Haliya, which literally means "one who tills land," are enslaved within a system of bonded labour, and are forced by a landlord or “master” to execute various hard labour duties (usually agricultural) for many years, often for an entire lifetime. Other than the agricultural work, Haliyas fulfill a range of duties, including making tools (such as spades, knives, and sickles) out of iron, grazing animals, sewing clothes, making utensils and pots, and so forth. The labourers are not paid a wage for their extensive work; often they are only provided with a small amount of food. Extreme poverty and debt in the western and far western regions of Nepal has relegated many members of the lower castes, known as Dalits, to Haliya status.

(NAR) for girls is higher than that for boys in the primary level, but lower in secondary school levels. Although for higher levels of school, the NAR is much lower for girls compared to boys. During the community interaction, some women stated that of the number of cattle is decreasing as all the children are going to school. Earlier, children helped the family and took cattle to graze.

4 STAKEHOLDERS CONSULTATION AND PARTICIPATION PLAN

89. Information disclosure, consultation with stakeholders, and participatory approaches are recognized as important contributory factors to more effective, relevant, and sustainable projects, including the the involvement and empowerment of disadvantaged groups. The extent and format for stakeholder consultations and the use of participatory approaches in project design will vary depending on the nature of the project and the political and social environment in which it is being prepared. A Consultation, Participation and Communications (CPC) Plan has been prepared for BCRWME, as recommended for most ADB projects. 90. An initial communications Plan, based on an initial stakeholder analysis, was prepared in the pre-design phase. The initial stakeholder analysis and Plan has been revisited and refined at the outset of the project design phase. It provided a basis for developing a more detailed CPC Plan, covering both project design and project implementation. 4.1 Main Aspects of the Consultation, Participation and Communications Plan 91. The Consultation, Participation and Communications (CPC) plan aims at focusing the communities’ attention on the critical issues related to water availability within the watershed area, in order to align planning efforts with long range livelihoods needs in the face of climate variability within the BCRWME area. Its objectives are: (i) to ensure local ownership; and (ii) to ensure inclusion of all stakeholder categories as users to be engaged in the participation process and achieve greater equity in the distribution of benefits. 92. The CPC Plan identifies two (2) major types of stakeholders for BCRWME, namely: (i) Primary beneficiaries - constituted based on different categories such as caste/ethnic/religion, geography, economic status, and gender etc.; and (ii) Secondary stakeholders - those involved in the project design and implementation, such as the concerned implementing agencies, NGOS, and other assisting groups. 93. The CPC Plan then attempts to identify key problems of the watersheds and their corresponding measures for solution. Based on this, a stakeholder’s analysis has been carried out in which the stakeholder’s characteristics and their potential interests have been assessed, including mapping out the relationship between the project and those interests, then identifying measures the project could take to address those interests. The Plan also outlines an approach for engaging stakeholders that consists of a series of steps for enlisting target groups, methods to stimulate interaction, and areas of stakeholder participation. It also covers institutional arrangements for a systematic implementation of the plan, including identification of various functions and key roles for committees, as well as roles for stakeholders within the organizational arrangement of the project. 94. Stakeholder consultation and participation includes different types of people at different levels. Table 1 gives a summary of the types of participants engaged through consultation. The stages of interactions with stakeholders during different phases of the project are illustrated in Table 2.

Table 1: Participants consulted by PPTA Team during Field Assessment SN District VDC Participants Remarks Total Female Dalit Indigenous/ Brahmin/ Janajati Chhatri 1 Bajura Kuldevmandu, 179 29 23 0 141 Community Bhramatota, and sub- Toli, Barbis watershed level 2 Doti Kalikasthan and 221 86 7 0 130 Community Pachnali and sub- watershed level 3 Dadeldhu Koteli, Joshipur, 76 9 7 0 60 Community ra Asigram and and sub- Amargadhi watershed Municipality level 4 Achham Kalik, 95 7 11 0 77 Community Bardadevi and level Mangalsen, Janalikot, Marku 5 Baitadi Siddhapur 22 1 3 0 18 Community level 6 Achham Marku 36 36 18 18 community level women focus group discussion 6 Achham, Doti, Dadeldhura 65 4 District level workshops (June 2012) 7 Bajura, Dadeldhura, Doti 81 7 District level planning workshop (October, December 2012)

Total 775 179 69 0 444

Table 2: Stages of interactions and active participation Interactions 1 Community level interaction and discussion in few VDCs in 6 Districts during identification 2 Community meeting conducted with the beneficiaries groups during project design to involve them in participatory design of the sub-project. 3 Formation of Sub-Watershed Group with the beneficiaries of the sub-project to involve them in project implementation as well as to contribute partly in the construction.

5 SOCIAL SAFEGUARD INSURANCES

5.1 Main features of the Land Acquisition Framework 5.1.1 Expected Involuntary Resettlement Impacts 95. While it has been preferable to construct water storage ponds on Government property, it is anticipated that some private lands are most likely needed to be purchased in some subproject areas. However, the impacts of an individual subproject are likely to be limited to a few landowners, preferably not using all the cultivable land of a single owner. 96. Possible items needing temporary land possession are as follows:  Construction sites;  Construction temporary tracks/roads;  Construction of channels  Water delivery systems;  Disposal areas  Restricted areas with fencing for regeneration of vegetation 97. The owner of any land required for temporary possession needs to be compensated for any temporary loss incurred, including an agreement with the landowner to fix the compensation to be paid on a monthly rental basis. 98. Depending on the level of impacts and the number of APs affected by the project or subproject, Involuntary Resettlement will be categorized as per ADB policy (SPS and OM Fi/BP dated March 2010), requiring the preparation of a Land Acquisition Plan. 99. In case of improvement of existing infrastructure by extension which will need additional land from private ownership, a written consent should first be obtained from the land owner concerned and a due diligence study must be done on the status of land used by the existing infrastructure. 5.1.2 Likely Scope of Land Acquisition 100. The feasibility studies have been carried out for three subprojects selected on technical grounds and discussed with the local communities/beneficiaries. The initial estimate of land requirements and people affected for each of these subprojects is given in the Table 3, below. Table 3: Scope of Impacts for 3 FS subprojects Subproject Basin District Total Private % of Trees Household Names Land Land to Total Type s Required be Land and Affected (Ha) Acquired Holding Nos. Nos (Ha) Pipal Khola Budhi Bajura 0.3984 0.3984 12.6* None 2 Pond and Ganga Catchment Management Nagardaha Lower Doti 0.2189 0 0 None 0 Pond and Seti Catchment Management Thuldhara Lower Dadel- 0.055 0.055 2.3 None 3 Tank and

Catchment Seti dhura Management * the land to be acquired is fallow land and provides an occasional low yield annual crop and hence some marginal income. 101. Other subproject features may cause some impacts to community livelihoods, among others, than those who will benefit from the water supply arrangements. In order to offset any difficulties, the subprojects will incorporate the following principles:  Changes in land use and production benefits resulting from catchment protection and land and gully stabilization work, including planting seedlings and grass, and control of livestock access, will be designed with community participation and negotiation.  Watering locations – Locations for domestic supply taps, livestock watering troughs, irrigation outlets and other watering arrangements will be decided with the community  Possible pipeline routes or construction of channels from water sources (springs and streams) to water storages, diversion channels for surface catchments to water storages, etc; conveyance from water storages to water demand points, including consideration of difficulties and issues in alternatives are to be decided with the community to minimize individual losses. 102. The minor impacts related to other minor construction issues are expected to be settled with the communities and will not require additional compensation. 5.1.3 Entitlements for Losses 103. The BCRWME project is expected to have minimal requirements for land acquisition. The land required is expected to be available from public land selected through community consultation, and confirmed by due diligence studies. Where it is public land, compensation payments will not be made. Any land required from private land owners will be subject to social impact assessment and analysis to determine its value and if it can be accepted as a donation under the provisions of the land acquisition framework in which all involuntary land acquisition from private owners will be compensated at replacement cost and APs assisted so that their economic and social future would generally be as favorable as it would have been in the pre-project standards. 5.2 Main features of the Indigenous People Planning Framework 5.2.1 Profile of the Ethnic Groups (including EIPs) in Watersheds Districts 104. According to district profiles, the total populations of the six (6) districts (having full or part of the district within the watershed areas) is 1,061,489. The most populated district is Baitadi with 231,970 population; followed by Achham with 230,773; 206,896 in Doti; 165,119 in Bajhang; 126,115 in Dadeldhura; and 100,616 in Bajura. Among them 585 people belong to endangered groups; 20,568 people from indigenous groups, including endangered groups; 235,336 people are from Dalit groups; and 805,585 are Brahmin, Chhetri and other ethnic groups. 105. No Endangered Indigenous Peoples (EIPs) or IPs have been identified in the pilot VDCs6 as a result of the community consultations and work on feasibility studies in the Sub-watersheds. However the District Profiles record 585 EIPs in the six BCRWME districts, the majority of which are Raute (0.06% or 381)7. Two Lepcha EIPs are reported in Doti and Baitadi districts, and six Hayu EIPs are reported in Baitadi and Bajhang districts. Finally, nineteen Kusunda EIPs are reported in Doti, Achham and Baitadi districts; and 177 Raji EIPs are reported in the six districts overall.

6 The pilot VDCs are Toli and Kuldevmandu VDCs of Bajura district, Kalika, Bardadevi and Mangelsen VDCs of Achham district, Kalikasthan and Pachnali VDCs of Doti district, Koteli VDC of Dadeldhura district and Siddhapur VDC of Baitadi district 7 The Raute population comprises 285 in Dadeldhura district, 66 in Doti, 17 in Achham and 13 in Bajhang. There are no EIPs in Bajura and Baitadi districts.

106. There are 17 Dalit castes mentioned in the district profiles and the total population of Dalit is 235,095 or 22.1% of the population within the six districts. The largest concentration of Dalit people is in Achham District (65,672) followed by 50,607 in Doti, 40,393 in Baitadi, 27,203 in Bajhang, 26,481 in Dadeldhura, and 24,739 in Bajura. 107. The major groups recorded in these six districts in the Dalit caste were Kami, Damai, Sharki and Lohar. There are recorded a total of 30 Tamata in Dadeldhura, Doti, Achham and Bajura districts. The Musahar, Tatma, Khatwe and Halkhor groups are found in Doti, Bajura, Baitadi and Bajhang districts, but are few in number (below six). 108. There are 30 different Brahmin, Chhetri and other higher castes mentioned in the district profiles. The total higher caste population in the six districts is 805,826 or 75.9% of the total population. The greatest higher caste population is 189,859 in Baitadi District; followed by 162,665 in Achham; 147,575 in Doti; 136,936 in Bajhang; 94,577 in Dadeldhura; and 74,214 in Bajura. Chhetri, Brahmin, Thakuri, Sanyasi and Teli are major groups in the higher castes in these six districts. Other groups are Rajwar, Bangali, Jaire, Punjabi, Muniya, Halwai, Hajam/Thakur, Mallah, Kumhar, Kalwar and Badahi. (Details of the overall ethnic distribution in the six watershed area districts are provided in Appendix 2 of the IPPF.) 109. The affiliated National Federation of Indigenous Nationalities (NFIN) has classified IP into five different categories based on socio-economic variables which include literacy, housing, occupation, language, area of residence and population size. This categorization is given in Table 4, below. Table 4: Indigenous People and their Level of Marginalization8 Highly Region Endangered Marginalized Disadvantaged Advantaged Marginalized Mountain -- Shiyar, Bhote, Baragaunle, Byansi Thakali Shingsawa Dolpo, (Sauka), Chhairotan, (Lhomi), Larke, Marphali Thakali, Thudam Lhopa, Sherpa, Mugali, Tangbe, Topkegola, Tingaule Thakali Walung Hill Bankariya, Baramu, Bhujel, Chhantyal, Newar Hayu, Thami Dura, Gurung (Tamu), Jirel, Kusbadiya, (Thangmi), Pahari, Limbu (Yakthung), Kusunda, Chepang Phree, Magar, Lepcha, Sunuwar, Rai, Surel Tamang Yakkha, Hyolmo Inner Raji, Bote, Darai, -- -- Terai Raute Danuwar, Kumal Majhi Terai Kisan, Dhanuk Dhimal, -- -- Meche (Rajbansi), Gangai, (Bodo) Jhangad, Rajbanshi, Santhal (Satar) Tajpuriya, Tharu Total 10 12 20 15 2

110. Endangered IPs are even smaller in number and account for only 27 persons in Doti, Achham and Baitadi districts. These endangered IPs include Hayu, Kusunda and Lepcha and

8 Source: National Foundation for Development of Indigenous Nationalities (NEFIN)

16 originate from other hill areas of Nepal. These people may have migrated for official service, labor, transportation, business, construction work, employment or livelihood opportunities. 111. The Raute and Raji are IPs mostly found in the inner Terai in the Far West Region. They are also very small in number and comprise a total of only 558 in the six (6) districts. They do not live in town areas, nor do they integrate with the larger society through schooling and service. All these groups have problems in maintaining their language and their cultural identity because of their small number and the difficulty they face in making essential elements of their culture compatible with educational, health and development services that are available. More than 90% of the IP population live in rural areas and their economy is based on agriculture, or in the case of Rautes, on hunting and gathering forest goods. 112. Other highly marginalized groups are also very small in number (e.g. Baramu, Thami, Chepang, Bote, Danuwar Majhi, Dhanuk, Jhangad and Satar). The total population of these groups in the six districts is only 1,108. Most of them may have migrated from another part of the country for official service, labor, transportation, business, construction work, employment, and livelihood opportunities. 113. In the Disadvantaged Group of IPs, Sherpa (population of 625) are found in the mountain region/high altitude areas of all six districts; while Gurung (1,181 population) are found in hilly regions of all six districts. Magar (11,482 population) are also found in the hilly regions of all six districts. The remaining IP groups, e.g. Jirel (6 population) are found in Doti, Achham and Bajura districts; while Limbu (189 population) and Rai (495 population) are found in all districts. 114. The Advantaged IPs – such as the Newar (2,560 population) and Thakali (44 population) are found in all six hilly districts; whereas the Thakali are not found in the Baitadi district. They have sizeable trade communities and presence in the towns resulting in their good economic standing. The status of the advantaged IPs, notably the Newar, are often quite similar to those of the dominant Hindu castes (Brahmin/Chetri). 5.2.2 Social Impact Assessment and IPDP Preparation for Subprojects 115. IPs were not found in the three pilot subproject areas during preparation of the feasibility studies for subprojects. A detailed procedure needs to be followed in the screening, social impact assessment and preparation of IP plans for future subprojects in case IPs are found among the population and are negatively affected by the project. The procedures ensure that indigenous people are informed, consulted and have the opportunity to participate over the entire subproject cycle. 116. The participation of IPs in the project will provide a better understanding of their needs and the opportunity to identify measures to mitigate adverse impacts due to the project. The Indigenous People Development Plan(IPDP) consists of the following:  Preliminary Screening;  Social Impact Assessment;  Mitigation Measures;  Development Assistance; and  Project Monitoring. 117. These steps are elaborated in detail in the IP Planning Framework document presented as a linked document in the RRP.

6 OTHER RISKS AND VULNERABILITIES

6.1 Vulnerabilities and Problems Raised During Community Consultation 118. The issues and vulnerabilities beyond water scarcity and related to gender and poverty are

17 summarized in Table 5. The table reflects the views of the local people consulted, as well as their proposed solutions. Table 5: Vulnerabilities and Solutions Issues and vulnerabilities Proposed solutions  Limited or no employment opportunity in the  Support for developing small irrigation proximity schemes and providing agriculture inputs.  Provision of skills development training and  Seasonal and annual out-migration to India income generation activities  Support for the construction of safe drinking  Increased workload for women, elderly and water schemes, micro-hydro, improved children stoves, bio-gas.  Formulation and implementation of policies  Inequality in land ownership or tenure, so on land management less motivation for land management  Construction of labor-based village roads up  Poor agricultural yield due to remoteness, to each VDC. lack of market facilities for good  Awareness campaign on gender and Dalit  Gender and Dalit discrimination and unjust equity between male and female, as per the oppression of women with Chaupadi system national and international during menstruation and delivery rules/policies/standards/ guidelines; support for the improvement of sanitation and personal hygiene conditions  Some cases of lower daily wages for women  Prioritize employment in any development for equivalent tasks with men work with same daily wages for men and women

6.2 General vulnerabilities and risks in the watershed areas 6.2.1 Lack of local livelihood opportunities leads to male out-migration 119. As indicated by findings of other studies, male out-migration is not a new phenomenon: 120. “Whenever they could, families invested in their sons to ensure they were equipped with the education and marketable skills they would need to play their role as the family’s economic and political intermediary with society beyond the household and village. For centuries when meager family land holdings were not sufficient to sustain the household, men would migrate to India and 9 leave the women behind to farm the land and tend the animals.” 121. Still, in recent years, households which are effectively headed by women have become increasingly common, as male members of the family migrate to find work – many to India, but others still further, e.g. to middle-eastern countries. These actions are driven by the lack of livelihood opportunities within the middle mountain watersheds in Far West Nepal. Out-migration leads to an increase in work load for women who are left with the agricultural tasks in the village communities, as well as their traditional role of housekeeping and raising children. Women who are left with the sole household responsibilities and agriculture have increased difficulty in travelling to seek health care. 122. Out-migration has also led to a sharp increase in HIV/AIDS brought back to the communities by absentee males. A study has estimated that “(w)ithout any intervention programs, Far-Western Nepal will have about 7,000 HIV infected individuals returning from India by 2015, 10 and 12,000 labor-migrants living with HIV in India.” 123. Out-migration may also have reinforced the traditional male-dominant and “protectionist” attitudes over women in the absence of male partners and a lack of independent livelihood

9Bennett, Lynn, Dilli Ram Dahal and Pav Govindasamy, 2008. Caste, Ethnic and Regional Identity in Nepal, Further Analysis of the 2006 Nepal Demographic and Health Survey http://pdf.usaid.gov/pdf_docs/PNADM638.pdf 10Naveen K Vaidya and Jianhong Wu, 2011. HIV epidemic in Far-Western Nepal: effect of seasonal labor migration to India, BMC Public Health 2011http://www.biomedcentral.com/1471-2458/11/310

18 opportunities for women. 6.2.2 Isolation and lack of education 124. The poor transport network and scattered habitation patterns in the middle mountains of the Far West Region create isolated communities which are largely self-reliant. While these communities may live a subsistence lifestyle, this severely limits options to education and healthcare. For women, the options are further limited by cultural attitudes which place lower priority on education for girls and on women’s health. The results are reflected in the statistics of low literacy and high maternal and child mortality. 6.2.3 Child and Maternal Mortality 125. Child and maternal mortality in the sample watershed areas, increased during the period of the Maoist Rebellion, but has not yet fallen with the onset of peace in 2006. The government has taken various actions to address these issues, but as yet, they have had limited effect. The initiatives to date include offering cash payments for each hospital-based birth and an increase in the number of community health workers. There are a range of reasons why government- supported initiatives to address women’s’ health issues have not yet been effective. 126. Community isolation is the basic reason for poor health statistics, limiting women’s access to the few health centers and to community health workers. The effect of isolation is reinforced by traditional attitudes towards women, including limiting their independent actions, as well as superstitious beliefs and practices. Chaupadi continues within the watershed communities. A number of other cultural practices may also lead to increased mortality, including dietary customs: “Women are expected to deliver children without drawing attention to themselves and to bear any obstetric difficulties without complaint. Over 90% of births take place at home, with traditional birth attendants (TBAs) present in only 25% of cases. Mothers-in-law normally support their daughters-in-law during delivery, while husbands have the final say 11 in financial decisions about whether any further care is sought.” 127. A study during the mid 1990s showed a clear risk existed in rural Nepal communities for 12 pregnant women resulting from lack of vitamin A . But “(o)bstetric difficulties that arise, including 13 those leading to maternal death, are generally attributed to fate, karma, witchcraft or bad spirits.” 6.2.4 Landlessness and lack of decision-making power 128. The issue of landlessness – people without land registered in their own, or their family’s, name is recognized as a contributor to rural poverty, social injustice and local conflict. According to a recent study, more than half of Nepal’s rural population do not own enough land to cover their day-to-day needs, and about a tenth of the population has no land at all. The unequal distribution of land is also considered as one of the root causes of decades-long social inequality. 129. Women are often denied land title because they are, according to tradition and legal provisions, dependent on men. Despite some slight progress having been achieved in this regard in recent times, Action Aid reported in 2008 that only 10% of women owned land.14 6.2.5 Lack of Ownership Means Less Decision-Making Power 130. Studies have documented the unequal basis that dominate relationships within households and in greater society, enshrined in government policy and not materially affected by recent

11 Safer Motherhood Project http://www.nsmp.org/pregnancy_childbirth_nepal/index.html 12 Parul Christian, Keith P. West Jr , Subarna K. Khatry, Elizabeth Kimbrough-Pradhan, Steven C. LeClerq, Joanne Katz, Sharada Ram Shrestha, Sanu M. Dali and Alfred Sommer, 1999, Night Blindness During Pregnancy and Subsequent Mortality aog Woe i Nepal: Effects of Vitai A ad β-Carotene Supplementation, Am. J. Epidemiol. (2000) 152 (6): 542-547. http://aje.oxfordjournals.org/content/152/6/542.full 13 Ibid. Safer Motherhood Project 14 Jagannath Adhikari, August 2008, Land Reform in Problems and Prospects, Action Aid http://www.actionaid.org/sites/files/actionaid/land_reform_complete_-_done.pdf

19 legislative changes: “A woman’s work is given very little status even though it contributes a major part of the family’s livelihood. Men’s ability to earn money brings respect, and their traditional role as provider grants them high economic and thus social status. … Men predominantly control resources and decide their usage. Lack of access to and control over resources means a woman has no power to invest in productive activities and raise an income. Men dominate most decisions in the family and it is taken for granted that they hold higher status. Issues concerning property, marriage, expenditure and education are men’s business, and women can exert little or no influence over the outcomes. Recent legislative changes do not give 15 equal rights to women for inheritance of parental property.” 6.3 Poor People’s Priorities are Context-Specific 131. Poor people’s priorities are, first and foremost, context-specific, suggesting that local level decision-making is critical to ensure that people’s development priorities are effectively understood and met. Poor people emphasize roads, education, health services, and employment opportunities as their main priorities. The most important concerns among Dalit communities are land insecurity and lack of access to water. 132. Lack of land title and landlessness cannot be ignored. These issues constitute a major source of grievance, especially among excluded groups who tend to view the CPN Maoists more favourably. This points to an urgent need for meaningful land reform. 133. Connectivity, including better roads, accessible and affordable telecommunications and reliable postal services, also emerged as an important priority, highlighting the fact that geographical isolation constitutes a critical part of many people’s experience of poverty. 134. Lack of access to services emerged as an important concern, but was not limited to access to education and health services. Rather, the concern encompasses a wider range of services, including access to drinking water, sanitation, veterinary services, agricultural extension, vocational skills training, electricity and credit/financial services. Poor people commonly felt that their limited access to these services stemmed from their lack of education, poverty, low political and social standing, geographical isolation and lack of access to timely information. 135. The area in which poor people, regardless of caste/ethnicity/gender/geography/ religion, feel most excluded is access to formal justice. This goes beyond the problems of discriminatory laws or weak law enforcement to a more profound sense of lack of awareness and lack of confidence that poor people would be able to access legal redress.

References:  ISRC 2011, Intensive Study and Research Center, District and VDC Profile of Nepal, 2010.  NLSS 2011, National Living Standard Survey 2010/11, Central Bureau of Statistic, Nepal.  NHDR 2009, Nepal Human Development Report- 2009, UNDP, Nepal.  RSVWRMP 2011, Rural Village Water Resources Management Project Phase II, Final Project Document, A joint Venture of GON, Ministry of Local Development and The Republic of Finland.  Household survey report (BCRWME, December 2012)

15 Helvitas, Learning and sharing series 2, Empowering Women http://www.helvetasnepal.org.np/Publication/Learning_2.pdf

Social Safeguard Document

Gender Empowerment and Social Inclusion (GESI) Plan (draft)

Project Number: ADB TA 7883

January 2013

This gender empowerment and social inclusion plan 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

Table of Contents EXECUTIVE SUMMARY ...... 1 1 INTRODUCTION ...... 1 2 SITUATION OF INDIGENOUS /JANAJATI PEOPLES IN THE PROJECT AREA ...... 4 3 GENDER ANALYSIS OF THE PROJECT AREA: ...... 4 3.1 GENERAL ...... 4 3.2 CONDITIONS FOR WOMEN ...... 5 3.3 DISADVANTAGED GROUPS AND SOCIAL ISSUES ...... 10 4 PROJECT RELATED POLICIES ...... 12 4.1 WATER SUPPLY AND SANITATION SECTOR IN NEPAL ...... 12 4.2 LOCAL GOVERNANCE AND DECENTRALIZATION ...... 14 5 SOCIO-ECONOMICS OF THE WATERSHED AREAS ...... 15 6 GENDER EMPOWERMENT AND SOCIAL INCLUSION PLAN FOR BCRWME ...... 15 6.1 RATIONALE ...... 15 6.2 MAJOR THRUSTS OF THE PLAN ...... 16 6.3 IMPLEMENTATION ...... 16 6.4 IMPLEMENTATION BUDGET ...... 18 6.5 MONITORING ...... 18 6.6 SUMMARY OF GENDER EMPOWERMENT & SOCIAL INCLUSION MEASURES ...... 18 6.6.1 GESI Measures for the 2 watersheds ...... 18 6.6.2 Gender Action Plan ...... 20 7 APPENDICES ...... 23 7.1 TENTATIVE ANNUAL BUDGET ...... 23

List of Tables

Table 1 : Sample health data from Achham district profile ...... 6 Table 2 : Comparing Men and Women‘s livelihoods ...... 8 Table 3: Criteria for assessing the service level...... 14 Table 4 : GESI Project activities and measures ...... 18 Table 5 : Gender Action Plan ...... 20 Table 6 Annual Tentative budget ...... 23

List of Figures

Figure 1 : Project implementation arrangements ...... 17 Figure 1 : Organization and membership for a single DSCO ...... 18

ABBREVIATIONS

ADB Asian Development Bank AP Affected Person BCRWME Building Climate Resilience of Watersheds in Mountain Eco-Regions CBO Community Based Organization CDO Chief District Officer CFUG Community Forest User Group DAG Disadvantage Groups DDC District Development Committee DDC District Development Committee DSCO District Soil Conservation Office DSCWM Department of Soil Conservation and Watershed Management EA Executing Agency EMDF Ethnic Minorities Development Framework EMDP Ethnic Minorities Development Plan FAR Far Western Regions GAP Gender Action Plan GESI Gender Empowerment and Social Inclusion GoN Government of Nepal HH Household IP Indigenous People LSGA Local Self-Governance MDG Millennium Development MoF Ministry of Finance NGO Non Government Organization NLSS Nepal Living Standard Survey NRs. Nepalese Rupees PAF Poverty Alleviation Fund PAP/F Project Affected Person/Family PCO Project Coordination Office PIU Project Implementation Unit PPTA Project Preparation Technical Assistance PRA Participatory Rural Appraisal RP Resettlement Plan RP Resource Person RWSS Rural Water Supply and Sanitation SSO Social Safeguards Officer SSSS Senior Social Safeguards Specialist SMT Sub-watershed Management Team SP Service Provider SW Sub-watershed SWMC Sub-watershed Management Committee ToR Terms of Reference USD United Stated Dollars VDC Village Development Committee WDO Women Development Office

EXECUTIVE SUMMARY

A General

The project Building Climate Resilience of Watersheds in Mountain Eco-Regions Project (hereafter called “the Project” or “BCRWME”) aims at improving access to and enhancing reliability of water resources among communities in watersheds of Nepal’s river systems that are significantly vulnerable to climate change. This Gender Empowerment and Social Inclusion (GESI) Plan has been formulated based on the community consultation and Gender and Social Impact Analysis carried out during preparation of the Project for Building Climate Resilience of Watershed in Mountain Eco- Regions. The plan inclusive of its social management procedural guidelines shall apply to all subprojects under the Project to ensure that gender and social issues are appropriately addressed and mitigated to acceptable levels. The plan is intended to provide effective integration of assessment, planning and management for Gender Empowerment and Social Inclusion assessment and management planning into the subproject preparation process, in accordance with the laws of Nepal, and in conformance with the requirements of the ADB. B Local conditions

Based on the public consultation and social analysis of the project area it is found that discrimination of women and disadvantaged groups remains dire in the Project area. Patriarchal systems, caste discrimination and other types of exclusion are prevalent. Main gender issues of this area are conservative traditions. In addition in many households, out migration of male members to India increases women’s vulnerability. Communities reported that water discharge from the springs has reduced by up to 50%. During their grandfather’s time rice paddy was planted in the May-June but now it is planted in July-August due to lack of rainfall and irrigation water. Some spring water sources are completely dry and some are drying up early. The change of availability of spring water has been observed during last few decades in the pilot VDCs. The percentage of households with access to piped drinking water is about 45% and the remainder get drinking water from springs and rivers. It takes 5 to 15 minutes to reach the pipe tap stands with safe drinking water but to reach the spring source is between 5 to 60 minutes walking time. In addition, during the dry season, for those households obtaining water from pipe tap stands and springs, 5-10 minutes is added because of water scarcity. About 90% of the water fetching is done by women and the remaining 5% by girls and 5% by boys or men. Poverty and lack of awareness in the villages causes poor sanitation in the pilot VDCs. There is not sufficient water in the home and most of the houses have no toilet facility. Many households have poor sanitation because they traditionally keep the cattle at their home on the ground floor and cow manure is stacked in front of their house. C Proposed Project

The project will assist in achieving the government policies by enabling communities in vulnerable ecosystems to have improved access to and reliability of water resources. In cooperation with the DSCWM and DSCOs the project will improve water access and reliability and particularly address water shortage issues. People’s participation in planning, design, construction and operation &maintenance will be sought. The implementation of the subprojects, protection and benefit sharing by the group of beneficiaries of local communities

will propose “a sector like approach” for further development of the following subprojects for water access and reliability in the watershed areas. The project will install piped water delivery systems to bring the water close to where it is needed in order to realize benefits to community water supply. Where there is more than one site for water storage, the tanks will be linked together down the landscape. Delivery stand- points (with taps) will be installed. Should a community wish to have further distribution of water within their settlement, it could provide this on their own. D Measures to address gender problem and social inclusion

The implementation of the project will include some measure to ensure that the benefits of the projects are shared equally and that measures are taken to reduce the discrimination towards women and DAGs. Gender empowerment and awareness

 Awareness-raising on Project scope and benefits for the Community and at least 50% female, IP and DAG/Dalit of the subproject area  Provide access to sub-project data such as Socio-economic information and variables about access to water resources to the beneficiaries of the area without discrimination  Gender sensitization training (with focus on the change of power relationships) to all members of SWMC including some active female of the community and Officials of Project Implementation staff Organization development and effective participation

 Mass awareness meeting for beneficiaries in the community to formed committee and explained about the constitution and the rules of the SWMC for Community people in the villages, with participation of women (50% attendance) IP and DAG.  Formation of SWMC with 33% female executive members including representation from IP and DAG, 10% executive position to female Capacity Building and skill development

 Leadership development training focusing on women empowering for more than 50% female members from existing groups and some active female members of the community  Appointment and nomination of social mobilizers to work with SMT to support project implementation, priority given to 50% female including IP and DAG  Involvement in the planning of local resource / infrastructure, such reservoir, pond, tap stand etc., at least 33% female involve during planning of the resources/infrastructures  Community meeting about the discriminatory system for women such as Chaupadi and agreement to eliminate that practice and targeting for elimination of Chaupaddi system by the end of the project ,  Advocacy on gender issues during all project meeting, training and campaign with involvement of female Budget

To carry out all the activities of the GESI an Annual Tentative budget have been and it is estimated to 42 millions Rs

E Gender Action Plan

Gender action will be integrated in the regular programs for watershed management support and project management. Activities will deal with opportunities as well as constraints for people’s participation and benefit distribution. The GAD will include the measurable inputs which may be included in the DMF.  Participation of at least 33% women beneficiary proportionately from diverse caste and ethnic groups in all major consultations.  SWMC executive committees have at least 33% women and 10% of total members should be in executive position e.g. Chairperson/Vice-chairperson, Secretary and Treasurer  All elected female SWMC executive members should be trained, as well staff partners and stakeholders  SWMC Constitutions will provide for 33% female representation minimum, and guidelines for meaningful participation.  One gender-trained and experienced SDO based in PIU to lead on all social safeguards and development issues  6 gender trained and experienced SDO based at District level to lead Village Based Social Mobilizers (VBSMs) on all social safeguards and development issues  Project collects all data disaggregated by sex, caste and ethnicity and updated in MIS  DSCO will hire some female junior engineers (one in each district)

1 INTRODUCTION

1. The project Building Climate Resilience of Watersheds in Mountain Eco-Regions Project (hereafter called “the Project” or “BCRWME”) aims at improving access to and enhancing reliability of water resources among communities in watersheds of Nepal’s river systems that are significantly vulnerable to climate change. The means for doing so involves a program of integrated watershed management with interventions for upland areas to increase surface water storage and groundwater recharge and to deliver water to locations where the community can use it. 2. This Gender Empowerment and Social Inclusion (GESI) Plan has been formulated based on the community consultation and Gender and Social Impact Analysis carried out during preparation of the Project for Building Climate Resilience of Watershed in Mountain Eco-Regions. 3. The plan inclusive of its social management procedural guidelines shall apply to all subprojects under the Project to ensure that gender and social issues are appropriately addressed and mitigated to acceptable levels. The plan is intended to provide effective integration of assessment, planning and management for Gender Empowerment and Social Inclusion assessment and management planning into the subproject preparation process, in accordance with the laws of Nepal, and in conformance with the requirements of the ADB. 4. The policy of the Government of Nepal aims to improve the socio-economic conditions of local people and improve access to: 1) basic services; 2) economic opportunities and 3) resources among women, the disabled, Dalits and other oppressed groups. The Three-Year Interim Plan (2008/09-2009/10) dated December 2007 (translated version)1 which follows the Tenth Plan or PRSP (2002-07), includes a policy and actions to significantly improve the standard of living for women and provide better scopes for the disadvantaged groups such as Dalit and Madhesis, disabled, and indigenous nationalities such as Janajati (IP) to improve their status and get access to all services. Under the policy institutional, structural, and legal obstacles will be removed to end their long-term deprivation and ensure their inclusion into the mainstream development. Subsequently these groups will be able to assert their social, cultural, economic and human rights. The two main principles of the policy are: a) empowerment of deprived groups and b) inclusion or proportional participation of these groups in all state structures, decision making processes and services. 5. Strategies to increase inclusion are:  Legislate against discrimination based on race, language, culture, religion, location, gender, economic and physical condition.  Ensure substantial participation of men, women and children of the deprived groups to guarantee their involvement in the processes of policy making, planning, implementation, supervision and evaluation.  Programs for the deprived groups will be conducted through their representative organizations and emphasis will be given to their empowerment  Implement positive discrimination and make provisions in areas of education, health, employment, participation, capacity building, and public service for the socioeconomic security of the deprived.  Introduce model programs in backward places like Karnali and other border and geographically uncongenial hinterlands to uplift the status of the Dalits to the

1 http://planipolis.iiep.unesco.org/upload/Nepal/Nepal_TYIPEnglish.pdf

average standard of relatively developed regions. Policy implementation will follow recommendations of the Regional Development Strategy studies.  Conduct programs for overall development of women, Dalits, Madhesis, disabled, laborers and indigenous nationalities. Ensure their participation, with defined rights, in appropriate commissions, committees and councils. Increase access for deprived groups to technical and vocational education.  Provide opportunities for settlement and employment of landless indigenous nationalities, liberated Kamaiyas (farm laborers), ploughmen, pastorals, Dalits and Madhesis. 6. The newly revised Muluki Ain2 (inheritance laws) provides scope to women to inherit from the deceased in several cases which is set out in a revised clause. While unfortunately the translation is not clear, the intention to redress gender issues in the law is demonstrated. 7. The project will assist in achieving the government policies by enabling communities in vulnerable ecosystems to have improved access to and reliability of water resources. In cooperation with the DSCWM and DSCOs the project will improve water access and reliability and particularly address water shortage issues. Community participation in planning, design, construction and operation & maintenance will be sought. The implementation of the subprojects, protection and benefit sharing by the group of beneficiaries of local communities will propose “a sector like approach” for further development of the following subprojects for water access and reliability in the watershed areas. 8. The main outputs of the project are:  Participatory watershed management planning to improve water security demonstrated;  Subproject water storage and catchment management (that addresses the specific vulnerabilities of women and DAGs) implemented in priority watersheds;  Lessons for improving access to and reliability of water resources in vulnerable middle hill regions generated and used by DSCWM in strengthening its management of watersheds. 9. The selection of the subprojects will be made in conjunction with the community to gain benefit of local knowledge and to ensure the infrastructure meets community needs. Implementation of subprojects will improve water access and reliability for communities at risk from climate change and particularly address water shortage issues that result in additional labor for women and difficulties for disadvantaged groups such as the Dalit and Janajati. Dalit castes, who have their own separate spring water source for drinking purposes, face additional problems. During dry season, when their spring source is fails they may go to the upper caste water source but must wait for the upper caste to come to allow

2 http://www.lawcommission.gov.np, The Muluki Ain (General Code) Chapter 16 Inheritance, Amendment of the Eleventh Amendment. “If the separated husband, wife, son, unmarried daughter, son's son or his unmarried daughter did not take care of and subsisted the deceased and the married daughter or son- in-law or son or unmarried daughter of such son-in-law has maintained and subsisted the deceased, the inheritance of the father, mother, mother-in-law, father-in-law or grandfather or grandmother so maintained and subsisted shall devolve on the married daughter, daughter's husband or grand-son or daughter having so subsisted the deceased.”

them and for the upper caste to first fill their pot and then put water in the pot of lower caste without touching it. These traditions create irritation among some of the lower castes. 10. Increased water availability will have several benefits for the day-to-day livelihood (hygiene, sanitation, health, less hardship to collect water etc.) also will allow additional crop production and reduce animal disease from polluted water. The regular availability of water will ease the cooperation between the Dalit’s and non-Dalit’s, male and female, poor and rich in the communities. It is also expected that the discrimination among different castes and gender will be minimized. 11. The proposed structural interventions to be financed under the project are described in the following paragraphs. 12. Water storage ponds/tanks and on-stream reservoirs will be constructed and renovated. The storages will be filled from springs and small streams, and from their local watersheds where these are not available. Some storages will aim to hold water, while others are designed to recharge groundwater systems. The choice of storage type is site specific, depending on hydrogeologic conditions. 13. Water source and infrastructure protection ensures the quality and quantity of water arriving at water sources and ensures that infrastructure is not impacted by soil erosion and landslides. The project introduces land use management measures which are typical of the practices already undertaken by DSCWM (landslide treatments, gulley erosion control, grazing rules, etc) in the catchments of water sources developed by storage through the project. These actions will be designed with input from the communities and may involve land use management controls such as restricting cattle grazing and assignment of responsibility for implementing and policing controls to the community. The project will provide advice and materials to develop and implement land use plans, including seeds, tree saplings, tools and other equipment. 14. The project will install piped water delivery systems to bring the water close to where it is needed in order to realize benefits to community water supply. Where there is more than one site for water storage, the tanks will be linked together down the landscape. Delivery stand-points (with taps) will be installed. Should a community wish to have further distribution of water within their settlement, it could provide this on their own. A general assessment of the community needs and the opportunities for improved water supply will be made and discussed. The type and location of subproject to improve water access will be selected through community/village discussion and agreement. Prior the implementation an awareness campaign to the beneficiaries (male and female, Dalit’s and non Dalit’s, vulnerable persons) will be carried out to inform them about the objective of the subproject: to provide water access without discrimination. The campaign will address the Chaupadi system and its discriminative aspects and proposal for elimination will be considered. 15. Stock watering points will be provided outside the settlement area in order to keep livestock away and downstream of water storage areas so that water is not contaminated. 16. Supply may be stored for irrigation where (i) there is suitable land and (ii) water supply is in excess of the demand for stock and domestic purposes. Areas for irrigation will be identified and water delivered to these sites but the community will have the responsibility of distributing water within the area to be irrigated. 17. Annex 1 of PAM sets out the criteria and process for selection of watersheds, sub- watersheds and subprojects. The PPTA selected 3 sub-watersheds for developing plans and feasibility studies and seven VDCs for socio-economic assessment. These VDCs are in four districts which are (i) Kuldevmandu and Tolideval VDCs of Bajura district, (ii) Kalika and Mangalsen VDCs of Achham district, (iii) Kalikasthan and Pachali VDCs of Doti district and (iv) Koteli VDC of Dadeldhura district. The initial selection of sub-watersheds and subproject sites was done through GIS mapping. Subproject location and type were verified in the field

by a multidisciplinary group of professionals from the PPTA team in conjunction with the local community.

2 SITUATION OF INDIGENOUS /JANAJATI PEOPLES IN THE PROJECT AREA

18. Nepal recognises 104 castes. Some of 59 of these castes have been living in the Nepal3 since its formation and have been classified as indigenous. These castes are listed in the Nepal Gazette Part-2 of 2058 BS (2001 AD). According to UN website; Nepal’s indigenous nationalities, popularly called "Janajati" which is Nepali word for indigenous people, live in almost everywhere in Nepal. Throughout Nepalese history, the Janajatis have been excluded from the mainstream resulting in many of these people living in abject poverty. 19. The term ‘indigenous people’ is used in a generic sense in ADB’s Safeguard Policy Statement to refer to a distinct, vulnerable, social and cultural group possessing the following characteristics in varying degrees:  Self-identification as members of a distinct indigenous cultural group and recognition of this identity by others;  Collective attachment to geographically distinct habitats or ancestral territories in the project area and to the natural resources in these habitats and territories;  Customary cultural, economic, social, or political institutions that are separate from those of the dominant society and culture; and  A distinct language, often different from the official language of the country or region. 20. The socio-economic baseline survey, undertaken during the PPTA, found no indigenous people (IP) groups, however, socio-economic profiles for the five districts lying in or having some area within the project design area show small numbers of Bhote, Gurung, Kumal, Magar, Newar, Pahari, Raji, Raute and Sherpa as the main ethnic groups in the these districts, and a few members of other groups who have come to these dsitricts from the Terai and from the eastern region of the country for business, office employment and other occupations, and have settled here. 21. The total population of the six districts that lie within or partly within the 2 watersheds was 1,061,489 in 2011 with an increase of 11% from 20014. About 1.9% of the total population is IP, of whom the majority is Magar (55.8%). The population of the project design area, however, is less than half of the 6 district population, amounting to 496,205. 22. On the whole the Newar, Raute, Magars, and some other IPs have livelihoods comparatively better than the Dalit population as they are not subject to the discriminative rules of the caste system.

3 GENDER ANALYSIS OF THE PROJECT AREA:

3.1 General

23. Community interaction in the pilot sub-watershed areas provided some familiarization with VDC areas and realities of the communities. This familiarization eased the collection of data on social and gender issues during the socio-economic baseline survey. Traditional

3 “A Introduction of Indigenous Nationalities and Cultural of Nepal” written by Mr. Chuda Singh Laama in 2009 4 Development Profile of Nepal, 2012: Megha Publication & Research Centre, Kathmandu, Nepal,

customs and hesitance make community people reticent to speak about any discrimination in their village. After explaining the importance of actual data for project formulation community members started to recount discrimination in their village. 24. Far Western Regions are the least developed regions in the Nepalese context. The study area districts have been ranked poor. Agriculture, livestock and non-timber forestry products, particularly collection of high value herbal products, are the main source of living for the people in the districts. These are food deficit districts, which depend on external support to feed the population. Seasonal migration of men has evolved as a coping strategy for poor communities in these areas. 25. Topographic features, and in some areas limited vegetation cover, make some sub- watershed areas very erosion prone. Conservation of top soil, reforestation and planting of trees and other useful plants are critical to both water and food security. Yet deforestation and over grazing continues. 26. Piped drinking water systems and irrigation facilities are poorly developed and access to water for drinking and for irrigation is insufficient as is access to sanitation facilities. 27. Highways connect the district headquarters, but the road in Bajura district is not completed. Fair weather roads provide access to the VDC headquarters but walking is needed to reach much of the sub-watersheds. It takes long time for people to reach school, hospital, market and the transport associated cost is high which penalize the women and DAG. Poor communication infrastructures negatively affect the men and women of the area when they need major treatment and others services. Similarly the remoteness of the areas discourages office or business development. 28. Agricultural production from their own land can only meet food need for 3 to 6 month of the year in about 90% of households, therefore, some male family member seasonally migrate to India for work in about 80% households. Some of these migrants are younger than 20 years of age. Between 1 and 4 persons in each household regularly go to India for work. A very few persons (about 1%) go to Gulf countries. Some households have moved to Terai districts of Kailali and Kanchanpur in search of a better life and future for their children.

3.2 Conditions for women

29. The character of women’s needs, demands, constraints and opportunities depends very much on the household, caste, ethnicity, region and location of their community. Many women’s issues are valid across the country and for various ethnicities and castes. Many of the constraints that women face in participating in and benefiting from project activities are similar to those of other socially excluded low-status groups like Dalits, certain indigenous peoples and remote communities. 30. Discrimination of women and disadvantaged groups remains dire in the Project area. Patriarchal systems, caste discrimination and other types of exclusion are prevalent. Main gender issues of this area are conservative traditions and these are explained in the following paragraphs. 31. Chaupadi: this is a small isolated shed constructed for women to stay 5 nights during menstruation periods either collectively or individually, or for 10 days after delivery of a child. In the early morning of the 6th day she should take bath in separate water resource or stream and another person of house purifies her by pouring ‘pure’ water (urine of cow, “sunpani” which is prepared by dipping gold into the water or sometimes only normal water) on her body. She is then able to enter the home and do regular activities. The chaupadi shed also ‘cleaned’ with cow manure. During these periods women are not allowed to cook meals, fetch water, worship of gods or goddesses, touch another person, sleep with family members, use a common toilet, get livestock products (milk, curd, butter etc.) During menstruation periods, a woman must keep her distance from another person but is allowed

to work as hard as she can. She must work hard the whole day instead of being allowed to take a rest and without full meals. Such practice makes a very hard life for rural women in remote areas. The continuation of this tradition is due to lack of knowledge and is supported by illiteracy and poverty. 32. According to community people, chaupadi sheds exist within Kalika, Bardadevi and Toli VDCs of Achham and Bajura districts but discrimination during menstruation periods and other discriminatory traditions among Dalit communities has decreased by about 80% in these VDCs due to an education and awareness campaign by NGOs and experience gained by the communities through outmigration. Nowadays, many families allow women to stay in a separate room within the home during delivery and menstruation periods but do not allow women to do normal home duties. While most women who have recently given birth may stay in a separate room of the house and are purified on the 11th day and allowed to do regular home duties, there are still cases in some villages of women being required to stay in a cowshed for 10 days after delivery. Therefore, awareness and orientation training will be developed and conducted during sub-project implementation in these areas for both men and women, including Dalits, to minimize such discrimination against women. Collaboration will be developed with NGOs and offices involved in such activities to inform the population of government rules concerning discrimination. 33. Currently about 50% of pregnant women have regular checks and safe delivery at a health clinic, hospital or at home with the help of a village health worker. However, despite family planning awareness campaigns maternal and infant death rates remain high. The level and quality of treatment is low because of limited awareness, knowledge, education, poverty, shyness and lack of health facilities in their villages. Male out-migration also contributes since leaving the household in charge of young children for days while visiting a clinic may not be an option. Records from the health post at Kalika VDC, Achham, show that, encouraged by free registration, free medicine and awareness, 7834 patients used the service during this year (June 2011 to July, 2012). The same post/clinic reported that ten years ago four people died of HIV AIDS in Kalika VDC but now the situation has improved a little as a result of an awareness campaign carried out by an NGO. However, the 2011 district profile for Achham records 12 persons are seriously affected by HIV/AIDS and a further 5 persons were newly contaminated. Diarrhea, pneumonia and respiratory infections are the major health problems in these VDCs. The table below reflects the health situation in Acchham District. Table 1 : Sample health data from Achham district profile Topics Male Female Both Average age (years)-* 55 55.4 Married female (number)-* - 47259 Average marriage age (years)-# 20.6 18.3 Women with 6 or more childbirths (%)-# - 14 Literacy (%)-* 71.54 37.18 Beneficiary population by a Doctor’s service (number - - 21799.6 both sex)-* Vasectomy operation (family planning) (%)-# 5.84 - Minilap (family planning) (%)-# - 0.59 Abortion case (number)-# - 68 Pregnant women visiting health institutions (%)-* - 72.9 Delivery services provided by health workers (%)-* - 22.7 AIDS total tested (number)-# 107 207 AIDS positive (number)-# 14 68 HIV/AIDS total tested (number both sex)-* - - 7578 AIDS positive (number both sex)-* - - 576 Source: District Profile of Achham, 2006#/2011 * more or less this data represent the health status of these watershed areas.

34. Widows are not allowed to remarry and must always wear a white dress and take care of the children and their husband’s property. On the other hand, after one year from the death of his wife, a male widower may remarry and wear colorful clothes. A 50 year old woman raised this matter during a community meeting saying that this tradition is a constraint on women, but there was no comment from anyone present during the meeting. 35. Child marriage is still practiced in some villages within Toli VDC in Bajura district. The government and NGOs have been organizing awareness campaigns against child marriage but some cases occur each year. In the last year, there were 4-5 child marriage cases in Toli. Traditional child marriage (below 10 years) no longer occurs but child marriage still exists in some remote villages. The legal age for marriage is 20 for girls and 21 for boys and some students and teen-agers below 20 year of age elope. 36. The workload for women is tremendous. In all the areas visited women had a high workload; An example of daily workload of female in rural areas is as follows:  Wake up early morning (4.00 am) and go to water source and get fresh water, take and clean all pots used in last night’s dinner, carry drinking water and clean pots back to the house  Check the livestock, provide fodder and milk the cows,  Prepare some breakfast for school children,  Wake up school children and get them ready for school,  Sweep inside and outside the home,  Feed the baby,  Take care of husband, elderly and sick people,  Again go to water source to wash clothes and fetch drinking water,  provide breakfast to all family members,  Weed crops growing near home and also collect fodder for cattle,  Chop firewood and prepare and provide lunch to family members, eating remaining food herself only after others,  Wash kitchen utensils and feed the baby,  Take cattle to graze and bring home some firewood and grass/fodder,  Take care of household members, elderly and sick people, children and baby  Grind flour/paddy at home in local manual machines (jato and okhal),  Fetch drinking water and prepare dinner,  Prepare butter/ghee from curd/yogurts,  Provide dinner to all family members and take remaining food last,  Take care of cattle and provide them with fodder,  Put the children to sleep, close the door and take care of husband and get to sleep around 10.00 PM, 37. If the dog barks loudly, the cattle make a noise, some loud sound is heard around the house, or if there is a thunderstorm, hailstone or rain at midnight she wakes up and checks the security of the cattle shed and around the home without a torch. Sometimes this is dangerous. These happenings are reported to her husband in the morning.

38. Besides this, it is a women’s job to carry manure to their family’s agricultural land which may be three kilometers from the home and up or down the hill; collect leaf litter from the forest (sottar) to make compost, which may be about 10 kilometers from the home; sow wheat, maize and millet seeds and weed the crop; collect fire wood from the forest; prepare the paddy seed bed, transplant and weed paddy; harvest, thresh, dry and store all crops; go to the water turbine to grind wheat, maize and millet which may be 6 kilometers from the home, collect colored mud from the forest and paint the house during Dashain and Tihar festivals or for a marriage or puja ceremony; sometimes go to the market to purchase some household goods, to the tailor for her children and own clothes; to the blacksmith to repair agriculture tools; to help a neighbor to plant or harvest crops; to a neighbor to borrow grain; sometimes participate in a community meeting; if possible go to her father’s home once a year during local (Gaura) and national (Dashain) festivals. Because of this workload, most women of this area are very lean and thin, lack nutrition, marry young and have many children. 39. The work load is higher for the women whose husband goes out of the district, to India or overseas for employment. She should manage all household business such as banking, marketing surplus produce; hiring agriculture labor to plough the land, etc. dealing with school matters as required; 40. Within the study area, very few women own land or have a separate bank account. However, supported by the Poverty Alleviation Fund (PAF), women members of saving and credit cooperatives have opened savings accounts with a local bank, as have women who receive remittances. In one case, women became land owners because when the newly acquired land surveyed in Toli VDC, male household members were absent and so their wives were registered as owners. Other cases of women’s ownership may result in the following way: a husband dies and children are small, the husband’s land ownership is transferred into his wife’s name and then, when his sons are older, the land is transferred again into their names. 41. The market for rural land is small. People with money buy land in market areas, in district towns or in the Terai (Kanchanpur/Mahendranagar and Kailali/Dhangadhi). Some of these people buying land register it in their wife’s name to avoid registration fees and this may be a further reason for some female land owners. 42. Very few females or Dalit are employed - about 10-12 (0.18%) in each of the VDCs surveyed. Where women are employed it is mostly as teachers in nursery or primary schools and as social mobilizers or health workers through NGOs. In Kuldevmandu VDC, Bajura District, the available VDC data showed that 100 (1.45%) females and 60 (0.87%) Dalit were employed. This is because Kuldevmandu was previously the district headquarters (before 2031 BS or 1944). But in Toli VDC, Bajura District, only 1 female was employed. 43. The Table 2 describes the differences in activities and involvements for men and women livelihood. Table 2 : Comparing Men and Women‘s livelihoods Aspect Men Women Socio-economic profile Representation Participate more in community Focus is often on household and meetings and committees community. They have less confidence and time for the public sphere. Contact with outsiders More Less Literacy and education Have higher literacy Low levels of literacy Livelihoods, infrastructure use and knowledge, attitudes and practices Household Do less household work Do bulk of household chores Child care Seldom Take care of children

Aspect Men Women Water collection Seldom Do most water collection (90% on average) Livestock Grazing Mostly Normally take care of livestock around the house, but do less of herding Fodder collection Seldom Fodder collection and goat care on farm year round Processing of milk and Less Mostly butter Livestock product market Mostly Less Purchasing Mostly Less Agriculture, general Ploughing Always (100%) Never Farming Jobs are shared Work more hours Fruit, e.g. mango, guava Interest in planting/growing Not shy about selling but hesitate to sell Vegetables and potato Involvement essential for Most of labour. One of few sustainable commercial products also marketed by women. success Forestry Cut trees and process Collect most fodder, fuel wood Processing, general Lesser More done by women: drying, weaving Marketing, general Mostly male job Market vegetables, milk if not too far from village and not too high in value Access, control, constraints Access to services Higher access due to time, Less mobility, education, service staff gender Infrastructure Construction Involve as skilled and non- Involve as non-skilled labour skilled labour mostly Infrastructure More involved in maintenance Often know problems, effects Maintenance better Infrastructure outside Have more understanding Travel less outside their village village (roads, markets) about wider area and technologies Participation & consultation Interest on projects Focus on subproject matters Focus on benefits, impacts Participation More Less Decision making in More time, more consulted, Less time, less planning involved Project staff mostly exposure/experience, less male consulted Cash investment Often decide money matters Less Labour contribution for Less due to outside the village More involved in free labour construction for seasonal migration contribution (due to absence of men) Training Participate more, more time Participate less, more motivated O & M More involved Very few Financial management Often male job In groups, a female functionary is mandatory, women are often made treasurer

Aspect Men Women Project impact Benefits Increase food and income, Reduce time to fetch water Increase access to external Increase food and income, support, Involvement in the community Increase technical and management. organisational skills Less discrimination Skill training Negative impact Social pressure to participate, Possible increase in workload, Financial burden Social pressure to participate, Financial burden Organization Mixed user committees Dominate Included but participate less, more shy in big assemblies Other projects for women Target for disadvantage Most organizations target women Who will support, train Most organizations male- Most organizations target women dominated Employment

Daily (cash) labor work, 200-500/day (wage amount Same rate as men but Rs. 50 less differs based on the nature of in remote areas but ploughing is work) not done by women Migrant work Security Guard, cleaner in the Never hotel, Porter, Labour in construction work, Factory worker etc. During project implementation, women will be offered opportunities to work for the same wage rate. This condition will provide opportunities for women’s empowerment, self dependency, satisfaction and self reliance.

3.3 Disadvantaged groups and social issues

44. As an untouchable person and lower caste discrimination is high for the Dalit. In some remote villages they are not allowed to enter in the home of upper caste, touch spring water source of upper caste, touch pot of water of upper caste, sit together, enter in the temple, or provide any livestock product (milk etc.). Some upper caste people still complete a purification ritual before entering their home after they have touched lower caste while working together. In some remote villages, The discriminatory situation for Dalit castes when fetching water was presented earlier. There is also discrimination among the Dalit castes themselves such as when they marry or share cooked food. There are three main categories of Dalit castes as follows;  Sunar (goldsmith), Kami/Lohar (ironsmith) etc.,  Damai/Pariyar (tailor), Aauje (band worker), Dholi (tailor/band) etc.,  Sharki/Bhul (leather worker), Tamata (pot maker) etc. 45. It was reported that among Dalit discrimination against women during their menstruation period is decreasing slowly. Similarly discrimination by Dalit against other Dalit groups is also reducing. It is accepted for Dalit to take tea in any Dalit teashop and to take water from the same pipe/tap. It is also acceptable in some villages if Dalit eat together outside the home. 46. These traditions have been reported to be slowly decreasing in the pilot VDCs. The young and educated Dalit people (below 35 years) do not give importance to these customs

but old men are very conservative about these practices and it is difficult for young people to change their attitude. According to old people, these traditions have been followed by their forefathers and failing to follow tradition will cause their God or Goddess to be angry and their family will have trouble. In general the young generations believe that these traditions and practices will end with the lives of these older people because they don’t like such discrimination. 47. Some Dalit5 households in these pilot VDCs which are Haliyas6 and are landless and vulnerable. These Dalit/Haliya are members of the Bhul/Sharki, Kami, Damai, Lohar, Seral, Pariyar, Pode castes. 48. During insurgency period, some political parties made the Haliya people aware of their rights and campaigned using the slogan “who tills the land will be the owner of that land”. In response, the Government of Nepal declared on 2056 Shrawan 2 BS. (18 July, 1999) that their landlords should free Haliya without requiring repayment of repaying their debt. Consequently many landlords lost some capital which they had advanced to Haliyas. Government has provided some land to Tharu/Haliya (Terai caste) living in Terai but not in the hill areas. 49. From the community consultation in the District and in the field it was reported that some Haliya system still exist in some remote villages of Bajura district due to poverty, illiteracy and remoteness. But during the detailed field survey in the 6 sample VDCs did not find any people associated with Haliya system. 50. The Freed Haliya and Kamaiya Empowerment Project (FHKEP) funded by Finn Church Aid (FCA) and implemented by local partners of Lutheran World Federation is active in several Far Western districts (Baitadi, Bajura, Bajhang, Dadeldhura, Doti and Darchula) to empower and capacitate former bonded labourers (freed haliya and kamaiya) to claim and enjoy their rights and develop sustainable livelihoods. 51. The community interaction indicated labor wages for males and females are the same in almost all VDCs except Toli VDC where males are paid NRs. 250 per day and females get NRs. 200 for the same work. 52. Primary schools attendance has reached 90 percent where pupils can walk in less than 30 minutes. Girl’s school enrolment has reached 80% in these watersheds areas. The net attendance ratio (NAR) for girls is higher than that for boys in primary level and lower in secondary school levels but for higher levels of school the NAR is much lower for girls compared to boys. During the community interaction, some women stated that the number of cattle is decreasing as all the children are going to school. Earlier, children helped the family and took cattle to graze. 53. Communities reported that water discharge from the springs has reduced by 50%. During their grandfather’s time rice paddy was planted in the May-June but now it is planted in July-August due to lack of rainfall and irrigation water. According to the community people, winter rainfall and hail is decreasing, temperature is increasing, and partial summer rainfall (rainfall not falling throughout the VDC area at the same time (khanda bristi)) is increasing.

5http://www.humanrights.asia/news/alrc-news/human-rights-council/hrc15/ALRC-CWS-15- 07-2010

6 The Haliya, which literally means "one who tills land," are enslaved within a system of bonded labour, and are forced by a landlord or “master” to execute various hard labour duties (usually agricultural) for many years, often for an entire lifetime. Other than the agricultural work, Haliyas fulfill a range of duties, including making tools (such as spades, knives, and sickles) out of iron, grazing animals, sewing clothes, making utensils and pots, and so forth. The labourers are not paid a wage for their extensive work; often they are only provided with a small amount of food. Extreme poverty and debt in the western and far western regions of Nepal has relegated many members of the lower castes, known as Dalits, to Haliya status.

The change in availability of spring water has been observed during last few decades in the pilot VDCs. Some spring water sources are completely dry and some are drying early 54. The percentage of households with access to safe drinking water is about 45% and the remaining get drinking water from springs and rivers. It takes 5 to 15 minutes to reach the pipe tap stands with safe drinking water but to reach the spring source is between 5 to 60 minutes walking time. In addition during the dry season 5-10 minutes is added because of water scarcity. About 90% of the water fetching is done by women and the remaining 5% by girls and 5% by boys or men. 55. Poverty and lack of awareness in the villages causes poor sanitation in the pilot VDCs. There is insufficient water in the home and most of the houses have no toilet facility, HH members defecate on the narrow trail nearby their home. Many households have poor sanitation because they traditionally keep the cattle at their home on the ground floor and cow manure is stacked in front of their house. Every monsoon, some people of this area suffer from diarrhea and a few people died due to lack of proper hygiene. Many VDCs have starting campaigning for an Outside Defecation-Free (ODF) zone. About 50 % households have made their own toilets but old people don’t use them properly. School children, however, are happy to use such toilet rather than to defecate in the open. Some VDCs campaigning for ODF have not yet constructed public toilets in places such as bus parks, market areas and along the roads. Many houses have no improved stove, they use firewood for cooking and heating and the house is full of smoke during cooking which causes eye and respiratory problems. No house has electricity and they use bark of pine trees and kerosene for lighting; a very few have a small solar panel for electricity.

4 PROJECT RELATED POLICIES

56. Despite abundant water resources, access to water supply remains difficult with Nepal’s mountainous terrain especially for people living in remote rural areas. Many still rely on unsafe sources of water in shallow wells, ponds, and streams. The burden of lack of access to water is borne disproportionately by lowest-income groups and by women and girls as they spend long hours every day fetching water from distant sources.

4.1 Water Supply and Sanitation Sector in Nepal

57. The Rural Water Supply and Sanitation (RWSS) Sector Policy (2004) and National Water Plan (2002-2017) are the two main national documents addressing rural water supply and sanitation issues in Nepal. The Rural Water Supply and Sanitation Sector Policy, Strategy and Action Plan (2004) states that the government and local bodies will regulate, monitor and facilitate the implementation of rural water and sanitation plans and programs. They stress the importance of gender and social inclusion in project implementation and have provisions for enhancing the participation of women and disadvantaged groups. However, their meaningful participation in decision making roles continues to remain symbolic. While most RWSS government and non-government sector projects require a minimum number of women (usually 33%) on the water user committees, including key positions such as treasurer, in many cases the women are illiterate and lack the necessary skills to carry out their responsibilities. The National Water Plan, which still needs to be endorsed for implementation, aims to meet the increasing demand for drinking water and sanitation. Its target is to provide access to water supply and sanitation for 100 percent of the population by 2017. 58. According to surveys (NLSS, 2011), the piped water is considered to be a source of safe drinking water. Overall, nearly 45 percent of households (Dalits and Non-Dalits) have access to piped water; almost half of which have private connections. The remaining 55 percent of households depend on covered well (39 percent), open well (6 percent) and other

unreliable sources like spring water (10 percent). Urban areas, as expected, have better access to safe drinking water relative to rural areas (58 percent versus 41 percent). Among development regions, the western development region has the highest proportion of households having access to piped water (61 percent) while the far-western development region has the lowest (34 percent). Access to piped water is positively associated with the level of household consumption. 47 percent of households in the richest quintile have their drinking water piped to their housing units while the figure is around 7 percent among households in the poorest quintile. 59. Twenty five percent of the population is under the poverty line in Nepal, 15% in urban areas and 27% rural areas. But in the Far western region (which contains the Project watersheds) 46% of the population is under the poverty line. 60. A number of rural drinking water systems are in a state of disrepair and require major rehabilitation. Moreover, despite the significant increase in national water supply and sanitation coverage over the past several years in Nepal, disparities exist between the poor and better off households. Disadvantaged groups such as Dalit households and women who are menstruating may, and often do, face restricted access to common sources of water due to social discrimination. 61. Although there have been improvements in water supply and sanitation facilities, challenges remain. Sanitation has been a low priority program area in Nepal; however, this is changing with increased international focus and commitment to sanitation. The linkage between reduction of poverty and increased access to water and improved sanitation services is incomplete without addressing health and hygiene issues. Increasing access to sanitation and improving people’s hygiene behavior are key to reducing many diseases, decreasing the burden of women to collect water and increasing attendance at school for girls. It can also provide economic benefits for both the poor and non-poor by reducing the number of sick days and financial costs from treatment of water-related illnesses. As such, while water, sanitation and hygiene are often mentioned together, the latter two components require approaches that are sensitive to the local culture and conditions as well as increased support and commitment at the national and policy level. The establishment of the National Steering Committee for Sanitation Action has provided an effective forum for both government and non-government sector stakeholders to raise awareness and support hygiene and sanitation initiatives in schools and communities nationwide. 62. ADB is implementing projects in the far western regions and especially the Community Based Water Supply and Sanitation Sector Project (USD 35.7 million, of which 67% will be financed by the ADB, 22% by GON) providing rural water supply and sanitation facilities and services to improve community health and provide opportunities for income generation to about 1,200 communities in 21 districts including all 5 within the sample watershed areas and facilitating capacity building of local authority institutions (DDCs, VDCs). The 2 watersheds have a great need for improving water supply at community level in the hills area and overlap with BCRWME is very unlikely. 63. A Bilateral project being implemented in the Project sample watershed areas, aims to address water shortages (combined with other objectives). Finland’s Rural Village Water Resource Management Project7 has a purpose of “Improved well-being and reduced poverty in Project VDCs” and several results, the first of which is “Institutionalized community capacity to construct and maintain community managed water supply and adopt appropriate technologies and behavior related to water and sanitation infrastructure”. 64. NGOs: Among several NGOs working in the watershed area, the Swiss NGO Helvetas has supported drinking water and sanitation schemes in Nepal since 1976. It has been implementing the Water Resources Management Programme in Mid- and Far Western

7 http://www.rvwrmp.org.np/

regions since 2000. Through its surveys it has found that good and moderate service level of water supply in the rural areas of the Mid and Far Western Development Regions are only about 19% and 29%.8 The criteria used are in the table below. Table 3: Criteria for assessing the service level Service Level Average Quantity Quality Reliability Continuity fetching time (lpcd*) Good < 15 min > 45 No 12 months > 6 hours (Level 1) Contamination Moderate > 15 but <30 < 45 but > 25 Moderate >11 months > 5 hours (Level 2) min Contamination Poor > 30 but < 45 < 25 but > 15 High > 10 months > 4 hours (Level 3) min Contamination Very Poor > 45 min < 15 Very high < 10 months < 4 hours (Level 4) Contamination *lpcd: Litre per capita per day 65. In international forums on water resources, there is increasing attention paid to the importance of gender issues. The attention is shifting from focusing on women’s domestic functions related to water to sharing of decision making power in implementation and management of water resources. Starting from the 1997 United Nations Water Conference at Mar del Plata, the International Drinking Water and Sanitation Decade (1981-90) and the International Conference on Water and the Environment (Dublin, 1992), there has been explicit recognition of the central role of women in water management. More recently, the UN Water for Life Decade (2005-15) aims to promote efforts to fulfill international commitments made on water and water-related issues by 2015. It places emphasis on ensuring the involvement and participation of women in the development efforts as they play a central role in water provision and management. International commitments include the Millennium Development Goals (MDG) which outlines the development priorities to be achieved by 2015. Target 10 under Goal 7 (Ensure environmental sustainability) aims to reduce by half the proportion of people without sustainable access to safe drinking water and basic sanitation. 66. According to the Nepal MDG Progress Report, Nepal is on track to meet its international commitment to the MDG on water supply and sanitation. However, apart from reprioritization of resource allocation to address sector needs, capacity building and decentralization, other factors such as community participation, gender-balanced user committees and involvement of women and socially excluded groups in the management of community assets are recognized as necessary to achieving the MDG target but are not receiving the necessary attention. It should also be noted that the MDG on water supply and sanitation sets targets in terms of ‘coverage’ rather than ‘service’ and should be viewed in that light. 67. The BCRWME will provide water services through beneficiary participation that will have a special focus to involve 50% of women and DAGs in a defined area. It will contribute to achieving the MDG target on water supply.

4.2 Local Governance and Decentralization

68. A number of Government and sector policies promote a decentralized and participatory approach in the planning, programming and monitoring of development activities. The Local Self-Governance Act (LSGA), 1999, empowers the DDCs and VDCs to

8 Madan Raj Bhatta 2011, Experiences of Water Use Master Plan in Nepal, 6th Rural Water Supply Network Forum 2011 Uganda, “Rural Water Supply in the 21st Century: Myths of the Past, Visions for the Future” http://www.solutionsforwater.org/wp-content/uploads/2012/01/WUMP_HELVETAS_NEPAL_RWSN- FORUM_2011.pdf

plan and program their activities according to the priorities and needs of the respective areas and people in the districts. The LGSA stipulates that women and members of DAGs shall be represented on local governing bodies as well. The Local Infrastructure Development Policy, 2004, also promotes a participatory approach to improve the access of local people including women and DAGs to services, resources and opportunities. Concerning natural resource management, the Water Resources Act, 1992, accords ownership of all water resources to the State, but promotes collective management and use of the water resources, albeit with a strong focus on irrigation. 69. While these national legal frameworks were conceived and developed in the spirit of decentralization and enhancement of people’s development opportunities, there remain constraints to the actual implementation of these policies and legislations in terms of structural, resource, capacity, technical and social issues. Building people’s level of awareness and capacity to access resources and opportunities, and to influence and hold accountable the institutions that affect them will require concerted efforts, as many groups have been traditionally excluded from such processes. 70. Recent political developments in Nepal have placed social inclusion at the centre of a new national reform agenda. While a relatively new development concept, popular discourse now acknowledges that barriers related to gender, caste and ethnicity consistently limit marginalized people’s access to economic and social development resources and benefits. In the last Three-Year Interim Plan (2007-2010), the Government of Nepal continued to prioritize social inclusion as one of its cornerstones of poverty reduction and to recognize that there is a need for further concerted efforts to ensure the representation and voice of the excluded in decision making processes.

5 SOCIO-ECONOMICS OF THE WATERSHED AREAS

71. National data and recent studies have shown that gender, caste and ethnicity are significant factors that influence one’s socio-economic status and level of empowerment. Although the incidence of poverty decreased from 42% of the population in 1995/96 to 31% in 2003/04 (NLSS-I/II/III), differences exist between certain groups based on their caste and ethnicity. Advantaged groups such as the Brahman, Chhetri and Newar have incidences of poverty lower than the national average ranging between 14-19%, while the disadvantaged groups have a much higher incidence at 47% for Dalits, 44% for hill Janajatis/indigenous.

6 GENDER EMPOWERMENT AND SOCIAL INCLUSION PLAN FOR BCRWME

6.1 Rationale

72. The Government of Nepal has a large number of social protection schemes in place, such as allowances for vulnerable (e.g., widows, senior citizens, the disabled) and indigenous groups; child grants; scholarships for disadvantaged groups; and various employment programs. The GON provides an allowance of 500 Rs/month to registered citizens above 70 years old unless they are GON pension holders, and an allowance of 300 Rs/month to physically and/or mentally disabled persons. A lack of delivery capacity affects the program and the community consultation did not find any program beneficiaries. 73. The available data on gender and caste/ethnicity disparities and inclusion issues show that efforts are needed to target women and socially excluded groups to promote and address equitable development and poverty reduction. 74. Women-headed households are increasingly common because an average of 1.5 adult males per household (finding from HH survey) migrates to find work, many to India but some also to middle-eastern countries. These migrations are driven by the lack of livelihood

opportunities within the middle mountain watersheds in Far West Nepal. Out migration leads to an increase in workload for women: the female members remaining in the household are left with all the tasks and in charge of the house, of the land and of the children. 75. Development agencies in the watershed sector have focused primarily on gender issues including increasing the participation of women in project related activities. It is realized that gender is important issue because women do not benefit equally from the projects that are implemented. This is because deep rooted socio-cultural traditions, societal norms and values commonly limit the access of poor women and men, Dalits and other disadvantaged groups to project services and the benefits that arise from them. While many women have improved their access, men and women belonging to disadvantaged groups such as Dalits, Janajatis and the ultra poor are still not being reached effectively. 76. The differences and inequalities existing between different groups and a clear determination to ensure equitable access to water resources and other related benefits must be acknowledged. This will require additional efforts to understand the different socio-cultural contexts and conditions prevailing in project communities and the various barriers that limit the access to water resources by the Disadvantaged Groups (DAGs) of the project area. 77. Among the DAGs, women in general and female headed households in particular feel the effects of poverty the hardest, since they are less able to migrate in order to find work. This is especially so if they are responsible for children, the elderly or sick, which is often the case. 78. Disadvantaged Groups are defined as those people that are discriminated against based on gender, caste and ethnicity and are economically poor and very poor. Attention will also be given to widows, female-headed households and household clusters in more geographically remote areas.

6.2 Major thrusts of the plan

79. The BCRWME project and its stakeholders will adopt practices that lead to increased and equitable access to opportunities and resources and meaningful participation in decision making particularly for women, IP, and DAG to:  Develop awareness and common understanding of gender empowerment and social inclusion issues within BCRWME.  Promote a diversified workforce at the organizational and project level.  Promote and ensure effective participation and equitable access to project benefits from the women, IP and DAG.  Promote a less discriminatory society and sustainability of GESI initiatives through advocacy efforts. 80. These four areas will be addressed through components aimed at capacity building of project stakeholders to understand the differing needs, constraints and opportunities of women, indigenous people and DAGS, the gendered impacts of the project and the strategy designed in light of this to improve project outcomes (the GESI measures).

6.3 Implementation

81. The GESI will be implemented through the project management and monitoring set up as follows:

 Establishing a Project Management Unit (PMU) at DSCO, Dadeldhura; within Project Area, Sub-watershed Management Teams (SMTs) at four DSCOs in

Achham, Bajura, Dadeldhura and Doti; (the DSCOs at Achham and Bajura will be newly formed); The PMU staff will includes a Senior Social Safeguards Specialist and each SMT will have a Social Safeguards Officer and a Community Mobilizer (selected from local communities)  A PPMS to monitor implementation performance, social and environmental safeguards, and outcomes with respect to improved water availability and other variables  Small TA for institutions and policy on integrated watershed management, legislative reform, and inter-agency coordination  The sub-watershed Management Team (SMT) will with community input and NGO assistance contracted as necessary: a. Prepare and Implement Sub-watershed Management Plans b. Identify and scope Subprojects c. Support/facilitate implementation of small and medium scale soil and water conservation interventions identified in the sub-watershed management plan d. Undertake Social Evaluation to identify DAGs, achieve distributional effects, and perform social safeguards including monitoring of the GESI action plan.

82. The overall implementation arrangements are shown in Figure 1.

Figure 1 : Project implementation arrangements

83. The organization for a single SMT is proposed as follows:

Figure 2 : Organization and membership for a single DSCO

6.4 Implementation Budget

84. Budget for GESI implementation will be provided to cover project implementation staff/PIO, DSCO and NGO activities, an awareness campaign, socio-economic baseline surveys, orientation, workshops and monitoring and evaluation activities. The annual tentative budget is presented in Appendix A.

6.5 Monitoring

85. Monitoring of the GESI will be undertaken by the PMU with support from the SMTs and with inputs from the VDCs, SWMCs and local NGOs. GESI monitoring information will be compiled by the Social Safeguards Officers and the Senior Social Safeguards Specialist in the PMU. It will provided to ADB through the normal project progress reporting. 86. The M&E specialist of the PMU will design a monitoring system to assess the progress and changes during implementation and carry out regular visits of the project area to evaluate performance and the degree of fulfillment of indicators.

6.6 Summary of Gender Empowerment & Social Inclusion Measures

6.6.1 GESI Measures for the 2 watersheds

Table 4 : GESI Project activities and measures

Project Activities Target Beneficiaries Performance and Result Implementation Indicators Arrangements A) Gender empowerment and awareness

Project Activities Target Beneficiaries Performance and Result Implementation Indicators Arrangements 1. Project orientation Staff of DSCO, NGOs, Staff of DSCO, NGOs, DSCWM / PMU / meeting District line agencies District line agencies are SMTs oriented about the objectives, scope and implementation plan of the project 2. Awareness-raising on Community and at least Attendance of more than DSCO with the Project scope, benefits 50% female, IP and 50% female including IP and support of a staff of and implementation DAG/Dalit of the SW DAG of the project area the PMU and subproject area informed of the project SMTs activities 3. Access to sub-project Community of the project Monitoring and evaluation of DSCOs with the data: Socio-economic area (beneficiaries) socio-economic and gender support of the baseline survey of each disaggregated data PMU, NGO and sub-project area SMTs includes variables such M&E Specialist as access to water resources e.g. (distance of drinking water sources, time taken, availability of water, types of water sources, waiting time, average requirement of water in a day, duration of water scarcity) income level, education, land ownership, economic activity, household heads etc., disaggregated by gender. Other relevant secondary data will be also collected. 4. Gender sensitization All members of SWMC Executive members of the DSCOs/ with the training (with focus on including some active SWMC and project support of the PMU the change of power female of the community implementation staff will and NGOs and relationships) and Officials of Project sensitize about gender and SMTs Implementation staff their role in community development

B) Organization development and effective participation 1. Mass meeting for Community people in the Community people more DSCOs with the beneficiaries in the villages, with participation than 50% female, support of the community. Awareness of women and DAGs concerned, IP (if any)and NGOs and SMTs about group formation DAG process and formed committee for constitution and rules formulation of SWMC management and operation, maintenance and protection of the infrastructures

Project Activities Target Beneficiaries Performance and Result Implementation Indicators Arrangements 2. Formation of SWMC Female members including SWMC formed with 33% DSCOs /PMU with based on their IP and DAG female executive members the support of the constitution. including representation NGOs and SMTs from IP and DAG, 10% executive position to female C) Capacity Building and skill development 1. Leadership Members of the SWMC More than 50% female PMU with the development training and active female members from group and support of SMT focus on women members of the some active female and NGO empowering community including IP members of the community and DAG share knowledge in the training among co-members 2. Appointment and Priority given to 50% Female, IP and DAG are PMU and SMT nomination of social female including IP and empowered. Meeting mobilizers to work with DAG minutes documentation SMT to support project implementation 3. Involvement in the Female members, IPs, At least 33% female involve SMT with support planning of local DAGs and beneficiaries during planning of the of NGO. resource /infrastructure, resources/infrastructures in decision making by the female to where such infrastructure e.g. reservoir, pond, tap stand will be located.participatory manner 4. Community meeting Females of all castes Encourage for Elimination of SMT with PMU about the subject to discrimination, Chaupadi system by the support discriminatory system end of the project , for women such as Chaupadi and agreement to eliminate that practice 5.Advocacy on gender Female, IP and DAG Enhance monitoring system PMU, DSCO and issues during all for involvement of female, IP SMT. project meeting, and DAG in each activity. training and campaign GESI Gender Empowerment and Social Inclusion; DSCWM Department of Soil Conservation and Watershed Management; PCU Project Coordination Unit; PMU Project Management Unit; DSCO District Soil Conservation Office; SWMCs Sub- Watershed Management Committee; SP Service Provider; SSSS Senior Social Safeguards Specialist; SSO Social Safeguards Officer; CBO Community Based Organization; NGO Non Government Organization; CFUG Community Forest User Group; DDC District Sub-watershed; RP Resource Person, SMT Sub-watershed Management Team

6.6.2 Gender Action Plan

Table 5 : Gender Action Plan Targets/Performanc Data Source/ Responsibility Activity/Measures e Indicators Reporting Mechanisms Output 1: Sub-Watershed Management Committees (SWMCs) Efficiently Manage Source Protection and Development Access to sub-project data All sub-project data is Sub-project Project Socio-economic baseline survey gender Feasibility Study Coordination

Targets/Performanc Data Source/ Responsibility Activity/Measures e Indicators Reporting Mechanisms (SEBS) of each sub-project area disaggregated. Reports including Office (PMU) in includes variables such as access to Identify and work with SEBS Reports the support of water resources e.g. (distance to women and DSCOs, SWMC, drinking water sources, time taken, Disadvantage Groups SMT availability of water, etc. (DAGs) Other relevant secondary data will be also collected. Access to Information: Participation of at Periodic SMT and DSCOs Gender Empowerment and Social least 33% women Monitoring and Inclusion (GESI) Plan and Project beneficiary Evaluation (M&E) Consultation and Participation Plan proportionately from reviews in sample disseminate to Districts to enhance diverse caste and sub-projects participation of women at all project ethnic groups in all stages. Project orientation training will major consultations. be provided. Organizational Development and Tentative budget for Feasibility Study DSCOs /SMT budget allocation: the total project GESI Reports and Budget allocation for GESI plan component. In monthly Progress implementation, appendix A, Reports Inclusive SWMCs formation with SWMC executive women and DAG participation. committees have at least 33% women and 10% of total members should be in executive position e.g. Chairperson/Vice- chairperson, Secretary and Treasurer. Capacity building All elected female M&E reviews DSCOs / SMT Project orientation, awareness on SWMC executive with support of gender mainstreaming, Technical, members should be PMU and NGOs Institutional and leadership training trained, as well staff conducted for SWMC executive partners and members. stakeholders Interaction between local government bodies, partners and stakeholders, Coach to women and men on GESI plan and concern matters. SWMC Constitution prepared and SWMC Constitutions SWMC DSCOs / SMT ensure the representation and active provide for 33% Constitutions PMU participation in project cycle for women female representation and DAGs minimum, and guidelines for meaningful participation. Advocacy and Networking: Promote a more Trimester report DSCO / SMT Advocate gender issues during all equitable society M&E report project meeting, training, review, staff through advocacy and evaluation. networking Identify and promote linkage between SWMCs and other agencies (CBOs, NGOs, CFUG, VDC, DDC etc.) and stakeholders. Output 2. Government Capacity to Plan and Coordinate BCRWME Projects is Enhanced This Gender Action Plan (GAP) to be Effective M&E reviews DSCO / SMT

Targets/Performanc Data Source/ Responsibility Activity/Measures e Indicators Reporting Mechanisms disseminated to sub project level implementation of all through effective mainstreaming of GESI activities in GESI activities Implementation of each sub-project activities to reduce discrimination of women. Senior Social Safeguards Specialist One gender-trained PMU structure DSCWM with in the PMU (priority will be given to the and experienced SDO includes SSSS support of PCU female) based in PMU to lead with terms of on all social reference (ToR) safeguards and specifically development issues referring to GAP/GESI implementation. M&E Specialist provided to the PMU One experienced PMU structure DSCWM with (priority will be given to the female) M&E Specialist based includes M&E support of PCU in PMO to lead on all with terms of MIS development reference (ToR) issues specifically referring to monitoring of GAP/GESI activities and updated gender data on MIS. Social Safeguards Officers and 6 gender trained and SSO ToR PMU with support Community Mobilisers of SMT skilled experienced SSO specifically of DSCOs in gender and other social based at District level referring to development/safeguards hired to lead Village Based GAP/GESI (minimum 50% should be female) Social Mobilizers implementation. (VBSMs) on all social safeguards and development issues Women from ethnic and caste groups At least one women Monitoring review DSCOs in the reflecting stakeholder profile are will cover 3 VDCs. support of NGOs recruited in the SMT M&E and Management Information Project collects all MIS PMO particularly System (MIS) established in PMO data disaggregated by Disaggregated M&E Specialist sex, caste and data available for ethnicity and updated analysis in MIS Improve DSCWM's gender balance DSCO will hire some SMT staffing DSCWM / PCU and provide good technical role models female junior with support of to women in project areas engineers (one in DSCOs each district) if necessary. Specific and high level technical Gender specialist with M&E reports PMU assistance on how to enhance gender relevant sectorial reflect increased outcomes to be hired as required l experience included in ownership on the consultant's pool implementation of of on-call experts GAP/GESI and inclusive provisions

7 APPENDICES

7.1 Tentative annual budget

Table 6 Annual Tentative budget

SN Activities Unit No. Rate (Rs.) Amount (Rs.)

1 Training/Workshop/Seminar (Social no. 9 500,000 4,500,000 safeguards staff, SMs, Stakeholders at district, regional and central level) 2 Training/Workshop (Safeguards no 65x 250,000 32,500,000 officers, SMs and SWMC members) 2 5 NGO Service for field level activities lump 3,548,000 implementation including vehicle sum support in the field (4 districts) 6 Monitoring surveys yrs 3 and 5 no. 2 1,228,000 2,456,000 Total 43,004,000 7 Contingencies % 5% 2,150,000 Grand Total 45,154,000

RESETTLEMENT PLANNING DOCUMENT

Nepal: Building Climate Resilience of Watersheds in Mountain Eco-Regions (BCRWME)

Resettlement (Land Acquisition) Framework (draft) Project Number: ADB TA 7883

January 2013

This resettlement framework 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 CONTENTS Contents 1 INTRODUCTION ...... 1 2 OBJECTIVES, POLICY FRAMEWORK, AND ENTITLEMENTS ...... 2

2.1 OBJECTIVE OF RESETTLEMENT FRAMEWORK ...... 2 2.2 ANTICIPATED INVOLUNTARY RESETTLEMENT ...... 3 2.3 RESETTLEMENT POLICY AND LEGAL FRAMEWORK ...... 3 2.3.1 Applicable Legal and Policy Framework ...... 3 2.3.2 ADB’s Involuntary Resettlement Policy ...... 5 2.3.3 Comparison of Borrower’s Policy with ADB’s Policy requirements ...... 6 2.4 PROJECT RESETTLEMENT POLICY PRINCIPLES ...... 6 2.5 LIKELY SCOPE OF LAND ACQUISITION ...... 8 2.6 ENTITLEMENTS FOR LOSSES ...... 9 3 IMPACT ASSESSEMENT AND RP PREPARATION ...... 12

3.1 SCREENING AND CATEGORIZATION OF IMPACTS ON AP/DPS ...... 12 3.2 METHODOLOGY FOR SE SURVEY (SES), AND INVENTORY OF LOSSES, ...... 12 3.3 VALUATION AND REPLACEMENT OF ASSETS ...... 12 3.4 RESETTLEMENT PLAN PREPARATION ...... 13 3.5 PREPARATION AND SUBMISSION OF SUBPROJECT RESETTLEMENT PLANS ...... 14 4 CONSULTATION, PARTICIPATION, AND DISCLOSURE ...... 14 5 COMPENSATION, INCOME RESTORATION ...... 16 6 GRIEVANCE REDRESS MECHANISM ...... 16 7 INSTITUTIONAL ARRANGEMENTS ...... 17

7.1 DISTRICT LIAISON COORDINATION COMMITTEE ...... 19 7.2 COMPENSATION DETERMINATION COMMITTEES (CDC) ...... 19 8 BUDGET AND FINANCING...... 19 9 IMPLEMENTATION SCHEDULE ...... 20 10 MONITORING AND REPORTING ...... 22

10.1 MONITORING REQUIREMENTS ...... 22 10.2 INTERNAL MONITORING ...... 22 11 K. APPENDIX ...... 25

11.1 SAMPLE VOLUNTARY CONTRIBUTION CONSENT FORM ...... 25

Tables/Figures Table 1: Gaps between Government Law and ADB’s SPS and Measures to fill gap ...... 6 Table 2 : Scope of Impacts ...... 8 Table 3 : Entitlement Policy Matrix for land acquisition ...... 10 Table 4 : Stages and Nature of Participation of Primary Stakeholders in the Process ...... 15 Table 5 : Resettlement Assessment and Planning in Subproject Cycle ...... 20 Table 6 : Sample of Monitoring and Evaluation Indicators ...... 23

Figure 1 : Organizational arrangement ...... 18 Figure 2 : Organization and membership for a single SMT ...... 19

Abbreviations

ADB Asian Development Bank CDO Chief District Officer DPC District People’s Committee DTO District Technical Office (and Officer) EMA External Monitoring Agency ADB Asian Development Bank AP/AH Affected Person / Affected Household DDC District Development Committee DMS Detailed Measurement Survey DRCs District Resettlement Committees DSCO District Soil Conservation Office DSCWM Department of Soil Conservation and Watershed Management EA Executing Agency FTC Field Team Coordinator GRC Grievance Redress Committee HH Household IoL Inventory of Loss LDO Local Development Officer MFSC Ministry of Forests and Soil Conservation NGO Non-Governmental Organization PMU Project Management Unit (Dadeldhura) PPTA Project Preparation Technical Assistance PRA Participatory Rural Appraisal RF Resettlement Framework RP Resettlement Plan SAH Seriously Affected Household SSO Social Safeguards Officer SMT Sub-watershed Management Team SWMC Sub Watershed Management Committee ToR Terms of Reference USD United Stated Dollars VDC Village Development Committee VWU Village Women’s Union

iii

Glossary

Affected person Means any person or persons, household, firm, private or public (AP)/(DP) institution that, on account of changes resulting from the Project, will have its (i) standard of living adversely affected; (ii) right, title or interest in any

house, land (including residential, commercial, agricultural, forest, salt mining and/or grazing land), water resources or any other moveable or fixed assets acquired, possessed, restricted or otherwise adversely affected, in full or in part, permanently or temporarily; and/or (iii) business, occupation, place of work or residence or habitat adversely affected, with or without displacement. In the case of a household, the term AP includes all members residing under one roof and operating as a single economic unit, who are adversely affected by a project or any of its components. (Gradually AP are replaced by Displaced Persons (DP) Detailed With the aid of the approved detailed engineering design, this activity Measurement Survey involves the finalisation and/or validation of the results of the inventory of (DMS) losses (IOL), severity of impacts, and list of APs earlier done during RP preparation. The final cost of resettlement can be determined following completion of the DMS. Compensation Means payment in cash or in kind to replace losses of lands, housing, income and other assets caused by the Project. All compensation is based on the principle of replacement cost, which is the method of valuing assets to replace the loss at current market rates, plus any transaction costs such as administrative charges, taxes, registration and titling costs. Cut-off date Means the date of completing IOL or DMS in preparing the RP for which land and/or assets affected by the Project are measured. The APs will be

informed of the cut-off date for each project component, and any people who settle in the project area after the cut-off date will not be entitled to compensation and assistance under the project. Entitlements Refers to a range of measures comprising compensation, income restoration support, transfer assistance, income substitution, relocation support, etc. which are due to the APs, depending on the type and severity of their losses, to restore their economic and social base. Eligibility Means any person who has settled in the project area before the cut-off date that suffers from (i) loss of shelter, (ii) loss of assets or ability to access such assets, permanently or temporarily, or (iii) loss of income sources or livelihood, regardless of relocation will be entitled to compensation and/or assistance. Income restoration A programme designed with various activities that aim to support affected programme persons to recover their income / livelihood to pre-project levels. The programme is designed to address the specific needs of the affected persons based on the socio-economic survey and consultations. Inventory of Losses This is the process where all fixed assets (i.e., lands used for residence, (IOL) commerce, agriculture, including ponds; dwelling units; stalls and shops; secondary structures, such as fences, tombs, wells; trees with commercial value; etc.) and sources of income and livelihood inside the Project right-of-way (project area) are identified, measured, their owners identified, their exact location pinpointed, and their replacement costs

calculated. Additionally, the severity of impact to the affected assets and the severity of impact to the livelihood and productive capacity of APs will be determined. Land acquisition Refers to the process whereby an individual, household, firm or private institution is compelled by a public agency to alienate all or part of the land it owns or possesses to the ownership and possession of that agency for public purposes in return for compensation at replacement costs. Rehabilitation This refers to additional support provided to APs losing productive assets, incomes, employment or sources of living, to supplement payment of

compensation for acquired assets, in order to achieve, at a minimum, full restoration of living standards and quality of life. Replacement cost Means the method of valuing assets at current market value, or its nearest equivalent, plus any transaction costs such as administrative

charges, taxes, registration and titling costs. Replacement Cost This refers to the process involved in determining replacement costs of Study affected assets based on empirical data. Resettlement This includes all measures taken to mitigate any and all adverse impacts of a project on AP property and/or livelihoods, including compensation,

relocation (where relevant), and rehabilitation as needed. Resettlement Plan This is a time-bound action plan with budget setting out compensation (RP) and resettlement strategies, objectives, entitlement, actions, responsibilities, monitoring and evaluation. Severely Affected This refers to affected households who will (i) lose 10% or more of their Household (SAH) total productive land and/or assets, (ii) have to relocate; and/or (iii) lose 10% or more of their total income sources due to the project. Vulnerable groups These are distinct groups of people who might suffer disproportionately or face the risk of being further marginalised by the effects of resettlement and specifically include: (i) female headed households with dependents, (ii) disabled household heads, (iii) households falling under the generally accepted indicator for poverty, (iv) children and the elderly households who are landless and with no other means of support, and (v) landless households, and (vi) indigenous people or ethnic minorities.

1 INTRODUCTION

1. The proposed Building Climate Resilience of Watersheds in Mountain Eco-Regions Project (hereafter called “the Project” or “BCRWME”) aims at improving access to and enhancing reliability of water resources among communities in watersheds of Nepal river systems that are significantly vulnerable to climate change. The means for doing so involves a program of integrated watershed management with interventions for upland areas to increase surface water storage and groundwater recharge and to deliver water to locations where the community can use it. 2. The project will assist in achieving the government policies by enabling communities in vulnerable ecosystems to have improved access to and reliability of water resources with equal right for all gender and irrespective of caste or ethnic. In cooperation with the DSCWM the project will promote local people’s participation in planning, implementation, operation, maintenance, protection and benefit sharing of interventions/activities through a sector wise approach on targeted improvements related to water access and reliability. 3. The project addresses the shortage of water and the main outputs of the project envisaged are:  Participatory watershed management planning to improve water security demonstrated;  Subproject water storage and catchment management (that addresses the specific vulnerabilities of women and DAGs) implemented in priority watersheds;  Lessons for improving access to and reliability of water resources in vulnerable middle hill regions generated and used by DSCWM in strengthening its management of watersheds. 4. The selection of the subprojects will be made in conjunction with the community to gain the benefit of local knowledge and to ensure the infrastructure meets community needs. Implementation of subprojects will improve water access and reliability for communities at risk from climate change and particularly address water shortage issues that result in additional labor for women and difficulties for disadvantaged groups such as the Dalit and Janajati who are often required to subordinate their water needs when there is water shortage. Increased water availability will also allow additional crop production, and reduce animal disease from polluted water. 5. The proposed structural interventions to be financed under the project are as follows:  Water storage ponds/tanks and on-stream reservoirs. The storages will be filled from their local watersheds and from springs and small streams where these are available. Some storage will aim to hold water, while others are designed to recharge groundwater systems. The choice of storage type is site specific, depending on hydrogeologic conditions.  Water source and infrastructure protection to ensure the quality and quantity of water arriving at water sources and that infrastructure is not impacted by soil erosion and landslides. The protection undertaken by the project will be land use management measures (landslide treatments, gulley erosion control, grazing rules, etc) in the catchments of water sources developed by storage through the project and upstream of infrastructure. These actions will be designed with community participation and negotiation. This may involve land use management controls (e.g., restricting cattle grazing), and the responsibility for implementing and policing these controls will lie with the community. The project may supply advice and materials to develop and implement the land use plans, including fodder seeds, saplings for economic trees, and tools and other equipment.  Piped water delivery systems. The project will install delivery systems to bring the water close to where it is needed in order to realize and measure the benefit of the communities’ increased access to water. Where there is more than one site for water storage and it is practical, the tanks will be linked together down the landscape. Delivery stand-points (with taps) may to be installed within the settlement area. Should a

community wish to have further distribution of water within their settlement, it could provide this on their own.  Stock watering points will be provided outside the settlement area in order to keep livestock away and downstream of water storage areas so that water is not contaminated.  Supply may be stored for irrigation where (i) there is suitable land and (ii) water supply is in excess of the demand for stock and domestic purposes. Areas for irrigation will be identified and water delivered to these sites but the responsibility for distributing water within the area to be irrigated will lie with the community. 28. The Project Preparation Technical Assistance (PPTA) for the Project carried out feasibility studies of sample subprojects representative of the proposed interventions. An initial social assessment of these subprojects was also completed following the requirements of the ADB's Safeguard Policy Statement (2009). Based on the findings from the assessments, and the outcome of ADB TA ADMINISTRATION MISSION 6-14 September 2012, the project will follow a sector-like project approach and therefore prepare a Land Acquisition Framework.

6. This Framework inclusive of its social management procedural guidelines shall apply to all subprojects under the Project to ensure that all issues regarding land acquisition and social issues are appropriately addressed and mitigated to acceptable levels. The Framework intends to focus on minimising involuntary resettlement and land acquisition and in case private land acquisition is unavoidable, provide proper management and planning into the subproject preparation process, in accordance with the laws of Nepal, and in conformance with the requirements of the ADB. 7. To support the project sector like approach, this framework will adhere to the following principles.  Structures will be designed so as to not require displacement/movement of houses;  Land will only be acquired from willing sellers, using a process to ensure land losers are not coerced;  Sites for structures will be chosen so as not to significantly debilitate the land seller so that s/he can no longer live in the area;  Land acquisition and compensation will be determined through an assessment of the replacement value by a committee or a replacement cost study. In addition a community consensus procedure will look at options to spread the burden/impact on less productive land1.  A grievance procedure will be established; and  The Project will purchase land from the Government’s contribution.

2 OBJECTIVES, POLICY FRAMEWORK, AND ENTITLEMENTS

2.1 Objective of Resettlement Framework 8. This Framework prepared by the DSCWM provides the procedures and key involuntary resettlement principles that will govern all the work items of BCRWME regardless of the financing sources and implementation and is based on the provisions of the policy and legal framework of the Government of Nepal and of Asian Development Bank (Requirement No. 2 of SPS 2009 and cross-cutting policy themes on social development). This Framework

1 The Government land price may not be the best basis for land valuation as land in these remote upland areas is very cheap, however, it is not easily replaced. Nonetheless, the Government land price should be used as a starting point for determining land value through community consensus, factoring in lost income from crops and productive trees on the basis of 5 years output if agreeable with the community.

will be translated into Nepalese and distributed to the central and local agencies, affected households and other individuals responsible for project preparation and implementation. It will also be submitted to the ADB for review and posting on the ADB website. 9. The principles of the framework are to (i) avoid land acquisition and involuntary resettlement; and (ii) minimize it where it is unavoidable by exploring possible alternatives and (iii) ensure that landowners receive appropriate compensation so that they would be at least as well off as they would have been in the absence of the project. 10. The detailed designs for subprojects will be carried out with an objective of minimizing the need for land acquisition taking into account the most appropriate design criteria for each type of infrastructure development.

2.2 Anticipated Involuntary Resettlement 11. Involuntary Resettlement impact– While it will be preferable to construct water storage ponds on Government property, it is anticipated that some private land will likely need to be purchased in some subproject areas. However, the impacts of an individual subproject are likely to be limited to few landowners, preferably not using all the cultivable land of a single owner and land acquisition will occur only where it does not result in relocation or demolition of houses/structures. 12. Possible items needing temporary land possession are as follows: (i) Construction site; (ii) Construction temporary tracks/roads; (iii) Construction of channels (iv) Water delivery system; (v) Disposal areas The owner of any land required for temporary possession will need to be compensated for the temporary losses incurred and an agreement with the landowner will fix the compensation to be paid on monthly rental basis. 13. Depending on the level of impacts and number of APs affected by the project or subproject Involuntary Resettlement will be categorised as per ADB policy (SPS and OM Fi/BP dated March 2010) requiring the preparation of a land acquisition plan. 14. In case of improvement of existing infrastructures by extension which will need additional land from private ownership, first a written consent from the land owner concerned must be obtained and a due diligence study must be done on the status of land used by the existing infrastructure.

2.3 Resettlement Policy and Legal Framework 2.3.1 Applicable Legal and Policy Framework 15. Nepal lacks a comprehensive policy on involuntary resettlement. However, there are many acts, rules and regulations governing land acquisition and involuntary resettlement. The Interim Constitution of Nepal, Land Acquisition Act, Land Reform Act, Land Revenue Act, Road Act and Guthi Sansthan Act2 are the major acts relevant to land acquisition and compensation. Land acquisition must comply with the provisions set out in the Guthi Sansthan

2 http://doa.gov.np/downloadfile/AN%20ACT%20MADE%20TO%20PRESERVE%20THE%20ANCIENT%20MONUMENTS%20AN D%20ARCHAEOLOGICAL_1325594165.pdf

(Religious Trusts) Act 1976. The Section 42 of the Act states that Guthi (religious) land acquired for a development must be replaced with other land. 16. The Interim Constitution of Nepal (2007) guarantees the fundamental rights of a citizen. Article 19(1) establishes the right to property for every citizen of Nepal, whereby every citizen is entitled to earn, use, sell and exercise their right to property under existing laws. Article 19(2) states that except for social welfare, the state will not acquire or exercise authority over individual property. Article 19(3) states that when the state acquires or establishes its right over private property, the state will compensate for loss of property and the basis and procedure for such compensation will be specified under relevant laws. 17. The Land Reform Act (1964) is also relevant. As per the Act, a landowner may not be compensated for more land than he is entitled to under the law. This Act also establishes a tiller's right to the land which he is tilling. The Land Reform Act additionally specifies the compensation entitlements of registered tenants on land sold by the owner or acquired for the development purposes. The most recent amendment of the Act in 2001 established a rule that when the State acquires land under tenancy, the tenant and the landlord will each be entitled to 50 percent of the total compensation amount. 18. The Land Revenue Act (1977) is also applicable, since land acquisition involves change in land ownership. Article 8 of the Act states that registration, change in ownership, termination of ownership right and maintenance of land records are done by Land Revenue Office. Similarly article 16 says, if land revenue is not paid by the concerned owner for long period of time, the revenue can be collected through auction of the parcel of the land for which revenue has been due. 19. The Malpot Aien or Land Revenue (land administration and revenue) Act, 2034 is the most important Act for land administration including maintenance and updating records, collection of land revenue and settlement of the disputes after completion of survey and handing over of the records to Land Revenue Office by the Survey Parties. It authorizes the Land Revenue Offices to register, transfer ownership and provide deeds for land transfer. This Act authorizes the Land Revenue Office to transfer individual land ownership and deeds for public use at the request of an owner supported by a recommendation of a relevant committee. 20. The Public Roads Act, 2031 (1974) empowers the government to acquire any land on a temporary basis for storage facilities, construction camps and so on during construction and upgrading of roads. Any buildings and other structures such as houses, sheds, schools, and temples are to be avoided wherever possible. The government is required to pay compensation for any damages caused to buildings, standing crops and trees. Compensation rates are negotiated between the government and the landowners. 21. The Land Acquisition Act (1977) and its subsequent amendment in 1993 specify procedures for land acquisition and compensation. The Act empowers the Government to acquire any land for public purposes, including for a development project initiated by a government institution, after payment of compensation. The Compensation Determination Committee (CDC) chaired by Chief District Officer determines compensation rates for affected properties. The Act also includes a provision for acquiring land by negotiation. It states in Clause 27 "notwithstanding anything contained elsewhere in this Act, the Government may acquire any land for any purpose through negotiations with the concerned land owner. It shall not be necessary to comply with the procedure laid down in this Act when acquiring land through negotiations." 22. DDCs in Nepal are independent body and responsible for local development planning and management. Local Self Governance Act (LSGA) governs the development activities implemented by DDCs. The Act states that DDC will acquire land required for public purposes following procedures set out in the Act. However, when DDCs build community/rural roads

and small-scale rural infrastructure that provide direct benefit to a community, the DDC often accepts a voluntary donation of a part of the beneficiaries’ land. Nepal has its own historical tradition of land donation for the construction of public services. 23. The ADB TA-4422-NEP draft National Policy on Land Acquisition Compensation and Resettlement Framework was completed in October 2006. In Nepal, although the Land Acquisition Act (LAA) 1977 is the major legal document for handling acquisition and compensation, it has no provision for granting compensation to project affected people who do not have ownership of land. Furthermore, LAA 1977 does not have provisions to (i) address the difficulties caused by delays in compensation to Project Affected Families (PAF), (ii) ensure that vulnerable groups, ethnic minorities and other people affected by the project are capable of making proper use of compensation money to resettle to a living standard not less than that existed prior to the project, and (iii) provide practical provisions of land for land option despite it being mentioned in the LAA 1977. A draft National Policy on Land Acquisition Compensation and Resettlement has been developed on the basis of the main output of the TA-4422-NEP but an official version of the policy is not yet available. 2.3.2 ADB’s Involuntary Resettlement Policy 24. The important elements of ADB’s Safeguard Policy Statement (2009) on involuntary resettlement are (i) compensation to replace lost assets, livelihood and income; (ii) assistance for relocation, including provision of relocation sites with appropriates facilities and services; and (iii) assistance for rehabilitation to achieve at least the same level of well-being with the project as without it. Some or all of these elements may be present in a project involving involuntary resettlement. 25. For ADB operation requiring involuntary resettlement, resettlement planning is an integral part of project design, to be dealt with from the earliest stages of the project cycle, taking into the account the following basic principles: i. Involuntary resettlement will be avoided where feasible. Where population displacement is unavoidable, it should be minimized. ii. All lost assets acquired or affected will be compensated. Compensation is based on the principle of replacement cost. iii. Each involuntary resettlement is conceived as part of a development project or program: the DPs need to be provided with sufficient resources to re-establish their livelihoods and homes with time-bound action in co-ordination with civil works. iv. The displaced people are to be fully informed and meaningfully consulted. v. DPs are to be assisted to integrate economically and socially into host communities so that adverse impacts on the host communities are minimized ad social harmony is promoted. vi. The absence of formal title to land is not a bar to assistance entitlements. vii. Affected people are to be identified and recorded as early as possible to establish their eligibility, through a census that serves as a cut-off-date, and prevents subsequent influx of encroachers. viii. Particular attention will be paid to vulnerable groups including those without legal title to land or other assets; household headed by women; the elderly or disabled; and indigenous groups. Assistance must be provided to help them improve their socio- economic status. ix. The full resettlement cost will be included in the presentation of project costs and benefits.

2.3.3 Comparison of Borrower’s Policy with ADB’s Policy requirements 26. Table 1 below compares gaps between national legal framework and ADB SPS requirements and delineates the measures to fill the gaps.

Table 1: Gaps between Government Law and ADB’s SPS and Measures to fill gap # Key Issues Government Laws ADB SPS Measures Adopted in the LAF 1 Loss of more than Do not consider the Income restoration program such as Provision has 10 % of the total percentage loss of training and other measures to been made to landholdings and income or total land restore and improve the standard of provide training income holdings living of the displaced households and measures in the Entitlement Matrix (EM) 2 Squatters/illegal Do not consider Not entitled for compensation for Provision has been made occupants/non-titled squatters/ encroachers/ land; squatters/ vulnerable to provide compensation land users non-titled land users for encroachers/non title holders are for the structures/houses/ compensation entitled to payment for the business in the EM. structures/houses/ business and other assistance 3 Valuation of affected Compensation rate will All compensation is based on the Provision has been made land , houses & be determined by principle of replacement cost for the replacement value other structures and Compensation for the loss of trees Determination land/trees/crop. Affected Committee (CDC), Peoples (APs) are allowed consisting of (i) Head of to take salvaged items. District at present LDO CDC will make final (ii) representative from decision on the rates in the DDC (iii) Chief of Land presence of Revenue Office (iv) representatives from DPs, Project Manager VDCs, civil society, who will attend the meeting as observers. 4 Other assistance for No provision All the eligible DPs including Provision has been made relocation of the tenants, employees are entitled to for the transitional houses receive financial assistance to cover allowances, transport physical and economical allowances. displacement 5 Vulnerable Groups No provision Focused on the poor and vulnerable Provision has been made group to avoid future for income restoration impoverishment and create new program and other financial opportunities assistance.

2.4 Project Resettlement Policy Principles 27. The existing policy/legal provisions are inadequate to meet the ADB‘s resettlement policy requirements. Taking into the account on experiences and learning from other similar projects implemented within Nepal and measures recommended to fill the identified gaps, the Project will adopt the following key resettlement principles:

i. Involuntary land acquisition and resettlement impact will be avoided or minimized through careful planning and design of the project; ii. For any unavoidable involuntary land acquisition, APs will be provided compensation at replacement cost and/or assistance so that they will be as well-off as without the project; iii. APs will not be forced to donate their land, and there will be adequate safeguards for voluntary land donation. iv. APs will be fully informed and consulted during project design and implementation, particularly on land acquisition and compensation options; v. The absence of formal legal title to land will not be a bar to compensation for trees/crops, and particular attention will be paid to vulnerable groups and appropriate assistance provided to help them improve their socio-economic status; vi. Land compensation will be completed before commencement of civil works contracts, while other rehabilitation activities (if any) will continue during project construction; vii. Land acquisition and other losses will be conceived as part of the project and the costs related to resettlement will be included in and financed out of the project cost; and viii. The land will be purchased by the Project from the Government’s contribution. 28. The sub-watershed project selection and implementation will follow a community- driven approach, which will give the communities some control over planning and project implementation. The Project will focus on community consensus which will provide direct and equitable access to the water supply taps and to potential irrigation benefits. 29. The community must be consulted on the exact location of the water storages to avoid any single private land owner being affected, where feasible. The following processes will be followed to ensure that the landowner to be affected is not worse off after acquisition: i. Full consultation with APs and communities on selection of sites and appropriate design to avoid/minimize additional land take and resettlement effects; ii. As a first principle, APs will be informed of their entitlement to compensation for any loss of their property (land, and trees) caused by subproject construction, and that land donation might be accepted but only as a last option; iii. Although priority will go to public land and donation of land is not expected, no proposed donation can be refused, therefore, some protection measures are necessary. Any land donation will be confirmed by written record, including a "no coercion" clause verified by an independent third party (Format in Appendix 12.1); iv. Full recognition and respect will be given to community choice of compensation or donation at community consultation meetings; the members of the community will report the decisions in minutes that record the discussion and agreement. The agreement will be signed by all members; v. In case APs are directly linked to project benefits and thus are willing to voluntarily donate their land after they are fully informed about their rights to entitlement, the project will assess their socio-economic status and the potential impact of land donation. The project will only accept land donations from APs who are assessed not to fall below the poverty line after the land donation; vi. If the AP is not satisfied with the proposed land donation system or compensation for the assets he can forward his complaint to the grievance point person and grievance committee at higher level that are detailed in the following chapter. 30. Based on the socio-economic and resettlement impact analysis of the subprojects and to avoid potential preparatory delay in resettlement planning, the Project will adopt the following criteria, among others, while selecting subprojects during implementation:

i. In selecting subprojects within a sub-watershed, priority will be given to those that do not require acquisition of private land. ii. Where a subproject is strongly supported by the community, clearly has a high net benefit and requires only acquisition of a small area of land, its location will be chosen to minimise loss of productive private land without significantly increasing subproject costs. iii. The selection criteria for additional infrastructures such as platform for water distribution, canalisations etc. will follow the principles explained above and accompanied by suitable design to avoid where possible land acquisition.

2.5 Likely Scope of Land Acquisition 31. The feasibility studies have been carried out for three subprojects selected on technical grounds and discussed with the local communities/beneficiaries. The initial estimate of land requirements and people affected for each of these subprojects is given in the Table 2. Table 2 : Scope of Impacts Subproject Basin District Total land Private land % of total Trees Households required to be land Name Type Affected Nos (ha) acquired holding and (ha) Nos Pipal Khola Budhi Bajura 0.3984 0.3984 12.6* None 2 Pond and Ganga Catchment Management Nagardaha Lower Doti 0.2189 0 0 None 0 Pond and Seti Catchment Management Thuldhara Tank Lower Dadel- 0.055 0.055 2.3 None 3 and Catchment Seti dhura Management * the land to be acquired is fallow land and provides an occasional low yield annual crop and hence some marginal income. 32. Other subproject features may cause some impacts to others in the community livelihood who will not benefit from the water supply arrangements. In order to offset any difficulties, subprojects will incorporate the following principles: a. Changes in land use and production benefits resulting from catchment protection and land and gully stabilization work, including planting seedlings and grass, and control of livestock access, will be designed with community participation and negotiation. b. Watering locations– Locations for domestic supply taps, livestock watering troughs, irrigation outlets and other watering arrangements will be decided with the community c. Possible pipeline routes or construction of channels from water sources (springs and streams) to water storages, diversion channels for surface catchments to water storages, etc; conveyance from water storages to water demand points, including consideration of difficulties and issues in alternatives are to be decided with the community to minimise individual losses.

33. The minor impacts related to other construction issues are expected to be settled with the communities and will not require additional compensation.

2.6 Entitlements for losses 34. The BCRWME project is expected to have minimal requirements for land acquisition. The land required is expected to be available from public land selected through community consultation and confirmed by due diligence studies. Where it is public land, compensation payments will not be made. Any land required from private land owners will be subject to social impact assessment and analysis to determine its value or if it may be accepted as a donation. All involuntary land acquisition from private owners will be compensated at replacement cost and APs assisted so that their economic and social future would generally be as favourable as it would have been in the pre-project standards. 35. The absence to formal title to land will not be a bar to compensation for loss of assets (land, trees and crops) and special attention will be paid to ensuring that households headed by women and other vulnerable groups receive appropriate payments. The date of the Inventory Of Loss (IOL) before the Detailed Measurement Survey (DMS) will be the “cut-off- date” for the entitlement, and owners (including non-titled) of affected assets till such a date will be eligible to be categorized as APs. The affected persons will be entitled to a combination of compensation measures and resettlement assistance, depending on the nature of ownership rights of lost assets and scope of the impact, including social and economic vulnerability of the APs. The description of each compensation measures and assistance is provided in entitlement policy/matrix is in Table 3. 36. The entitlements are replacement of land for land, or at full replacement cost including land registration costs. Non-titled holders will be entitled to rehabilitation assistance if they have been occupying the affected land for at least three years prior to the cut-off date. Compensation for assets will be at replacement cost (value to be estimated considering the value at present market and in case of productive trees value to be calculated as per the cost of production of 5 years). The salvaged material will remain with the owner without deduction whether they own the land or not. 37. Full compensation payments for land acquisition must be completed before award of civil works contracts. In the cases of absentee owners, attempts must be made to contact them and notify them of their rights. Payment can be delayed until the owner’s return at the festival season, or payment can be made to the spouse on production of a certificate of relationship from the VDC. This is particularly helpful to women whose husbands are away working and are de facto heads of the household. Land acquisition does not take precedence over land dispute cases awaiting court decisions. Compensation payment has to wait until the court has made a decision. Project-affected households who refuse to go through the claim process have the right to submit a complaint to the grievance committee. 38. Land titles will be transferred from the affected person to Government of Nepal immediately after compensation payment or agreement of land donation at no cost to the original owner. The Project will arrange required and sufficient resources to support concerned line agency representatives to facilitate the land acquisition process.

Table 3 : Entitlement Policy Matrix for land acquisition

Type of Loss Application Definition of Entitled Persons Policy/Entitlement

1. Acquisition of Entire or part of land to be • Titleholder • Land with equivalent size and category, or cash compensation at replacement cost. Private, Tenancy, acquired from owner of the (Where the land revenue transaction statement shows land in the mountains has a or Guthi Land land as recorded at cut off • Tenants low value and where very few transactions of land are effected, the land value maybe (Land Endowed by date estimated as per present transaction rate plus an added value of five years (or more) the State and of production to compensate the non availability of value of present market rate). Individuals for Religious, Philanthropic and • Any transfer costs, registration fees or charges Charitable 3 Purposes) • Tenant will receive the 50% value of the land • If remaining land becomes unviable as a result of land acquisition, APs will have option to relinquish unviable remaining portion of land and receive similar benefits to those losing all their land parcel.

• Non-titled persons will receive compensation for crops and subsistence allowance for one-year crop, and provided with replacement land if ailani or Gov. land is available in the village.

2. Loss of Foot paths, irrigation Owners and users The effects on common property resources will be discussed by in the community and community system, DW systems, compensated or affected land being replaced through consultation; and, restoration of temples, etc. or common affected community buildings and structures will be made to original or better property condition through an agreement between the sub-watershed management committee resources/assets and owners. 3. Temporary Loss Temporary Land Taken by • Titleholder • Compensation at replacement cost for the net loss of income, damaged assets, of Land the Project crops and trees, etc. • Tenants • The land will be returned to its pre-project condition or better or additional compensation will be paid by the contractor for the lost of crops for 3 years

 An agreement between contractors and APs before entering the site.

28. 3 The Tenant, Land Acquisition Act 1977 (2034) was amended on 2055/4/26 (198/08/01). Accordingly the registered Tenant will receive 50 % of the total land cost. Previously, it was only 25 %. The tenant will receive 50% of the total land value provided he/she posses a land entitlement certificate. 10

Type of Loss Application Definition of Entitled Persons Policy/Entitlement

4. Loss of Trees Affected Fruit/Nut Trees Owner of the affected fruit/nut Cash compensation based on annual value of the produce for the next five years at and Crops trees current market value and calculated according to the Department of Agriculture norms. Resettlement Plans to confirm that the DOA norms and techniques are sufficient and updated regularly.

Affected Timber and Owner of the affected timber Cash compensation based on calculation of the production and calculated according Fodder Trees and fodder trees to the District norms as decided by the Department of Forestry.

Affected crops Owner of the affected crops • Cash compensation based on local market prices for the produce of one year and calculated as per the norms of District Agriculture Development Office. Sharecropper of the affected crops • 50% cash compensation of the lost crop for the sharecropper.

5. Loss of Economic Opportunity Lost Persons in the water storage • Preferential involvement in project construction works. Economic as Result of Loss of vicinity who may be adversely • Skills training support for economic restoration Opportunity Livelihood Base. affected, although they do not lose assets as such • Priority in poverty reduction/social development program, and provision for temporary allowance to vulnerable APs

6.Land Donations Loss of Land and Other 1. Voluntary donation is accepted • No compensation for the donated land, but entitled for compensation of other assets Assets by Means of only if AP: such as house, structures, allowances, etc. Voluntary Donation 2. Is project beneficiary and is • Transfer of land ownership by negotiation (DDC and the owner). fully consulted and informed about their rights; • Any transfer costs, registration fees or charges paid by the Project. 3. Doesn’t fall below poverty line • Preferential employment in project construction work. after land donation; 4. Donating no more than 10% of land holding, 5. Unforced - freely willing to donate (with an agreement, including a "no coercion" verified by third party; 7 Additional 9.1 Priority given in All APs • Construction contracts include provision that APs will have priority in wage Assistance Employment in Project labour/employment on project construction during implementation. Activities • APs shall be given priority after construction for work as maintenance worker, mandated in local body agreement.

3 IMPACT ASSESSEMENT AND RP PREPARATION

3.1 Screening and Categorization of Impacts on AP/DPs 39. Initial screening will be conducted as early as possible in the subproject planning cycle to categorize the impacts and identify subsequent approaches and resource requirements to address IR issues. The screening will identify the potential for loss of land, asset/structures, livelihoods, willingness of the community to collaborate in the implementation of the project, and their impacts through primary and secondary data information collection. The resettlement survey team (composed of social, environmental and institutional specialist) with the local community representatives will make a walkthrough survey of each subproject. The team will visit the subproject site and arrange public meetings in selected settlements including village leaders to provide information about the project and collect their views on resettlement impact and willingness of APs about the subproject. 40. In case land requirement from the private land owners the resettlement screening will enable the categorization of subprojects based on their level of social impacts. If necessary a due diligence report will be prepared for the subprojects to establish the impact on public land. The screening and categorization will then be prepared during the project preparation. Once finalized, the due diligence report and categorization form will be included in subproject feasibility/design report to be submitted to ADB4

3.2 Methodology for SE survey (SES), and Inventory Of Losses, 41. Depending on the extent of impacts on IR the surveys will be contracted out to a competent firm or conducted by the project team in case of very limited number as identified for the three pilot subprojects.. The data reports will lead to the preparation of the Resettlement Plans in case of category B and provide understanding of the socio-economic circumstances people in the project area – including poverty, gender and ethnic minority peoples. The activities of the survey team will be to conduct of an i) Inventory of Loss (IOL) that calls for a 100% census of the possible project. Affected Households (AHs) quantifying the possible social impact in terms of loss of land, assets and income; possible social impact in the affected area; ii) Socio-Economic Survey of all Project Affected households (AHs) and identification of Severely Affected household (SAHs) and Vulnerable Affected Households.

3.3 Valuation and Replacement of Assets 42. An enhanced survey team at District level in the District Technical Office assisted by the DSCO will undertake the survey and valuation of affected assets and recommend it to the Compensation Determination Committee (CDC) for final valuation and compensation distribution. The survey team may seek experts’ advice from district agriculture office, district forest office and other relevant offices for valuation. This enhanced team would be able to review household details, resources, assets, and income from the affected land to be acquired whilst accompanying the Land Revenue Officer (LRO) and the surveyor from the Department of Survey. The time necessary to establish ownership and use will have to be planned into project implementation. 43. The Chief District Officer, local officers and a representative of the DDC will form the Compensation Determination Committee (CDC) in line with Land Acquisition Act 1977, with the Social Safeguards Officer (SSO) as observer, and agree rates of compensation with the AP. The District survey team will assess the various categories of loss envisaged in the entitlement matrix and fix prices/costs for compensation according to the compensation

4 “Until such a time as ADB is satisfied with quality and changes to periodic post review”

entitlements agreed by the CDC. Safeguards for poor and socially disadvantaged groups will be facilitated by the presence of the SDO, backed by NGO presence as necessary to confirm the "no coercion clause" in any voluntary contribution of land. Disagreements over valuations and extent of land-takings should be negotiated as quickly as possible in order to reduce delays to letting contracts for reconstruction and the start of construction. 44. In case of land in the mountains with low value as per land revenue transaction statement and where very few transactions of land are effected, the land value maybe estimated as per present transaction rate but also considering an added value of five years (or more) of production to compensate the non availability of value of present market rate. 45. Compensation payments will be disbursed by the CDO. As a transparent system for checking entitlement against payment to ensure that payment has been made as assessed to the right person, the payment will be made by check at the home of the recipient. APs will be offered help in opening and operating bank accounts by the designated third party or NGO. In case the asset owner is not present at the time of payment due to long term out-migration, the payment will be made to his wife under the same conditions.

3.4 Resettlement Plan Preparation 46. The RP will be prepared based on the results of the census and information drawn from the SE survey and IOL. The RP will include measures to ensure that the socioeconomic condition, needs, and priorities of women are identified, and that the process of land acquisition will not disadvantage women. If any adverse impacts on Indigenous Peoples (IPs) are identified, they will be addressed adequately through an Indigenous Peoples Development Plan (IPDP) or under specific actions included in the RP. The preparation of an RP or not will depend on the result of the number of AP. In case of very limited number of APs two alternatives will be possible:  Preparation of one RP for several subprojects located in the same district and near to each other to reduce the management procedures and the cost.  Or preparation of a due diligence report for subproject with very few APs loosing land and application of the willing buyer-willing seller arrangement. 47. The content of the resettlement plan includes a statement of involuntary resettlement objective and strategy, with (i) executive summary, (ii) project description; (iii) scope of land acquisition and resettlement; (iv) socio-economic information and profile; (v) information disclosure, consultation and participation; (vi) grievance redress mechanisms; (vii) legal framework; (vii) entitlement, assistance and benefits; (viii) relocation of housing and settlements; (x) income restoration and rehabilitation; (xi) resettlement budget and financing plan; (xii) institutional arrangements; (xiii) implementation schedule; and (xiv) monitoring and reporting plan, showing how activities will be scheduled with time-bound actions in coordination with the civil works. The RP will establish an eligibility cut-off date. 48. Where subprojects involve voluntary land donation, the RP will also include arrangements to deal with losses on a voluntary basis with appropriate safeguards. Such land donations will require a written agreement with the respective landowners. It may be in a form of an MOU between the landowner(s) and the DDC or other documentation acceptable to ADB, and will include a “no coercion” clause witnessed by an independent third party e.g. NGO. Such agreement will also be annexed to the RP. 49. The PIU Chief will organize a consultation meeting with APs and local stakeholders to share the draft RP and inform them about how the concerns raised by them during the screening and walk-through survey have or have not been addressed in the project design. In order to ensure that the subproject design have incorporated concerns raised locally and measures to minimize adverse impacts and enhance project benefits, the RP will be finalized

only after the final consultation with affected persons. A meeting minutes on endorsement of entitlements proposed in RP duly signed by APs will also be annexed to the RP.

3.5 Preparation and Submission of Subproject Resettlement Plans 50. The preparation of RPs for a subproject will only applies in case the number of APs by land is important or the RP is prepared for several suprojects and then it will be submitted to the PIU for review before submitting to DSCWM and ADB for review and approval. The outline of an RP is available in the ADB SPS of June 2009. The RP shall follow the provisions and procedures specified in the Resettlement Framework. 51. The RP must be completed and updated following the completion of the detailed designs and conducting of the DMS. This will provide up-to-date and accurate figures regarding the scope of impact, identification of APs and severity of impact, as well as an updated compensation calculation. The RP should be reviewed to update any changes in market prices for replacement values and would need to be reviewed again at the time compensation is due for payment. If rates and prices are found to be out of date, revised updated costs based on the latest market rate must be used. Also in the RP updating process, the IRP (Income Restoration Programme) will be prepared. Affected people must be consulted before finalisation of the updated RP. The RPs and the updated RPs will be sent to ADB for approval and uploaded to ADB's website. 52. No section or part thereof under the civil works contract shall be handed over to the contractor nor initiated unless the RP has been approved by ADB and required land compensation has been completed. 4 CONSULTATION, PARTICIPATION, AND DISCLOSURE

53. The RPs to be developed in each subproject will identify primary and secondary stakeholders and include specific measures for consultation, participation and information disclosure in full compliance with ADB’s SPS. The primary stakeholders include APs, beneficiaries and stakeholders directly involved in the resettlement planning and implementation. The secondary stakeholder include other individuals or groups with interest in the subproject, such as local or national government, policy makers, advocacy groups, elected officials and NGOs. 54. The information dissemination and consultation with the affected people will be the starting point for all activities concerning resettlement. Participation of APs as well as other stakeholders will be facilitated throughout the subproject cycle. NGOs and CBOs will also be used to facilitate this process. Various mechanisms of participation will be adopted in the process, including: o Information Dissemination/Campaign through NGOs/Consultants/VDCs o Public Meetings and Focus Group Discussion (FGDs) o Formation of Consultative Groups at VDC Level o Interviews/Survey and Frequent Interaction with APs 55. Public consultation and information dissemination/campaign will be carried out in each VDC to disseminate information about the Project to APs and local communities. The APs will be provided with relevant information and consulted during the preparation of resettlement plans. Further, the following information will be made known to the community concerned prior to the preparation of RP, including agreements for any possible voluntary land donation, as well as: o Project Details o Agencies involved in Project Implementation and their Responsibilities

o Project Drawings and List of Potential APs o Summary of Resettlement Framework in Nepali Language o Eligibility Criteria and Entitlement for Involuntary Land Acquisition as well as for Voluntary Land Donation o List of Vulnerable APs and Support/Assistance to them o Likely Construction Schedule o Grievance Redress Mechanism. 56. Information dissemination will be through posters and pamphlets, public consultation meetings, and direct discussion with the affected families and institutions. Participation by APs should also be ensured during resettlement planning, implementation and monitoring. See Table 4 for different stages of participation for primary stakeholders. Details of all public meetings with dates, names of the participants, location and information provided place of announcement, major issues raised and how these have been addressed will be documented in the subproject RPs. Table 4 : Stages and Nature of Participation of Primary Stakeholders in the Process Participation of primary stakeholders (i) project affected Project Stages people and households, (ii) project beneficiaries, (iii) implementing agencies Participate in public meetings, identify alternatives to 1. Project identification minimize resettlement and assist in developing and choosing alternative options for income restoration. Assist in selecting site for infrastructure, participate in surveys, participate in meetings, provide suggestions to Feasibility study and 2. entitlement provisions, provide inputs in resettlement plan resettlement planning preparation and use established mechanism for grievance redress and conflict resolution. Participate in the implementation process including involvement/employment during construction, join local decision making committees, decide on management of 3. Project implementation common property, use established mechanisms for grievance redress and provide inputs to local consultative groups

57. The Sub-Watershed Management Committees (SWMCs) will work as local consultative forums. This mechanism is discussed in Section G. The SWMC will ensure the APs’ participation in decision making at all stages of the subproject cycle, including RP planning and implementation, The participation of women and DAGs will be mandatory during all the meetings that will take place and will follow the measures indicated in the GESI Plan. . During the process of preparing the RP, discussion will be held with the affected families, institutions and representatives of directly affected VDCs. The IA and consultant shall make available the following documents to APs and disclose to the public: o A draft RP, before subproject appraisal; o A final RP, after completion of such RP; and o The revised RP, following the Detailed Technical Design (including detailed information from DMS) or change in Scope of the subproject.

58. Copies of the RPs will be placed at VDC offices accessible to the public. A summary of relevant information from the documents specified above (losses, valuations, entitlements, assistance, grievance procedures, timing of payments and displacement schedule etc.) will be made available to APs as leaflets in local languages. The IA and consultant shall also post the above documents on EA’s website. During implementation, the consultant will prepare resettlement monitoring reports, make them available in Nepali language to affected APs and post them on EA’s website, and submit these to ADB for review and posting on ADB website. 59. Each RP will be disclosed by EA/IA to the public before submitting them to ADB. ADB will post these documents on ADB’s safeguards web site. The LAF and RPs will also be publicly available at both central and district level project offices. Further, summary RPs in Nepali language will be made available to VDC and, public offices in the subproject sites. 5 COMPENSATION, INCOME RESTORATION

60. Although subprojects will include limited compensation and income restoration, it is important to prepare the guideline and policy in case compensation and income restoration become necessary. 61. The basic objective of income restoration activities is to ensure that each AP will at least have the same or improved income and livelihood after the subproject. Income restoration is an important part of land acquisition and APs that have lost some assets and income sources and are most at risk of impoverishment, and vulnerability. APs who lose their income sources (e.g. land, employment, business) and are at risk of impoverishment will be assisted through income restoration programs under the project. The income restoration program includes employment in construction work, preference as a maintenance worker, and life skill training and facilitation to establish linkages with financial institutions available in the district. 62. The project strategy for income restoration is to establish a link between the improved access to goods, services and facilities, and income generated by employment in the project and training, if deemed necessary. An income uplifting micro-plan for each subproject can be prepared as necessary to mobilize savings from employment for the use of new sets of skills acquired by life skill training and the enhanced capacity of APs. The plan would examine long term local employment opportunities and options for external resources, if required. Suitable mechanisms would be identified for a business expansion plan to link with available or expected financial institutions in the local area. 63. The APs that will loose more than 10 % of it productive income would be eligible for income restoration options to restore AP’s income to pre-project situation. However, priority will be given to vulnerable APs. These measures will be combined with the activities developed under the GESI Plan. APs will be given priority for employment in subproject construction. The contract documents will include provisions regarding preferential employment of APs in unskilled labor. The subproject will provide at least 90 days of unskilled work to the extent possible to one adult from each affected family to enable them to earn sufficient cash to restore their income. Preference will be given to APs for employment expected to be generated by the maintenance component of the project. Safeguards will be put in place to ensure that there is no employment of children on the project.

6 GRIEVANCE REDRESS MECHANISM

64. The first stage of the grievance redress mechanism has been established to serve the needs for seeking redress related to environmental and social grievances and for redress on grievances related to compensation for land and property as addressed in this document. The first stage of the mechanism includes acknowledgement of the grievance, and evaluation and

corrective action on the part of responsible parties: either the contractor, DSCO, the PMU, or in the case of grievance under regulations specified in the Land Acquisition Act 2034 (1977), the CDO and Ministry of Home Affairs. Grievances can be made at the VDC level to the Sub- watershed Management Team (SMT) Social Safeguards Officer (SSO), who will serve as Grievance Point Person (GPP) on land acquisition and compensation issues, and represents the District Soil Conservation Officer. All grievances will be brought to the attention of the District Soil Conservation Officer and the VDC. The first stage of the mechanism requires establishing a mandatory “grievance register book” at the DSCO office. The register book will list (i) date of grievance registered, (ii) name / address of grievance lodger, (iii) nature of grievance being lodged and (iv) location / site of fault requiring correction. An assessment will be made as to whether the grievance is genuine. In any case, a response will be provided within 15-30 days by the DSCO office, in consultation with the PMU. In case the DSCO is unable to resolve the issue, the matter will be forwarded to the Project Management Unit (at Dadeldhura) and reported to the Project Coordination Office in Kathmandu. The corrective action will be carried out as per the response or action plan indicated to the complainant, and the response lodged in the register book. The outcome shall also form part of the quarterly progress report to ADB. If the APs are not satisfied with the proposed arrangement the person can submit the complaint to higher level, as described below. 65. In order to deal with complaints on land acquisition not already resolved, the Project will set up a Grievance Committee (GC) on an ad hoc basis at the district under the chairmanship of the Chief District Officer (CDO). Membership on the committee will include representatives of affected families, members of the beneficiary group, a representative from the VDC, and village elders or local level representatives of mass organizations, and the SSO. This avenue for redress is available for grievances under the Land Acquisition Act 2034 (1977). If unsatisfactorily resolved at this level, the APs have formal recourse to file a grievance directly with the Ministry of Home Affairs, and the SSO is obliged under the procedure to assist in this action. 66. The APs may submit their concerns or grievances verbally or in writing. The SMT or GC will document all complaints/grievances properly and will make a field-based assessment to verify/examine the grievances, if necessary. After proper examination/verification of the grievances, the PMU or GC shall facilitate DDC, APs, and other concerned parties to agree on a time-bound action plan to resolve the grievance if found to be genuine. 7 INSTITUTIONAL ARRANGEMENTS

67. The Ministry of Forest and Soil Conservation (MFSC) is the executing agency (EA) for the project and DSCWM will be the implementing agencies (IA), working through their District Soil Conservation Office (DSCO). The MFSC will therefore be responsible for policy formulation, and DSCWM will be accountable for the programming and implementation of acquisition, compensation and rehabilitation measures in compliance with ADB requirements. 68. The organizational model for implementation of the Project involves placement of a Project Coordination Unit (PCU) within DSCWM, a Project Management Unit (PMU) attached to the Dadeldhura District Soil Conservation Office (DSCO) and formation of Sub-watershed Management Teams (SMT) in each of the four DSCOs staffed by government officers. A Project Director and three consultants are located at the PCU in Kathmandu and are engaged in matters related to project management, accounting and administration, knowledge management, and oversight of sub-watershed planning, infrastructure development and community development. National consultant staff, working with Government DSCO staff, make up the Sub-watershed Management Teams (SMTs) working under each District Soil Conservation Officer. SMTs form the basic unit of interface with the community, working formally at the Village Development Committee (VDC) level and informally (or intensively) at ward and village levels. SMTs move among VDCs within their district (or specific VDCs will be

assigned to a given SMT). The PMU at Dadeldhura will have overall responsibility for project area level planning, budgeting, design, monitoring and evaluation, and social and environmental safeguards. Its senior consultant staff will provide technical backstopping to the SMTs. The organizational arrangement is shown in Figure 1 below. Figure 1 : Organizational arrangement

69. The Project Management Unit (PMU) established in Dadeldhura DSCO for the project will have a Senior Safeguards Specialist who will (i) provide technical advice to the Social Safeguards Officers in the SMTs, (ii) review land acquisition progress, and (iii) coordinate between DSCWM and the DSCOs for resettlement planning, implementation and reporting. 70. The DSCOs will coordinate all district subproject activities. Each DSCO will be responsible for local policy coordination and delegate implementation responsibility to the SMTs. The SMTs in each district will have a Social Safeguards Officer (SSO). The SSO will assist in mobilizing the local community as well as implementing social safeguards. The SMT will ensure that the Project’s Land Acquisition Framework is followed in preparation of subproject resettlement plans with appropriate entitlements and mitigation measures. The SMT will liaise with the district Survey and Land Administration Officer for the secondment of staff to facilitate land administration activity. 71. At the sub-watershed level, a Sub-Watershed Management Committee (SWMC) will also be established, with representatives from the VDC, APs, political parties, concerned citizens, vulnerable groups, disadvantaged groups, the business community and local NGOs. SWMC will assist the APs in informing people about the likely resettlement impacts and solicit the views of the APs regarding compensation and relocation options. The formation, functioning and linkage of the SWMC and SMT to district agencies will be facilitated by the SSO and the Community Mobilizer. See figure 2 below.

Figure 2 : Organization and membership for a single SMT

7.1 District Liaison Coordination Committee 72. The DDC will form district level liaison coordination committee (DLCC) to coordinate a smooth implementation of the land acquisition and compensation process and associated mitigation measures. The DLCC will be established under the chairmanship of DDC head; other members of the committee will be the representatives of affected families (including vulnerable group member), representative from VDC, land revenue office, survey office, forest office, agriculture office, Project manager, or social mobilization coordinator. The committee will meet each month to discuss resettlement activity and review progress until completion of compensation payment and deed transfer.

7.2 Compensation Determination Committees (CDC) 73. The Land Acquisition Act 2034 provides for the establishment of committees to decide compensation levels at District level. These are composed of the Chief District Officer (CDO), the Land Revenue Officer (LRO), a representative of the DDC and the DSCWM Project Engineer. Therefore, the relevant VDC chairmen or representative(s) from the APs and the SSO will be invited to CDC meetings as observers to ensure that decisions are transparent and fair. The CDC will accept the replacement cost principle for the valuation of affected assets. The replacement value of the lost assets will be assessed as per valuation procedure explained in 4.3. 8 BUDGET AND FINANCING

74. All costs related to land acquisition, compensation, and livelihood rehabilitation will be an integral part of project costs and will be administered according to the Land Acquisition Act, 1977. The resettlement and rehabilitation cost includes (i) compensation for acquired assets; (ii) costs associated with rehabilitation measures; and (iii) administrative costs for RP implementation and capacity building of the project agencies. The estimated resettlement cost for the 3 subprojects for which feasibility studies were done are (i) Pipal Khola Pond and Catchment Management – USD15,000; (ii) Nagardaha Pond and Catchment Management – nil; (iii) Thuldhara Tank and Catchment Management – USD3000. As can be seen, the

resettlement cost for each Subproject will not be uniform and will be estimated during the feasibility. The Table 4 recapitulates the items to be estimated. Table 4: Items for Estimated Costs of Resettlement Components Amount Compensation for acquired assets Cost for rehabilitation measures (cost to be included in the GESI) Cost for surveys (IOL, SES) Monitoring and Administrative cost (2%) Subtotal Contingency 20% Total

75. Of the total cost for resettlement and rehabilitation, compensation payments for affected assets including land acquisition will be borne by the government and the remaining cost associated with livelihood restoration and assistance will be covered by ADB financing. The Ministry of Finance (MOF) shall ensure that the approved annual budget allocations for the Project shall be sufficient to cover all required counterpart funding, including, but not limited to: (a) resettlement related payments; and (b) land surveys and cadastral mapping. The Ministry of Forest and Soil Conservation (MFSC) will delegate budget authority to District Soil Conservation Officer through the DDC. The subproject resettlement fund will rest with the District Soil Conservation Officer. Based on the valuation made by special committee, the District Soil Conservation Officer will deposit the required funds with the departmental treasury, which will make payments to the APs. 9 IMPLEMENTATION SCHEDULE

76. The RPs for all subprojects under BCRWME will be implemented from 2013 through 2016. All land acquisition and resettlement of APs is to be completed before the commencement of civil works. However, social preparation initiatives including income restoration measures and deed transfer may continue and be completed even after civil works has begun. Subproject RPs will include a time-bound action plan to complete the resettlement activities tailored to the subproject construction schedule. The key indicative list of activities in the subproject cycle is summarized in the Table 5 Table 5 : Resettlement Assessment and Planning in Subproject Cycle Responsible Project Stage Task Time Frame Agencies

Subproject Dissemination of Project DSCWM/TA Commencing with Selection Information the Project stage Selection of Subproject DSCWM/TA and preliminary impact assessment. Community participation, safeguard documents

Responsible Project Stage Task Time Frame Agencies

Dissemination of Project DSCO/PIU/Consultant After Approval of Information to Affected Subproject Communities and Meeting in Community Level

Finalization of the site DSCO/PIU/Consultant First Two Weeks selection. Subproject of Design Stage Categorization

Loss Assessment Survey: DSCO/PIU/Consultant Second Two Cadastral Mapping, Weeks Household Listing etc. as part of SIE survey

Census and Socio- DSCO/PIU/Consultant Fifth and Sixth economic Survey for RP Weeks

Consultation with APs, DSCO/PIU/Consultant Seventh Week Identification of Severely Affected and Vulnerable APs

Prepare Draft RP, DSCO/PIU/Consultant Eighth & Ninth including summary in Weeks Nepali

Verification of APs, DSCO/PIU/Consultant 10th and 11th Entitlement, and any Weeks Voluntary Donation Criteria and Procedures Project Planning and Design StageandProject Design Planning Preparation of Agreement DSCO/PIU/Consultant 12th Week of with APs for any Design Stage Voluntary Donation

Community Workshop to DSCO/PIU/Consultant 13th Week Finalize RP

Submission of RP for PIU Chief 14th Week ADB's Approval with Endorsement from DIU and Project Coordination Unit (PCU) Resettlement Plan Preparation StageResettlement Preparation Plan Distribution of PIU Chief 1st Month of Assistance/Compensation Implementation.

Resettlement activities PCU Before Contract verification Award

Enrolment into Livelihood PIU Chief 2nd Month Restoration Scheme

Ownership Transfer of PIU Chief 2nd Month Acquired Land

Monitoring APs PIU Chief Construction Employment And Income Generation

Redressal of Grievances PIU Chief/GRC Throughout the RP Implementation RP Implementation

Responsible Project Stage Task Time Frame Agencies

Project Cycle

Construction Enrolment into Livelihood PIU Chief Continued…. Stage Restoration Scheme PIU Chief/GRC Throughout the Ownership Transfer of Project Cycle Acquired Land Monitoring APs Employment And Income Generation Redressal of Grievances

Post Internal: PCU/CISC Ongoing Construction External: Consultant/NGO

10 MONITORING AND REPORTING

77. The project monitoring system will require an appropriate management and supervision system able to review and verify progress highlight delays in meeting targets and recommend corrective measures. 78. The DSCO will establish a trimester monitoring system and prepare progress reports on all aspects of land acquisition and resettlement activities. Trimester reports of RP implementation will be submitted by the DSCO to ADB. The activities will be monitored internally by the DSCO and audited. The Social Safeguards Officer of the SMT will submit its reports regularly and the DSCO will submit Semi-annual monitoring report to ADB.

10.1 Monitoring Requirements 79. The project needs to monitor and evaluate the resettlement and compensation process in order to ascertain that the procedures prescribed have been followed and that APs are at least no worse off than they were without the project. A monitoring and evaluation program will be required to assess that the procedures were followed, that compensation was assessed and disbursed according to the entitlement matrix, that affected people have been able to restore their income and that mechanisms are in place through the social safeguards officers for promoting involvement of local people in other development initiatives. 80. The subprojects to be implemented will require very limited land acquisition and no major socio-economic impacts. These subprojects will be assigned as ADB’s Category B and therefore only detailed internal monitoring will be required.

10.2 Internal Monitoring 81. The DSCWM will provide regular reports to MFSC on progress in resettlement preparation and implementation through regular progress reports, based on defined indicators, combined with periodic supervision and verification (see Table 6). The Resettlement Unit at District level is responsible for monitoring resettlement activities and for managing the entitlement and compensation database. The social safeguard officer will form AP committees at field level to participate in the monitoring process and ensure that women and occupational caste groups are represented and heard. 82. The PMU will design and the Social Safeguards Officer will implement a subproject resettlement monitoring system and monitor all subproject resettlement activities and

progress. The Social Safeguards Officer will verify progress reports and check the general delivery of: o Payment of compensation and timing; o Rehabilitation of vulnerable groups if any; o Compensation and its adequacy. 83. The project’s internal monitoring and evaluation mechanism will monitor the resettlement and compensation process in order to ascertain that the procedures prescribed have been followed and, as indicated above, that APs are at least no worse off than they were without the project. The verification of resettlement activities by the Senior Social Safeguards Officer will be submitted to ADB before it approves DSCWM and DDC signing contracts with the building groups and contractors to commence work. This verification is required to ensure procedures were followed, and that compensation was assessed and disbursed according to the entitlement matrix. Verification will involve additional surveys of around 10% of all APs to check compliance and preparation of a verification report which will be submitted to the DDC/DSCWM and then to the ADB. 84. On-going monitoring of land acquisition and compensation will occur as a standard activity of the subproject. During project implementation, the PIU Chief will establish a monthly monitoring system involving the DSCO and implementing staff, and will prepare progress reports on all aspects of land acquisition, compensation and resettlement activities and operations. The monthly reports will reflect the progress in resettlement plan implementation with particular attention to compensation payments, consultation, participation of APs in resettlement plan implementation, and grievance resolution. They will submit trimester progress reports to the DLCC Program Coordinator, indicating number of affected persons, compensation affected, grievances and problems, and corrective measures implemented or required. 85. The leader of the SMT will attend SWMC meetings as and when required and will record and monitor local reactions, concerns and grievances for discussion with the DDC officials in charge and the District Soil Conservation Officer. The SWMC and SSO will play important monitoring roles by providing feedback on community concerns, grievances and requests. 86. The District Soil Conservation Officer will submit a trimester report to ADB through the PMU on progress of Resettlement Plan implementation. The implementation support consultants (PD/PMU) will monitor the implementation progress and advise District Soil Conservation Officer on the timely implementation of the Resettlement Plan and submission of a trimester report to ADB through PMU and PCO. 87. The following table provides some indicative monitoring and evaluation indicators of resettlement activities. Table 6 : Sample of Monitoring and Evaluation Indicators Type Indicator Examples of Variables Process Staffing Number of DSCWM staff on BCRWME, for subproject Indicator Number of other line agency officials available for tasks Number of Social mobilization coordinators located in the field Consultation Number of Groups contacted or established and meetings held

Grievances by type and resolution Number of field visits by DSCWM /project staff and social mobilisation coordinators Procedures in Census and asset verification/quantification procedures in Operation place Effectiveness of compensation delivery system Number of land transfers (owner to GON) effected Coordination between PIU and other line agencies Output Acquisition of Area of cultivation land acquired by road section and contract Indicators; Land Area of other private land acquired data disaggregated Area of communal/government land acquired by sex of Area of the land donated owner/ head of household Area of the land compensated Nos of Household with regular water access pre and post Trees and Number and type of private trees acquired Crops Number and type of government/community trees acquired Crops destroyed by area, type and number of owners Compensation Number of households affected (land, trees, crops) and Number of owners assisted by type of loss Rehabilitation Amount compensated by type and owner Number and amount of allowances paid Number of replacement land purchases effected Livelihood restoration cost Impact Household Employment status of economically active members Indicator Earning – Landholding size, area cultivated and production volume, by data Capacity crop disaggregated Selling of cultivation land by sex of owner/ head of Changes to livestock ownership – pre- and post household Changes to income-earning activities (agriculture) – pre- and post Changes to income-earning activities (off-farm) – pre- and post Amount and balance of income and expenditure Changes in Water availability Changes in health condition Changes in diet

11 K. APPENDIX

11.1 Sample voluntary contribution consent form (This form will be translated in Nepalese Language for implementation purpose) Government of Nepal, Land Revenue Office, [INSERT NAME] District [INSERT NAME] Village

CERTIFICATE OF LAND TRANSFER

I, [INSERT NAME, AGE, OCCUPATION], with residence located in [INSERT NAME] village, [INSERT NAME] district

Certify that I have been previously informed by local authority of my right to entitle compensation for any loss of property (house, land and trees) that might be caused by the construction of ([INSERT NAME]) financed under the Building Climate Resilience of Watersheds in Mountain Eco-Regions Project (hereafter called “the Project” or “BCRWME”) in [INSERT NAME] district. I confirm that I voluntarily donate the land of [INSERT AMOUNT LOSS] square meters located in [INSERT NAME] village ([INSERT NAME] district) to the Project construction. I also confirm that I do not request any compensation of loss of [INSERT OTHER LOSSES SUCH AS TREES] and would request the local authority to consider this as my contribution to the project. Type of Loss Area (sqm) Number of Unit Rates Total Comment Trees Land

Total

Therefore, I prepare and sign this certificate for the proof of my decision. Further, I certify that I have given my consent without any force/coercion from anybody, including project authorities. [INSERT NAME] district [INSERT DATE] The owner of the land [INSERT NAME AND SIGN]

Witnesses: 1. [INSERT NAME] and sign 2. [INSERT NAME] and sign 3. [INSERT NAME] and sign

Certified by the [INSERT NAME OF INDEPENDENT THIRD PARTY], [NAME AND SIGN]

Resettlement Planning Document

Indigenous Peoples’ Planning Framework (IPPF)

Project Number: ADB TA 7883

January 2013

1 Table of content ABBREVIATIONS ...... III GLOSSARY ...... V 1. INTRODUCTION...... 1 1.1 General ...... 1 1.2 Project Goals and Objectives ...... 1 2. OBJECTIVES AND POLICY FRAMEWORK ...... 1 2.1 Relevant Legal Policy Framework ...... 1 2.1.1 ADB Policy on Indigenous People ...... 1 2.1.2 GON Policies towards IPs ...... 2 2.1.3 IPPF Policy Framework ...... 2 2.2 Objectives of the Indigenous Peoples Planning Framework ...... 2 3. CATEGORY OF INDIGENOUS PEOPLES AND PROJECT AREAS ...... 3 3.1 General Background of Indigenous Peoples ...... 3 3.2 General Ethnicity in Nepal ...... 4 3.3 Distribution of the Ethnic Groups (including IPs) in Watersheds Districts ...... 5 4. SOCIAL IMPACT ASSESSMENT AND IPDP PREPARATION FOR SUBPROJECTS ...... 7 4.1 Specific Procedures for Subproject Planning and Participation of IPs ...... 7 4.1.1 Preliminary Screening ...... 7 4.1.2 Social Impact Assessment and Preparation of IPDPs ...... 8 4.1.3 Preparation of IPDPs ...... 8 4.2 Key Positive and Negative Project Impacts on IPs ...... 9 4.2.1 Possible Negative Project Impacts on IPs ...... 9 4.2.2 Possible IPDP Mitigation Measures ...... 9 4.3 Involvement of NGOs ...... 9 5. CONSULTATION AND PARTICIPATION ...... 10 6. DISCLOSURE ...... 10 7. GRIEVANCE REDRESS MECHANISM ...... 11 8. INSTITUTIONAL AND IMPLEMENTATION ARRANGEMENTS ...... 11 9. BUDGET AND FINANCING ...... 11 10. MONITORING AND REPORTING ARRANGEMENTS ...... 12 11. APPENDICES ...... 13 11.1 Appendix 1 : Population and Percentage of Ethnicity of Nepal ...... 13 11.2 Appendix 2: Population of 6 districts within Watershed Districts ...... 17 11.3 Appendix 3 : Full list of different ethnicities ...... 20

List of Tables

Table 3-1: Poverty Incidence by Caste and Ethnicity, Nepal ...... 5 Table 3-2: Indigenous People and their Level of Marginalization ...... 5

ABBREVIATIONS ADB Asian Development Bank APs Affected Peoples B/C Hill Brahmans and Chhetris

BCRWMER Building Climate Resilience of Watersheds in Mountain Eco- regions CBO Community Based Organization CDO Chief District Officer DC District Coordinator DDC District Development Committee DP Displaced Person DSCO District Soil Conservation Office DSCWM Department of Soil Conservation and Watershed Management EA Executing Agency EIP Endangered Indigenous Peoples FEDO Feminist Dalit Organization FGD Focus Group Discussion FGD Focus Group Discussion

GON Government of Nepal GRC Grievance Redress Committee GSEA (Nepal) Gender and Social Exclusion Assessment HH Household IA Implementing Agency IP Indigenous People IPDP Indigenous Peoples Development Plan IPPF Indigenous Peoples Planning Framework IPSA Initial Poverty and Social Assessment LRO Land Revenue Office LSGA Local Self-Governance Act MLD Ministry of Local Development NCDN National Committee for Development of Nationalities NFIN Nepal Federation of Indigenous Nationalities NGO Non-Governmental Organization NHRAP National Human Rights Action Plan NRs Nepali Rupees PAF Project Affected Families PPTA Project Preparation Technical Assistance PIO Project Implementation Office (national level) PIU Project Implementation Unit (district level) RF Resettlement Framework ROW Right of Way RP Resettlement Plan SAP Social Action Plan SDS Social Development Specialist SIA Social Impact Assessment SIS Supplementary Investment Schemes SM Social Mobilization/Mobilizer SPAF Severely Project Affected Families SPS Safeguards Policy Statement SWA Sector Wide Approach SWG Sub-Watershed Groups VBSM Village based Social Mobilizer VDC Village Development Committee VG Vulnerable Group WFP World Food Program ZOI Zone of Influence

GLOSSARY Affected All persons who as of the cut-off date stand to lose for the Project all or Person part of their land or other assets, irrespective of legal or ownership title.

Dalits The formerly “untouchable” castes now calling themselves Dalits (“oppressed”, “broken”, or “crushed”). Non-titled Those who have no recognizable rights or claims to the land that they are occupying. However illegal inhabitants as per law of Nepal will be excluded from non-titled. Poverty Line The level of income below which an individual or a household is considered poor (NRs 10,000 per person per year in most districts in 2009). Nepal’s national poverty line is based on a food consumption basket of 2,124 calories and an allowance for nonfood items of about two thirds of the cost of the basket, will be adopted by the Project to count APs under the poverty line. The determination of poor households or persons under the project will be based on the census and socio- economic survey and confirmed by community meeting that affected person/household falls below the poverty line. Project A family consisting of affected persons (AP), his/her spouse, sons, Affected unmarried daughters, daughters-in law, brothers or unmarried sisters, Family father, mother and other legally adopted members residing with him/her and dependent on him/her for their livelihood. Severely A Project Affected Family that is affected by the project such as: Project a. There is a loss of land or income such that the affected family fall below Affected the poverty line; and/or Family/People b. There is a loss of residential house such that the family members are physically displaced from housing. Squatters People living on or farming land not owned by themselves and without any legal title or tenancy agreement. The land may belong to the Government or to individuals. Vulnerable Distinct group of people or persons who are considered to be more Group vulnerable to impoverishment risks than others. The poor, women- headed, Dalits and IPs households who fall below poverty line will be counted as vulnerable APs. Women Household headed by women, the woman may be divorced, widowed or Headed abandoned, or her husband can be working away from the District for Household long periods of time but where the woman takes the decisions about the use of and access to household resources.

1. INTRODUCTION 1.1 GENERAL 1. The Building Climate Resilience of Watersheds in Mountain Eco-Regions (hereafter called “the Project” or “BCRWME”) or simply the PPTA implemented April-December, 2012 was an initiative of the ADB and GON to prepare a watershed management project for further implementation and resilience of water resources in 6 districts namely Bajhang, Bajura, Achham, Doti, Dadeldhura and Baitadi under the Budhi Ganga and Lower Seti watershed areas. There are no indigenous peoples found in the pilot VDCs during field investigation, therefore, this Indigenous People’s Planning Framework (IPPF) has been prepared based on the interaction with the local non-indigenous community people, review of some concerned documents and the experience of the PPTA’s professionals. 1.2 PROJECT GOALS AND OBJECTIVES 2. The proposed Project aims at improving access to and enhancing reliability of water resources among communities in watersheds of Nepal river systems that are significantly vulnerable to climate change. The means for doing so involves a program of integrated watershed management with interventions for upland areas to increase surface water storage and groundwater recharge and to deliver water to locations where the community can use it. 3. This Indigenous Peoples Planning Framework (IPPF) provides policy, strategy, process and procedures to understand project impacts on indigenous peoples (IPs) and prepare relevant strategies in full compliance with Government of Nepal (Government) and ADB Safeguard Policies for the implementation of sub-projects. Moreover, it ensures that there are no adverse effects on IPs, that interventions are designed with greatest possible reduction of poverty among IPs and that the concerns of IPs are integrated in each cycle of the project.

2. OBJECTIVES AND POLICY FRAMEWORK 2.1 RELEVANT LEGAL POLICY FRAMEWORK 4. The legal framework for this IPPF is based on the ADB Safeguards Policy Statement (2009); the Interim Constitution of Nepal; the Three Year Interim Plan (2007-2010); sections of the Nepal Federation of Indigenous Nationalities Act 2002; National Human Rights Action Plan 2005; Environmental Act 1997; Forest Act 1993; and the Community Forestry Guideline. 2.1.1 ADB Policy on Indigenous People

5. In ADB’s 2009 SPS, for operational purposes, the term indigenous people is used in a generic sense to refer to a distinct, vulnerable, social and cultural group possessing the following characteristics in varying degrees:  Self-identification as members of a distinct indigenous cultural group and recognition of this identity by others;  Collective attachment to geographically distinct habitats or ancestral territories in the project area and to the natural resources in these habitats and territories;  Customary cultural, economic, social, or political institutions that are separate from those of the dominant society and culture; and  A distinct language, often different from the official language of the country or region. 6. In considering these characteristics, national legislation, customary law, and any international conventions to which the country is a party will be taken into account. A group that has lost collective attachment to geographically distinct habitats or ancestral territories in

1 the project area because of forced severance remains eligible for coverage under the SPS. The indigenous people’s safeguards are triggered if a project directly or indirectly affects the dignity, human rights, livelihood systems, or culture of indigenous peoples or affects the territories or natural or cultural resources that indigenous peoples own, use, occupy, or claim as their ancestral domain. 2.1.2 GON Policies towards IPs

7. The Interim Constitution of Nepal commits the government to the protection and development of IPs. For the welfare of Janajati (IPs) the government set up a National Committee for Development of Nationalities in 1997. The parliament passed a bill in 2002 to form the National Foundation for the Development of Indigenous Nationalities, which came into existence in 2003 replacing the previous committee. This foundation has been working to preserve the languages and cultures, and empower marginalized ethnic nationalities. 8. The Three Year Interim Plan (2007-2010) includes the following policies for inclusive development of IPs and other disadvantaged groups: (i) creating an environment for social inclusion; (ii) encouraging participation of disadvantaged groups in policy and decision making; (iii) developing special programs for disadvantaged groups; (iv) implementing positive discrimination or reservation in education, employment, etc.; (v) protecting IPs culture, language and knowledge; (vi) providing proportional representation in development; and (vii) making the country’s entire economic framework socially inclusive. 9. National Foundation of Indigenous Nationalities (NFIN) Act 2002, National Human Rights Action Plan 2005, Environmental Act 1997 and Forest Act 1993 have emphasized protection and promotion of indigenous people's knowledge and cultural heritage. In 1999, Local Self-Governance Act was enacted to give more power to the local political bodies, including authority to promote, preserve and protect the IP's language, religion, culture and their welfare. 2.1.3 IPPF Policy Framework

10. The need for a full Indigenous Peoples Development Plan (IPDP) will depend on the nature and extent of project impacts on the indigenous people. According to ADB's policy on Indigenous people, the following criteria will be the basis to determine the project impacts:  Adverse impacts on customary rights of use and access to land and natural resources;  Negative impacts on socio-economic and cultural identity;  Impacts on health, education, livelihood and social security status; and  Any other impacts that may alter or undermine indigenous knowledge and customary institutions. 11. If the Project impacts are insignificant, appropriate mitigation and benefits from the project will be integrated in the Resettlement Plan (RP). The RP, of if needed the IPDP, will ensure the inclusion of IPs in the preparation, implementation, and monitoring, of project activities. The RP/IPDP will also ensure the distribution of Project benefits to the affected IP population. 2.2 OBJECTIVES OF THE INDIGENOUS PEOPLES PLANNING FRAMEWORK 12. This IPPF provides policy and procedures to screen project impacts on IPs and prepare planning documents in compliance with ADB's 2009 Safeguards Policy Statement (SPS) for subprojects during implementation. If the Project impacts are significant, a detail study and preparation of an IPDP, prepared in line with this IPPF, will be required, based on the social impact assessment with the assistance of qualified and experienced experts and drawing on indigenous knowledge and participation by the affected indigenous people.

2 13. The IPPF provides a framework for continued consultation with the affected indigenous peoples communities during project implementation; specifies measures to ensure that indigenous peoples receive culturally appropriate benefits; identifies measures to avoid, minimize, mitigate, or compensate for any adverse project impacts; and includes culturally appropriate grievance procedures, monitoring and evaluation arrangements, and a budget and time-bound actions for implementing the planned measures. 14. IPPF is prepared to guide the preparation of subprojects under the Project to ensure better distribution of the project benefits and promote development of the Janajati along with other disadvantaged social groups in the project areas of influence. The IPPF is developed based on the national policies/strategies as well as ADB's 2009 Social Safeguards Statement (SPS). The principal objectives of the IPPF are to:  Ensure the participation of the affected IPs and other disadvantaged communities in the entire process of preparation, implementation, and monitoring of Project activities;

 Ensure Project benefits will accrue to IPs and other disadvantaged communities, and mitigate any adverse Project impacts;

 Define the institutional arrangement for screening, planning and implementation of IPDPs for subprojects; and

 Outline the IPDP monitoring and evaluation process. 15. The selection of the subprojects will be made in conjunction with the community to gain the benefit of local knowledge and to ensure the infrastructure meets community needs. Implementation of subprojects will improve water access and reliability for communities at risk from climate change and particularly address water shortage issues that result in additional labor for women and difficulties for disadvantaged groups such as the Dalit and Janajati who are often required to subordinate their water needs when there is water shortage. Increased water availability will also allow additional crop production, and reduce animal disease from polluted water. 16. About two percent of the total populations in the six districts are Indigenous/Janajati. So the Project will require necessary assessment of the status of IPs to ensure the distribution of Project benefits and to recommend measures to develop their socio-economic conditions in case any subproject is located where a population of IPs may be affected positively or negatively. 17. Concerns and actions needed for equitable and culturally appropriate treatment of indigenous people are very similar to the actions required to address needs of non- indigenous vulnerable groups, notably Dalits, other ultra poor and to less extent women. As such the ensuing sub-project are therefore not expected to impact in big number indigenous peoples differently than those other vulnerable groups, and issues of gender, land acquisition and participation can be dealt with under the GESI, LAF and C&P plans.

3. CATEGORY OF INDIGENOUS PEOPLES AND PROJECT AREAS 3.1 GENERAL BACKGROUND OF INDIGENOUS PEOPLES 18. Nepali or Nepalese are descendants of migrants from parts of earlier Greater Nepal, Tibet, India, and parts of Burma and Yunnan, along with native tribal population. Among the earliest inhabitants were the Kirat of east mid-region, Newar of the Kathmandu Valley, and aboriginal Tharu in the malarial southern Terai region. The ancestors of the Khas (Bahun, Chetri, Thakuri, Sanyasi, and Dalit) migrated eastward along the Himalayan foothills out of Kashmir, Kumaon, Garhwal, parts of the then Greater Nepal, Karnali Pradesh (Nepal) and

3 perhaps also north from the Gangeatic Plains during invasions. Other ethnic groups trace their origins to North Burma, Yunnan, and Tibet, for example the Gurung and Magar in the west, Rai and Limbu in the east, and Sherpa and Tamang in the north. 19. In the Terai, a part of the Ganges Basin with 20% of the land, much of the population is physically and culturally similar to the Indo-Aryans of northern India. Indo-Aryan and East Asian looking people live mixed in the hill region. The mountainous region is sparsely populated above 3,000 meters, but in central and western Nepal ethnic Tibetans inhabit even higher semi-arid valleys north of the high Himalaya. Kathmandu Valley, in the middle hill region, constitutes a small fraction of the nation's area but is the most densely populated, with almost 5 percent of the nation's population. Nepal is a multilingual, multi-religious and multiethnic society.1 20. Religion is important in Nepal; the Kathmandu Valley alone has more than 2,700 religious shrines. The constitution of Nepal describes the country as a "Hindu kingdom", although it does not establish Hinduism as the state religion. Nepal's constitution continues long-standing legal provisions prohibiting discrimination against other religions (but also prohibiting seeking new converts). The king was deified as the earthly manifestation of the Hindu god Vishnu. Then, on 19 May 2006, the government facing a constitutional crisis, the House of Representatives which had been just reformed, having been previously dissolved, declared Nepal a "secular state". 21. Nepal’s complex social structure makes it challenging to define IPs in Nepal. Nepal is a multi-ethnic, multi-lingual, multi-religious and, multi-cultural country, dominated by Hindu caste groups (Brahmin-Chhetri). The 2001 census has identified 100 different social groups in the country with over 92 languages and a mix of Hindu, Buddhist, Kirat, Christian and Muslim religions. The 2001 Census reports 8.4 million populations of 43 ethnic nationalities. The IPs are known as adivasi or Janajati in the Nepalese context. Some of the key characteristics of IPs are defined as: (i) distinct collective identity; (ii) own language, religion, tradition, and culture; (iii) own traditional relatively egalitarian social structure; (iv) traditional homeland and geographical area; and (v) written or oral history that traces their line of descent back to the occupants of territories before they were integrated in to Nepal within the present Nepali frontiers. 3.2 General Ethnicity in Nepal 22. The major caste/ethnic groups identified by the 2001 census are Khas (Kshatriya or Chetri (15.8%) along with 1.47% Thakuri/Chetri, Brahmin or Bahun (12.7%) in the hills (both Caucasian, counted separately from the same castes in the Terai)), Magar (7.1%), Tharu (6.8%), Tamang (5.6%), Newar (5.5%), Muslim (4.3%), Kami (3.9%), Rai (2.7%), Gurung (2.5%), and Damai/Dholi (2.4%). The remaining 92 caste/ethnic groups (including the world- famous Sherpa) each constitute less than 2 % of the population. Appendix 1: Population and Percentage of Ethnicity of Nepal provides a table based on endogamous ethnicity, some 102 classifications, not linguistic ethnic groups. 23. Based on these characteristics, the NFIN, a Government founded institution, has recognized 59 different nationalities as IPs/ethnic groups of Nepal who comprise about 37.2% of the country's population of over 25 million. The majority of these IPs are socially, economically, politically and educationally marginalized. The Human Development Index shows considerable disparities among various nationalities/ethnicities and castes and communities, which in some cases are still widening as can be seen in the Table below (CBS National Living Standard Survey data comparing 1995/96 with 2003/04). This table shows the Hill Janajati are the second most poor category over the decade between 1995 and 2005, just above Dalits; and their Poverty Headcount Rate has only improved by 10 percent, the least progress in Nepal after Muslims.

1 http://en.wikipedia.org/wiki/Demographics_of_Nepal

4 Table 3-1: Poverty Incidence by Caste and Ethnicity, Nepal Poverty Headcount Rate CASTE AND ETHNICITY 1995/96 2003/04 Change in RANK Percent NEPAL 41.8 30.8 -26 1 Newar 19.3 14.0 -28 2 Brahmin/Chhetri 34.1 18.4 -46 3 Tarai Middle Caste 28.7 21.3 -26 4 Tarai Janajati 53.4 35.4 -34 5 Muslim 43.7 41.3 -6 6 Hill Janajati 48.7 44.0 -10 7 Dalits 57.8 45.5 -21 Others 46.1 31.3 -32 Source: CBS 2005 3.3 DISTRIBUTION OF THE ETHNIC GROUPS (INCLUDING IPS) IN WATERSHEDS DISTRICTS 24. The affiliated National Federation of Indigenous Nationalities (NFIN) has classified IP into five different categories based on socio economic variables that include literacy, housing, occupation, language, area of residence and population size. This categorization is given in the following table. Table 3-2: Indigenous People and their Level of Marginalization2 Highly Region Endangered Marginalized Disadvantaged Advantaged Marginalized Mountain -- Shiyar, Bhote, Baragaunle, Byansi Thakali Shingsawa Dolpo, (Sauka), Chhairotan, (Lhomi), Larke, Marphali Thakali, Thudam Lhopa, Sherpa, Mugali, Tangbe, Topkegola, Tingaule Thakali Walung Hill Bankariya, Baramu, Bhujel, Chhantyal, Newar Hayu, Thami Dura, Gurung (Tamu), Jirel, Kusbadiya, (Thangmi), Pahari, Limbu (Yakthung), Kusunda, Chepang Phree, Magar, Lepcha, Sunuwar, Rai, Surel Tamang Yakkha, Hyolmo Inner Raji, Bote, Darai, -- -- Terai Raute Danuwar, Kumal Majhi Terai Kisan, Dhanuk Dhimal, -- -- Meche (Rajbansi), Gangai, (Bodo) Jhangad, Rajbanshi, Santhal (Satar) Tajpuriya, Tharu Total 10 12 20 15 2

2 Source: National Foundation for Development of Indigenous Nationalities (NEFIN)

5 25. According to district profile, total populations in the 6 districts are 1,061,489. More population is 231,970 in Baitadi followed by 230,773 in Achham, 206,896 in Doti, 165,119 in Bajhang, 126,115 in Dadeldhura and 100,616 in Bajura, within the watershed areas. Among them 585 are endangered group, 20,568 Indigenous group including endangered, 235,336 are Dalit groups and 805,585 are Brahmin, Chhetri and other ethnic groups. Detail population of those castes of each districts are given in the Appendix 2. 26. There are no Endangered Indigenous Peoples (EIPs) and IPs found in pilot VDCs3 during community consultation and feasibility study of Sub-watersheds areas. With respect to EIPs and IPs there are five EIPs and 28 IPs mentioned in the district profiles for the 6 districts lying in the two watersheds. The profiles record 585 EIPs in those 6 districts of whom the majority are Raute (0.06% or 381)4. Two Lepcha EIPs are reported in Doti and Baitadi districts. Six Hayu EIPs are reported in Baitadi and Bajhang districts. Nineteen Kusunda EIPs are reported in Doti, Achham and Baitadi districts and a total of 177 Raji EIPs are reported in the 6 districts. 27. Endangered IP are even smaller in number and only count 27 persons in Doti, Achham and Baitadi districts. These endangered IP include Hayu, Kusunda and Lepcha and originate in other hill areas of Nepal. These people may have migrated for official service, labor, transportation, business, construction work, employment or livelihood. 28. The Raute and Raji are IP mostly found in inner Terai in the Far West Region. They are also very small in number and comprise a total of 558 in the six districts. They do not live in town area and do not integrate with the larger society through schooling and service. All these groups have problems in maintaining their language and their cultural identity because of their small number and difficulty to make essential elements of their culture compatible with educational, health and development services. More than 90 % of the IP population lives in rural areas and their economy is based on agriculture, or in the case of Rautes on hunting and gathering forest goods. 29. Other highly marginalized groups are also very small in number (e.g. Baramu, Thami, Chepang, Bote, Danuwar Majhi, Dhanuk, Jhangad and Satar). The total population of these groups in the six districts is 1108. Mostly they have migrated from another part of the country for official service, labor, transportation, business, construction work, employment, livelihood etc. 30. In the Disadvantaged Group of IP, Sherpa (625 population) are found in mountain region/high altitude area of all six districts but Gurung (1181 population) are found in hill region of all six districts. Magar (11482 population) are also found in hill region of all six districts. Remaining IPs groups e.g. Jirel (6) found in Doti, Achham and Bajura districts while Limbu (189) and Rai (495), are found in all districts. 31. Advantaged IPs such as the Newar (2560 population) and Thakali (44 population) are found in all six-hill districts but Thakali are not found in Baitadi district. They have sizeable trade communities and presence in the towns resulting in their good economic standing. The status of the advantaged IP notably the Newar, are often quite similar to those of the dominant Hindu castes (Brahmin/Chetri).

3 The pilot VDCs are Toli and Kuldevmandu VDCs of Bajura district, Kalika, Bardadevi and Mangelsen VDCs of Achham district, Kalikasthan and Pachnali VDCs of Doti district, Koteli VDC of Dadeldhura district and Siddhapur VDc of Baitadi district 4 This Raute population comprises 285 in Dadeldhura district, 66 in Doti, 17 in Achham and 13 in Bajhang. There are no EIPs in Bajura and Baitadi districts.

6 4. SOCIAL IMPACT ASSESSMENT AND IPDP PREPARATION FOR SUBPROJECTS 4.1 SPECIFIC PROCEDURES FOR SUBPROJECT PLANNING AND PARTICIPATION OF IPS 32. This section provides detailed procedures to be followed in screening, social impact assessment, and preparation of IP plans for additional subprojects. The procedures ensure that indigenous people are informed, consulted and participate in the entire subproject cycle. 33. The participation of IPs in the Project will allow a better understanding of their needs and to identify measures to mitigate any adverse impacts due to the Project. The IPDP will consist of the following:  Preliminary Screening;  Social Impact Assessment;  Mitigation Measures;  Development Assistance; and  Project Monitoring. 4.1.1 Preliminary Screening

34. Initial screening of subproject impacts on IPs will be conducted as early as possible in the subproject cycle to categorize the impacts and identify subsequent approaches and resource requirements to address IP issues with due consultation with National Federation of Indigenous in Nepal's district representatives and District Coordination Committee of Janjati at DDCs. A thorough screening will be conducted during Initial Poverty and Social Assessment (IPSA) as part of subproject (pre) feasibility study. The Project Management Unit with support of the DSCO and the Sub-watershed Management Teams (SMTs) at district level will identify IP community groups, their actual population (number and ratio), and their characteristics as compared to the main population in the subproject through primary and secondary data information collection. IP/Janajati Empowerment Project Report, District Development Profile, VDC and Ward level information will be consulted and meetings with key persons and NGOs/CBOs representing causes of IPs will be held to assess the population size of IPs, the sub-category within them, and the likely impact of the subproject on each sub-groups. The IPSA will be carried out in accordance with ADB’s Handbook on Poverty and Social Assessment, particularly Appendix 8 on indigenous peoples. 35. The concerned officials of the DSCO and SMT team will visit the Project area, especially IP settlements, to know likely impacts due to the Project. Public meetings will be arranged with the local key persons to disseminate Project information and to have feedback from them. The details of the IP community, including total number of households, population, and likely loss of assets, will be gathered. 36. Subprojects will be categorized according to the level of impacts on IPs. The level of impacts will be determined by the type, location, scale, nature, magnitude of potential impacts on IPs. The subproject will fall to one of the following categories:  Category A: subprojects expected to have significant impacts that require IPDP;  Category B: subprojects expected to have limited impacts that require specific action for IPs in resettlement plans and/or social action plan; and

 Category C: subprojects not expected to have impacts on IPs and therefore do not require special provision for IPs. 37. The impacts on IPs will be considered significant if the project negatively: (i) affects their customary rights of use and access to land and natural resources; (ii) changes their socio-economic status; (iii) affects their cultural and communal integrity; (iv) affects their health, education, livelihood and social security status; and/or (v) alters or undermine the recognition of indigenous knowledge.

7 38. The screening and categorization will be initiated by SMT, supported by NGO/SDO /field-based Community mobilizers, and reviewed and confirmed by PMU. Once finalized, the IPSA report and categorization form will be included in subproject feasibility/design report to be submitted to ADB. 4.1.2 Social Impact Assessment and Preparation of IPDPs

39. A Social Impact Assessment (SIA) will be undertaken in the Project affected area. For the SIA study, demography, socio-economic status, social cultural situation, likely impact on the assets, and other impacts (negative and positive) will be collected. In addition, separate group meetings will be organized with IP community leaders, as well as separately for men and women. Discussion will be focused on the positive and negative impacts of the Project, a needs assessment, and local expectations of the Project. If the SIA identifies significant Project negative impacts on IPs, an IPDP will be prepared to address the impacts and distribution of measures to promote the socio-economic development of the IPs. 40. The SMT will undertake an SIA as part of the detailed feasibility/design of the subproject. The SIA will gather relevant information on demographic data; social, cultural and economic situation; and social, cultural and economic impacts. The information will be gathered through separate group meetings within the IP community, including their leaders, NGOs, CBOs, and affected persons. Discussions will focus on potential positive and negative impacts of the subproject; measures to enhance strategies/options to minimize and/or mitigate negative impacts. 4.1.3 Preparation of IPDPs

41. Based on the SIA, the project will develop appropriate mitigation measures and livelihood enhancement activities for IPs. In case of limited impacts, specific actions for IPs will be spelled out in resettlement plan and/or social action plan for the subproject. If SIA identifies the project will have significant differential impact compared to the mainstream population, an IPDP will be prepared to enhance distribution of project benefits and promote the development of IPs. 42. The basic objective of the IPDP is to ensure that these affected communities receive compensations from the project that are at least par or better than those received by other people in the community. If the tribal communities lose land, structures, or other assets, the project will ensure that they will be properly compensated. The compensation measures will be mentioned in the IPDP prepared for the Project. 43. The IPDP will consist of a number of activities and include mitigation measures of the potential negative impacts through modification of project design and development assistance to enhance distribution of project benefits. Where there is land acquisition or structural losses in the ethnic/indigenous communities, the Project will ensure that their rights will not be violated and that they be compensated for the use of any part of their land in a manner that is culturally acceptable to them. The compensation measures will follow the Resettlement Framework of the Project. 44. An IPDP will addresses the (i) aspirations, needs, and preferred options of the affected indigenous peoples; (ii) local social organization, cultural beliefs, ancestral territory, and resource use patterns among the affected indigenous peoples; (iii) potential positive and negative impacts on indigenous peoples; (iv) measures to avoid, mitigate, or compensate for the adverse project effects; (v) measures to ensure project benefits will accrue to indigenous peoples; (vi) measures to strengthen DSCO capacity to address indigenous peoples issues; (vii) the possibility of involving local organizations and non-governmental organizations with expertise in indigenous peoples issues; (viii) budget allocation; and (ix) monitoring. The PMU will submit the IPDP to ADB for review and approval prior to commencement of civil works. ADB will review and send comments within three weeks.

8 4.2 KEY POSITIVE AND NEGATIVE PROJECT IMPACTS ON IPS 45. IPs are not expected to be affected seriously or at all by the project whether it is through loss of livelihoods, displacement or impacts on their social and cultural identity. The feasibility study raised the following impacts that might be IP specific, which were addressed through changes to project design and introduction of relevant safeguards. 46. The ensuing project is not expected to have extensive impact on IPs. Each subproject will be screened against the sub-project selection criteria once it is nominated by the beneficiaries themselves. This process ensures the identification of IPs (if any) and specific actions that will be required for any sub-project. 4.2.1 Possible Negative Project Impacts on IPs

47. The following may be the possible negative Project impacts:  Loss of land and structures;  Loss of agricultural production;  Displacement;  Loss of livelihood; and  Changes to subsistence levels and income generating capacity. 4.2.2 Possible IPDP Mitigation Measures

48. The following measures are recommended for the socio-economic development of the IPs:  Compensation for the lost assets (land, structures, business etc.) and production;  Resettlement and Rehabilitation, if required;  Involvement in the decision making process during project design, implementation (in each phase of the Project);  Representation in SWMCs, Grievance Resolution Committee; and  Specific program to the most vulnerable IPs living in the Project areas that will be undertaken through the measures undertaken by the GESI Plan.

4.3 INVOLVEMENT OF NGOS 49. In case of major impact on IPs, a local NGO will be appointed and will play an intermediary role in the community. If there is impact on IPs, participation of that community will be very important in developing, implementing, and monitoring the Project’s planned activities, for reducing poverty and improving access to economic and social services as well as increasing the social and financial capital in the Project area. 50. The NGO will facilitate the community and mobilize them in various activities of the project. It will undertake various training programs associated to income generation activities by educating the IPs. The NGO will play the following role in performing the main activities:  Arranging awareness program;  Collection of household information to assist design;  Conducting Focus Group Discussion (FGD) and social mapping;  Facilitating land acquisition;  Facilitating in the implementation of resettlement and rehabilitation plan;  Facilitating formation of Sub-Watershed Management Committees;  Facilitating the formation of grievance resolution committee in local level;  Conducting training program to strengthen SWMCs; and  Conducting internal monitoring.

9 5. CONSULTATION AND PARTICIPATION 51. Ministry of Forests and Soil Conservation (MFSC) will be the executing agency. The DSCWM will be the implementing agency and will form Sub-watershed Management Teams (SMTs) and all the project implementation at sub-watershed level will be done by the SMTs. The SMT for the sub-watershed will coordinate all activities related to resettlement and IP’s issues. A Project Management Unit will be formed and attached to the Dadeldhura DSCO. In addition to managing project implementation, it will provide technical support to the SMT. Two new DSCOs are recommended for Achham and Bajura and SMTs would be formed to support them. The SMTs, with support as needed from the PMU, will undertake sub- watershed plan preparation, the engineering work of planning of subprojects (feasibility and detailed design), and supervising construction and implementation. Subproject esigns will be approved by the PMU. The SMTs will operate under the direction of the District Soil Conservation Officer and provide regular financial and progress reports to the PMU which will report to the PD at the central level. The SMT workforce will consist of staff from the relevant DSCO and junior national consultants hired with Project funds. The work of these junior national consultants will be supervised by senior national consultants based at the PMU. The IA may also hire local and experienced NGOs to assist in planning and implementation of the IPDP. 52. The IPDP will be prepared in consultation with the affected IP groups. The issues and measures will be disclosed during the local level workshop to get their feedback and to make the IPDP more pragmatic. 53. The existing indigenous people’s institution and other organizations will be involved in the implementation of IPDP. This will help in resolution of the dispute or grievances arise during the implementation. The EA/IA will ensure that there will be sufficient budget available for the implementation of the IPDP. 54. The consultation with and participation of IPs will be ensured in formulation of subproject to ensure that it adequately deal with their needs, priorities, and preference. The IPs will be provided relevant project information and manner suitable to them. A separate focus group discussions will be held with indigenous groups to assess the project impacts and benefits to these groups. Accordingly, the project plans, including IP plans, will be prepared in consultation with IPs. Outcome of social assessment and programs/measures for IPs will be presented in community workshops/meetings.

6. DISCLOSURE 55. DSCO shall make available the following documents to the project affected indigenous peoples and disclose to the public:  A draft IPDP, before subproject appraisal;  A final IPDP, after completion of such an IPDP; and  The revised IPDP, following the detailed technical design or change in scope in the subproject. 56. The information from the documents specified above will be made available to affected persons as leaflets in Nepali and, as feasible, in the local IP language. DSCWM shall also post the above documents on its website. During implementation, PMU will prepare social monitoring reports, make them available to affected IPs, post them on the DSCWM website, and submit these to ADB for review.

7. GRIEVANCE REDRESS MECHANISM 57. The IP Grievance Redress Mechanism will be the same as set out in the Resettlement Framework (RF). The Project proposes to redress grievances through the SMTs and, if needed, a Grievance Redress Committee at the district. The GRC at district level will be established under the chairmanship of DSCO head; other members of the committee will be the representatives of affected families, VDC; village elders or local level representatives of mass organizations; or, as applicable, relevant IP NGOs and agencies; the Field Coordinator. 58. As indicated above, the existing indigenous people’s institution and other organizations will be involved in the planning and implementation of any required IPDP. This will help in resolution of the dispute or grievances arise during the implementation. 59. The APs, including IPs, may submit their concerns or grievances verbally or in writing to this Committee. All complaints/grievances will be documented properly by the Committee. The Committee shall make field-based assessment to verify/examine the grievances, if necessary. After proper examination/verification of the grievances, the Committee shall facilitate DSCO and other concerned parties to agree on a time-bound action plan to resolve the grievance if found to be genuine. 60. The SWMC will also help to solve the local problems. A villager can approach the SWMC with an individual problem or complaint that is then discussed locally with the aim to settle the issues at local level. Each SWMC has its sub-committees in each VDC comprising five members, including APs, to hear complaints and grievances at the VDC level. The Committee comprises three members from SWG and two representatives from among the affected persons. 61. Because marginal or disadvantaged IPs, low caste and very poor tend not to complain to the official hierarchy, the presence of village based community mobilizers will facilitate access to the official system for the poor, low caste and disadvantaged and have the effect of making the process more transparent. Village based community mobilizers will also enable greater and fairer negotiations with the project over minor compensation arrangements.

8. INSTITUTIONAL AND IMPLEMENTATION ARRANGEMENTS 62. A Social Safeguards Specialist will be placed in the PMU and if required a Field Coordinator will be placed in the DSCO to support PMU and DSCO to implement IPDP activities. The social mobilization team at the district level will assist in the planning and implementation of IPDP.

9. BUDGET AND FINANCING 63. All the costs required to implement the IPDPs will be incorporated in the Project cost under the Community Watershed Management Plan. The IPDP will include detailed cost estimate and indicate source of funds for the required activities. While the administrative costs for surveys, social assessment, and preparation of the IPDP will be financed under Project Management Services.

10. MONITORING AND REPORTING ARRANGEMENTS 64. The impact on IPs will be very limited therefore it will not require external monitoring. The internal monitoring will be done during the implementation of IPDP. The Project staff, NGOs, affected IP groups; related local organizations will be involved in the monitoring system. A set of monitoring indicators will be established to know the implementation status of the IPDP. Regular monitoring conducted by DSCO monthly as well internal monitoring conducted by the project M&E Specialist or SDO of PIO every 3 months. 65. A set of monitoring indicators will be determined during IPDP preparation. A survey of existing socio-economic status and cultural practices of IPs, which will be carried out during subproject feasibility study/design, will be the basis for establishing the baseline data to monitor the project impacts on IPs. The IPDP will also specify the system to collect data and monitor the changes. The PMO will prepare trimester monitoring reports, post them on its DSCWM’s website, and submit to ADB for its review.

12 11. APPENDICES 11.1 Appendix 1 : Population and Percentage of Ethnicity of Nepal

No. Caste/Ethnic Group Population % of Total

1 Khas Kshatriya/Chetri 3,593,496 15.80

2 Khas Brahmin/Bahun 2,896,477 12.74

3 Magar 1,622,421 7.14

4 Tharu 1,533,879 6.75

5 Tamang 1,282,304 5.64

6 Newar 1,245,232 5.48

7 Muslim 971,056 4.27

8 Kami 895,954 3.94

9 Yadav 895,423 3.94

10 Rai 635,151 2.79

11 Gurung 686,000 2.39

12 Damai/Dholi 390,305 1.72

13 Limbu 359,379 1.58

14 Khas - Thakuri/Chetri 334,120 1.47

15 Sarki 318,989 1.40

16 Teli 304,536 1.34

17 Chamar, Harijan, Ram 269,661 1.19

18 Koiri 251,274 1.11

19 Kurmi 212,842 0.94

20 Khas-Sanyasi 199,127 0.88

21 Dhanuk 188,150 0.83

22 Musahar 172,434 0.76

23 Dusad/Paswan/Pasi 158,525 0.70

24 Sherpa 154,622 0.68

25 Sonar 145,088 0.64

26 Kewat 136,953 0.60

27 Terai-Brahmin 134,496 0.59

13 No. Caste/Ethnic Group Population % of Total

28 Baniya 126,971 0.56

29 Gharti/Bhujel 117,568 0.52

30 Mallah 115,986 0.51

31 Kalwar 115,606 0.51

32 Kumal 99,389 0.44

33 Hajam/Thakur 98,169 0.43

34 Kanu 95,826 0.42

35 Rajbansi 95,812 0.42

36 Sunuwar 95,254 0.42

37 Sudhi 89,846 0.40

38 Lohar 82,637 0.36

39 Tatma 76,512 0.34

40 Khatwe 74,972 0.33

41 Dhobi 73,413 0.32

42 Majhi 72,614 0.32

43 Nuniya 66,873 0.29

44 Kumhar 54,413 0.24

45 Danuwar 53,229 0.23

46 Chepang 52,237 0.23

47 Haluwai 50,583 0.22

48 Rajput 48,454 0.21

49 Kayastha 46,071 0.20

50 Budhae 45,975 0.20

51 Marwadi 43,971 0.19

52 Santhal/Satar 42,698 0.19

53 Dhagar/Jhagar 41,764 0.18

54 Bantar 35,839 0.16

55 Barae 35,434 0.16

56 Kahar 34,531 0.15

14 No. Caste/Ethnic Group Population % of Total

57 Gangai 31,318 0.14

58 Lodha 24,738 0.11

59 Rajbhar 24,263 0.11

60 Thami 22,999 0.10

61 Dhimal 19,537 0.09

62 Bhote 19,261 0.08

63 Bing/Binda 18,720 0.08

64 Bhediyar/Gaderi 17,729 0.08

65 Nurang 17,522 0.08

66 Yakkha 17,003 0.07

67 Darai 14,859 0.07

68 Tajpuriya 13,250 0.06

69 Thakali 12,973 0.06

70 Chidimar 12,296 0.05

71 Pahari (excl. Khas?) 11,505 0.05

72 Mali 11,390 0.05

73 Bangali 9,860 0.04

74 Chhantyal 9,814 0.04

75 Dom 8,931 0.04

76 Kamar 8,761 0.04

77 Bote 7,969 0.04

78 Brahmu/Baramu 7,383 0.03

79 Gaine/Gandarbha 5,887 0.03

80 Jirel 5,316 0.02

81 Adivasi/Janajati 5,259 0.02

82 Duga 5,169 0.02

83 Churaute 4,893 0.02

84 Badi 4,442 0.02

85 Meche 3,763 0.02

15 No. Caste/Ethnic Group Population % of Total

86 Lepcha 3,660 0.02

87 Halkhor 3,621 0.02

88 Punjabi/Sikh 3,054 0.01

89 Kisan 2,876 0.01

90 Raji 2,399 0.01

91 Byangsi 2,103 0.01

92 Hayu 1,821 0.01

93 Koche 1,429 0.01

94 Dhunia 1,231 0.01

95 Walung 1,148 0.01

96 Jaine 1,015 0.00

97 Munda 660 0.00

98 Raute 658 0.00

99 Yehlmo 579 0.00

100 Patharkata/Kuswadiya 552 0.00

101 Kusunda 164 0.00

102 Khas - Dalit/Unidentified 173,401 0.76

103 Unidentified Caste/Ethnicity 231,641 1.02

TOTAL 22,736,934 100.00

16 11.2 Appendix 2: Population of 6 districts within Watershed Districts S IPs Watershed districts Total Total

N Dadeld Doti Achha Bajura Sub % Baitadi Bajhan Sub % % hura m Total g Total Indigenous People's/Janajati (Endangered) Group

1 Hayu 0 0 0 0 0 0.000 4 2 6 0.002 6 0.001

2 Kusunda 0 6 1 0 7 0.001 12 0 12 0.003 19 0.002

3 Lepcha 0 1 0 0 1 0.000 1 0 1 0.000 2 0.000

4 Raji 99 59 3 11 172 0.026 2 3 5 0.001 177 0.017

5 Raute 285 66 17 0 368 0.055 0 13 13 0.003 381 0.036

Sub Total 384 132 21 11 548 0.082 19 18 37 0.009 585 0.055 Indigenous People's/Janajati Group

6 Baramo 0 0 0 0 0 0.000 125 125 0.031 125 0.012

7 Bhote 0 1 0 862 863 0.130 7 39 46 0.012 909 0.086

8 Bhujel 21 2 16 0 39 0.006 56 56 0.014 95 0.009

9 Bote 0 9 0 0 9 0.001 34 25 59 0.015 68 0.006

10 Chepang 1 1 0 0 2 0.000 2 2 0.001 4 0.000

11 Darai 0 1 1 0.000 0 3 3 0.001 4 0.000

12 Dhanuk 2 0 21 0 23 0.003 0 80 80 0.020 103 0.010

13 Dhimal 0 12 7 0 19 0.003 0 0 0 0.000 19 0.002

14 Dunuwar 4 1 7 0 12 0.002 11 1 12 0.003 24 0.002

15 Dura 0 4 0 0 4 0.001 10 10 0.003 14 0.001

16 Gangai 0 2 1 0 3 0.000 1 1 0.000 4 0.000

17 Gurung 185 521 52 137 895 0.135 250 36 286 0.072 1181 0.111

18 Jhagad/ 0 2 2 0.000 0 0 0 0.000 2 0.000 Dhangar

19 Jirel 0 4 1 1 6 0.001 0 0 0 0.000 6 0.001

20 Koch 2 12 0 0 14 0.002 2 1 3 0.001 17 0.002 Rajbanshi

21 Kumal 29 17 0 233 279 0.042 2 4 6 0.002 285 0.027

22 Limbu 26 28 46 12 112 0.017 74 3 77 0.019 189 0.018

23 Magar 3654 5786 1561 230 11231 1.690 183 68 251 0.063 11482 1.082

24 Majhi 41 1 155 2 199 0.030 0 0 0 0.000 199 0.019

25 Newar 400 1391 277 55 2123 0.320 249 188 437 0.110 2560 0.241

26 Pahari 0 0 0 0 0 0.000 233 42 275 0.069 275 0.026

27 Rai 30 128 82 19 259 0.039 217 16 233 0.059 492 0.046

28 Satar 95 0 2 0 97 0.015 245 67 312 0.079 409 0.039

29 Sherpa 54 349 54 38 495 0.075 1 129 130 0.033 625 0.059

30 Sunuwar 31 34 0 0 65 0.010 17 6 23 0.006 88 0.008

31 Tamang 30 66 23 23 142 0.021 32 84 116 0.029 258 0.024

32 Thakali 6 14 4 5 29 0.004 0 15 15 0.004 44 0.004

33 Tharu 62 196 106 35 399 0.060 73 30 103 0.026 502 0.047

Sub Total 4673 8582 2415 1652 17322 2.607 1699 962 2661 0.670 19983 1.883

17 S IPs Watershed districts Total Total

N Dadeld Doti Achha Bajura Sub % Baitadi Bajhan Sub % % hura m Total g Total

Dalit Group

34 Kami 9646 16644 31109 9498 66897 10.069 14360 13201 27561 6.941 94458 8.899

35 Damai- 3662 10789 14709 4024 33184 4.995 3612 3637 7249 1.826 40433 3.809 Dholi

36 Sharki 6632 9000 5954 3557 25143 3.784 7436 4630 12066 3.039 37209 3.505

37 Chamar/ 4 626 1 0 631 0.095 22 1 23 0.006 654 0.062 Harijan/Do m/Ram

38 Lohar 1323 1 3385 1714 6423 0.967 10821 485 11306 2.847 17729 1.670

39 Tamata 8 16 6 0 30 0.005 0 0 0 0.000 30 0.003

40 Badi 0 13 5 0 18 0.003 20 123 143 0.036 161 0.015

41 Dusad/Pasi/ 0 0 4 0 4 0.001 4 198 202 0.051 206 0.019 Paswan

42 Musahar 0 0 1 0 1 0.000 0 0 0 0.000 1 0.000

43 Dhobi/ 3 155 0 0 158 0.024 2 80 82 0.021 240 0.023 Nunuya

44 Tatma 0 0 0 0 0 0.000 1 0 1 0.000 1 0.000

45 Kahtwe 0 0 0 0 0 0.000 4 0 4 0.001 4 0.000

46 Halkhor 0 1 0 3 4 0.001 2 0 2 0.001 6 0.001

47 Chidimar 0 0 0 0 0 0.000 0 6 6 0.002 6 0.001

48 Koiri 121 447 80 224 872 0.131 174 147 321 0.081 1193 0.112

49 Sunar 308 2 1187 1741 3238 0.487 63 1255 1318 0.332 4556 0.429

50 Gaine 0 0 0 15 15 0.002 0 0 0 0.000 15 0.001

51 Identified 3087 0 9231 0 12318 1.854 0 3440 3440 0.866 15758 1.485 Dalit

52 Unidentified 1687 12913 0 3963 18563 2.794 3872 0 3872 0.975 22435 2.114 Dalit

Sub Total 26481 50607 65672 24739 167499 25.212 40393 27203 67596 17.025 235095 22.148 Brahmin, Chhatri and Other Group

53 Chhetri 64759 109217 123086 55887 352949 53.123 112794 106775 219569 55.307 572518 53.940

54 Brahmin-Hill 22560 19013 24770 6936 73279 11.029 47350 18010 65360 16.463 138639 13.062

55 Muslim 88 120 156 145 509 0.077 33 108 141 0.036 650 0.061

56 Yadav 16 95 298 245 654 0.098 62 27 89 0.022 743 0.070

57 Thakuri 4489 8986 9164 6451 29090 4.378 19284 9376 28660 7.218 57750 5.440

58 Kurmi 5 995 2 1 1003 0.151 46 0 46 0.012 1049 0.099

59 Sanyasi 2128 61 884 2986 6059 0.912 3766 2180 5946 1.497 12005 1.131

60 Kewat 0 164 6 2 172 0.026 0 12 12 0.003 184 0.017

61 Brahmin- 320 38 18 1 377 0.057 551 34 585 0.147 962 0.091 Terai

62 Baniya 28 2 201 5 236 0.036 132 132 0.033 368 0.035

63 Mallah 0 7 5 0 12 0.002 19 0 19 0.005 31 0.003

64 Hajam/ 5 2 12 2 21 0.003 0 3 3 0.001 24 0.002 Thakur

65 Sudhi 12 3667 3 4 3686 0.555 237 14 251 0.063 3937 0.371

66 Muniya 0 20 0 0 20 0.003 0 0 0 0.000 20 0.002

67 Kumhar 0 6 13 8 27 0.004 11 0 11 0.003 38 0.004

18 S IPs Watershed districts Total Total

N Dadeld Doti Achha Bajura Sub % Baitadi Bajhan Sub % % hura m Total g Total

68 Halwai 0 14 2 1 17 0.003 3 2 5 0.001 22 0.002

69 Rajput 17 104 22 4 147 0.022 56 3 59 0.015 206 0.019

70 Kayastha 7 47 85 28 167 0.025 25 11 36 0.009 203 0.019

71 Badahi 33 16 8 29 86 0.013 7 0 7 0.002 93 0.009

72 Marwadi/ 6 1 1 0 8 0.001 127 27 154 0.039 162 0.015 Jain

73 Nurang 46 736 524 4 1310 0.197 888 212 1100 0.277 2410 0.227

74 Bangali 0 1 0 1 2 0.000 6 2 8 0.002 10 0.001

75 Jaire 0 17 0 0 17 0.003 0 0 0 0.000 17 0.002

76 Panjabi 0 0 0 27 27 0.004 0 0 0 0.000 27 0.003

77 Mali 0 0 1 0 1 0.000 1 0 1 0.000 2 0.000

78 Rajwar 0 0 6 0 6 0.001 2 2 4 0.001 10 0.001

79 Kanu 0 0 1 0 1 0.000 0 0 0 0.000 1 0.000

80 Kahar 0 0 3 0 3 0.000 0 0 0 0.000 3 0.000

81 Teli 55 35 0 9 99 0.015 128 6 134 0.034 233 0.022

82 Kalwar 3 12 5 3 23 0.003 0 0 0 0.000 23 0.002

83 Identified 0 4199 0 0 4199 0.632 0 0 0 0.000 4199 0.396 Caste

84 Unidentified 0 0 3389 1435 4824 0.726 4463 4463 1.124 9287 0.875 Caste

Sub Total 94577 147575 162665 74214 479031 72.10 189859 136936 326795 82.30 805826 75.91

Total 126115 206896 230773 100616 664400 100 231970 165119 397089 100 106148 100 9

Source: District Profiles (2001-2008)

19 11.3 Appendix 3 : Full list of different ethnicities Kissan-Agriculture labor and wood cutter, Kumal-potter, Kusbadiya/Pattharkatta-stone works, prepare Comb of kush shrub/grass, Kusuda-live in jungle and hunting, Gangain-Livestock (cattle, goat)and agricultural labor Gurung- Army job, Agriculture and livestock (buffalo, cow, goat), Chepang- live in jungle and hunting, Chhantyal-livestock and bamboo works, Chhairotan- Agriculture and livestock, Jirel- Agriculture and livestock Jhangad- Agriculture, labor and bamboo works Dolpo- Agriculture, livestock and business Tangbe- Agriculture, livestock and business Tajpuriya- Agriculture and labor Tamang- Agriculture, bamboo works and handicrafts Tin gaule-thakali- livestock (yak), business and agriculture, Topkegola- livestock (yak), business and agriculture, Thakali- business, contractor and agriculture, Thami-labor, porter, woods, Tharu-agriculture, Thudam- Agriculture, livestock and business, Danuwar- Agriculture, labor and livestock, Darai-fishing and boating Dura- Army job, Agriculture and livestock, Dhanuk- Agriculture and livestock, Dhimal-labor and livestock, Pahari-bamboo works Phree-labor, agriculture and get donation, Bankariya-bambo works and collect forest product and sell in the market Baram- Agriculture, labor and livestock, Barhagaounle- Agriculture, labor, livestock (yak, horse,sheep), business and contract, Bote- Agriculture, fishing, boating and livestock, Byasi-agriculture and livestock Bhujel- Agriculture, domestic labor and livestock, Bhote-livestock (sheep), exchange business of sheep wool and agriculture Magar-Army job, agriculture, livestock and construction work,

20 Majhi-fishing, boating, agriculture and livestock, Marphali-thakali-business, agriculture, livestock (yak, horse, sheep) Mugali-business with Tibet, agriculture and livestock, Meche-Agriculture Newar-business, Yakhkha-Agriculture, Army job and livestock, Rai-Agriculture, livestock and Army job, Raute-live in jungle and hunting, prepare wooden pots Rajbansi-agriculture Raji- live in jungle and hunting, prepare wooden pots Lepcha-agriculture and livestock, Larke-Business with Tibet and agriculture, Limbu-Army job, agriculture and livestock, Lhopa-Agriculture, livestock and business with Tibet Lhomi- agriculture and livestock, Satar- agriculture and livestock, Siyar- agriculture, livestock and business with Tibet, Sunuwar- agriculture, livestock and Army job, Sural-Agriculture and labor Sherpa-Tourism, business, agriculture and livestock, Wolung- Business with Tibet, agriculture and livestock (yak, sheep) Hayu-labor Hyolmo-agriculture, livestock, religious art and business.

21 Building Climate Resilience of Watersheds in Mountain Eco-Regions

ADB TA 7883

Consultation, Participation and Communications Plan (draft)

January 2013

For Government of Nepal

1 CONTENTS

1 OBJECTIVE AND PRINCIPLES ...... 1 2 CONSIDERATIONS IN DEVELOPING CONSULTATION, PARTICIPATION AND COMMUNICATIONS PLAN ...... 1

2.1 KEY ISSUES AND COMPONENTS ...... 1 2.2 LESSONS LEARNT FROM OTHER PROJECTS ...... 2 2.3 PARTICIPATORY FACTORS FOR SELECTION OF SUBPROJECTS ...... 2 3 SOCIAL ANALYSIS AND MAIN STAKEHOLDERS ...... 3

3.1 PRIMARY STAKEHOLDERS...... 3 3.2 STAKEHOLDER ANALYSIS ...... 4 4 APPROACH TO ENGAGEMENT OF STAKEHOLDERS ...... 11

4.1 INTERACTION WITH THE TARGET GROUPS ...... 11 4.2 METHODS ...... 11 4.3 ANALYSIS OF THE PROBLEMS AND SOLUTIONS ...... 11 4.4 STAKEHOLDER PARTICIPATION ...... 13 5 INSTITUTIONAL SET UP AND RESPONSIBILITIES ...... 14

5.1 INSTITUTIONAL ARRANGEMENT ...... 14 5.2 MAIN FUNCTIONS OF THE KEY COMMITTEES AND POSITIONS ...... 14 5.2.1 Steering Committee (SC) ...... 14 5.2.2 Project Coordination Unit (PCU) ...... 14 5.2.3 Project Management Unit ...... 15 5.2.4 The District Soil Conservation Offices ...... 16 5.2.5 Sub-Watershed Management Committee (SWMC) ...... 16 5.2.6 Subwatershed Management Team (SMT) ...... 16 5.3 ROLES AND COMPOSITION AMONG THE STAKEHOLDERS ...... 17 6 COST REQUIREMENTS ...... 18

TABLES

Table 1 : Primary Stakeholders categories for the 2 watersheds ...... 3 Table 2: Stakeholders Analysis Matrix for BCRWME ...... 5 Table 3: Issues, problems and suggested solutions ...... 12 Table 4 : List of Organizations, institutions, agencies, committees ...... 17

Figures Figure 1: Institutional Arrangements for Sub-Watershed Management Planning and Project Implementation ...... 14 Figure 2 : Project organization and membership for a DSCO ...... 17

1 OBJECTIVE AND PRINCIPLES

1. The objective of the Consultation, Participation and Communications Plan (the CPC Plan) is to focus communities’ attention on the critical issues related to water availability within the watershed area in order to align planning efforts with long range livelihoods needs in the face of climate variability. 2. Engendering participation is the main focus of the CPC Plan. The strategy for engendering participation elaborates on how the project will engage stakeholders to participate in planning, implementation, operations and maintenance. The participation plan will build on the stakeholder analysis to identify and select groups to be engaged in these activities. 3. The participation strategy has the following objectives: a) ensure local ownership and b) ensure inclusion of all stakeholder categories as users to be engaged in participation processes and benefits distribution. 4. The main principle of effective participation is that those who will be responsible for (or benefit from) a specific aspect after the project is completed will also be the main responsible party for that aspect during implementation. This ensures that the project will be designed and implemented as per the needs, capacities and constraints of those benefiting. It also ensures that those ultimately responsible are allowed to develop the required capacity for effective management and implementation. 5. Local end-users are familiar with the types of infrastructure being installed under the Project and the know-how exists within communities for maintenance and repair. The main focus of capacity building needs to be on the attitudinal change that will bring about attention to O&M, so that it is not neglected, and attention to the broader aspects of management, so that benefits reach the broadest possible cross-section of people, especially those targeted as DAGs.

2 CONSIDERATIONS IN DEVELOPING CONSULTATION, PARTICIPATION AND COMMUNICATIONS PLAN

6. The CPC Plan refers to a mechanism for supporting the PPTA work initially, and most importantly provides recommendations for consultation, participation and communications during the implementation phase.

2.1 Key Issues and Components 7. A number of outstanding issues need to be taken up and resolved in the process of preparing the CPC Plan, as follows:  Which stakeholder groups are to be engaged in participatory processes based on the stakeholder analysis?  What decisions can be made through participation and how?  To what extent can stakeholders be engaged at each stage of the project cycle?  How will participation be linked to poverty reduction activities, and social and environmental safeguards?  How will participation be achieved during implementation and through what methods?  What will be the timeline for initiating and undertaking participation activities?

 How have roles and responsibilities for conducting participation been distributed among different stakeholder groups  How much will the participation plan cost to implement, and does it require special facilitators?

2.2 Lessons learnt from other projects 8. Lessons from other projects which are relevant to design and implementation of BCRWME are:  Owner-as-actor. When the owner-as-actor principle is not followed, agency-hired contractor-built subprojects are handed over to unprepared communities and medium and long term viability is threatened.

 Time pressure and construction focus. Sufficient time needs to be allocated for each step in the process. Short timeframes and construction pressures force projects to short-cut participation processes. Proper participation requires time; generally a few months of participatory engagement during PPTA pilot project planning is insufficient to scope participatory needs and much less than is required to engage communities.

 Skills and technology. Often it is found that subproject development approaches and incorporated technology outstrip the ability of users to replicate or replace, in the event of failure or breakage, due to lack of skills in the local community and high cost of component parts.

 Resource Mobilization. O&M arrangements and maintenance funds for agency- supported infrastructure such as water storage facilities are rarely successful in Ne- pal, regardless of whether users or an agency has been assigned responsibility. Us- ers once assisted by an agency will always go back to that agency for major repairs, rehabilitation and management support.

 Gender and social inclusion. Gender discrimination and social exclusion are social and cultural phenomena that will not change overnight or due to one project. Partici- pation of disadvantaged groups, including women, is often done as a token gesture without any meaningful participation and with little improvement in the distribution of benefits. Communities need extensive guidance and support to realize the positive impacts from programs aimed at inclusiveness.

 Other projects. Practices in other programs in the past or in the neighborhood will influence attitudes of users towards project aid, participation, inclusion and O&M. A project that varies significantly in its demands for contribution from users than others will influence those projects, or be influenced by them. Such influences are much stronger in a negative way and a project which has high aims for institutional change compared to those around will be affected but is not likely to affect others.

2.3 Participatory Factors for selection of subprojects 9. Climate variability: part of the prediction of future climate conditions involves heuris- tics with the communities to ascertain their subjective knowledge on the types of climate ex- tremes occurring now, and in line with that, how community members might expect climate conditions to be like 10, 20 or 30 years in the future. 10. Water and land use: vulnerability hinges on the interaction of climate with lifestyles. A consultative approach is necessary to understand points of vulnerability, such as access to household water; access to water for crops and animal husbandry; locations and exposure

2 of community water sources, and their seasonal reliability; exposure of households and farmland to the ravages of flooding, hillside torrents and soil erosion; and soil/ mountainside instability, including landslides that degrade or undermine roadways and hillside terraces. 11. Broad-ranging social conditions: characterizing social conditions in general is necessary as inputs to the poverty and vulnerability analysis, the gender analysis and framework, and indigenous peoples development plan, as well as for background information for environmental assessments. The extent of this characterization and approach has been prepared through a baseline socio-economic household survey in the different representative areas of the watersheds. The results of this survey are presented in the Poverty and Social Analysis. 12. Consultation and participation over safeguards: the environmental analysis incorpo- rates consultation to inform the process in respect to potential impacts, specific vulnerable groups, trade-offs, and mitigation measures. The social impacts need to be assessed and any negative impacts need to be mitigated. The collection of information should be carried out when engaging communities for a participatory approach during preparation of the implementation phase.

3 SOCIAL ANALYSIS AND MAIN STAKEHOLDERS

13. Stakeholder analysis is the means to identify types of stakeholders acting at different levels to develop and implement the project. These groups interact intensively within communities and at district level; their opinions and interactions can guide project development toward the objectives set out above.

3.1 Primary stakeholders 14. The group of beneficiary stakeholders is made up of the main beneficiaries and potentially disadvantaged groups. Table 1 gives an indication on the characteristics and categories of primary stakeholders that are of concern in the watersheds. Table 1 : Primary Stakeholders categories for the 2 watersheds Caste/Ethnicity/Religion Brahmin-Chhetri Advantaged IP (Newar, Thakali) Hill Dalit Disadvantaged IP (Sherpa, Rai, Gurung, Magar) Marginalized IP(Tamang, Kumal, Tharu) Endangered and marginalized IP (Majhi, Rajbanshi) Religious Minorities (Muslims) Geography Population of beneficiary village(s) selected Neighbouring villagers who could potentially get access to water taps VDC’s Economic Status Main stream beneficiary population of the sub-projects DAG Ultra poor Landless EIP if any Ex- Bonded Labour (Kamaiya) Gender Women and men Female headed household Seasonally female-headed HH

3.2 Stakeholder analysis 15. The stakeholders that will play a role in the implementation of the project are shown in Table 2, emphasizing characteristics, relative importance and influence of each group. Primary stakeholders are the participating households that will directly benefit from better access to water. Other stakeholders are defined as intermediaries because they contribute to the implementation of the project.

Table 2: Stakeholders Analysis Matrix for BCRWME

Stakeholder Characteristics of Relationship of How project works with this What the project will do Stakeholders' Interests the project to the stakeholder for/with this stakeholder Stakeholder Participating House-  Food insecure.  Improve water availa-  Enhancing skills/technical  Set up, work with and strengthen holds  Poor health status. bility knowledge in WSM SWMC to prepare and implement sub-  High rate of illiteracy.  Raise awareness on  Supporting construction and watershed management plans  Low income levels and water and natural re- maintenance of water infrastruc-  Involve women and DAG in sub- seasonal male migration. source issues tures like source and supply for re- watershed management and planning  Traditional farming sys-  Increase participation ducing: rainfall run-off, soil erosion,  Capacity development and training for tems. in natural resource increase surface water storage & woman and DAG (poor and vulnerable) use.  Affected by landslides, soil management and  Identify needs in consultation with the erosion and river bank ero- ownership of Project  Establishing network with other community, and work accordingly in sion. interventions stakeholders water & WSM.  Limited knowledge of  Implementation, op-  Involving community and other  Employ locals as a priority during im- watershed management eration and mainte- stakeholders in local development plementation and soil conservation. nance of subprojects activities related to water.  Construct and maintain water infra-  Social, caste and gender  Organizing training for woman and structure like source and supply for re- discrimination DAG (poor and vulnerable) ducing: rainfall run-off, soil erosion,  Increasing participation of local development of surface water storage communities, especially women and & use. DAG in the project activities. Community-based  Shared group interest  Comprised of target  Work with existing Agriculture, For-  The project plan on development of Organizations  Few are active and mem- group members. estry and Environment Committees existing organizations to promote wa- (Agriculture, Forestry bers do not know their  Participation in Plan- (AFEC) and provide institutional ter conservation. and Environment roles ning, implementation strengthening.  Implementation of integrated soil Committees, User  Limited numbers of CBOs & monitoring  The project will facilitate formation conservation activities through AFECs. Groups, Women’s  Some members are active  Awareness of new AFECs where there are none.  Encourage CBOs to get involved in VDC Groups, CFUGs, etc.) in multiple groups  Responsible & respon-  Involve groups in community needs planning.  CFUGs have resource ad- sive organized group assessments, planning and imple-  Develop and implement a capacity vantage  Operation and mentation. building plan.  Low level of awareness maintenance of the  Facilitate linkages to VDC & DDC  Co-ordinate with DLAs, civil society and and understanding in ma- developed projects funds and DLAs for technical sup- private sector for functional relation- jority of members port. ships.  Emphasis on multipurpose groups  Problem identification and priority

Stakeholder Characteristics of Relationship of How project works with this What the project will do Stakeholders' Interests the project to the stakeholder for/with this stakeholder Stakeholder rather than single purpose groups. setting using existing groups.  Community needs assessments, development of plans and implementation of project development activities.  Encourage CFUGs to implement integrated soil conservation activities. District Development  DLAs included in DDC  DDC funds-available to  Bi-annual co-ordination meetings to  Manage planning, implementation and Committee (DDC) and committees. groups either directly share/co-ordinate project plans, monitoring of watershed management Village Development  Interested in attracting or through VDCs. budgets and to review progress. activities. Committee (VDC) increased resources to dis-  Responsible for plan-  Involve DDC/VDC in cross-visits.  Develop appropriate DDC policies and trict. ning, coordination &  Training support to DDC/VDC in strategies for sustainable management  Interested in the conserva- monitoring of overall planning, implementing and moni- of water resources. tion and development of development. toring.  Formulate a benefit sharing mecha- watershed (e.g., retaining  Responsible for overall  Support DDC in developing district nism for upstream and downstream wall, IGAs & awareness development of the level policies and strategies for wa- users involving of DSCOs, DFOs, DLAs, building activities, includ- district. ter resources. NGOs, CBOs and others. ing community and private  Responsible to all  Develop skills of DDC/VDC in planning, plantations and protection community people implementing and monitoring local de- of mountain forests). within the district, as velopment activities.  VDC funds channeled elected local self-  Co-ordinate meetings for progress through DDC. government. review.  No elected representative  Accountable to the in DDCs and VDCs for 12 people if elected rep- years resentatives in place

District Line Agencies  Services guided by the  Form various user  Coordination through meetings of  Construction/improvement of DSCO (DLA, including DSCO, Tenth Plan, APP and de- groups (e.g., CFUGs, NRC (district) and SWMC (sub- offices. DFO, etc.) partmental policies and Water UGs, etc.) and watershed) will avoid duplication  Adequate staffing in DSCOs so they will priorities. work through groups. and identify complementary pro- be capable of strengthening  Line agencies have net-  Direct relationship gram activities. CSOs/NGOs. work of Service Cen- with local communi-  Meetings will also make them aware  Capacity development of DSCOs in tres/Sub-Service Centres ties through extension of community needs assessments, institutional and technical skills.

Stakeholder Characteristics of Relationship of How project works with this What the project will do Stakeholders' Interests the project to the stakeholder for/with this stakeholder Stakeholder and Range Posts to work at staff. planning and project reviews.  Design and preparation of sub- the community level  Provide services (e.g.,  DLA personnel are used as training watershed management plans.  Understaffed with inade- financial, technical and resource persons.  Capacity development of local quate incentives and HRD. material) directly to  DSCO takes lead on the project NGOs/CBOs to promote and imple-  Limited co-ordination target group. implementation at sub-watershed ment sustainable watershed resource. between district line agen- level. cies.  Conflicting relation with NGOs/private sector Central Line Agencies  Policy, plans and programs  Work in water in the  Set the executing/ministry and im-  Project coordination unit at centre and (Department of for water related infra- districts. plementing/department agencies project management and implementa- i) Irrigation, structure development.  Water sources and for the project tion offices at district/sub-watershed ii) Water Supply and  Exposures and learning on watershed develop-  Formulate steering and technical levels Sewerage, water and sanitation ment and manage- committees of key stakeholders  Counterpart staff and office facilities iii) Local Infrastructure  DoLIDAR works as DTO for ment in High hills and  The project team composed of gov- from the government and consult- Development and Ag- all DDCs. mountain. ernment counterpart staff and con- ants/professionals and financing from riculture Road,  DWSS works for drinking  Technical and physical sulting firms/consultants. donor iv) WECs water and sanitation capacity in water at  Partnering on water conservation,  Formation of coordination committees v) Water Induced Dis-  WECS works as basin or- district, VDC and public awareness, rain harvesting at district, sub-watershed and project aster Prevention & ganization and water poli- community levels and CC. scheme levels vi)DSCWM) cy and strategy  Planning, implementa-  Strengthen the executing and im-  Development of institutions at centre Civil Society (private  WIDP also works for wa- tion and coordination plementing agencies' institutional and local levels and technical capacity sector & NGOs/ asso- tershed management. for water and water- and technical capacity. at local level. ciations)  DSCWM exclusively works shed management  Encourage ministries and depart-  Involvement of stakeholders including

for watershed manage-  Learning and infor- ments to access information and civil society (private and non-profit ment. mation on watershed other resources. making organizations) in the design,  All departments want to and water  Plan capacity building for knowledge plan and implementation of sub- have donor project and big  management training. watershed management plans. project  Encourage participation in steering  Plan capacity building training for  National associations of committee and technical working activity during implementation. private and non-profit or- committee at national level.  Participation in local and national level ganization  Provide support for knowledge to share learning and advocate policy.

Stakeholder Characteristics of Relationship of How project works with this What the project will do Stakeholders' Interests the project to the stakeholder for/with this stakeholder Stakeholder management in watershed man-  Develop women and DAG groups. agement.  Knowledge management in water and watershed management and share knowledge among stakeholders Local NGOs  Over 240 local NGOs regis-  Work in the VDCs from  Encourage involvement of local  Involve local NGOs in the design prep- tered, but very few are ac- which members come NGOs in the design and preparation aration and implementation of sub- tive. from. of SWMP. watershed management plans.  Depends essentially on  Minimal or limited  Engage NGOs under contract at local  Develop local NGOs institutional and volunteers and short-term presence in High hills levels to implement SWSMPs with technical capacity. contract and mountain (most communities.  Plan capacity building training for  Potential to work with active NGOs work in  Partner on water conservation, activity during implementation. most vulnerable groups. more easily accessible public awareness and rain harvest-  Participate in local and national level  Experience in limited sec- areas of districts areas. ing for sharing the learning and advocating tors only (where donor re-  Technical capacity  Strengthen local NGOs institutional to the policy. sources are available). and technical capacity.  Develop women and DAG groups.  Provide support for activities with women and DAG. Local Leaders/  Primarily interested in  Seek votes, mobilize  Involve them in the preparation of  Formulate local development plans, Political Parties 'infrastructure' develop- local community project plans. design and preparation of SWSMP and ment. members.  Use their influence if there are con- revision.  Respected and have au-  Can mobilise commu- flicts in project area.  Participate in workshops, and aware- thority nity, resolve conflict  Attempt to maintain political neu- ness campaigns related to watershed  No people's representative (sometimes create trality. management. due to vacant local gov- conflicts too).  Try to stop the political pressure and  Policy feedback related to High Hills ernment for 12 years  Accountable to the bureaucratic inertia. and Mountain water resources man-  Political party's mechanism people or upward ac-  Continue participation, and increase agement. at district and village de- countability involvement with VDC-DDC in for-  NGO's achievement for watershed velopment committees  More committed to mulating local development plans, development. without legal provisions local development the design and preparation of  Lobby to centre and regional levels on  Development and services SWSMP. local development for local levels Private Sector Service  Provides wide range of  Provides market infor-  The project consults with private  Promote the private sector/service

Stakeholder Characteristics of Relationship of How project works with this What the project will do Stakeholders' Interests the project to the stakeholder for/with this stakeholder Stakeholder Providers (Agro-Vets, services. mation, credit, and sector/service providers, providers' roles in coordination with Seed Vendors, nurse-  For profit orientation. linkages to markets,  Provides technical assistance and households and community ry, Middlemen, etc.)  Potential investors. organizes transport, establishes linkages between service groups/users groups/associations.  Higher risk taker. and provides inputs, providers and farmers/households.  Develop technical capacity of private  Higher efficiency in service technical assistance,  Strengthen technical capacity of service providers. provision. and health service. private service providers through  Develop employment opportunities for  If there is sizeable business  Often community pre- training and cross-visits. most vulnerable groups (e.g., agricul- the private sector sustains fers private sector (bet-  Encourage private sector to develop ture product processing, transport, and survive on their own ter service, more dis- employment opportunities for most packaging, storage, etc). crete). vulnerable groups.  Middleman often provides financing to producers. International Agen-  Provide grant and loan  Involve in social activi-  Involve them in participation to  Participatory assessment of the needs cies [ADB & WB pro-  Suggest sector for devel- ties and other build the project  Use the resource allocation with priori- ject on CC, DFID pro- opment and investment  Learning and study  Consult during monitoring ty focus on women and DAG jects on CC, UNDP  Interested in the country's  Social awareness  Planning of training and HRD  Baseline SE study of the project funded Local Govern- harmonious development  Social mobilisation  Networking to: share experience;  Training and development for staff and ance & Community  Apolitical and promotion through local NGOs. promote collaboration; avoid dupli- key stakeholders. Development Pro- of fundamental basic  LGCDP provides - cation; and maintain consistency in  Co-ordination, learning and sharing of gram (LGCDP), needs like climate change Planning & monitoring facilities while working with local in- experiences. Other donors like and environment protec- support to DDC and stitutions and communities, etc.  Cost sharing for more effective pro- Finnish Aid] tion VDCs.  Interaction between government gram implementation.  To increase agriculture  HRD/training and other agencies in the Develop-  Develop alliances for providing policy productivity & income of ment and application of Water- feedback to the government for sus- small farmers. Conservation Policies and Strategies. tainable management of watershed  LGCDP has focus on Cli- resources. mate Change and adapta-  Development and application of Wa- tion at local level (DDCs, ter-Conservation Policies and Strate- VDCs and Municipalities) gies Interaction between government  LGCDP has focus on insti- and other agencies. tutional capability of DDCs and VDCs

Stakeholder Characteristics of Relationship of How project works with this What the project will do Stakeholders' Interests the project to the stakeholder for/with this stakeholder Stakeholder National Projects and  Focused on specific activi-  Coordination at differ-  Request support when internal  Identify complementary areas and Programs ties. ent levels resource is not sufficient. modes of operation.  Target-oriented.  Direct contact through  Use as resource persons in training.  Share experiences.  Limited field presence. bottom local level line  Collaborative work.  Opportunity for resources sharing.  Well financed, under- agencies  Project planning and coordination  Share project approach, including utilised.  Funding projects  Report about the activities training and development.  Ideas of needs  Study and monitoring  Co-ordinate with other projects for  Fund tied up with set pro-  Village water supply agriculture, livestock, irrigation and grams and actors and sanitation project technical assistance. supports the district  Collaboration among similar nature for water and sanita- organizations working in development tion of mountain and high hills.  Networks for management of watershed and climate resiliency activities encouraging NGOs, CBOs.

4 APPROACH TO ENGAGEMENT OF STAKEHOLDERS

4.1 Interaction with the target groups 16. Directly interacting with significant numbers of communities and even with the districts represented within the two target watersheds is time consuming and requires qualified and dedicated staff working over a long time frame. Selection of representative communities and institutions is necessary to gain traction and will benefit from some of the guidelines included below:  Identify within watersheds, districts and VDCs those persons primarily responsible for sub-project activities.  Organize meetings at different levels to identify persons and develop tasks that will be assigned to them and conclude meetings with an MOU to ensure that persons are officially mandated to carry out their activities.  Identify work and roles that will be performed by the beneficiary communities  Develop a plan of action with a time frame for various stakeholders considering the location and type of interactions they undertake  Identify the beneficiary communities and assess their needs and weaknesses to access subproject benefits and provide a proposal to remedy the problems  Communicate and cooperate with the local community-based organization that has good knowledge of the major problems related to water access and use.  Assure that the DSCO has the lead coordinating role at the district level 4.2 Methods 17. While BCRWME aims at communications with people, those communications in turn relate to conditions in upland areas, where water flows originate, and where interventions are planned. Locations and types of water improvements are not known in advance; communications must aim at eliciting information about how people manage upland areas, the identification of opportunities and areas for improvement (such as springs, catchments, areas of high erosion risk, landslide prone areas and other types), and how people view those areas in terms of response and management. 18. Informal discussions and semi-formal and formal questionnaires may be used to elicit information from informants. Communication about the intent of the project objectives before start of infrastructure design could be facilitated through preparation of a broadsheet in Ne- pali that summarizes objectives (e.g. of the project, of the consultative approach) to be handed out prior to work within a community before any subproject has been formally approved. 19. Meeting with local representatives of different organizations and committees to collect views about the project objectives will facilitate preparation and implementation of the sub-project. Simultaneously a series of meetings and discussions at village level can be used to disseminate information and provide a better basis for beneficiaries to own the subproject and participate in construction and maintenance.

4.3 Analysis of the problems and solutions 20. From the community consultation through series of meeting individuals, meetings with officials, Focus group discussion in the watershed area, several major cross-sector issues were highlighted. Solutions that came out of these discussions are listed in Table 3.

Table 3: Issues, problems and suggested solutions S Is- Problem Options/suggested solution . sue No 1  Scarce water for domestic use, irriga-  Catchment management including tion (season availability – too much water source protection to catch water and too little water) more water  Less rain and stream water available  Multiple storage facility develop- for use ment (pond tanks etc.)  Inappropriate water use system  Harvest of rain water and runoff maintenance and failure of catchment flow during monsoon ponds in upper areas  Water delivery system to strategic  Inadequate and insufficient water locations in community storage capacity of water use system  No integration of watershed management with water resource use Water availability  Scarcity of water induced inadequate sanitation and more diseases

i-  Low productivity of agricultural sys-  Improvement of farming practices tems (land and animal products) for conservation of moisture and  Inappropriate rice terrace manage- nutrients ment system  Forestry development (grass and  Impact of changing climatic condition fodder plantation) in crop maturity, animal breeding  Water source protection  Food insecurity and limited non-  Optimum use of scarce water in agricultural livelihood options farm and household  Changes in livestock from cattle and buffalos to goat Land use and productiv

 Deforestation and loss of vegetative ty cover  Limited or no employment opportuni-  Support for developing small irriga- ty in the area tion schemes and agriculture in-  Seasonal and annual out migration to puts. India.  Provide skill development trainings  Increased workload to women, elder- and income generation activities. ly and children  Support to construct safe drinking  Inequality exist in land ownership or water scheme, micro-hydropower, tenure so less motivation for land improve stove, Bio-gas. management  Some policy should formulate on  Poor agriculture yield due to remote- land management and implement ness, lack of market facilities of strictly goods  Labor based village roads should  Gender and Dalit discrimination be constructed up to each VDC.  Women unjust oppression with  Awareness campaign on gender Chaupadi system during menstrua- and Dalit equity as per the national tion and delivery. and international rules to both male  Some cases of lower daily wages for and female. women for equivalent tasks  Support to improve sanitation and personal hygiene condition

Employment, gender, poverty  Priority for employment in any development work with same daily wages for men and women

4  Poor watershed condition due to bio-  Water conservation measures for g- physical and socio-economic charac- preventing water induced disasters teristics, trends and feedback system  Forest plantation, improvement of  Land degradation (forest, agricultural, degraded land grazing etc) due to population pres-  Landslide treatment, gully treat- sure and increase intensity and type ment of grazing animals Watershed de  Landslide, flood, mass wasting radation

5  Unclear watershed policy, structures  Awareness and orientation on wa- and systems ter and water usage to the house-  Low level of awareness among holds community people  DSCO, VDCs, DDC and Line  Low institutional capacity for sustain- agencies coordination on water- able watershed management shed management  Poor coordination and complementa-  VDC and communities/households rities among line agencies, civil so- on integrated planning, implemen- ciety organizations, private sector tation and monitoring on sub-  Lack of integrated planning linking watershed management upstream and downstream  Knowledge management through local sharing mechanism and web- Institutional capacity  Knowledge management lacking  VDC committee system not function- based up-date ing

4.4 Stakeholder participation 21. Various decisions are required during the process of site selection, project design and construction that require participation of stakeholders whose participation and consultation is needed in decision making of the following types: 1. Selection of VDCs for SWS planning at the district level by stakeholders 2. Selection/consultation of subprojects by VDC level stakeholders 3. Consultations/Decisions on the infrastructure to be included in the subproject 4. Decisions on the O&M system, and level of financial contributions 5. Decisions on mode and management of construction 6. Decisions on participation, responsibilities in the SWCC 7. Decisions on representation from disadvantaged subgroups, EIP (if any) and women groups to be included in training 8. Selection of DAG and EIP for livelihoods enhancement (GESI) 22. Participation of stakeholders during planning, implementation and operation and special measures taken to ensure beneficiary ownership are to be integrated into the subproject development cycle and the GESI for livelihoods enhancement strategies 23. The participatory plan must ensure that proposed interventions will have community support. Secondly, local knowledge is invaluable, in the sense of building on what has been done, tried and proven. The involvement of stakeholders during preparation of the subprojects will benefit from local knowledge of sustainable land use practices and adaptive technologies within the project area.

5 INSTITUTIONAL SET UP AND RESPONSIBILITIES

5.1 Institutional arrangement 24. Institutional arrangements for watershed management planning and subproject development are important to guarantee proper implementation of activities and provide a clear picture of different organizations that will be involved in the process. It is a prime requirement that DSCWM and DSCOs drive the implementation process. Figure 1 illustrates the institutional arrangements for implementation of the sub-watershed management plans and subproject infrastructure from central level down to sub-watershed level, with the composition of the different committees and responsibilities. Figure 2 contains a flow diagram showing the implementation arrangements related to social issues. Figure 1: Institutional Arrangements for Sub-Watershed Management Planning and Project Implementation

5.2 Main Functions of the key committees and positions

5.2.1 Steering Committee (SC) 25. The Steering Committee (SC), chaired by the Secretary of Ministry of Forests and Soil Conservation, is responsible for policy and guidelines formulation and overseeing overall project implementation. In respect to the CPC Plan, the SC will insure that project participants adhere to the CPC planning framework and commit to high levels of participation during project implementation. 5.2.2 Project Coordination Unit (PCU) 26. The PCU will be established at the central level. It comprises DSCWM's own staff and is supported by three consultants and three administrative staff employed by the project in matters related to project management, accounting and administration, knowledge management, and oversight of sub-watershed planning, infrastructure development and community development.

PCU and Project Director 27. The PCU will provide coordination between the ADB, the Ministry, the DSCWM, and the field implementation teams. It will have overall responsibility at project level for planning and budgeting, monitoring and evaluation, capacity building, environmental and social safeguards, good governance and knowledge management. In respect to the implementation of the CPC Plan, the PCU and Project Director will carry out the following tasks:  Support and monitor participatory processes in the formulation of sub-watershed management plans;  Ensure adequate and timely M&E;  Review and forward quarterly progress reports that include timely aspects related to implementing the CPC Plan;  Coordinate project activities among the implementing agencies to insure their active participation;  Provide funding for and supervise public awareness activities; and  Ensure that complaints are handled in a fair and timely manner.

5.2.3 Project Management Unit 28. This will be a well-staffed project management unit based in a new building in Dadeldhura. It will have overall responsibility for project area level planning, budgeting, design, monitoring and evaluation, and social and environmental safeguards. It will work through the District Soil Conservation Offices (DSCO) and Sub-watershed Management Teams (SMTs) to be established in Project DSCOs providing technical backstopping and quality control. 29. Key staff will be Watershed Management/Environmental Specialist/Team Leader, Senior Design Engineer, Senior Social Safeguards Specialist, Senior M&E Specialist, GIS Analyst (project employee) Main Functions of Team Leader 30. The TL should tend to the following tasks in relation to CPC Plan implementation:  Guide PMU, DSCO and SMT staff in initiating actions related to mobilizing the CPC Plan and for insuring continued application over the duration of the Project;  Screen subprojects for adequate levels of participation in design and planning;  Ensure effective implementation of the CPC Plan at the subproject level;  Prepare annual work plans and budgets that address the needs of the CPC Plan;  Ensure adequate and timely M&E;  Prepare and issue quarterly progress reports that include a section on participation;  Coordinate project activities among the implementing agencies;  Supervise the public awareness activities;  Efficiently handle complaints and;  To ensure that crosscutting issues are embedded in the project activities, namely: (i) social inclusion, women’s participation and gender equity; (ii) environment and social safeguards; and (iii) good governance

Natural Resources Committee (NRC) 31. Each project district has a Natural Resources Committee that coordinates and facilitates planning. These committees should be used to expedite the CPC Plan in relation to communications among the DSCO, DDC, CFUG, NGOs, DWSS and DFO, which are all members of the NRC.

5.2.4 The District Soil Conservation Offices 32. The four DSCOs, incorporating the Sub-watershed Management Teams (SMTs), located in Achham, Bajura, Dadeldhura, and Doti are the units responsible for project implementation in the districts and sub-watersheds. There will initially be two SMTs in each DSCO. This may be increased to 4 SMT as workload requires. SMT staff provide the manpower to facilitate the planning and subproject work load. 33. The staff level of DSCOs will be increased to manage the greater workload. The recommended staffing is: District Soil Conservation Officer, four Mid-level Technicians (Soil Conservation Assistants & Sub-Engineers), Accountant, Administrator, Driver, two Office Assistants. 5.2.5 Sub-Watershed Management Committee (SWMC) 34. Each sub-watershed1 will have a SWMC to actively engage in planning related to formulation of SWS plans and subproject implementation, supported by the PIUs. Project implementation arrangements described in Table 4 under the composition of the SWMCs. 5.2.6 Subwatershed Management Team (SMT) 35. Each SMTs will consist of: Watershed Management Officer (Team Leader), Civil En- gineer, Mid-Level Technician from DSCO, Social Safeguards Officer, and Community Mobi- lizer. The social and communication team will be supported by Community Mobilizers working at the local level. The SMT will maintain contact with communities within sub-watersheds and the following assignments:  With support from the PMU, prepare sub-watershed management plans with community inputs, including identifying and preparing field level sub-projects and small/medium soil and water conservation activities;  Assisting the Project Management Unit in packaging the sub-projects, and selecting local implementing consultants and organizations,  Supervision and overseeing of field implementation teams, consultants, NGOs, and community works in relation to technical backstopping and quality control;  Sub-project and activity level monitoring and evaluation;  Social and environmental safeguards at field level, including identify DAGs, achieve distributional effects;  Liaison with Sub-watershed Management Committees and through this committee strong links with VDC-level committees, user groups, and involved communities;  Payment of user groups;  Sound management and administration of resources to ensure efficient implementation.

36. The approximate number of SMTs operating under the Project – 65 sub-watersheds – 4 PIUs (assuming PIUs for Bajura and Achham) – Average of 16 sub-watersheds per PIU – Assume 5 or 6 sub-watersheds to be covered by a single SMT – Then three SMTs per DSCO and 12 + SMTs overall (four districts)

1 There are 65 sub-watersheds in the two watersheds making up the Project area.

Figure 2 : Project organization and membership for a DSCO

5.3 Roles and composition among the stakeholders 37. Table 3 lists the stakeholders at different levels that will play a role to initiate the project and interact during project implementation.

Table 4 : List of Organizations, institutions, agencies, committees Levels Agents/ Roles Composition organizations National Steering Committee Responsible for policy and Defined earlier guidelines formulation and overseeing overall project implementation. Technical Working Confirming and suggesting Defined earlier Group team DSCWM: Project Facilitating project imple- DG, divisions & DSCOs Director, Divisions, mentation by the PMU Counterpart staff to be DSCOs defined ADB – Project Of- Review the project, coordi- ADB mission with Project ficer/NRM nate with the government manager and concerned agencies and facilitate pro- specialist ject implementation Project Coordination Overall Project responsibil- Professionals: internation- Office(PCO) ity; coordination between the al and national consultants ADB, the Ministry, the with the project staff DSCWM, and the field implementation teams; fund disbursement; recording, reporting and monitoring & evaluation; knowledge management District Project Management Overall responsibility for pro- Management and tech- Unit (PMU) ject area level planning, nical support and back- budgeting, design, monitor- stopping consultants ing and evaluation, and social and environmental safe-

guards DSCOs Coordinate with Project DSCOs and DDCs are key Management Unit(PMU) institutions for plan, implementation & monitoring. DDCs Plan, coordinate & approve NRC chaired by DSCO (thru DMC) the plan representing DDCs, DFOs, DADO, DIO, DLSO, DWSS, NGOs, Private sector/CCI & FECOFUN. DFO Cooperate & share Skilled staff DADO/Agriculture Public consensus & sharing DIO/Irrigation DLSO/ Livestock Service DWSS/Water Sup- ply and Sanitation NGOs(FECOFUN/C Services & products Skilled staff BOs/UGs) Public consensus/ sharing Awareness building, training Coordination & support Private sector Public consensus sharing Local leaders Major political parties SMT for watershed Overall responsibility of the Government counterpart level project plan, implementation from DSCO, consultants & & monitoring in coordination project staff with the stakeholders as project defined/agreed VDC VDC Assist in Planning, Overall Fit with existing committee Line agencies: Ser- plan, implement and monitor as VDC secretary, and vice centre of Live- for the development of VDC. chief of line agencies & stock service, civil society Health, Agriculture. FUGs Other groups Ward Ward representa- Liaise between beneficiaries VDC secretary, and chief tives and project implementers of line agencies & civil so- Ward Citizen Forum ciety Sub- SWC's members: To review the draft sub- SWC chair by DSCO rep- Watershed Line agency repre- watershed management resentatives of DDCs, Committees sentatives of DSCO, plans and to recommend DFOs, DADO, DIO, DLSO, DDCs, DFOs, changes and areas where it DWSS, NGOs & FECO- DADO, DIO, DLSO, needs to be strengthened. FUN, forestry groups and DWSS, NGOs & Give some publicity to the beneficiaries with women FECOFUN, forestry Plan and encourage in- representative and DAG groups volvement in the later consultation process. Get involved in the construction

6 COST REQUIREMENTS

38. The implementation of the CPC Plan does not require any special cost considering that the cost of staff for the Social Safeguards Officer position will be included in the core budget for the project and social activities supporting the implementation of the GESI have a separate budget.

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project (RRP NEP 44214)

RISK ASSESSMENT AND RISK MANAGEMENT PLAN

Assessment Assessment without with Risks Mitigation Management Plan or Measures Mitigation Public Financial Management Weak compliance with public High Implementing agencies will maintain separate project Low financial management accounts to identify goods and services financed by systems and procedures in ADB, in accordance with the project financial DSCWM and districts management manual. Annual training will be conducted for DSCWM and DSCO accountants ADB will follow up with DSCWM to address and remedy any issues raised by the auditor. Weak institutional capacity in High Project staff / consultants will provide implementation Low DSCOs for project support to DSCO staff budgeting, resulting in implementation delays Insufficient counterpart High MFSC will follow up with the Ministry of Finance Low funding for the project in the Project consultants will assist DSCWM with annual annual budget budget forecasting

Procurement Delays in the recruitment of Medium PAM outlines criteria and procedures for the Low consultants causes late consultant recruitment process, with a timeline. start-up of project Staff for government positions appointed under fixed term contracts. Slow appointment of Medium Staff for government positions appointed under fixed government staff to PCO term contracts. and DSCOs/PMU delays PAM outlines timeline for start-up of project project start-up and implementation Weak capacity and lack of High At start-up and annually thereafter, DSCWM will Low understanding of Public provide training in procurement procedures, with Procurement Act and support from a procurement specialist and ADB. Regulations in DSCOs Weak procurement controls High The PCO will undertake regular random post-facto Low in DSCOs threaten reviews of contracts awarded by DSCOs and transparency and remedial action will be required where the proper effectiveness procurement procedures have not been applied ADB will undertake random post-facto reviews of contracts for civil works and the supply of materials. Insufficient oversight and Medium Project consultants will assist DSCWM staff with Low monitoring of performance of monitoring of the performance of contractors, contractors, suppliers and suppliers and user groups. user groups by DSCOs PMU will undertake random spot checks ADB review missions will conduct spot checks. Low institutional and High Works to be undertaken by user groups will be Low management capacity in determined during subproject feasibility assessment user groups. in consultation with the groups and take into account their capacity. PIUs will provide advice during contract execution. Building Climate Resilience of Watersheds in Mountain Eco-Regions Project (RRP NEP 44214)

Corruption Malfeasance in bidding for High Each user group will establish a monitoring committee Low civil works and materials to monitor contractors undertaking any works. supply contracts. PMU will monitor subproject implementation. Annual audits will check for irregularities in the bidding and awarding of contracts and report any findings to DSCWM and ADB for follow up ADB’s anti-corruption policy will be disseminated among project staff and user group committee members. Upon the recommendation of DSCWM, the PCO will blacklist contractors and suppliers proven to be involved in malfeasance. The chief district officer, who has anti-corruption authority, will receive and act upon genuine complaints. Interference in subproject Medium The District Management Committee (DMC) existing Low selection and in procurement at district level will review planning and by politicians and political implementation of activities. parties at local level. The PMU/consultants will assist the user groups, VDC, SWMC, and DMCs in adhering to the agreed subproject screening and selection criteria Vulnerabilities in Medium PMU will train user groups in appropriate audit Low construction, such as theft of procedures so that they can monitor these aspects of materials and equipment, subproject implementation. use of equipment for private purposes and complex processing of claims and payments Lack of transparency of Medium Information (brochures, etc) about the project freely Low information and procedures, available in each project sub-watershed selection and decision All information about the project will be available on a making, and non-disclosure project website. of information at district and local levels

Other Poor level of technical and High Project training program will be aimed to improve Low management skills and management and technical skill levels of staff in motivation among DSCWM DSCWM and in DSCOs. and DSCO staff will adversely affect project implementation. Landslides and severe Medium Sub-project planning will focus on reducing risk from Low flooding resulting from these events. climate change and over- Watershed management planning process ensures exploitation of land and stakeholder commitment to proper management of forests damage project land and forest areas. interventions Communities not Medium The PMU and SMTs will ensure all groups within Low successfully motivated to each community are involved in the watershed participate in watershed management planning and implementation management planning and processes. implementation or to Project social mobilization activities will focus on maintain the management of maximizing participation of the community in each their watersheds. sub-watershed. Building Climate Resilience of Watersheds in Mountain Eco-Regions Project (RRP NEP 44214)

The project will emphasize engaging communities in activities that produce immediate real benefits to livelihoods. Inadequate empowerment of Medium Implementation of the projects’ Gender Equity and Low and participation of women Social Inclusion plan and DAGs in watershed management planning and implementation Some local groups oppose Medium PMU and SMTs will ensure that disadvantaged Low subproject proposals and groups are fully informed about the project and watershed management project activities. plans because they are Watershed management planning process will focus perceived to benefit other on including all groups within communities. groups unfairly. Monitoring and evaluation of Medium Establish M&E system at the beginning of the project Low project activities is weak to ensure all project objectives and targets - social, leading to poor institutional, physical - are met in time. implementation and failure to meet project targets

Overall Medium Low ADB = Asian Development Bank; District Management Committee (DMC); DSCWM = Department of Soil Conservation and Watershed Management; DSCO = District Soil Conservation Office; MFSC = Ministry of Forests and Soil Conservation; M&E = monitoring and evaluation; PIU = Project Implementation Unit; PIO = Project Implementation Office

The Capacity Building Plan

Nepal: Building Climate Resilience of Watersheds in Mountain Eco-Regions (BCRWME)

Project Number: ADB TA 7883

Final Draft, 14 January 2013

This capacity building plan 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.

Table of Contents

1. Objectives of the Capacity Building Plan………………………………. page 2

2. Main Stakeholders Involved in the Project………………………………………..2

3. Capacity Assessments ……………………………………………………..………..3

3.1 Capacity Assessment of the DSCWM…………………………………………..3 3.2 Capacity Assessment of Other Key Stakeholders……………………………..4

4. Capacity Building Plans……………………………………………………..…………..4

4.1 Capacity Building Required at the DSCWM and DSCOs……………………..4 4.2 Capacity Building Required at the Project Implementation Units…………… 7 4.3 Capacity Building Required at the Sub-Watershed Management Comms… 8 4.4 Capacity Building Required at the VDCs and AFECs……………………….. 8 4.5 Capacity Building Required at the Community Level………………………… 9

Annexes…………………………………………………………………….from page 10

Annex 1 Stakeholders in Watershed Management in Nepal Annex 2 The Organizational Structure of DSCWM Annex 3 Staffing of the DSCWM Annex 4 Institutional Problem Tree and Capacity Assessment of DSCWM Annex 5 Capacity Building Plans and Budgets for the Different Stakeholders Annex 6 Suggested Coaching Curricula for the VDC and AFEC Members

1. Objectives of the Capacity Building Plan

1. The objectives are: a) to assess the capacity of the different directly involved stakeholders in relation to their expected duties; b) to develop a strategy and schedule for the capacity building of the relevant stakeholders.

2. Main Stakeholders Involved in the Project

2. Many different institutions and organizations, both government and private at central and local levels, will work with the BCRWME directly or indirectly – see Annex 1, which also provides an overview of the project implementation structure.

3. Figure 1 below illustrates the stakeholders landscape at central and district level (source: review and discussion with the staff of central ministries and departments especially DSCWM).

Figure 1 Stakeholders’ Landscape at Central and Local Level

Civil Society Organizations

(NGOs, CBOs, UGs, political Bi/multilateral donors & parties & other institutions) INGOs Department of Soil Conservation and Watershed Central Level Management Institutions Private Sector Service (including Line Providers Agencies - MoFSC, MoE, MoEST, WECS)

District Soil Central Level Line Local bodies: Conservation Offces Agencies at the district Municipalities, DDCs (DAO, DFO, DLSO, DEO, (x 56, 6 within project area) and VDCs DWSS)

Civil Society Organizations & Private Sector Service People Providers (I/NGOs, CBOs, UGs, political parties, household & other institutions)

3. Capacity Assessments

3.1 Capacity Assessment of the DSCWM

4. Background The Logframe of the Soil Conservation and Watershed Management Program (2007-2025) records the following:

Goal: to contribute to the livelihood and well-being of the people through sustainable watershed management of river basin

Purpose: to increase the productivity and utility of land and water, and to prolong the services of physical development infrastructures leading towards livelihood improvement on an equitable and sustainable basis through integrated soil conservation and watershed management.

5. The DSCWM’s modus operandi focuses on integrated community-based soil conservation and watershed management programmes, and it operates at two levels: i) at central level through the Department, and ii) at district level through the District Soil Conservation Offices (DSCOs) – see Annex 2. There are a total of 56 DSCOs with programme coverage in 65 districts; these offices are classified into 3 types: “A”, “B” permanent, and “B” temporary – see Annex 2.

6. Three of the project districts, Baitadi, Dadeldhura, Doti fall within “B” class permanent offices, but there is no office in Achham, Bajura or Bajhang; the Doti office is currently responsible for these 3 districts, when budget and essential programmes are provided.

7. The DSCWM and DSCOs are staffed by a total of 641 staff, 65 of which are at Headquarters. 533 are permanent staff and 108 temporary (see Annex 3); only 3% of total staff are female. Department officials feel that there are inadequate technical staff across DSCO, and that there are far too few women. Both factors may limit the human resource support that can be provided by DSCWM to the Project, and many of the staff for the BCRWME project will clearly have to be hired as consultants, temporary or permanent for the project duration.

8. An institutional problem tree and capacity assessment of DSCWM are presented in Annex 4. Based on these findings, and those of a training needs assessment undertaken for JICA in 20101, training needs are categorized at 3 different levels applicable for a) Department level, b) District and Assistant District Soil Conservation Officer level, and c) district technical staff.

9. In summary, the institutional strength and capacity of DSCWM is weak on a number of fronts:  policies are unclear or remain unimplemented (eg. mainstreaming of GESI principles),  inadequate numbers of staff, and inadequate HRD and performance evaluation,  poorly motivated and poorly managed staff,  no institutional provision for environmental safeguards,  poor planning, monitoring, data recording, analytical, storage and reporting skills, as well as knowledge management understanding or capacity,  poor management of IT systems and GIS, and apparent lack of strategy,  poor infrastructure in the districts,  weak networking and institutional relations in the districts.

1 “Baseline Survey on Training Need Assessment/Capacity Assessment of DSCWM and its District Offices” (May 2010) – a study undertaken by the Nepal Forester’s Association for the DSCWM/JICA Participatory Watershed Management and Local Governance Project – hereafter known as the JICA TNA report. 3

10. The selection of DSCWM and DSCO staff who receive the training, and which training described in section 4, will be identified by the DSCWM in collaboration with the Project Coordination Unit in Kathmandu and the Project Management Unit in Dadeldhura. Although capacity building is an important element of the project, BCRWME is essentially an implementation programme. Key and deserving staff at the DSCWM in Kathmandu and at the DSCOs in the six project districts in the west of Nepal will be given preference in regard to training provided by the project.

3.2 Capacity Assessment of Other Key Stakeholders

Capacities at the DDC and of the VDC Secretaries and assistants vary, as do those in the communities. It follows therefore that participants in the Sub-watershed Management Committees will also have variable capacities.

It is known from experience that elected members of the VDC-level Agriculture, Forest and Environment Committees require training in many aspects of development, including planning, budgeting, management, and administration. Annex 6 describes some of the topics that are required at this level.

It is recommended that, before a scheduled training plan is set in motion in the districts and VDCs, the PMU and DSCOs/SMTs evaluate each group in relation to training needs. At community level, different forms of technical training will be required depending on the type of sub-project or activity; a training needs assessment should be carried out by the DSCOs/SMTs, essentially the Social Safeguards Officer and the Community Mobilizer, at an early and appropriate community meeting.

Recommendations on the training described in Section 4, are based on experience and consultation at the district and departmental level.

4. Capacity Building Plans

4.1 Capacity Building Required at the DSCWM and DSCOs

11. The JICA TNA Report of 2010 identified 9 different thematic areas where training is required in the DSCWM, as follows.

Physical Watershed Management Aspects: i. basin management/integrated basin approach management, ii. climate change, iii. survey, mapping, design, estimate and standardization, iv. landslide hazard mapping, v. landslide/flood disaster management/risk reduction, vi. geographic information system (GIS), vii. bio-engineering.

Social Aspects: viii. community development, ix. conflict management.

12. Training modules with tentative contents have been proposed for the above thematic areas. In many of the above areas, there is some basic knowledge which can be enhanced; in other areas, such as climate change, basin approaches, GIS and conflict management, knowledge is poor.

13. Staff at different levels will be trained with appropriately modified curricula, by either skilled Departmental staff, by hired consultants, or on a locally available tailored course. Occasionally it may be necessary to utilize overseas training courses for particular topics or staff members.

14. The JICA Participatory Watershed Management and Local Governance Project has begun some of the recommended trainings, especially in GIS, community development and conflict management, but only in their project districts, which do not overlap with the proposed BCRWME area. It is recommended that BCRWME finalizes the curricula, and funds the training. The JICA report therefore becomes an integral part of the implementation of the capacity building programme.

15. In addition to those recommended by the JICA TNA report, there will be additional training modules on gender empowerment and social inclusion, monitoring and evaluation, and knowledge management provided to key members of both Department and DCSO staff.

16. The table below presents a summary of the trainings to be provided to three levels of the DSCWM staff. Annex 5 presents further details on the recommended trainings along with budgets.

Table 1 Training Programme for the DSCWM Staff

Staff Level Training to be provided in Year 1 or 2 Course # Brief Description of Course Contents DSCWM HQ 1 Working with Local Communities: community mobilization, VDC & AFECs, laws, acts, regulations, leadership development, conflict management, new dimensions Staff of organization behavior 2 Watershed Management and Climate Change Adaptation; prioritization, participatory land use planning, w-m plan preparation, , environmental assessment , Budget = monitoring & evaluation US $ 98,822 3 Survey, Mapping, Design and Estimation: use of GIS, GPS and remote sensing tools and techniques in watershed management 4 Landslide Hazard Mapping: risk and disaster management (floods, landslides) 5 GIS : geneal introduction and basic training for all DSCWM staff, + advanced training for GIS technicians 6 Advanced Low-cost Soil Conservation Techniques: including bio-engineering

DSCO Officers 1 Working with Local Communities: community/social mobilization, VDC & AFECs, LSGA, laws, acts, regulations, leadership development, decentralization, federalization, good governance, transparency, public meetings/audits, conflict management, gender, equity, poverty, discrimination and new dimensions of organization Budget = behavior US $ 97,069 2 Watershed Management and Climate Change Adaptation; prioritization, participatory land use planning, w-m plan preparation, environmental assessment , monitoring & evaluation 3 Survey, Mapping, Design and Estimation: use of GIS, GPS and remote sensing tools and techniques in watershed management, including softwares 4 Landslide Hazard Mapping: risk and disaster management (floods, landslides) + basic geology training 5 Soil Conservation Techniques: orientation on Dept policies, modus operandi, strategies, SCWM Log frame, soil erosion, soil conservation technologies, bio- engineering , low-cost treatments, landslide treatment, conservation-oriented income generation activities 6 Office Management: hr development and management, finance management, accounts and audits, fund mobilization, administration, reporting 7 Exposure Visits: national and/or regional – to be organized in year 2 or 3

DSCO 1 Working with Local Communities: community/social mobilization, VDC & AFECs, LSGA, decentralization, federalization, good governance, transparency, public Technical, audits, gender, equity, poverty, discrimination, conflict management Finance and 2 Watershed Management and Climate Change Adaptation; prioritization, participatory land use planning, w-m plan preparation, monitoring & evaluation Admin Staff 3 Survey, Mapping, Design and Estimation: use of GIS, GPS and remote sensing tools and techniques in watershed management, including softwares

(finance and 4 DSCWM and Soil Conservation Technologies: orientation on Dept policies, modus operandi, strategies, SCWM Log frame, soil erosion, basic soil conservation admin staff to technologies, bio-engineering , low-cost treatments, landslide treatment, conservation-oriented income generation activities join appropriate 5 Basic Computer Training: Word, Excel, PowerPoint, simple design/drawing packages courses – eg. 1, 6 Office Management: record keeping, finance management, fund mobilization, revenue administration, accounts, audits, best practices, transparency, corruption, 5, 6) store keeping, administration, reporting, meeting facilitation, minute taking 7 Exposure Visits: national – to be organized in year 2 or 3 Budget = US $ 72,940

* all courses will be repeated in year 3 (for new staff or as a refresher course), or a more advanced course will be provided as required.

4.2 Capacity Building Required at the Project Implementation Units

17. There is a clear need for certain staff from the PCU, the PMU and the DSCO/SMTs to attend intensive training courses on monitoring and evaluation and knowledge management, in-depth training of which is not included in section 3.2 for the DSCWM and DSCO staff. It is recommended that a combination of project and government staff attend the courses offered in these subjects by IMA International in Bangkok (www.imainternational.com/training/factsheet/Knowledge+Management).

18. The Monitoring and Evaluation Training: a total of 10 staff will be sent on a 10 day course in years 1 to 3, as follows:

PCU and DSCWM PMU DSCOs and SMTs Year 1 1 member from the PCU (Financial 2 members from the PMU (4 staff) Controller) (1 x Senior M&E Specialist, and 1 x 1 member from DSCWM DSC Officer) Year 2 2 members from the PMU 2 staff members from the SMTs/DSCOs (4 staff) (1 x SMT member, and 1 x DSC (including 1 x SMT Watershed Management Officer) Officer and 1 x DSC Officer) Year 3 2 staff members from the SMTs/DSCOs (2 staff) (including 1 x SMT Watershed Management Officer and 1 x DSC Officer)

US $ 75,000 has been allocated for this training on M&E.

19. The Knowledge Management Training: a total of 8 staff will attend a 5 day course in each of the first 3 years, as follows:

PCU and DSCWM PMU DSCOs and SMTs Year 1 1 member from the PCU 2 members from the PMU (4 staff) 1 member from DSCWM (1 x Watershed Management Specialist, and 1 x DSC Officer) Year 2 2 staff members from the SMTs/DSCOs (2 staff) (including 1 x SMT Watershed Management Officer and 1 x DSC Officer) Year 3 2 staff members from the SMTs/DSCOs (2 staff) (including 1 x SMT Watershed Management Officer and 1 x DSC Officer)

20. US $ 30,000 has been allocated for this training on knowledge management.

21. There is a very clear need for coaching in gender and social inclusion, at the DSCWM and DCSO levels (see Annex 3 in relation to the number of female staff employed), as well as at district, VDC and community level. Training to build capacity in gender, equity and social issues of the consultant staff employed at the PCU, the PMU and the SMTs will be mandatory. These issues are covered in training described in the Gender Empowerment and Social Inclusion (GESI) Plan for the BCRWME.

22. Further advanced training may also be required in other topics at the PMU and within the SMTs, such as social mobilization, in-depth courses on social and environmental safeguards, and aspects of design and GIS: an amount of US $ 50,000 has been allocated for such training as and when the needs are identified.

23. Masters Degree Courses: the budget includes the costs of four Masters degree courses in watershed management or related subjects. These courses will be provided to deserving and committed candidates from the DSCOs. US $ 300,000 has been allocated for these four courses.

4.3 Capacity Building Required at the Sub-Watershed Management Committees (SWMC)

24. The SWMC is an important committee in relation to transparency and providing information to District VDC stakeholders and the local communities, and to enhance coordination and cooperation with all local partners and implementers.

25. As there are project stakeholders from many different sectors and levels, this is also a most useful forum for coaching and training in a number of important areas, as follows:

a) project outcomes, outputs and activities, b) project working modalities and procedures, c) discrimination, gender empowerment and social inclusion, d) watershed management and climate change adaptation, e) planning and budgeting, monitoring and evaluation, f) project implementation and allied technical aspects, g) corruption, good governance and transparency.

26. It is envisaged that the SWMCs will convene twice a year (see the Project implementation Arrangements for the BCRWME).

27. BCRWME will fund the SWMC meetings and trainings for 2 years only, after which they will be expected to be self-sustaining through funding from other project or government sources. In the first two years, complimentary training will be provided at each meeting in the above or other topics as deemed necessary – see Annex 5.

28. In year 1, each SWMC will hold its own meetings and trainings. From year 2, however, it is expected that some adjacent SWMCs will be able to hold meetings jointly, otherwise costs and the number of meetings will spiral to unmanageable levels.

29. A total of US $ 347,059 has been budgeted.

4.4 Capacity Building Required at the VDCs and AFECs

30. All VDCs (and AFECs where they exist) will need to be introduced to the project through a series of meetings (see Annex 5).

31. There are 110 VDCs which fall completely within the project area; a further 10 fall partially within the project area.

32. It is estimated that 60 awareness raising and coaching workshops will be held at the VDC level, combining adjacent VDCs between which there is good accessibility, and incorporating the partial VDCs in an adjacent VDC meeting. On some occasions, these workshops may be combined with the Sub-watershed Management Committee meetings.

33. Elections at local level have not been undertaken since the late 1990s, and currently there are no elected members of the VDC. Where VDC sub-committees exist (eg. the AFECs in Achham), the members have been elected from the local community. Their capacity for certain necessary tasks will be low, and they will need coaching and support in aspects such as planning, implementation, administration, and fund management, accounting and auditing. An indication of the

topics to be covered at these VDC meetings is provided in Annex 6. A total budget of US$ 105,882 has been provided for these workshops.

4.5 Capacity Building Required at the Community Level

34. Community-level Awareness Raising and Coaching: there is a need for awareness raising, training and supervision at the community level in relation to planning and implementation of the sub-projects and smaller soil and water conservation activities.

35. There will be an estimated 400 sub-projects or smaller soil and water conservation activities over the 5 year project implementation period. A series of meetings at each sub-project will be organized with the beneficiary community – an initial awareness raising meeting, followed by meetings related to inception, works supervision and necessary coaching, conflict resolution (if required), public audit, and sub-project handover. These meetings will be organized by the SMT’s Social Safeguard Officer and Community Mobilizer together with staff from the DSC Office.

36. Costs are based on 400 sub-projects, 1 community per sub-project, 30 community members per meeting, and 6 meetings per project or conservation/rehabilitation activity. On the basis of NRs 300 per person/meeting, a total budget of US $ 254,118 has been allocated for these community meetings, coachings and supervision, to cover costs of refreshment, lunch, stationary and other necessary equipment and materials (see Annex 5).

37. Skilled Artisan Training: between 5 and 6 individuals from each sub-project area will be selected for training as a skilled artisan (eg. masonry, brick-laying, joinery); this totals approximately 2,000 individuals. At least 30% of these selected individuals will be women. Of these 2,000, 25% will be selected for further, more advanced training to be used on other sub-projects and soil and water conservation activities. Training of these artisans will be provided locally by a competent NGO, by another project (eg. the Employment Fund2), or possibly by CTEVT (Council for Technical Education and Vocational Training). The courses to be provided will be of 2 weeks maximum duration.

38. A total budget of US $ 161,765 has been allocated for this skilled artisan training (see Annex 5).

39. Rangers, Overseers and JTA Scholarships: 10 scholarships will be provided to each of the 4 main districts, Achham, Bajura, Dadeldhura and Doti, a total of 40 scholarships. This will be exclusively for women from discriminated groups, or men from disadvantaged groups (discriminated and poor).

40. The beneficiaries will attend the most appropriate CTEVT colleges and undertake courses for Rangers (forestry), Overseers (civil engineering) or Junior Technical Assistants (agriculture and horticulture). Following graduation from these 18 to 24 month courses, the beneficiaries will undertake a 6 month internship with the project.

41. The cost of each scholarship, covering registration fee, course fee for the 2 year course, travel and transport, accommodation, food, and salary during a 6 month internship, amounts to NRs. 272,000. US $ 128,000 has been budgeted for the 40 scholarships (see Annex 5).

2 Funded by World Bank, DFID, SDC and implemented by Helvetas Swiss Intercooperation. 9

Annex 1

Stakeholders in Watershed Management in Nepal Level and Function Institutions Central Level Policy and Regulatory Parliamentary Committees Government Advisory Body – Climate Change Council (CCC) Government Consultative body- the Multi-sectoral Climate Change Initiative Coordination Committee (MCCICC) National Climate Change Focal Point – The MoEST Ministry of Finance National Planning Commission The Ministry of Forests and Soil Conversation Other Ministries including: Federal Affair and Local Development; Physical Planning, Works and Transport Management; Environment, Science and Technology; Agriculture and Cooperatives; Energy; Home Affairs; Irrigation Water and Energy Commission Secretariat (WECS) Service Delivery Department of Soil Conservation and Watershed Management Departments of Forest, Water Induced Disaster Prevention, Agriculture, and Livestock Services Departments of Water Supply and Sanitation, Hydrology and Metrology, and Electricity Development Alternative Energy Promotion Centre (AEPC) Reducing Emissions from Deforestation and Forest Degradation (REDD) Support District Level Coordination Committees Organizations Association of District Development Committees Forestry Training Centre National Association of Village Development Committees in Nepal Federation of Nepalese Chambers of Commerce and Industry NGO Federation of Nepal and NGOs Nepal Agriculture Cooperative Central Federation (NACCF) Federation of Community Forestry Users, Nepal (FECOFUN) Local Level Service Delivery District Soil Conservation Office (DSCO) District Development Committees Village Development Committees Agriculture, Forestry and Environment Committees (under the VDC) District Livestock Service Office District Forestry Office District Agriculture Office District Water Supply and Sanitation Office District Live Stock Office Regional Line Agencies offices of Central Government Service Recipients (people, communities and organizations of the area) Water Users and Community Forests Committees Private Sector contractors Local NGOs and CBOs/UCs Party Mechanism( constituted from all political parties) at DDCs, municipalities and VDCs District Chamber of Commerce and Industry Community Level Service Recipient Individuals, farmers and households Community organizations such as Water Users Groups and Community Forestry Users Group Ward level organisations such as Community Awareness Centres and Advocacy Fora Party units or chapters at ward level Private sector contractors and shopkeepers

At international level, the following donors are, or have been in the recent past, involved in watershed management or aspects of watershed management:-

 Asian Development Bank  World Bank  UNDP/UNEP/CDDE/UNHSP/IFAD/FAO/WHO  DFID, UK  DANIDA(Danish International Development Agency)  SEPA(Swedish Environment Protection Agency)  Irish Aid  European Commission(EC)  USAID/USA  GIZ/ Germany  Sida  HELVETAS Swiss Intercooperation  IUCN/ICIMOD/GEF(Global Environment Fund)/  NORAD( Norwegian Agency for Development Cooperation)  FINIDA/Finland  SNV/Netherland  World Wildlife Fund (WWF), Nepal.

Overview of the Project Implementation Structure

B MoFSC Steering A Executing Committee S E Agency D

IN Technical K Working DSCWM – Implementation Agency A Group T H M A N Project Coordination Unit, D based at DSCWM U

Project Management Unit,

based in Dadeldhura D I S T R I DSCO, Achham DSCO, Bajura DSCO, Dadeldhura DSCO, Doti C (project implementation unit) (project implementation unit) (project implementation unit) (project implementation unit) T

L Sub-watershed Sub-watershed Sub-watershed Sub-watershed E Management V Management Management Management E Teams Teams Teams Teams L

in close collaboration in close collaboration in close collaboration with in close collaboration with DDC and District with DDC and District DDC and District Line with DDC and District Line Agencies, Achham Line Agencies, Bajura Agencies, Dadeldhura Line Agencies, Doti

Sub-Watershed Coordination Committees

VDCs S U B AFECs (Agriculture, W Forestry, A Environment T National & Local Committees) National & Local E Consultants and Consultants and R S NGOs – for Ward Level, Community Awareness Centres and NGOs – for H implementation Advocacy Forums, CBOs, User Groups implementation E D HHs HHs HHs L E V E L

On the ground sub-projects and activities

Annex 2

The Organizational Structure of DSCWM

At Headquarters under the Department:

Source: http://www.dscwm.gov.np/organizational_structure.html

In the Districts at the DSCO offices, with 4 sections for service delivery:

Source: http://www.dscwm.gov.np/organizational_structure.html

The DSCO offices are classified into 3 types in relation to staffing and budget management: i) A class, ii) B class permanent, and iii) B class temporary. Out of the total of 56 DSCOs, 14, 42 and 11 district offices are respectively A class, B class permanent and B class temporary – as recorded in the Table below. Department officials experience problems due to staff management in the 11 temporary offices, and in the case of temporary staff. Nationwide, 10 important districts are not covered by the Department in relation to services and programmes.

Classification of DSCOs

Development Region Far West Middle West Middle East Total West Districts Districts A Class Surkhet Kaski, Syanja Kathmandu Dhankuta, 14 Dang Palpa, Tanahu Nuwakot, Kavre Udayapur Gorkha Sindhuli, Lalitpur B Class Darchula, Jumla Gulmi, Baglung Rasuwa, Dhading Siraha, Saptari, 31 Permanent Baitadi, Dailekh Arghakhanchi Makawanpur Bhojpur Dadeldhura, Rukum Parbat, Myagdi Ramechhap Okhaldhunga Doti Salyan Mustang Sindhupalchok Panchathar (Project Area Rolpa Lamjung Sankhuwasabha Districts) Pyuthan Taplejung, Ilam, Jhapa B Class Kailali Nawalparasi Dolakha, Rautahat Tehrathum 11 Temporary Rupandehi Mohattari, Sarlahi Khotang Dhanusha, Bara Total 5 8 14 16 13 56 Non-DSCO Project Achham, 3 Districts Bajura Bajhang

Source: Annual Report 2066-67(2009/2010), DSCWM

Annex 3 Staffing of the DSCWM

The DSCWM and DSCOs are staffed by a total of 641 staff, 533 of whom are permanent and 108 temporary. 65 of the total staff are at the Department in Kathmandu, as shown below.

DSCWM Gazetted First Class (Technical)-1

PA, none gazetted first-1

Planning Section Watershed Management Division  Planning Officer-GSO Tech –1 Deputy Director-GFO (Technical)-1   Asst. Planning Officer-GTO Tech - 2 PA, none gazetted first-1   Technical Asst. NGFO Tech -1  Driver classless-1

Monitoring & Evaluation Section Watershed Information Section  Monitoring Officer-GSO Tech –1 WM Officer-GSO Tech 1  –  Asst. Monitoring Officer-GTO Tech – 1 Sn. Divisional Geologist-GTO Tech – 1   Civil Engineer-GTO Tech - 1 Asst. WM Officer-GTO Tech - 1   Technical Asst. NGFO Tech -1  Cartographer/draft-man- NGFO Tech -2 Administration Section Technology Development Section  Section Officer-GTO Adm –1  Technology Dev. Officer-GSO Tech –1  Computer operator NGFO Tech -1  Asst. TDO -GTO Tech – 1  Na. Su NGFO Adm -2  Asst. WM Officer-GTO Tech – 1  Telephone operator NGFO Tech -1  Lab chemist -GTO Tech - 1  Kharidar - NGSO Adm -2  Lab Asst. - NGFO Tech -1  Typist NGFO Adm -3  Soil Conservation Asst. NGFO Tech -1  Driver classless– 3  Lab support staff - classless -2  Peon/Support staff classless - 7

Soil Conservation Section  Soil Conservation Officer-GSO Tech –1 Account Section Asst. Soil Conservation-GTO Tech 2  –  Account Officer-GTO A/C –1 Ecologist-GTO Tech 1  –  Accountant NGFO A/C -1 Overseer - NGFO Tech -1   Asst. Accountant-GFO A/C -1 Soil Conservation Asst. NGFO Tech -1   Telephone operator NGFO Tech -1  Kharidar - - NGSO Adm. -2 Extension and Training Section  Typist NGFO Adm. -1 Extension Officer-GSO Tech 1  –  Peon/Support staff classless - 1  Asst. Extension Officer -GTO Tech – 1  Library Asst. -NGTO Tech – 1  Artist - NGFO Tech -1  Soil Conservation Asst. NGFO Tech -1 15

As at June 2012 (Ashadh 2069), the existing staff compliment of both HQ DSCWM and the field DSC Offices is as follows.

Permanent Positions Temporary Positions Special/ # Class Service Grand Provisional Dept Pool District Total Project District Total total 1 G.O.I Forest 2 2 0 2 10

2 G.O.II Forest 6 2 14 22 0 22 2

3 G.O.III Eng 1 1 0 1 45

4 G.O.III forest 6 42 48 11 11 59 23

5 G.O.IV Agri 3 2 5 0 5 8

6 G.O.IV Eng 2 1 3 0 3 17

7 G.O.IV Adm 2 2 0 2

8 N.G.O.I Forest 2 90 92 22 22 114

9 N.G.O.I Agr 2 45 47 11 11 58

10 N.G.O.I Eng 4 45 49 11 11 60 19

11 N.G.O.I Adm. 4 14 18 0 18 1

12 N.G.O.I A/c 1 45 46 11 11 57

13 N.G.O.I Edu. 1 1 0 1

14 N.G.O.I Tech 3 3 0 3

15 N.G.O.I Adm. 3 3 0 3

16 N.G.O.II Adm. 3 44 47 11 11 58

17 N.G.O.II A/c 1 1 0 1

18 Driver 4 38 42 9 9 51

19 Labe boy 2 2 0 2

20 Support 9 90 99 22 22 121

21 G.O.II Agri. 0 0 0 1

22 G.O.III Edu 0 0 0 1

23 G.O.III Tech 0 0 0 1

Total 61 5 467 533 0 108 108 641 128

It should be noted that:- a) of the total 641 total staff, there are only 21 women, 3% - as shown in the table overleaf. 11 of them are in the districts, and 2 in temporary positions. b) Department officials express that there are inadequate technical staff across DSCO, and that there are far too few women. Both factors may limit the human resource support that can be provided by DSCWM to the Project, and many of the staff for BCRWME project will have to be hired as consultants. c) “A” class DSCOs have an Undersecretary (2nd class officer) as the District chief, the section officer, assistance soil conservation officer and other support staff. “B” class permanent and temporary offices have a Section Officer (Assistant Soil Conservation Officer) as the district chief, and other support staff.

The Number of Women in the DSCWM:-

Class Service Permanent Position Temporary Position # Grand Dept Pool District Total Project District Total Total 1 G.O.I Tech 1 1 1

2 G.O.III Tech 3 3 3

3 N.G.O Adm. 2 1 3 3

4 N.G.O Adm. 1 1 2 2

5 N.G.O.II Adm. 2 1 3 1 1 4

support 6 1 6 7 1 1 8 staff Total 10 9 19 2 2 21

Source: Annual Report 2066/67(2009/2010) of DSCWM

Annex 4

Institutional Problem Tree and Capacity Assessment of DSCWM

Institutional Problem Tree

Figure 1. Problem Tree of DWCSW's Institutional Capacity

Increased Deficient rural Unplanned and Poor response to issues affecting EFFECTS vulnerability to infrastructure uncoordinated environmental and and services watershed women, the poor and other climate change risks development vulnerable groups

CORE PROBLEM INEFFECTIVE AND WEAK INSTITUTIONAL CAPACITY FOR SUSTAINABLE AND INCLUSIVE WATERSHED MANAGEMENT AND CLIMATE RESILIENCE DEVELOPMENT

Unclear Inadequate Constrained Poor Poor CAUSES watershed and untrained local accountability, coordination policies, human capacity for participation, among LAs, structures resources SCWM and civil society and systems transparency and private sector

Inadequate No trained staff Lack of Inadequate Lack of implementation for compliance capacity for public hearings partnership of, watershed with climate strategic and and audits, plans and management change, SCWM inclusive lack of social programs with policies and GESI SCWM audits private sector planning and and civil implementation society No institutional Inadequate Poor gender provision for Weak policy HRD and equality and environmental and regulatory Limited safeguards performance social inclusion capacity of evaluation and framework for in HR, SCWM sustainable private sector management planning and and civil system and climate programming Overlapping change society and unclear resilient rural infrastructure delineation of No elected Poor roles in central political and services information, Inadequate and local levels representatives education, and organizations with database on Ineffective communication accountability private sector linkages to the public to local and civil Lack of policies among constituents society to mainstream DSCOs, LAs, Lack of GESI in Reluctance to civil society transparency in watershed outsource and private financial, Management expertise and sector environmental programs services and social audits Inadequate public participation in planning & monitoring

Capacity Assessment of DSCWM 7 capacity factors have been taken for the basis of the capacity assessment of DSCWM, as shown in the table below, which summarizes the capacity status of DSCWM.

# Capacity Factors and Indicators Status on Capacity Factors 1 Strategic Management  outline of organizational strategy without vision organizational strategy with defined vision   no policy level, management level & operational level strategies in DSCWM policy level, management level & operational level strategy   poor external linkage external linkage   low attainment of objectives/programs  accomplishment of organizational objectives/vision/programs 2 Organizational Structure and Culture  DSCOS' classification as permanent and temporary is problematic staffs' clarity on task & functions of DSCWM.   staff are unclear on tasks & functions of DSCWM (eg. basin vs. district  activities of Divisions & DSCOS as per defined vision/ objective/ strategy/ approach) structure  activities carried out by divisions and DSCOs as per structure assuming accountability & responsibility of the assigned task and functions.   upward accountability to MOFSC & responsibility of the task and functions organizational Value   organizational value not defined 3 Human Resources/DSCWM Staffs  HRM as per GoN's rules and regulation selection and appraisal of human resource   poor motivation of human resources motivation of human resources   no HRD plan but some training conducted human resource development.   inadequate HR in number and competency for WSM & human resource in terms of number & inclusive and gender balance.   weak inclusive and gender balance in HR 4 Working Process and System  citizen charter & signboard on DSCOs working procedure - administrative, financial, technical & operational   weak working procedures on administration, finance, WSM technology &  essential bye laws, working manuals and policy/directives DSCO's operation.  DSCWM's policy, plans and implementation  no standards on soil and watershed management  monitoring and regulation on WSM  poor implementation of policy & program  poor participatory and result based monitoring on WSM 5 Financial Management and Resources Mobilization  budget and program as per government but low budget assignment to WSM  budget and program programs  accountability and transparency (accounting and reporting)  upward accountability to MoFSC and poor transparency  mobilization of financial resources & technical capacity  no clear program on sustainable watershed management like PES promotion  financial control and audit and implementation  no program on mobilization of social capital and private sector on WSM  accounting, financial control and audit as per government rules and regulation 6 Information/Knowledge Management and IT  manual reporting to the prescribed agencies but no software and electronic  reporting and communication reporting  inter and intra communication  good intra communication but poor inter agencies and the people  knowledge management: collection analysis and dissemination of information communication management information, IT and filing system  poor knowledge management like collection and dissemination of information on  WSM  computers, LAN, Internet, telephones, web-site  poor management of IT, no software, standard information feeder systems and utilization 7 Inter-relationship and Network of Relationship  no definition and agreement on common issues and agenda among  common issues and agenda stakeholders on WSM  relation with international, national, regional and local government  relation: good at national and weak at local levels  contact points for research on WSM, professional and HRD on WSM  weak contacts for research knowledge, professional and HRD on WSM  external relation: bilateral/multilateral organization and I/NGOs, private sectors  poor external relation: bilateral/multilateral organization and I/NGOs, private sectors

Annex 5 Capacity Building Plans and Budgets for the Different Stakeholders

Capacity Building Plans and Budgets for DSCWM Staff

Please refer to Table 1 in main report for further details on the courses to be provided to DSCWM staff.

Course No. and Title:- 1 2 3 4 5 6 Total Costs Working with Local Watershed Management Survey, Mapping, Landslide Hazard GIS Advanced Low-cost Soil Communities and Climate Change Design and Mapping Conservation Techniques NRs US $ Adaptation Estimation No of HQ staff who require All technical staff All technical staff All technical staff All technical staff All technical staff All technical staff training/participants

Duration of Basic Training 2 days 2 days 3 days 2 days 3 days 2 days in year 1 and 2

Cost per basic training 500,000 500,000 750,000 500,000 750,000 500,000 3,500,000 41,176 (NRs) Cost of Resource Person 200,000 0 0 200,000 300,000 0 700,000 8,235 Resource person: social scientist - internal from DSCWM or internal from outsourced - outsourced - internal from DSCWM or

outsourced project team, with guest DSCWM consultant or ICIMOD consultant or project team, with guest contributors ICIMOD contributors Total Costs for Basic Training in Yr 1 & 2 4,200,000 49,411

Duration of Advanced or 2 days 2 days 3 days 2 days 3 days 2 days Refresher Training in year 3 Cost per advanced/refresher 500,000 500,000 750,000 500,000 750,000 500,000 3,500,000 41,176 training (NRs) Cost of Resource Person 200,000 0 0 200,000 300,000 0 700,000 8,235 Resource person: social scientist - internal from DSCWM or internal from outsourced - possibly outsourced - internal from DSCWM or

outsourced project team, with guest DSCWM ICIMOD consultant or project team contributors ICIMOD Total Costs for Advanced/Refresher Training in Yr 3 4,200,000 49,411 8,400,000 98,822 Total Costs for DSCWM Training in Years 1 to 3

Capacity Building Plans and Budgets for DSC Officers (District and Assistant District Soil Conservation Officers)

Please refer Table 1 in main report for further details on the courses to be provided to the senior Officers at the DCSOs.

Course No. and 1 2 3 4 5 6 7 Title:- Total Costs Working with Local Watershed Management Survey, Mapping, Design Landslide Hazard Soil Conservation Office Exposure Visits Communities and Climate Change and Estimation Mapping Technologies Management (national or NRs US $ Adaptation regional) No of District staff 12 12 12 12 12 12 12 who require training (from the 6 project (participants) districts) Duration of Basic Training in year 1 3 days 3 days 3 days 2 days 2 days 2 days 14 days and 2 Cost per basic 200,000 200,000 200,000 150,000 150,000 150,000 2,500,000 3,550,000 41,765 training (NRs) Cost of Resource 300,000 0 0 200,000 0 200,000 0 700,000 8,235 Person Resource person: social scientist - internal from DSCWM or internal from DSCWM outsourced - internal from outsourced to not required outsourced, possibly project possibly ICIMOD DSCWM or specialist

to HELVETAS or project team SDC Total Costs for Basic Training in Yr 1 & 2 4,250,000 50,000

Duration of Advanced or 2 days 2 days 2 days 2 days 2 days 2 days 14 days Refresher Training in year 3 Cost per 150,000 150,000 150,000 150,000 150,000 150,000 2,500,000 3,400,000 40,000 advanced/refresher training (NRs) Cost of Resource 200,000 0 0 200,000 0 200,000 0 600,000 7,069 Person Resource person: social scientist - internal from DSCWM or internal from DSCWM outsourced - internal from outsourced to not required

outsourced project team, with guest possibly ICIMOD DSCWM or specialist contributors project team Total Costs for Advanced/Refresher Training in Yr 3 4,000,000 47,069 8,250,000 97,069 Total Costs for DSCO Officer Training in Years 1 to 3

Scholarships for MSc Courses Funds for 4 x MSc Scholarships in Watershed Management or related subject Cost per MSc Scholarship = US $ 75,000 Total Allocated budget for 4 x MSc Scholarships = US $ 300,000

Capacity Building Plans and Budgets for DSC Technical and Administrative Staff

Please refer Table 1 in main report for further details on the courses to be provided to the technical and administrative staff at the DSCOs.

Course No. and 1 2 3 4 5 6 7 Title:- Total Costs Working with Local Watershed Management Survey, Mapping, Design DSCWM and Soil Basic Computer Office Exposure Visits Communities and Climate Change and Estimation Conservation Training Management (national) Adaptation Technologies NRs US $

No of District staff 30 30 30 30 30 30 15 who require training (from the 6 project (participants) - districts) finance and admin staff to be included where appropriate Duration of Basic 3 days 3 days 3 days 3 days 3 days 3 days 14 days Training in year 1 and 2 Cost per basic 300,000 300,000 300,000 300,000 300,000 300,000 1,000,000 2,800,000 32,941 training (NRs) Cost of Resource 300,000 0 0 0 100,000 300,000 0 700,000 8,235 Person Resource person: social scientist - internal from DSCWM or internal from DSCWM internal from IT specialist - outsourced to not required outsourced, possibly project, with guest DSCWM outsourced to specialist to HELVETAS or contributors if available reputable local SDC company Total Costs for Basic Training in Yr 1 & 2 3,500,000 41,176

Duration of 2 days 2 days 2 days 2 days 2 days 2 days 14 days Advanced or Refresher Training in year 3 Cost per 200,000 200,000 200,000 200,000 200,000 200,000 1,000,000 2,200,000 25,882 advanced/refresher training (NRs) Cost of Resource 200,000 0 0 0 100,000 200,000 0 500,000 5,882 Person Resource person: social scientist - internal from DSCWM or internal from DSCWM internal from IT specialist - outsourced to not required outsourced, possibly project, with guest DSCWM outsourced to specialist to HELVETAS or contributors if available reputable local SDC company Total Costs for Advanced/Refresher Training in Yr 3 2,700,000 31,764

Total Costs for DSCWM Training in Years 1 to 3 6,200,000 72,940

Special Training for Project Staff at PCU, PMU and SMTs

Please refer Section 3.3 in main report for further details of the special training recommended for project and DSCWM staff in management and implementation positions. All costs are in US $ in the table below.

Course Duration Venue Cost of Cost of Flight Accommodation DSA – food and other costs No of Staff to attend Overall Total Course Per day Total Per Day Total Training Budget (US $) Knowledge 5 days IMA Bangkok 2,000 1,000 100 500 50 250 8 30,000 Management Monitoring and 10 days IMA Bangkok 5,000 1,000 100 1,000 50 500 10 75,000 Evaluation Other necessary 50,000 as applicable as applicable Lump sum provision training Total Costs for Special Courses US $ 155,000

Capacity Building Plans and Budgets for the Sub-Watershed Management Committees (SWMC)

It is envisaged that the SWMCs will convene twice a year (see the Project implementation Arrangements for the BCRWME).

As reported in section 3.4, BCRWME will fund the SWMC meetings and trainings for 2 years only, after which they will be expected to be self-sustaining through funding from other project or government sources. In the first two years, complimentary training will be provided at each meeting in different aspects (see section 3.4 in this report).

A budget of NRs. 150,000 has been budgeted for each meeting/training session in year 1; it is expected that the day will be split into half meeting and half training, but funds permitting, an extra day can be added to ensure that topics are covered more comprehensively for a smaller group. In year 2, the budget will be reduced to NRs 100,000/meeting as the training need will have reduced, and to avoid increasing dependency.

In year 1, each SWMC will hold its own meetings and trainings. From year 2, however, it is expected that some adjacent SWMCs will be able to hold meetings jointly, otherwise costs and the number of meetings will spiral to unmanageable levels.

A total of US $ 347,059 has been budgeted.

No. of New Expected No. Expected No. of No of Yr 1 Cost of Yr 1 No of Yr 2 Cost of Yr 2 Total Cost of SWMC SWMCs of SWMC SWMC Meetings Meetings/Trainings Meetings/Trainings Meetings/Trainings Meetings/Trainings Meetings & Trainings Formed in Meetings in to be funded by @ NRs 150,000 (NRs) @ NRs 100,000 (NRs) Budget each year each year BCRWME in (NRs) US $ years 1 & 2 Year 1 3 6 6 6 900,000 0 0 900,000 10,588 Year 2 7 20 26 14 2,100,000 6 600,000 2,700,000 31,765 Year 3 20 60 80 40 6,000,000 14 1,400,000 7,400,000 87,059 Year 4 20 100 160 40 6,000,000 40 4,000,000 10,000,000 117,647 Year 5 15 130 230 30 4,500,000 40 4,000,000 8,500,000 100,000 Totals 65 306 502 130 19,500,000 100 10,000,000 29,500,000 347,059

Capacity Building Plans and Budgets for VDC-level Staff and Elected Members of Sub-Committees

Please refer Section 3.4 in main report and Annex 6 for further details on the coaching to be provided to the VDC staff and committee members..

Cost Breakdown All VDCs (and AFECs) will need to be introduced to the project through a series of meetings. There are 110 VDCs which fall completely within the project area – 41 in Achham, 7 in Baitadi, 16 in Bajura, 9 in Dadeldhura, and 37 in Doti; a further 10 VDCs fall partially within the project area.

Where AFECs are being established, further trainings will also be required – see Annex 6 of this report, and the Project implementation Arrangements for the BCRWME. Where sub-projects and other soil and water conservation activities are not taking place in VDCs, these VDCs may be omitted from the programme if this is deemed the correct strategy by Project management due to very short project duration and pressure of work.

Through joint meetings (several VDCs attending the same meetings), it is estimated that 60 awareness raising, coaching and planning workshops, some at basic level and some at advanced level, will be held at the VDC level, combining adjacent VDCs between which there is good accessibility, and incorporating the partial VDCs in an adjacent VDC meeting.

Each workshop will be attended by an average of 30 participants, and the cost of each workshop has been estimated at NRs 150,000, inclusive of participant costs, refreshment, travel, food and lodging and local resource persons.

A total of NRs 900,000 (US $ 105,882) has been budgeted for these VDC workshops.

Capacity Building Plans and Budgets for Stakeholders at Community Level

Please refer Section 3.5 in the main report for further details on the awareness raising, coaching and training to be provided to the local communities. Community level capacity building falls under 3 categories, as described below.

Community-level Awareness Raising and Coaching There will be an estimated 400 sub-projects or smaller soil and water conservation activities and a series of meetings at each sub-project with the beneficiary community is necessary: an initial awareness raising meeting, followed by meetings related to planning and inception, works supervision and necessary coaching, conflict resolution (if required), public audit, and sub-project handover. A total of 6 community meetings per sub-project is thus envisaged.

Costs are based on 400 sub-projects/activities; 2,400 meetings will be held over the 5 year project duration, each meeting with an estimated maximum of 30 community members. On the basis of NRs 300 per person/meeting, a total budget of US $ 254,118 has been allocated for these community planning meetings, coachings and supervision visits, to cover costs of refreshment, lunch, stationary and other necessary equipment and materials.

Skilled Artisan Training As documented in Section 3.5, between 5 and 6 individuals from each sub-project area will be selected for training as a skilled artisan (eg. masonry, brick-laying, joinery); this totals approximately 2,000 individuals. Training of these artisans will be provided locally by a competent NGO, by another project, or by CTEVT. Further more advanced training will be provided to 500 appropriate individuals. A total budget of US $ 161,765 has been allocated for this skilled artisan training.

Rangers, Overseers and JTA Scholarships A total of 40 scholarships will be provided to women from discriminated groups, or men from disadvantaged groups (discriminated and poor), for further training in a subject relevant to the Project. The beneficiaries will attend the most appropriate CTEVT (Council for Technical Education and Vocational Training) college and undertake courses for Rangers (forestry), Overseers (civil engineering) or Junior Technical Assistants (agriculture and horticulture). Following graduation from these 18 to 24 month courses, the beneficiaries will undertake a 6 month internship with the project. US $ 128,000 has been budgeted for the 40 scholarships. This includes the costs of the training course at CTEVT (~ NRs 200,000 inclusive of travel, accommodation, fooding and tuition for the 18 to 24 month training course), and basic salary for a 6 months internship with the project.

ANNEX 6

Suggested Coaching Curricula for the VDC and AFEC Members

A) Basic Orientation3

Duration Coaching Topic DAY 1 30 minutes Introduction of participants 15 minutes Welcome, and programme details 30 minutes Introduction to watershed management 30 minutes Introduction to project, objectives, expected outputs, modalities 30 minutes How the project will work with the DDCs, VDCs and communities 30 minutes Decentralization to the VDC level, the LSGA rules and regulations, 30 minutes Block grants and funding availability at the VDC level for local development 15 minutes Questions and discussion 45 minutes Lunch Break 45 minutes The role of the community – citizen awareness centres, ward-level organizations, and advocacy fora, service demand, and capacity of the VDC to provide services 30 minutes The sub-committees of the VDC – the function of the AFEC in local development 30 minutes Plenary work – how can the VDC sub-committees help and in what way; what sort of requests might come from the local communities, can the VDC respond? 30 minutes Discussion 75 minutes Rules, by-laws and work modalities of the AFEC Day 2 30 minutes First day interpretation 45 minutes Upgrading the VDC level development framework – how will it work 30 minutes AFEC's responsibilities, working structure process and skill development programme 30 minutes Cooperating with the other VDC committees – planning integrated development programmes at the local level 30 minutes Budget processes and management - budget norms and rates 60 minutes Lunch Break 120 minutes Team work followed by presentation and discussion (4 to 6 groups) – suggested working topics: a) How can the AFEC help the BCRWME in planning and implementing its work? b) What are the main responsibilities of the AFEC in relation to planning and implementing BCRWME? c) What training will the local communities require to help BCRWME implement the project activities? d) A new AFEC will have much to learn – how can the community help to develop the AFEC and what sort of assistance will be required from the District authorities and projects? Brief presentations, followed by discussion on group work. 45 minutes Demands for assistance to the AFEC from the community –process, procedures, call for proposals, planning and budgeting small scale projects, proposal evaluation, implementation and monitoring 30 minutes AFEC meetings – calling meetings, facilitation and management, taking minutes, decision making, acting on decisions 75 minutes Responsibilities of the AFEC members in relation to the DDC and VDC annual Council meetings 60 minutes Questions and discussion Closing Ceremony

3 Adapted from VDC course curricula developed by the HELVETAS Swiss Intercooperation Sustainable Soil Management Programme. 26

B) AFEC Management Training and Formation of the AFEC4

Duration Coaching Topic Day 1 30 minutes Introduction of participants 15 minutes Welcome, and programmes details 15 minutes Tea break 45 minutes Watershed Management and the role of BCRWME – procedures, modalities, planned project activities, assistance required from the VDCs and AFECs, and local communities 60 minutes The role of the VDC and AFEC in assisting BCRWME in planning, budgeting and implementing its activities

45 minutes Lunch Break 60 minutes Assistance required by the communities from the AFEC – project proposal forms, proposal collection, proposal evaluation, acceptance and approval 30 minutes The importance of record keeping and management of records by the AFEC 3 hours Financial matters at the AFEC:  funding and bank account management  committee income, expenses, accounting and financial record keeping  bills and other records of expenses, verification and proper filing  voucher preparation, and ledger writing  income, expense, financial document and report preparation  visibility, good governance, public verification of accounts (public audits) Day 2 30 minutes First day review (with tea) 60 minutes The formation of the AFEC: voting, committee formation, office bearers, and roles and responsibilities 30 minutes How to undertake a committee meeting (process, agenda, time, minutes, responsibility for actions)

90 minutes Rules and ways of working: norms and rates for running of the AFEC 60 minutes Lunch Break 60 minutes Joint work, cooperation, collaboration, liaison with other sub-committees and community organizations and centres 60 minutes Define responsibilities of the AFEC for implementation of the BCRWME, roles and responsibilities of each committee member in regard to project implementation 60 minutes Discussion and comment

Closing Ceremony

4 Adapted from AFEC course curricula developed by the HELVETAS Swiss Intercooperation Sustainable Soil Management Programme. 27

ECONOMIC AND FINANCIAL ANALYSIS (Building Climate Resilience of Watersheds in Mountain Eco-Regions Project)

A. Objective

1. The economic and financial analyses were carried out for three sample subprojects which will be the first to be implemented under the Building Climate Resilience for Watersheds in Mountain Eco-Regions Project. The analyses focused on the economic feasibility of the individual subprojects. The quantified benefits of the subprojects are principally the gains in agricultural outputs and improvements in domestic water supply during the dry season that will be possible with the construction of improved water storage ponds and tanks and the protection of their related water sources. Project investments do not include any irrigation distribution infrastructure for the command areas of storage facilities. These investments will be made by the farmer beneficiaries themselves. These investments and on-going maintenance costs of the subprojects are weighed against the estimated benefits. The three subprojects are typical in many respects and provide a good indication for the feasibility of subprojects to be included as the project is implemented.

B. Approach and Major Assumptions

2. To assess the expected quantifiable benefits of the subprojects, with and without scenarios were compared. The without project situations were assumed to be a continuation of the present production situation in each subproject command area. With project situations are based on an assessment in each case of the likely impact of improved and reliable water sources on agricultural production and domestic water supply. All subprojects are assumed to have an economic life of 20 years. Quantified production benefits begin to accrue in the year following subproject construction and are assumed to build up gradually over at least 3 years. Investment costs are based on the designs for proposed interventions at each site. The analysis uses the world price numéraire, a standard conversion factor of 0.91 and a shadow wage rate factor of 0.85. Economic indicators were estimated without overhead costs (i.e. costs for project management, technical assistance, training, institutional strengthening and other project costs).

C. Estimated Benefits

3. Quantified Benefits. Benefits accrue from the increased crop production generated by the introduction of new or improved and more reliable irrigation to farms within each subproject command area. Gains occur in two ways. Firstly, yield increases are achieved when farmers are able to irrigate crops that were rainfed without the project or that were only partially (and unreliably) irrigated. Second, the cropping intensity increases because land that was not regularly cultivated is brought under cultivation in both seasons. For the economic analysis, crop budgets were prepared based on information on current yields and inputs provided by farmers, supplemented with crop production data for each district compiled by the Department of Agriculture (DOA). Data from other similar projects was also referred to. Inputs and anticipated yields for with project crop budgets were based on current good practice in the respective districts, keeping in mind that the project will provide no support for improving agricultural performance. Future yields have been restricted to increases of not more than 10%, which can reasonably be expected given the availability of irrigation water and reasonable management of the water by farmers. Cropping patterns are based on field observations and farmer information for the present situation. Future cropping patterns have been designed taking into account the likely impact of access to reliable irrigation, market situations and an assessment of what is likely to be manageable for households using their own labor.

4. The project is unlikely to have a significant impact on the overall production of cereals, but is expected to result in the substitution of rice for maize within the command areas of ponds and tanks. It is likely to increase production of potatoes, vegetables, pulses and other cash crops. Any increases in cereal production arising from project implementation will help to address the overall national food deficit and will substitute for imports. Demand for vegetables is also rising with population and incomes and increased production also substitute for on-going imports from India. Apart from the market in Nepal, there is a small but growing market in north India for off-season vegetables produced in the hill districts where there is a climatic advantage for this production.

5. Non-Quantified Benefits. Significant benefits of the project have not been quantified. Project activities to protect the catchment areas of water sources, stabilise hillsides and landslide prone areas and improve watershed planning and management at local and national levels will all have positive, if long term, benefits for people living in the sub-watershed areas where the project will be active. These benefits have not been quantified because specific data on which to base benefit estimates have not been available.

6. It is also likely that increased agricultural production will provide limited benefits for some landless and other households in and near subproject sites by increasing the demand for labour from households with larger farms. Increased production surpluses, especially the production of cash crops, will benefit local markets and trade in subproject areas.

D. Assessment of Financial Impacts

7. The financial impact of the three subprojects on farm household income is summarised in Table 1, based on changes generated by the crop budgets and farm models. Incremental income accrues gradually over 3 to 5 years. Increases in farm income from land within the command areas of ponds and tanks will be in excess of 100% in some cases.

8. For the households benefitting from this part of the project’s activities, the impact on poverty will be positive. Small landholders in the subproject areas can expect income from on- farm production of up to NRs.50,000 ($590) per year. Households may also have land outside the command areas affected by project interventions and often also have non-farm sources of income. In particular, labour migration to other areas in Nepal, to India and further afield is important and can be a much more significant source of income than on-farm crop production. At the time of the 2011 census, the proportion of the male population of Bajura, Doti and Dadeldhura districts reported as being absent abroad was 9%, 18% and 13%, respectively.

Table 1: Estimated Incremental Income for Households with Land in Tank and Pond Command Areas 1) No. Average Area Present Income Incremental Income Subproject 2) Households (ha) (NRs) NRs % Doti 85 0.25 23,858 26,350 110% Bajura 124 0.25 26,663 23,828 89% Dadeldhura 71 0.25 21,837 24,930 114% Note: 1) Incremental income after transition to with project cropping patterns. 2) Estimated income from land in tank and pond command areas only.

E. Project Costs

9. The capital and ongoing costs of the subprojects are summarized in the table. In addition, annual O&M costs have been estimated at 2.5% of initial capital costs.

Table 2: Subproject Costs Beneficiary Subproject Project Investment ($) 1) Total Cost ($) Investment ($) Doti 146,428 18,750 165,178 Bajura 128,540 23,250 151,790 Dadeldhura 67,546 20,252 87,798 Notes: 1) Estimated farmer beneficiary investment required in irrigation distribution infrastructure.

F. Assessment of Economic Impacts

The EIRRs and sensitivity results for the three subprojects are given in

10. Table 3. The EIRRs for the Doti, Bajura and Dadeldhura subprojects are 14.9%, 14.2% and 21.4%, respectively. These results have been estimated based on direct subproject construction costs and the benefits summarised in the preceding sections. No project management or other overhead costs have been included. The sensitivity results show that the EIRRs are relatively insensitive to changes in most cost and benefit variables, but for the two subprojects with relatively EIRRs, some variations tested lead to EIRRs below 12%. If capital cost over-runs of 10% are combined with falls in subproject benefits 10% below those estimated over the life of the subprojects, both the Bajura and Doti subprojects would have EIRRs below the 12% discount rate. However, this scenario is unlikely and as noted above, significant benefits of the subprojects have not been quantified and, if it were possible to quantify them, would certainly raise the estimated EIRRs above the levels given here.

11. The major risk to the outcome of the individual subprojects would be if farmers do not develop the systems to distribute water from the tanks and ponds to their fields, or if they do not develop distribution systems for the full command areas assumed in the respective feasibility studies. For the Bajura, Doti and Dadeldhura sample subprojects, EIRRs would be only 12% if the proportions of the command areas developed by farmers were 87%, 78% and 48%, respectively, of the design areas. Furthermore, as noted above, a high proportion of the male population of some of the Far Western districts is working abroad at any one time. This could have an adverse effect on the ability or the interest of households to intensify agricultural production, therefore risking project outcomes.

G. Impacts on Poverty

12. For each subproject, project benefits were distributed to the economy (government), farm households and labour and the relevant proportions accruing to the poor were estimated for each category. For the economy, the proportion applied is the national average poverty level of 25.2% reported by the Central Bureau of Statistics in “Poverty in Nepal, 2010/11”. For farm households and labour the headcount poverty ratio of 36.8% for rural areas of the Mid and Far Western Regions was used. The poverty impact ratios for the three subprojects are 33.1% for Doti, 32.2% for Bajura and 30% for Dadeldhura.

Table 3: EIRR & Sensitivity Results EIRR NPV Switching Value

(%) (NRs.’000) (%) Doti Subproject Base case 14.9 2,101 Capital costs +10% 13.1 902 +17 -10% 16.9 3,310 All benefits +10% 16.7 3,510 -15 -10% 13.0 692 Costs +10%; benefits -10% 11.3 -507

Bajura Subproject Base case 14.2 1,415 Capital costs +10% 12.5 331 +13 -10% 16.1 2,500 All benefits +10% 15.9 2,641 -12 -10% 12.3 189 Costs +10%; benefits -10% 10.7 -875

Dadeldhura Subproject Base case 21.4 4,488 Capital costs +10% 19.5 3,845 +92 -10% 23.6 5,131 All benefits +10% 23.4 5,580 -48 -10% 19.3 3,396 Costs +10%; benefits -10% 17.5 2,753

H. Beneficiary Contributions

13. DSCWM requires beneficiary participation in project costs and there is a guide to the proportions of costs for different activities that should be borne by beneficiaries. These proportions range up to 50% for terrace improvement to 20% to 30% for road slip stabilization or stream bank protection. However, in practice contributions from beneficiary communities are negotiated on a case by case basis, with the bottom line being that communities must at least commit to contributing all O&M costs after completion of the works. If a community is unable to make this commitment, then the proposed works are likely not to be implemented. Apart from O&M costs, the expected contribution from the community depends upon the capability of people in the community, needs and so on. In actual cases, contributions from the beneficiary community have ranged from a few percent of total costs up to 50%.1 Clearly, there are

1 The document “Guidelines for People’s Participation in Soil Conservation”, Watershed Management Project, Department of Soil Conservation, 1993 sets out a procedure for the participation of people in soil conservation limitations on the absolute amounts that communities are able to contribute, depending on the size of the community, income levels in the area and the total cost of the proposed works.

14. In the three sample subprojects found that value of unskilled labour amounted to 22% of the total cost in the Bajura subproject and 9% and 16% in the Dadeldhura and Doti subprojects, respectively. It seems reasonable to suppose that for most subprojects implemented the value of unskilled labour is likely to be between 10% and 20% of total costs.2

15. Several constraints affect the ability of communities to contribute to subproject costs. The average household income obtained from the socio-economic survey is NRs.151,000 per year, although with significant variation among households and areas.. The ability of many households in the project districts to make cash contributions to project and maintenance costs is limited, particularly given the average household size of 6.9 (for surveyed households). Labour availability may be another constraint, as noted above. This could mean that some households do not have sufficient labour available for regular on and off-farm work as well as to provide labour for subproject implementation activities.

16. Based on current DSCWM practice and other data, a level of 15% of subproject base costs as the target for beneficiary contributions may be realistic, but not always achievable. These contributions may be in kind (mostly labour) or cash, but the ability of communities and households to contribute either of these varies significantly across the project districts.

activities, from the identification of problems and designing of solutions to the implementation of treatment measures. This involves establishing user groups and negotiating contributions in kind (and cash). This document was the first to set out a procedure for involving beneficiary groups in soil conservation activities. 2 The value of unskilled labour in the three subprojects, as a percentage of base costs, is 31%, 22% and 11% for Bajura, Doti and Dadeldhura, respectively. It is assumed that the value of unskilled labour as a proportion of base costs is not likely to be often outside this range. Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

APPENDIX XX

ECONOMIC ASSESSMENT OF THE BUILDING CLIMATE RESILIENCE OF WATERSHEDS IN MOUNTAIN ECO-REGIONS PROJECT

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

TABLE OF CONTENTS

I. INTRODUCTION 1 II. PROJECT CONTEXT 1 A. The Nepal Economy 1 B. Economic Rationale for the Project 3 C. Background to the Economic Assessment 4 1. Water Supply 4 2. Irrigation and Agricultural Production 5 III. THE SUBPROJECT AREAS 6 A. Present Situation 6 1. Doti 7 2. Bajura 8 3. Dadeldhura 8 B. Subproject Interventions 9 C. Demand for Project Outputs 10 IV. PROJECT COSTS 10 A. Subproject Costs 10 B. Beneficiary Cost Sharing 11 C. Incremental Costs due to Climate Change 13 V. ECONOMIC ASSESSMENT 14 A. Key Assumptions for the Analysis 14 B. Project Benefits 14 1. Quantified Benefits 14 2. Non-Quantified Benefits 15 C. Doti Subproject 15 1. Subproject Costs 15 2. Subproject Benefit 16 D. Bajura Subproject 18 1. Subproject Costs 18 2. Subproject Benefits 18 E. Dadeldhura Subproject 19 1. Subproject Costs 19 2. Subproject Benefits 20 F. Economic Results and Sensitivity 22 G. Beneficiaries 23 H. Risks 24 I. Distribution and Poverty Analysis 25 VI. FINANCIAL IMPACT OF THE PROJECT ON BENEFICIARY HOUSEHOLDS 25 VII. CONCLUSIONS 26

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

LIST OF TABLES

Table 1: Key Indicators (2006/07 - 2011/12) ...... 2 Table 2: Balance of Payments (% GDP) ...... 2 Table 3: Government Revenues & Expenditures (% GDP) ...... 3 Table 4: Doti - Without Project Cropping Pattern ...... 7 Table 5: Bajura - Without Project Cropping Pattern ...... 8 Table 6: Dadeldhura - Without Project Cropping Pattern ...... 9 Table 7: Doti Subproject - Financial and Economic Costs ...... 16 Table 8: Doti - With Project Cropping Pattern ...... 16 Table 9: Doti - Incremental Crop Production ...... 17 Table 10: Doti - Estimate of Domestic Water Supply Benefits ...... 17 Table 11: Bajura - Financial and Economic Costs ...... 18 Table 12: Bajura - With Project Cropping Pattern ...... 19 Table 13: Bajura - Incremental Crop Production ...... 19 Table 14: Dadeldhura - Financial and Economic Costs ...... 20 Table 15: Dadeldhura - With Project Cropping Pattern ...... 21 Table 16: Dadeldhura - Incremental Crop Production ...... 21 Table 17: Dadeldhura - Estimate of Domestic Water Supply Benefits ...... 22 Table 18: EIRR & Sensitivity Results ...... 23 Table 19: Sample Subproject Beneficiaries ...... 24 Table 20: 2011 Census - Sex Ratios in Project Districts ...... 24 Table 21: Estimated Incremental Income for Farms in Command Areas ...... 25

Attachment 1

Table A 1: Input and Output Prices for Crop Budgets ...... 27 Table A 2: Estimated Import Parity Prices for Rice, Wheat & Maize ...... 28 Table A 3: Estimated Import Parity Prices for Fertilizers ...... 29 Table A 4: Crop Budgets (yields and inputs) ...... 31 Table A 5: Doti Subproject - Estimate of Economic Indicators ...... 32 Table A 6: Bajura subproject - Estimate of Economic Indicators ...... 34 Table A 7: Dadeldhura subproject - Estimate of Economic Indicators ...... 35

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

I. INTRODUCTION

1. This appendix contains the economic assessment for the proposed project and an assessment of the impact of the proposed interventions on the financial status of beneficiary households. Separate assessments for the three sample subprojects are included as annexes to the respective subproject feasibility reports (which should be read in conjunction with this appendix).

2. All financial and economic analyses are based on the status quo and conservative assumptions regarding the impact of the proposed project in order to avoid over-estimation of project benefits. For the economic analysis only direct, quantifiable benefits are included in the calculations. Environmental and other possible external benefits have not been quantified and are not included.

II. PROJECT CONTEXT

A. The Nepal Economy

3. The economy of Nepal remains largely rural and agriculture. In the hill and mountain areas, the difficult terrain restricts road access and inhibits development in many difficult to reach areas. More than 80% of the population lives in rural areas and the agricultural sector accounted for an estimated 37% of the economy in 2011. The services sector, including the important tourist industry, accounts for 50% of the economy, while the industrial sector, which has been declining slightly in recent years makes up the rest. Nepal remains one of the poorest countries in south Asia and the 12th poorest country in the world, with a per capita GDP in 2010/11 of $712 (NRs.51,444). Nepal also has a low Human Development Index (HDI) and is placed 157 out of 187 countries in 2011.

4. Between 1995/96 and 2010/11 Nepal made considerable progress in reducing poverty, with a fall in the headcount poverty rate from 42% to 25%.1 In urban areas poverty declined from 22% to 15% of the population, while in rural areas it declined from 43% to 27%. During this period, poverty rates declined in all development regions and across all ecological belts. Households whose primary source of income is agriculture constitute over 61% of all the poor - for those with their own land the poverty headcount rate is 27% while for those households dependent on agricultural wage labour, the poverty rate is 47%. Among households owning land, poverty is greatest among those owning 1 ha or less and poverty rates decline significantly for households owning more than 1 ha. The lowest quintile of the population earns about 4% of total income, while the highest quintile earns 56%. Households in the highest quintile are predominantly in urban areas, with about 43% of urban households being in the highest income quintile.

5. Growth in the economy has varied in recent years (Table 1). Annual variations in the agricultural sector growth are largely determined by variations in the monsoon from year to year. Average growth is higher for non-agriculture but is expected to be lower than for the agricultural sector in 2010/11 and 2010/12, partly because of a declining trend in industrial production. The subsectors with the most consistent growth in recent years have been education, health and social services, and transport, storage and communications.

6. The population is expected to reach 27 million in the current year. For the 10 years up to the most recent census in 2010/11, the average annual growth rate was 1.4%.

1 Nepal Living Standards Survey, 2010/11

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

Table 1: Key Indicators (2006/07 - 2011/12)

2006/07 2007/08 2008/09 2009/10 2010/111) 2011/122) GDP growth (%) 2.8 5.8 3.9 4.3 3.5 4.2 Real GDP growth per capita (%) 1.2 3.8 3.1 3.4 2.5 3.2 Population (million) 25.2 25.5 25.9 26.3 26.6 27.0 Agriculture sector growth (%) 1.0 5.8 3.0 2.0 4.5 4.9 Non-agriculture sector growth (%) 4.4 5.9 4.3 5.4 3.4 4.3 Source: MOF Economic Survey 2008/09 Notes: 1) Estimated 2) Projected

7. Nepal generally lags behind its south Asian neighbours for most indicators of economic development. Nepal also had the second lowest average GDP growth rate among SAARC members during 2010 and 2011 and the third lowest in 2009 and its HDI ranking (157) is lower than any other south Asian country except Afghanistan (172).

8. The current Three Year Interim Plan (2007/08 – 2009/10) (TYIP) sought to promote employment oriented, pro-poor and broad based economic growth as well as good governance and effective service delivery. Increasing investment in physical infrastructure was a priority. The target for GDP growth was 5.5% per year, with 3.6% for the agricultural sector and an average of 6.5% for the non-agricultural sectors. The plan also aimed to reduce the proportion of the population living below the poverty line to 24%, which goal was almost achieved. The achievement of other targets was affected by the global economic crisis during the period.

9. Nepal typically has a trade deficit, with merchandise imports significantly greater than the value of merchandise exports in recent years. This deficit is made up by earnings from tourism, workers’ remittances and inflows of capital and development assistance. Workers’ remittances are particularly important for the economy and are equivalent to about 20% of GDP (Table 2). Tourism is also an important source of foreign exchange, but in recent years has been about one tenth of the level of remittances. Remittances are also important at the local level in communities: the World Bank has estimated that remittances have been the main factor in reducing the poverty rate over the last decade.

Table 2: Balance of Payments (% GDP)

2006/07 2007/08 2008/09 2009/10 2010/11 1) 2011/12 2) Exports 13.0 12.1 7.0 5.4 5.3 5.2 Imports 31.3 32.7 28.1 31.4 29.7 29.6 Trade deficit -18.3 -20.6 -21.1 -26.0 -24.4 -24.4 Workers’ remittances 13.8 16.5 21.1 19.8 19.4 19.6 Current Account Surplus 0.5 0.2 4.2 -2.4 -0.9 -0.8 Source: MOF Economic Survey 2008/09; Central Bureau of Statistics Notes: 1) Revised 2) Preliminary

10. According to MOF data, during the first 8 months of fiscal year 2011/12, exports increased by 14.1% (in nominal terms) and imports by 16.6%. Exports to India, which account for about two thirds of total merchandise exports, expanded strongly during the period.

11. Average inflation in Nepal was 9.6% in both 2009/10 and 2010/11 and 7.7% in 2011/12.2 Historically, price inflation has been in the middle of the range for the south Asian

2 Ministry of Finance, Economic Survey 2011/12

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP countries. Because of the close ties with the Indian economy, including the currency link with the Indian rupee, inflation in Nepal tends to follow closely that in India. However, since 2008 inflation in Nepal has generally been higher than that in India. A recent IMF study of Nepali inflation3 found that the main drivers of inflation in Nepal are Indian inflation and movements in the international oil prices.

12. In recent years, the budget deficit has been around 3% to 4% of GDP. On average, current expenditure accounts for about 60% of the budget and capital expenditure for around 25%. Government’s own revenue sources provide for 65% to 70% of expenditures, supplemented by foreign grants. As a proportion of Government’s annual expenditure, the budget deficit has varied between 17.5% and 22.5%. Loan financing to make up this deficit comes from foreign (aid) and domestic sources. The Government operates under significant resource constraints, which are compounded by the relatively low domestic savings rate. Resource constraints affect Government’s ability to invest in all forms of infrastructure, which is commonly financed through foreign grants and loans.

Table 3: Government Revenues & Expenditures (% GDP)

2006/07 2007/08 2008/09 2009/10 2010/11 1) Government revenue 12.1 13.2 14.5 15.4 14.6 Current expenditure 10.6 11.2 12.9 12.9 12.4 Capital expenditure 5.5 6.6 7.4 7.7 7.9 Foreign grants 3.8 4.1 2.7 3.0 4.9 Source: MOF Economic Survey 2011/12 Notes: 1) Estimated

B. Economic Rationale for the Project

13. The project area is characterized by small, scattered communities living on often steep hillsides with only some relatively flat areas mostly alongside rivers and streams on valley floors. There are forested areas where the land is too steep or not suitable for cultivation. Access is difficult and many communities do not have road access and must walk to the nearest road, which may be some considerable distance. The provision of government services in these communities is constrained by poor access and the limited resources of government. These rural communities in the hills are generally poor - the 2011 Nepal Living Standards Survey reported that average household income in the Mid and Far Western hills is only 61% of the national average household income, 71% of the national rural household average and 39% of the national urban household average. These communities have limited capacity to mobilize resources, apart from labour, for even small scale local infrastructure developments. The role of government, and other external agencies, is necessary to finance infrastructure developments to ensure the viability of these communities, support resilience against climate change and link them to the national economy.

14. The project will also address present institutional weaknesses through activities to strengthen the capability of DSCWM to undertake watershed planning with local communities and to assist communities to implement measures to build resilience against climate change and improve the sustainability of livelihoods in watershed areas.

15. The predicted effects of climate change in the western hills of Nepal will be, among other things, less rainfall during the pre-monsoon period and rainfall of higher intensity during the monsoon. This will result in faster run-off, reduced groundwater recharge and

3 IMF Country Report No. 11/319, November 2011

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP more soil erosion. The project will address these issues by providing improved storage facilities for water supply or irrigation during the dry season and by improving access to and protecting water sources than can be used either for domestic water supply or irrigation. These interventions will enhance community access to water supplies as the impacts of climate change gradually increase. Addressing the expected impacts of climate change cannot easily be managed by small, poor and relatively isolated communities but must be addressed on a wider basis, even if interventions may be local.

16. Apart from immediate benefits accruing from improved access to domestic water supply during the dry season and water for the irrigation of crops in limited command areas, the project will generate benefits from interventions to stabilize slopes, reduce the risk of landslides (that can damage fields, home and infrastructure), enhance catchment areas and protect water sources such as springs. These will be long term, potentially significant, benefits that enhance the sustainability of watersheds in the face of climate change and which will have positive impacts for downstream communities. The existence of these externalities is further economic justification for the project.

C. Background to the Economic Assessment

17. The focus of the project will be on watersheds in the Far Western Region that are significantly vulnerable to water scarcity expected to result from climate change. In particular, the main outputs of the project will be:

 participatory watershed management planning to improve water security;  subproject water storage and catchment management implemented in priority watersheds;  lessons for improving access to and reliability of water resources in vulnerable middle hill regions generated and used by DSCWM to strengthen its management of watersheds.

18. The project will undertake the construction or rehabilitation of water storage and related infrastructure, measures to protect water sources, catchment areas, vulnerable hillsides and so on, and also watershed management planning at the sub-watershed level. Only the investments in water infrastructure will generate quantifiable benefits for communities within the short to medium term, while the benefits from other measures will generate benefits only in the longer term and these benefits will be rather difficult to quantify without detailed data that is not now available. The economic assessment of the project therefore depends on the impacts of improved water infrastructure in each sub-watershed area. This means the impacts on water supply for domestic use and for livestock and the storage of water for crop production, particularly during the dry season.

1. Water Supply

19. In many rural areas in the hills, water for domestic use is often collected from traditional spring sources. During the dry season, these sources often dry up or have very low flows, meaning that obtaining water becomes a time consuming task because the time spent travelling to sources and the time taken to fill containers increases. The quality of water available towards the end of the dry season may also be lower than at other times of year.

20. Collecting water for use within the household is generally the task of women and children, although in some locations men also participate in this task to a significant extent. In addition to the time taken travelling to and from a water source, there may often be a long waiting time for water at the source, particularly as the dry season progresses.

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

2. Irrigation and Agricultural Production

21. Irrigation is a key factor for improving agricultural production in Nepal, to increase the production of staples to meet the growing gap between production and the needs of the expanding population and for diversification and intensification of agriculture to help increase on-farm incomes and reduce rural poverty. Irrigation therefore has a key role to play in Nepal’s poverty reduction strategy. For individuals and households, access to irrigation reduces the severity of rural poverty by i) increasing food production, ii) increasing on-farm employment, and iii) increasing incomes. Climate change is expected to increase the variability of rainfall and to lead to shorter, more intense periods of rain. Improving the reliability of access to water for crop production in this context till help support on-farm livelihoods in rural areas.

22. Agricultural production is dominated by cereals, which occupy about 80% or more of cropped area, although providing only about half of production by value. The agriculture sector is the most important in the economy since it still provides employment for the majority of the population and some 80% of the population lives in rural areas. Increasing activity in the agriculture sector, which very largely means expanding the areas under reliable year round irrigation, has the potential to increase rural employment and incomes. Nevertheless, in many areas labour migration is now an important source of household cash income and its relative importance may in some cases act as a disincentive to the improvement or diversification of on-farm production by i) providing greater income than is possible from small and very small farms, and ii) reducing labour available to farm households. On the other hand, growing demand from towns and cities has promoted an increase in more commercial farming of products such as vegetables in various seasons, horticulture, dairy and other livestock products, especially for those areas with easy or increasingly easy access to major domestic or north Indian markets.

23. Farm production remains the most important source of income on average for households in these watersheds, but other sources of income include various types of non- farm income, remittances from family members working elsewhere in Nepal or abroad, and other minor sources such as non-timber forest products in some localities. The Nepal Living Standards Survey III (NLSS3), conducted in 2011, found that for the hill areas of the Mid and Far Western Regions, the components of average household income were farm production (45.1%), non-farm activities including trading, collection of firewood or various non-timber forest products and so on (29.1%), remittances (14.1%), own housing consumption (11.0%) and other sources (0.7%).

24. Agriculture in the hills of western Nepal is dominated, as in most parts of the country, by cereal production. On flat, “khet”, land along the valley floors, the crops are principally paddy rice during the monsoon season followed by wheat, with supplementary areas of vegetables, potatoes, pulses and oilseeds. In the upland, “bari”, areas irrigation systems supplement monsoon rains in some places, but mostly crops are rainfed. Upland rice, maize and millets are grown during the monsoon followed during the winter and dry season by wheat, oilseeds, pulses, potatoes, vegetables and sometimes crops such as ginger or turmeric. In the 3 sample subproject areas cereals account for up to 90% or more of land cultivated during the monsoon and at least 75-80% of land cultivated during the dry season.

25. Production methods used by farmers in the western hills are mostly traditional. The level of use of improved seed varieties for any crop or of chemical fertilizers is very low and there is almost no mechanization of agricultural activities. Work in the fields and post- harvest is mostly done by household members or by sharing tasks with other households in the village. Hiring labour for work in the fields occurs, but is rare and accounts for perhaps no more than 2% to 5% of total labour requirements.

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

26. Landholdings in the area are typically small. In the hills of the Mid and Far Western Regions of Nepal, some 56% of farm households own 0.5ha or less and only 12% own more than 1ha. Landholdings are usually disjointed, with a typical farm being made up of 3.1 parcels. About 30% of cultivated land in these regions is served by some sort of irrigation, but much of this will be along the bottoms of river valleys. According to NLSS3, almost 99% of rural households in the Mid and Far Western Regions own agricultural land but apparently due to the small size of many holdings many rural households - about 20% - also rent land for cultivation.

27. Livestock ownership is widespread and is an important component of rural livelihoods. According to the NLSS, about 90% of rural households in the area own cattle and almost 50% own buffaloes. In addition, more than two thirds own goats or sheep. A rather similar pattern emerges from the socio-economic survey carried out for the PPTA, with 80% of households in the 3 subproject sites owning a milking cow or buffalo, 68% owning a draught animal and 53% owning either goats, sheep or pigs. The overall productivity of livestock production in the project area may be enhanced by access to more reliable supplies of water during the dry season. Better management of grazing resources following from implementation of sub-watershed management plans would also benefit livestock production.

28. While access in the hill areas is gradually improving as the road network expands, many areas still have only poor connections to markets. This naturally affects the crops that may usefully be grown and restricts the options for cash crops and their potential profitability for farmers.

29. By improving access to and the reliability of water supplies and improving the condition of subwatersheds, BCRWME will contribute to more stable conditions for rural livelihoods in the project area.

III. THE SUBPROJECT AREAS

A. Present Situation

30. Cultivation in most of the project area is on terraced bari fields and is almost all rainfed at present. In some locations there are existing ponds or other water storage facilities that provide for supplementary irrigation during the monsoon season. The water available from these ponds can be used for small areas of paddy rice, but is more often used to supplement monsoon rainfall for upland rice or maize crops. Typically, these existing ponds do not have sufficient flow to provide any irrigation water during the dry season.

31. While some paddy rice is grown in the area, maize is currently the principal monsoon cereal crop in the local cropping pattern, but rainfed upland rice is also grown as well as millet. During the winter season, wheat is widely cultivated, along with minor crops such as pulses, oilseeds, vegetables, potatoes and so on, with wheat and oilseeds often intercropped. While there are wide variation in the detail of farmers’ cropping patterns throughout the project area, the overall pattern is rather similar almost everywhere. Data on cropping patterns at individual locations has been obtained from observation and discussion with farmers during field visits by the PPTA team and from local records.

32. Yields achieved for crops are generally not high due to the rainfed character of most agriculture and because the use of improved varieties and inputs such as fertilisers is generally very low.

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

1. Doti

a. Agriculture

33. In the Doti subproject area, the existing Nagardaha pond provides supplementary monsoon irrigation to its command area of 11.8 ha. An additional pond will be constructed under the project for an additional 13.3 ha - for a total command area of 25 ha. There are 85 households with land in this area, giving an average landholding in the area of 0.294 ha.

34. The present and without project cropping pattern for this command area is given in Table 4. This average cropping pattern is applied for all farms, regardless of size. Monsoon season maize and winter wheat are the main cereal crops, with millet and rice as minor cereals. Small quantities of pulses and vegetables (including potatoes) are also grown. Oilseeds are usually grown as an intercrop with wheat, which reduces the yield of wheat achieved but the small yields of oilseeds are valuable for home consumption or as a valuable cash crop.

Table 4: Doti - Without Project Cropping Pattern

Total Area Crop Area (ha.) % Command area: 25.0 100 Rice 2.50 10 Maize 18.75 75 Wheat 21.25 85 Millet 2.50 10 Oilseeds (intercropped) (21.25) (85) Pulses 1.25 5 Potato / Vegetables 1.25 5 Total 47.50 190

35. In addition, an area of 4.7 ha which currently suffers from waterlogging is used to grow rice in the monsoon season, but is not currently suitable for crop production during the dry season.

b. Water Supply

36. In this subproject area, during the wet season, obtaining water for domestic use is a relatively easy task, but as the dry season progresses it becomes a more and more arduous one. Most respondents in the socio-economic survey of the area described the availability of water for domestic uses as “so-so”. Households in the subproject area report that they experience water scarcity for about 3½ months each year. During this period, members of households make an average of 2.9 trips per day to collect water. The average travel time for each trip is some 57 minutes and the average waiting time at the source for containers to be filled is a reported 63 minutes. Collecting water is principally, but not only, a task for women and female children - according to the survey data women make about half of all water collecting trips and children make about 30% of them, with men making the remaining 20% or so. During this period of scarcity, the average volume of water collected for domestic use was 48 litres per household per day. Given that the average household size is 5, this implies average consumption of 9.6 litre per capita per day. High volume uses of water, such as laundry, bathing, washing utensils and so on, will usually be carried out at water sources, which are not necessarily of the quality required for drinking and cooking and are likely to be nearer to homes.

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

2. Bajura

37. This subproject area has no existing tanks or ponds.

38. The subproject area is located about 27 km from Martadi, the present district headquarters for Bajura district. About 2 km from the site is the village of Maure, which has a small market. These and other markets in the area provide access to traders coming to the area to purchase vegetables, pulses and other agricultural surpluses for sale in wider regional and national markets.

39. The present (without project) cropping pattern in the area is summarised in Table 5. Monsoon season maize and winter wheat are the main crops, with millet and rice as secondary cereals and small areas also of pulses and vegetables (including potatoes). Oilseeds are commonly grown as an intercrop with wheat.

Table 5: Bajura - Without Project Cropping Pattern

Total Area Crop Area (ha.) % Command area 31.0 100 Rice 1.55 5 Maize 24.80 80 Wheat 24.80 80 Millet 3.10 10 Oilseeds (intercropped) (24.80) - Pulses 1.55 5 Potato / Vegetables 1.55 5 Total 57.35 185

3. Dadeldhura

40. At present, in this subproject area, there is an existing water storage tank in poor repair that provides only limited water for some cultivation during the monsoon season.

41. The proposed site is about 7 km from the district head quarters at Dadeldhura and about 2 km to Pokhara, a small market centre on the Dadeldhura - Baitadi Road. These centres provide farmers with access to local markets and to traders buying crop surpluses for wider regional and national markets.

The overall present and without project cropping pattern for the subproject area is given in

42. Table 6 for the with project command area of 27 ha. This average cropping pattern is applied for farms of all sizes. Monsoon season maize and winter wheat are the main cereal crops, with millet and rice as minor cereals. Small quantities of pulses and vegetables (including potatoes) are also grown and oilseeds are usually intercropped with wheat.

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

Table 6: Dadeldhura - Without Project Cropping Pattern

Total Area Crop Area (ha.) % Command area: 27.00 100 Rice 1.35 5 Maize 22.95 85 Wheat 22.95 85 Millet 2.70 10 Oilseeds (intercropped) (22.95) (85) Pulses 2.70 10 Total 52.65 195

a. Water Supply

43. In this area, during the wet season, obtaining water for domestic use is a relatively easy task, but as the dry season progresses it becomes a more and more arduous one. Most respondents in the socio-economic survey of the area described the availability of water for domestic uses as “so-so”. Households in the subproject area report that they experience water scarcity for about 2.1 months each year. During this period, members of households make an average of 2.8 trips per day to collect water. The average travel time for each trip is some 66 minutes and the average waiting time at the source for containers to be filled is a reported 38 minutes. Collecting water is principally, but not only, a task for women and female children - according to the survey data women and children each make about 45% of all water collecting trips, with men making the remaining 10%. During this period of scarcity, the average volume of water collected for domestic use was 50 litres per household per day. Given that the average household size is 5, this implies average consumption of 10 litre per capita per day in the household.

B. Subproject Interventions

44. Structural interventions that may be included in subprojects include the following:

 water storage tanks and ponds and on-stream reservoirs which will be filled from their local watersheds or from springs and small streams and may be intended to store water or for groundwater recharge;  water source and infrastructure protection to ensure the quality and quantity of water arriving at water sources and that infrastructure is not impacted by soil erosion and landslides  piped water delivery systems to bring the water close to where it is needed by the local community  stock watering points outside the settlement area in order to keep livestock away and downstream of water storage areas  supply may be stored for irrigation where (i) there is suitable land and (ii) water supply is in excess of the demand for stock and domestic purposes, but

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

while water will be delivered to identified irrigation sites, the responsibility for distributing water within the area to be irrigated will lie with the community.

45. Some of these interventions are included in each of the sample subprojects. In Doti, the subproject interventions will be rehabilitation of an existing earthen pond, renovation of a masonry tank, planting in catchment areas to improve and protect water sources, a channel to check water-logging on 4.7 ha, a drinking water tank fed from spring sources above the pond and drinking water for livestock from the pond.

46. The proposed interventions for the Bajura subproject are construction of an earthen storage pond with its associated infrastructure, gabions, sills, check dams and planting for gully erosion control, check dams, gabions and vegetative measures for landslide mitigation and the planting in 38 ha of the catchment area.

47. At the Dadeldhura subproject site, the interventions will be repair of an existing tank, construction of two new tanks, replanting of 4.9 ha. with economically useful species and dewatering of 0.4 ha sloping land.

C. Demand for Project Outputs

48. Increased agricultural production is the main quantifiable benefit of the project. Data from the socio-economic survey carried out for the PPTA showed that a high proportion of households in all project districts are not self-sufficient in food production. In all but one of the six sites where the survey was implemented, more than 50% of households reported producing enough food for their own consumption for less than six months and at four sites more than 40% of households reported producing sufficient food for less than three months. This strongly suggests that a significant part of any increased production arising from the project will be consumed either by the producing households or within the local area.

49. With the various project interventions, increases in total cereals production may not be large, but there is likely to be a shift in the monsoon season from maize and millet production to rice. Increased rice production is likely to be consumed locally. During the dry season more potatoes and vegetables are likely to be produced. These crops will be more dependent on local and regional markets, although potatoes can substitute for cereals and to some extent production increases would probably be retained for household consumption. Increased output of vegetables during the winter and spring seasons would certainly produce marketable surpluses for many households. The consumption of vegetables is generally rising in the country households would expect to be able to sell surpluses in local markets, often to traders buying to supply wider regional markets. In some cases, vegetables produced in the Nepal hills are traded into north India, especially when producers are able to take advantage of the differing seasons between the hills and the plains.

50. The total increases in production, and the surpluses remaining after household and local area consumption are likely to be quite small compared with overall levels of production and consumption in the country and are likely to have little impact on local markets and prices.

IV. PROJECT COSTS

A. Subproject Costs

51. For the assessment of each subproject, all direct subproject costs are included - i.e. the engineer’s estimates for both the infrastructure and other interventions, such as water

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP source or slope protection, to be undertaken. Other project costs, which include the costs of project management, watershed management planning and implementation for each sub- watershed, training and capacity building for DSCWM at central and district levels, and environmental and social safeguards, are not included in the assessments.

1. Investing in and developing the distribution systems for delivering water from the tanks or ponds constructed under the subprojects to fields must be undertaken by the farmer beneficiaries. These costs need to be incorporated into the subproject cost benefit analyses since they must be incurred for any benefits to accrue. The cost of developing the irrigation network is based on the engineer’s estimate for a piped distribution system for the Bajura command area. It is assumed a similar system would be implemented for this subproject. This estimate amounts to $706 per ha, but for the purposes of the analysis a conservative figure of $750 per ha. has been used for all three subprojects.

52. For the subprojects, O&M costs, which will be the responsibility of subproject beneficiaries, are included in the analysis at 2.5% of initial project investment costs per year. This is an indicative amount. In practice, O&M costs will vary across subprojects (depending on the types of interventions) and from year to year, will be partly contributed in kind and partly in cash and farmers are likely only to be incurred by farmers when there is actual maintenance to be carried out.

B. Beneficiary Cost Sharing

53. DSCWM requires beneficiary participation in project costs and there is a guide to the proportions of costs for different activities that should be borne by beneficiaries. These proportions range up to 50% for terrace improvement to 20% to 30% for road slip stabilization or stream bank protection (see table below). However, in practice contributions from beneficiary communities are negotiated on a case by case basis, with the bottom line being that communities must at least commit to contributing all O&M costs after completion of the works. If a community is unable to make this commitment, then the proposed works are likely not to be implemented. Apart from O&M costs, the expected contribution from the community depends upon the capability of people in the community, needs and so on. In actual cases, contributions from the beneficiary community have ranged from a few percent of total costs up to 50%. 4 Clearly, there are limitations on the absolute amounts that communities are able to contribute, depending on the size of the community, income levels in the area and the total cost of the proposed works.

54. The socio-economic survey carried out for the PPTA found, for the 6 sample areas surveyed, average household incomes ranging from NRs.23,000 per year in the Bajura sample area to NRs.273,000 in Mangalsen in Achham district. The average across the whole sample comes to NRs.151,000 per year. The ability of many, if not most, households in the project districts to make cash contributions to project costs, and perhaps to maintenance costs, is limited, particularly given the average household size of 6.9 (for surveyed households). However, it is also clear that there is considerable variation in cash income from one sub-watershed area to another.

4 The document “Guidelines for People’s Participation in Soil Conservation”, Watershed Management Project, Department of Soil Conservation, 1993 sets out a procedure for the participation of people in soil conservation activities, from the identification of problems and designing of solutions to the implementation of treatment measures. This involves establishing user groups and negotiating contributions in kind (and cash). This document was the first to set out a procedure for involving beneficiary groups in soil conservation activities.

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

Table 7: DSCWM Guidelines for Beneficiary Contributions

% Beneficiary Intervention Contribution Terrace improvement 50 Fruit tree establishment 40 Degraded land plantation 30 Water source protection 30 Landslide treatment 20 - 40 Road slip stabilisation 20 - 30 Foot track improvement 20 - 40 Gully control 20 - 40 Stream bank protection 70 - 80 Irrigation canal improvement 40

55. An analysis of costs for the three sample subprojects found that value of unskilled labour (which could, in principle, be contributed by beneficiary communities) amounted to 22% of the total cost in the Bajura subproject and 9% and 16% in the Dadeldhura and Doti subprojects, respectively. This is a small sample, but it seems reasonable to suppose that for most subprojects implemented the value of unskilled labour is likely to be between 10% and 20% of total costs.5

56. Beneficiaries could contribute either cash or labour or both for subproject implementation. In addition to low household income constraining cash contributions, limitations on labour availability may also occur in some communities. In many communities a high proportion of able bodied men are working elsewhere in Nepal or abroad at any time, and in some cases this could mean that communities, or households within communities, do not have sufficient labour available for regular on and off-farm work as well as to provide labour for subproject implementation activities. In some cases there will be ways around such a constraint that can be worked out locally - labour exchange between households, for example - but in other cases labour shortages could be a permanent constraint on the ability of communities to contribute to subprojects.

57. A further issue is to decide who are the beneficiaries who should be contributing to the a subproject and what relative proportions of costs they should be contribute. For example, in subprojects that involve the development of water sources for irrigation, should the households that will directly benefit from such an intervention contribute more than other households, who may also benefit, but only indirectly and to a much lesser extent, from irrigation development. Or will the additional contributions of the direct beneficiary households to the development of irrigation distribution be sufficient quid pro quo.

58. Based on current DSCWM practice and the data obtained from PPTA investigations, a level of 20% of subproject base costs as the target for beneficiary contributions should be realistic. These contributions may be in kind (mostly labour) or cash, but the ability of communities and households to contribute either of these varies significantly across the project districts. General principles for beneficiary contributions will need to be established early on by the project implementation team and in applying such principles the Project Management Unit and Subwatershed Management Teams will have to adopt a flexible

5 The value of unskilled labour in the three subprojects, as a percentage of base costs, is 31%, 22% and 11% for Bajura, Doti and Dadeldhura, respectively. It is assumed that the value of unskilled labour as a proportion of base costs is not likely to be often outside this range.

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP approach so that contributions agreed with individual communities are realistic and likely to be met.

59. The following table provides an indicative illustration of how beneficiary contributions might work in the sample subprojects for beneficiary contributions of either 10% or 20% of total subproject costs, and assuming that all beneficiary households in each subproject area contribute equally. Depending on the characteristics of subproject works, there can be significant differences in the level and type of contributions required. Since some communities will be cash short and some may be labour short, the table points up the need for a flexible approach to negotiating with individual communities about the level of contributions that are feasible and sustainable for households.

Table 8: Beneficiary Contributions

Bajura Doti Dadeldhura Beneficiary households (total) 385 250 200 Beneficiary households (irrigation) 124 85 71 Total project cost (NRs.) 11,776,000 13,415,000 6,189,000 Unskilled labour - NRs. 2,605,363 2,114,536 483,025 Unskilled labour - % of total 22% 16% 8% Total unskilled labour (days) 8,271 6,713 1,288 Total beneficiary contributions (NRs.) 10% 1,177,600 1,341,500 618,900 - of which, labour (days) 3,738 4,259 1,288 - cash (NRs.) - - 135,875 - per household (days) 9.7 17.0 6.4 - per household (cash) (NRs.) 0 0 679 Total beneficiary contributions (NRs.) 20% 2,355,200 2,683,000 1,237,800 - of which, labour (NRs. / days) 7,477 6,713 1,288 - cash (NRs.) - 568,464 754,775 - per household (days) 19.4 26.9 6.4 - per household (cash) (NRs.) 0 2,273 3,774

C. Incremental Costs due to Climate Change

60. The terms of reference request that “the incremental cost for watershed inventions in light of climate change” be calculated. There are several ways in which this issue may be approached. Firstly, there may be incremental costs of either hard or soft interventions because of the need to address the expected impacts of climate change. Secondly, it may be possible to identify and measure reductions in the disbenefits of expected climate change resulting from implementation of the watershed interventions.

61. Incremental costs due to climate change will occur if the sizes, capacities and design criteria of interventions are increased over what they would otherwise have been because of expected climate change impacts. However, the exact impacts of climate change are not known and the sizes and capacities of subproject infrastructure interventions are set with no precise relation to climate events. Therefore, an incremental cost due to climate events cannot be determined.

62. Reductions in disbenefits may occur if project interventions help stem expected climate change impacts. This may be a useful approach to determining incremental costs, except that at present any estimate would have to be based on so many data assumptions that the result would have little meaning.

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

63. In order to estimate incremental costs of interventions or incremental reductions in disbenefits, it would be necessary to be able to separate the amount of investment required under “no climate change” compared with “climate change” scenarios. But it is unclear how this can be done for the present project. In fact, given that the interventions are designed without precise relation to climate events it is unclear how they are in any way different from what would be made if climate change were not part of the project equation.

64. At the local scale, assigning the costs or benefits of specific interventions - say a tank to supply water for irrigation or protection of a spring source - to a particular cause such as climate change is not possible because not all costs or benefits arise from impacts imposed by expected climate change or climate variation and there is not sufficient data available to be able to separate impacts of one cause from those of another cause. For these reasons, no attempt has been made to extimate “the incremental cost for watershed inventions in light of climate change”.

V. ECONOMIC ASSESSMENT

A. Key Assumptions for the Analysis

65. The economic analysis is in third quarter 2012 constant prices. The exchange rate used is NRs.86 = $1 (mid November 2012 rate) and the discount rate is 12%. The project life is 20 years. The analysis uses the world price numéraire. Economic prices exclude taxes. A standard conversion factor of 0.916 has been used to adjust financial prices. A shadow wage rate factor of 0.85 has been applied to unskilled wage rates to reflect the relative abundance of unskilled labour, although in some locations at some times of year this may under-value unskilled labour due to the temporary migration of labour for work in other parts of Nepal or in India.

66. Financial prices for inputs and outputs have been based on Consultants’ surveys of recent local farm gate and market prices, supplemented by GON data on market prices for a wide range of commodities in the various districts of the country. Economic prices for traded inputs and outputs (rice, wheat, maize, and chemical fertilizers) have been estimated from average international commodity prices for the first three quarters of 2012 as published in the World Bank Pink Sheet for October 2012. Prices used in the analysis are included in Attachment 1 at the end of this appendix.

B. Project Benefits

1. Quantified Benefits

67. The quantified benefits of the subprojects are increases in agricultural crops resulting from the provision of water storage structures from which farmers will be able to develop distribution networks to provide irrigation water to their fields, and time savings for households able to collect water for household use from more convenient and reliable sources, provided as part of the infrastructure interventions, during the dry season. There are no other quantified benefits.

68. The quantified agricultural benefits are based on the crop budgets in Table A 4 at the end of this appendix. These average crop budgets are based on published crop data for the districts in the project area as well as on information provided by farmers in focus group discussions during field investigations by the PPTA team. Assured water supplies for irrigation will enhance yields since crops will be much less subject to water stress, but

6 This is in line with conversion factors used in other recent projects in Nepal.

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP anticipated yield increases for crops do not exceed 10%, except for oilseeds. Yield increases reflect only the impact of irrigation water since there will be no other project activities that will address agricultural production issues. The financial prices used in the crop budgets are based on prices currently applying in the project area. The daily wage rates for men and women are the rates currently paid for farm labour in the subproject area.

69. Summaries of benefit estimation for the three sample subprojects are given below. More detailed information is provided in the respective subproject feasibility reports.

2. Non-Quantified Benefits

70. The principal direct benefits of the proposed subproject that have not been quantified include benefits accruing to livestock production as a result of the improved availability of water for livestock, especially during the dry season, and the long term benefits that will accrue from measures to protect water sources, stabilise slopes and landslide areas and the planting of appropriate and economically useful tree species in the catchment areas to protect water sources, reduce soil erosion and generally enhance the sub-watershed areas. Some of these longer term benefits could be quantified if sufficient and appropriate data were available, which it is not. Otherwise estimates of the magnitude of these benefits could only be made by making numerous assumptions, leading to essentially meaningless results. Furthermore, even though these benefits will be real and important, the fact that they will only begin to accrue after some years means that because of the high discount rate used in the analysis they are likely to have little impact on the outcome of the cost benefit analysis.

C. Doti Subproject

1. Subproject Costs

71. The project interventions will result in two ponds storing water and capable of supply water to farmers’ fields. The existing pond, which will be improved, has a command area of 11.8 ha and the new pond to be constructed will have a potential command area of 13.3 ha. (The total command area is taken as 25 ha.). The project will develop protection for the water sources for these ponds and link the sources to the rehabilitated ponds, but the development of a water distribution system to take water to fields must be undertaken by farmers themselves with their own investment. There are 85 households with land in the command areas of the two ponds, giving an average landholding in the area of 0.294 ha. These households may also have land in other parts of the subproject are.

The detailed estimate of costs for the proposed subproject works are given in Annex B. A summary of the costs is given in

72. Table 9. Cost estimates are based on currently applicable unit costs. The subproject will be implemented within a single year and no price adjustment factors have been applied to financial costs.

73. The beneficiary contribution to subproject works will be agreed with the community before starting implementation, following a procedure similar to that currently used by DSCWM, and may consist of labour (or goods) in kind and cash. In the case of Doti, the unskilled labour content of the proposed works is estimated to be 16% of total project costs and assuming an average beneficiary contribution of about 20% of subproject costs, beneficiaries would contribute labour plus a small amount of cash or perhaps materials collected locally.

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

Table 9: Doti Subproject - Financial and Economic Costs

Financial Cost Economic Item No. 2) Unit Cost Total Cost Intake structures 2 1,368,035 2,732,977 2,405,684 HDPE pipe lining 1 781,932 781,932 725,291 HDPE pipe from earthen pond & renovation 1 909,206 909,206 824,234 masonry pond Rehab. of earthen pond & surrounding works 1 2,582,118 2,582,118 2,275,128 Fencing for source protection 1 350,284 350,284 324,098 Plantation in watershed area 1 2,325,636 2,325,636 2,018,251 Subtotal 9,682,153 8,572,686 VAT 13% of subtotal 1,258,680 0 General items, contingencies & other expenses - 1,505,575 1,370,073 Project Investment 12,446,408 9,942,759 Distribution network investment by farmers (ha) 1) 25 63,750 1,593,750 1,406,803 Total Subproject 14,040,158 11,349,562 Note: 1) Farmer/WUA investment 2) Economic costs derived by applying SCF, and SWRF to estimated labour content.

2. Subproject Benefit

a. Cropping Pattern and Crop Budgets

74. With the project, the command area will benefit from more reliable supplementary irrigation during the monsoon season as well as irrigation supplies during most of the dry season. The cropping intensity will increase by 6% from 190% to an estimated 201% (see

75. Table 10). The availability of irrigation water will also lead to increases in crop yields, as noted above. The most significant change in the cropping pattern with the project will be a shift from monsoon maize to paddy rice, which is always the preferred crop if water is available to support it. Some diversification of production towards more cash crops such as pulses, potatoes and vegetables is also anticipated. The transition from the present to the future cropping pattern is assumed to occur over 3 years from the start of the subproject.

76. The provision of a drainage channel to check waterlogging on the 4.7 ha will make dry season production on the area possible. With the subproject it is expected that 85% of the area will be planted to wheat intercropped with oilseeds during the dry season.

Table 10: Doti - With Project Cropping Pattern

Total Area Crop Area (ha.) % Command area 25.00 100 Rice 17.50 70 Maize 4.50 18 Wheat 17.50 70 Oilseeds (intercropped) (17.50) (70) Pulses 5.00 20

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

Potato 2.50 10 Winter vegetables 2.50 10 Spring vegetables 0.75 3 50.25 201

77. The subproject benefits quantified for the economic analysis are those accruing from the expected increases in on-farm crop production and the time savings of households that access the new domestic water source during the dry season. The agricultural benefits will accrue assuming farmers develop the irrigation distribution system. Expected changes in crop production are shown in the table.

Table 11: Doti - Incremental Crop Production

Crop tons Crop tons Rice 36.7 Oilseeds 1.1 Maize -38.6 Pulses 4.4 Wheat 10.7 Potatoes 21.3 Millet -2.8 Vegetables 39.3

b. Water Supply

78. Benefits will accrue for the estimated 40 households likely to take advantage of the more convenient and reliable water source provided by the project for the dry season. Households in other locations, further away and down the hill have access to other traditionally used spring sources that provide water for domestic use.

79. To calculate benefits from more accessible and reliable water supply in the dry season, a number of assumptions have been made. Firstly, benefits have only been estimated for the period identified in the socio-economic survey as the period when there is not enough water at existing sources. Secondly, the estimated benefits are the value of saved water collection time only - it is assumed that there is no change in each household’s consumption due to the new source. It is also assumed that there is no change in population or in the number of households using the source over time. The estimate of water supply benefits is based on data from the socio-economic survey carried out in the subproject area. The data, which refer only to the annual period of water scarcity, are shown in Table 12. The weighted average value of time saved has been estimated based on 67% of current rates for agricultural labour in the subproject area for adults and 30% of these wage rates for children and on the proportion of water collection trips reported by survey respondents to be carried out by men, women and children. The value for this subproject (in financial prices) is NRs. 89 per day. This gives a total water supply benefit for the subproject of NRs.229,452 per year, which is about 6% of the annual quantified benefits generated by the subproject infrastructure interventions.

Table 12: Doti - Estimate of Domestic Water Supply Benefits

Present With Project

Waiting time (minutes) 76 10 Travel time (minutes per trip) 58 20 Total saved time per trip - 104 Average trips per day 2.9 2.9 Number of households benefitting 40 40 Days with limited water at present source 103 103

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

Total time saving per year (hours) - 20,710 Average value of time saved (NRs./day) - 89 Total annual benefit (NRs.) - 229,452 Note: financial prices

80. The rehabilitated pond will also provide a more reliable source of water for livestock during the dry season. Time saving benefits may also accrue to households that are able to use this source of water for their livestock and a more regular supply of water during the dry season may have an impact on the health and productivity of livestock but these possible benefits have not been estimated due to the lack of data on which to base them.

D. Bajura Subproject

1. Subproject Costs

81. The detailed estimate of costs for the proposed subproject works are given in Annex B. A summary of the costs is given in

82. Table 13. The implementation period for the subproject is expected to be less than one year. Financial costs are based on currently applicable unit rates and no adjustments for inflation have been applied.

Table 13: Bajura - Financial and Economic Costs

Financial Cost Economic Item No. 2) Unit Cost Total Cost Intake structure with bank protection works 1 655,703 655,703 569,212 Check dam for gully erosion 6 454,408 2,726,452 2,366,818 Earthen pond & HDPE pipe (250m) from intake 1 2,151,830 2,151,830 1,878,941 HDPE pipe - earthen pond to escape (100m) 1 150,600 150,600 139,742 Land slide protection (2.2 ha) 1 1,471,544 1,471,544 1,277,439 Plantation in watershed area 35.8 37,520 1,343,216 1,166,038 Subtotal 8,499,345 7,398,190 VAT 13% of subtotal 1,104,915 0 General items, contingencies & other expenses 1,321,648 1,202,700 Project Investment 10,925,908 8,600,890 Distribution network investment by farmers (ha) 1) 63,750 1,976,250 1,744,436 Total Subproject 12,902,158 10,345,326 Note: 1) Farmer/WUA investment 2) Economic costs derived by applying SCF, and SWRF to estimated labour content.

83. The beneficiary contribution to subproject works will be agreed with the community before starting implementation, and may consist of labour (or goods) in kind and cash. In the case of Bajura, the unskilled labour content of the proposed works is estimated to be 22% of total project costs and the beneficiary contribution is therefore likely to consist only in providing labour during implementation.

2. Subproject Benefits

a. Cropping Pattern and Crop Budgets

84. There are a reported 124 households with land in the Bajura command area, implying an average landholding of 0.25 ha per household. To enhance access to water resources,

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP the project will construct an earthen storage pond and provide a 250m pipe from the intake structure in the catchment area to the pond and 100 metre pipe from the off-take structure to the command area of 31 ha.

85. With implementation of the subproject, the command area of the pond will have access to water for irrigation throughout the year. This will enable farmers to grow more rice during the monsoon season than at present and will support some diversification of cropping during the winter season. The area planted to wheat is expected to decrease, while the area planted to potatoes, vegetables and pulses will increase. Given the availability of water, the cropping intensity will increase by about 8% from 185% to 200%. The transition from the present to the future cropping pattern is assumed to occur over 3 years from the start of the subproject.

Table 14: Bajura - With Project Cropping Pattern

Total Area Crop Area (ha.) % Command area: 31.00 100 Rice 20.15 65 Maize 9.30 30 Wheat 21.70 70 Oilseeds (intercropped) (21.70) (70) Pulses 3.10 10 Potato 3.10 10 Winter vegetables 3.10 10 Spring/summer vegetables 1.55 5 Total 62.00 200

86. The benefits quantified for the economic analysis are only those accruing from the expected increases in on-farm crop production. These benefits will accrue assuming farmers develop the irrigation distribution system. Anticipated changes in crop production expected for this subproject are shown in the table.

Table 15: Bajura - Incremental Crop Production

Crop tons Crop tons Rice 43.1 Oilseeds 0.5 Maize -40.6 Pulses 2.0 Wheat 5.0 Potatoes 49.6 Millet -3.4 Vegetables 34.2

E. Dadeldhura Subproject

1. Subproject Costs

87. The detailed estimate of costs for the proposed subproject works are given in Annex B. A summary of the costs is given in Table 16. Cost estimates are based on currently applicable unit rates. The subproject will be implemented within one year and no cost adjustment factors have been applied to financial costs.

88. The contribution of beneficiaries to subproject works will be agreed with the community before starting implementation, in a manner similar to the current procedure of

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

DSCWM, and may consist of labour (or goods) in kind and cash. In the case of the Dadeldhura subproject, the unskilled labour content of the proposed works is estimated to be only 9% of total project costs. Assuming the total beneficiary contribution would be closer to 20% of costs, a small cash contribution or collection of locally available materials may also be agreed with beneficiaries in this case.

Table 16: Dadeldhura - Financial and Economic Costs

Financial Cost Economic Item No. 2) Unit Cost Total Cost RCC tank & HDPE pipe (3 new tanks, 1 repair) 1 3,523,690 3,523,690 3,223,179 Land Slipe Treatment (0.4 ha) 1 224,756 224,756 219,442 Plantation in watershed area (4.9 ha) 1 717,850 717,850 522,595 Subtotal 4,466,296 3,965,216 VAT 13% of subtotal 580,618 0 General items, contingencies & other expenses - 694,509 623,003 Project Investment 5,741,423 4,588,219 Distribution network investment by farmers (ha) 1) 27 63,750 1,721,250 1,519,347 Total Subproject 7,462,673 6,107,566 Note: 1) Farmer/WUA investment 2) Economic costs derived by applying SCF, and SWRF to estimated labour content.

2. Subproject Benefits

a. Cropping Pattern and Crop Budgets

89. The subproject interventions will include improving an existing tank and constructing two new tanks, which together will have a potential command area of 27 ha. The subproject will develop protection for the water sources for these ponds and link the sources to the rehabilitated ponds, but will not develop any distribution system to take water to farmers’ fields. To take advantage of the water storage in the ponds, the farmers themselves will have to invest in developing a distribution system for the water. There are an estimated 71 households with land in the command areas of the two ponds, with an average landholding in the area of 0.38 ha. Three quarters of these households have small landholdings with an average size of 0.25ha and the remainder have larger holdings with an average of around 0.75 ha. With the project, the command area will benefit from more reliable supplementary irrigation during the monsoon season as well as irrigation supplies during most of the dry season. The cropping intensity will increase by 3% from 195% to an estimated 200% and cropping will change from rainfed to irrigated.

90. The most significant change in the cropping pattern with the project will be a shift from monsoon maize to paddy rice, which is always the preferred crop if water is available to support it. It is expected that there will also be some diversification of production towards more cash crops such as pulses, potatoes and vegetables. The transition from the present to the future cropping pattern is assumed to occur over 3 years from the start of the subproject.

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

Table 17: Dadeldhura - With Project Cropping Pattern

Total Area Crop Area (ha.) % Command area: 27.00 100 Rice 21.60 80 Maize 5.40 20 Wheat 17.55 65 Oilseeds (intercropped) (17.55) (65) Pulses 4.05 15 Potato 2.70 10 Winter vegetables 2.70 10 54.00 200

91. Assuming farmers develop the irrigation distribution system, the subproject is expected to generate the changes in production shown in the table.

Table 18: Dadeldhura - Incremental Crop Production

Crop tons Crop tons Rice 47.7 Oilseeds -0.2 Maize -47.5 Pulses 2.0 Wheat -1.1 Potatoes 43.2 Millet -3.0 Vegetables 35.1

b. Water Supply

92. Benefits will accrue for those households able to take advantage of the more convenient and reliable water source provided by the project. It is estimated that there are about 100 households in the vicinity of the subproject infrastructure that would be likely to use this source, at least during the months of water scarcity. Households in other parts of the subproject area are more likely to use other traditionally used spring sources that provide water for domestic use.

93. To calculate benefits from more accessible and reliable water supply in the dry season, a number of assumptions have been made. Firstly, benefits have only been estimated for the period identified in the socio-economic survey as the period when there is not enough water at existing sources. Secondly, the estimated benefits are the value of saved water collection time only - it is assumed that there is no change in each household’s consumption due to the new source. It is also assumed that there is no change in population or in the number of households using the source over time. The estimate of water supply benefits is based on data from the socio-economic survey carried out in the subproject area. The data, which refer only to the annual period of water scarcity, are shown in Table 12. The weighted average value of time saved has been estimated based on 67% of current

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP rates for agricultural labour in the subproject area for adults and 30% of these wage rates for children and on the proportion of water collection trips reported by survey respondents to be carried out by men, women and children. The value for this subproject is NRs.90.5 per day. This gives a total water supply benefit for the subproject of NRs. 168,963 per year, which is equivalent to 7.1% of the agricultural benefits accruing to the subproject.

Table 19: Dadeldhura - Estimate of Domestic Water Supply Benefits

Present With Project

Waiting time (minutes) 48 10 Travel time (minutes per trip) 32 20 Total saved time per trip - 50 Average trips per day 2.8 2.8 Number of households benefitting 100 100 Days with limited water at present source 84 64 Total time saving per year (hours) - 14,933 Average value of time saved (NRs./day) 91

Total annual benefit (NRs.) 168,963

Note: Financial prices

94. The rehabilitated and new tanks will provide a more reliable source of water for livestock during the dry season. Time saving benefits may also accrue to households that are able to use this source of water for their livestock and more reliable water during the dry season may have an impact on the health and productivity of livestock, but due to lack of data these possible benefits have not been estimated.

F. Economic Results and Sensitivity

The EIRRs for the three sample subprojects are given in

95. Table 20, together with sensitivity results for several key variables.7 The Doti and Bajura subprojects have EIRRs of 14.9% and 14.1%, respectively, while for Dadeldhura, which has a significantly lower overall investment cost, the EIRR is 21.4%. In the latter case, all tested variations in variables, except one, still give EIRRs above 15%. For Doti and Bajura, with their lower base EIRRs, several variations result in EIRRs below 12%, however it must be remembered that the subprojects are expected to generate significant benefits that could not be quantified in the analysis. If all benefits could be quantified the EIRRs would certainly be higher than those shown here. A key variable is the proportion of the command area actually developed for irrigation. Since it is assumed the projects supports

7 More detailed sensitivity results for each subproject are included in Annex C of the respective feasibility study reports.

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP neither the development of any irrigation distribution network nor the provision of any support for any improvements in agriculture, there is no certainty that farmers will develop the whole of the command areas assumed in the subproject feasibility studies. While this analysis only takes into account the readily quantifiable agricultural and water supply benefits accruing to communities, failure fully to develop the command areas of tanks and ponds will place the economic outcome of subprojects at risk.

Table 20: EIRR & Sensitivity Results

EIRR NPV Switching Value

(%) (NRs.’000) (%) Doti Subproject Base case 14.9 2,101 Capital costs +10% 13.1 902 +17 -10% 16.9 3,300 All benefits +10% 16.7 3,510 -15 -10% 13.0 692 Benefit delay 1 yr 12.5 368 Command area developed 80% 12.2 164 78% Costs +10%; benefits -10% 11.3 -507

Bajura Subproject Base case 14.2 1,415 Capital costs +10% 12.5 331 +13 -10% 16.1 2,500 All benefits +10% 15.9 2,641 -12 -10% 12.3 189 Benefit delay 1 yr 11.9 -91 Command area developed 80% 10.8 -745 87% Costs +10%; benefits -10% 10.7 -875

Dadeldhura Subproject Base case 21.4 4,488 Capital costs +10% 19.5 3,845 +70 -10% 23.6 5,131 All benefits +10% 23.4 5,580 -41 -10% 19.3 3,396 Benefit delay 1yr 18.0 3,133 Command area developed 80% 18.4 2,779 48% Costs +10%; benefits -10% 17.5 2,753

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

G. Beneficiaries

The estimated number of beneficiaries of the three sample subprojects is 4,945 of which 1,648 and potentially direct beneficiaries of enhanced agricultural production the command areas of the ponds and tanks. The breakdown of beneficiaries is in

96. Table 21. Some households will be beneficiaries of both potential command area developments and water supply, while some will not be direct beneficiaries of either but will benefit from other interventions to be made in the sub-watersheds.

Table 21: Sample Subproject Beneficiaries

Command Area Water Supply Total District households persons households persons households persons Doti 85 425 40 200 250 1,250 Bajura 124 868 - - 385 2,695 Dadeldhura 71 355 100 500 200 1,000 Total 280 1,648 140 700 835 4,945

97. A feature of the population of the Far Western Region, that has implications for project implementation and economic outcomes, is the skewed sex ratios. The relevant data from the 2011 census is shown in Table 22. The high proportion of the (adult) male population that is identified as “absent abroad” suggests that in some areas, the availability of local labour for project related works may be restricted, or, households may have little interest in growing crops on potentially irrigated land because they either do not have sufficient labour resources at home or remittance income from abroad renders the effort unattractive. These are largely unknowns, but the population data does throw up possibilities that could potentially have a negative impact at least on the short term benefits generated by the subprojects.

Table 22: 2011 Census - Sex Ratios in Project Districts

Item Bajura Baghang Achham Doti Dadeldhura Baitadi Population 135,506 196,277 258,022 211,827 141,543 252,116 - male 65,893 93,912 120,367 97,007 66,358 118,015 - female 69,613 102,365 137,655 114,820 75,185 134,101 Sex ratio 1) 95 92 87 84 88 88

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

Absent abroad - male 6,502 16,574 24,649 21,083 10,327 17,367 % males absent 9.0% 9.1% 17.0% 17.9% 13.5% 12.8% Note: 1) males per 100 females

H. Risks

98. A number of risks to the economic outcome of the subproject may be identified. The most significant of these is the risk that farmers will not make the necessary investment themselves to develop the distribution systems to carry water from the ponds or tanks to the command areas - or perhaps more likely, they will not develop a distribution system that is capable of supplying all of the defined command areas.

99. There are risks associated with the cropping pattern adopted by farmers under the new irrigated regime and with their ability properly to establish and manage the equitable distribution and use of the available water. Furthermore, if farmers continue to grow predominantly cereals without any diversification this might also place the outcome of the subprojects at risk.

100. A further risk is that due to lack of labour in some households. As noted in para. 97 above, a high proportion of the (adult) male population of the project districts is working abroad and is therefore not available for labour contributions to subproject implementation or for on-farm work. It is possible the widespread migration of labour may, in some places, reduce the interest or ability of some households to undertake more labour intensive irrigated cultivation on their land, or even to cultivate the land at all. The impact would be the same as if the potential command areas were not fully developed and would jeopardise the economic outcomes of the subprojects.

I. Distribution and Poverty Analysis

101. For each subproject, project benefits were distributed to the economy (government), executing agency, farm households and labour and the relevant proportions accruing to the poor were estimated for each category. For the economy and executing agency, the proportion applied is the national average poverty level of 25.2% and for farm households and labour the proportion is 36.8%. These are respective headcount poverty ratios for 2011 reported by the Central Bureau of Statistics. 8 The poverty impact ratios for the three subprojects are 32.2% for Bajura, 33.1% for Doti and 30% for Dadeldhura. 9

VI. FINANCIAL IMPACT OF THE PROJECT ON BENEFICIARY HOUSEHOLDS

102. For households with land in the command areas of the ponds and tanks that will be rehabilitated or constructed under the sample subprojects, there will be direct financial benefits from increased crop production. The estimated incremental income that will accrue to households in the three areas is given in Table 23. The amounts shown are for small farms of 0.25 ha, but since the same cropping pattern is applied in the analysis for the whole of each command area, the incremental incomes accruing to larger or smaller farms are directly proportional to the area cultivated.

103. This incremental income refers only to production on land in the command areas of the ponds and tanks. Some beneficiary households may also have land outside the command areas, and will also have income from livestock and other on-farm or off-farm sources.

8 Poverty in Nepal 2010/2011, Central Bureau of Statistics 9 The estimates are shown Annex C of the respective subproject feasibility studies.

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

Table 23: Estimated Incremental Income for Farms in Command Areas

1) No. Average Area Present Income Incremental Income Subproject 2) Households (ha) (NRs) NRs % Doti 85 0.25 23,858 26,350 110% Bajura 124 0.25 26,663 23,828 89% Dadeldhura 71 0.25 21,837 24,930 114% Note: 1) Incremental income after transition to with project cropping patterns. 2) Estimated income from land in tank and pond command areas only.

104. In those subprojects where some households are able to access closer, and improved, sources for domestic water during the dry season, there is a “financial” benefit from the saving of time spend collecting water. In principle, this time may then be used for productive purposes.

105. Other subproject interventions, such as measures to protect water sources or stabilise slopes or potential landslide areas and so on, may in due course generate financial benefits for households or the community through such things as losses averted, improved grazing for livestock or the sale of forest products. Such benefits would not be confined to those in the community with land in particular locations.

VII. CONCLUSIONS

106. The three sample subprojects are all economically viable. These subprojects are typical of the types of interventions that will be carried out under the project. Most other subprojects included in the project are also likely to be viable, but for individual subprojects where the command areas of ponds are small relative to the cost, the economic indicators may be marginal or even below the usually accepted 12%. The economic assessment of subprojects as undertaken here, however, counts only the readily quantifiable benefits and does not include the benefits that will accrue in the longer term from other interventions in catchment areas, to protect water sources and so on and which may be more significant in the long run for the climate resilience of communities in the watersheds.

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

Attachment 1

Table A 1: Input and Output Prices for Crop Budgets

Output Prices (NRs/ton) Input Prices financial economic Unit financial economic Rice 25,000 31,226 Seed: 0.0 Wheat 27,500 34,847 Rice NRs/kg 55 50.1 Maize 19,000 31,970 Wheat NRs/kg 60 54.6 Millet 18,000 16,380 Maize NRs/kg 50 45.5 Potatoes 24,000 21,840 Millet NRs/kg 45 41.0 Oilseeds 90,000 81,900 Potatoes NRs/kg 50 45.5 Pulses 92,000 83,720 Oilseeds NRs/kg 120 109.2 Winter Vegetables 45,000 40,950 Pulses NRs/kg 120 109.2 Summer Vegetables 45,000 40,950 Winter Veg. NRs/kg 10000 9,100 Summer Veg. NRs/kg 10000 9,100 Rice straw 300 273 Fertilizers: Wheat straw 100 91 Urea NRs/kg 60 56.2 Maize stock 250 228 DAP NRs/kg 72 68.7 Millet straw 100 91 MOP NRs/kg 50 60.7 oilseed straw 100 91 Manure NRs/ton 700 637.0 pulse straw 100 91 Other inputs: Pesticides/chemicals NRs/ha 250 250 Labour - male NRs/day 200 154.7 Labour - female NRs/day 170 122.8 Bullock NRs/day 300 273.0 Land tax NRs./ha 40 0 Daily wage rates (financial prices) Dadeldhura Doti Bajura Male 200 175 250 Female 170 150 200

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

Table A 2: Estimated Import Parity Prices for Rice, Wheat & Maize

Rice Item Unit Financial Economic Vietnam rice 5% broken, FOB Hanoi (a) $/mt 435 435 Quality adjustment, 10% $/mt 43 43 Price for domestic type of rice in Bangkok $/mt 391 391 Freight - Bangkok - Kolkata - Nepal Border $/mt 115 108 Cost of domestic type of rice in Nepal Border $/mt 506 499 Cost of domestic type of rice in Nepal Border NRs/mt 43,014 42,387 Custom & handling charges ($16/Mt) NRs/mt 1,360 1,238 Landed price in Nepal Border NRs/mt 44,374 43,625 Average marketing margin (15%) NRs/mt 6,656 5,955 Transport border to district mills NRs/mt 1,000 910 Wholesale price ex mill NRs/mt 52,030 50,489 Conversion of rice to paddy at 65% NRs/mt 33,820 32,818 Processing cost NRs/mt 750 683 Paddy millgate price NRs/mt 33,070 32,136 Transport - farm to mill NRs/mt 1,000 910 Import parity price at farmgate NRs/mt 32,070 31,226 Import parity price at farmgate NRs/kg 32.1 31.2 Local farmgate price (at harvest time) NRs/kg a) World Bank Commodity Price Data January 2013 - average price for Jan-Dec 2012

Wheat Item Unit Financial Economic US SRW Wheat (a) $/mt 295 295 Quality adjustment, 25% $/mt 74 74 Price for domestic type of w heat $/mt 222 222 Freight - US port - Kolkata - Nepal Border $/mt 132 125 Price of w heat at Nepal Border $/mt 354 346 Price of w heat at Nepal Border NRs/mt 30,052 29,424 Custom & handling charges ($16/Mt) NRs/mt 1,360 1,238 Landed price in Nepal Border NRs/mt 31,412 30,662 Average marketing margin (15%) NRs/mt 4,712 4,185 Transport to w holesale market in terai/hills NRs/mt 1,000 910 Wholesale price NRs/mt 37,124 35,757 Transport - farm to market NRs/mt 1,000 910 Farmgate price NRs/mt 36,124 34,847 Import parity price at farmgate NRs/kg 36.1 34.8 Local farmgate price (at harvest time) NRs/kg a) World Bank Commodity Price Data January 2013 - average price for Jan-Dec 2012

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

Maize Import Parity Export Parity Item Unit Financial Economic Financial Economic Maize, FOB US ports (a) $/mt 298 298 298 298 Quality adjustment, 25% $/mt 75 75 75 75 Price for domestic type of maize $/mt 224 224 224 224 Freight - US port - Kolkata - Nepal Border $/mt 132 125 132 125 Cost of domestic type of maize in Nepal Border 356 348 356 348 Cost of domestic type of maize in Nepal Border (c) NRs/mt 30,243 29,616 30,243 29,616 Custom & handling charges ($16/Mt) NRs/mt 1,360 1,238 1,360 1,238 Landed price in Nepal Border NRs/mt 31,603 30,853 28,883 28,378 Average marketing margin (15%) NRs/mt 4,740 4,211 4,332 3,874 Transport to w holesale market in terai/hills NRs/mt 1,000 910 1,000 910 Wholesale price NRs/mt 37,343 35,975 23,551 23,594 Transport - farm to market NRs/mt 1,000 910 1,000 910 Parity price at farmgate NRs/mt 36,343 35,065 22,551 22,684 Parity price at farmgate NRs/kg 36.3 35.06 22.55 22.68 Local farmgate price (at harvest time) 0.0 a) World Bank Commodity Price Data January 2013 - average price for Jan-Dec 2012

Table A 3: Estimated Import Parity Prices for Fertilizers

Urea Item Unit Financial Economic Urea, FOB eastern Europe ports (a) $/mt 405.4 405 Freight - EU port - Kolkata - Nepal Border $/mt 132 125 Cost of urea at Nepal Border $/mt 537 530 Cost of urea at Nepal Border NRs/mt 45,679 45,052 Custom & handling charges ($18/Mt) NRs/mt 1,530 1,392 Landed price in Nepal Border NRs/mt 47,209 46,444 Average marketing margin (15%) NRs/mt 7,081 6,340 Transport to w holesale market in terai/hills NRs/mt 1,000 910 Wholesale price at district center NRs/mt 55,290 53,694 Transport - district retail center to farm NRs/mt 1,000 910 Import parity price at farmgate NRs/mt 56,290 55,514 Import parity price at farmgate NRs/kg 56.3 55.5 Current actual farm gate price NRs/kg Price per kg nitrogen NRs/kg 122.4 120.7 a) World Bank Commodity Price Data January 2013 - average price for Jan-Dec 2012

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

Diammonium Phosphate (DAP) Item Unit Financial Economic DAP, US ports (a) $/mt 539.8 540 Freight - EU port - Kolkata - Nepal Border $/mt 132 125 Cost of DAP at Nepal Border $/mt 672 664 Cost of DAP at Nepal Border NRs/mt 57,103 56,476 Custom & handling charges ($18/Mt) NRs/mt 1,530 1,392 Landed price in Nepal Border NRs/mt 58,633 57,868 Average marketing margin (15%) NRs/mt 8,795 7,899 Transport to w holesale market in terai/hills NRs/mt 1,000 910 Wholesale price at district center NRs/mt 68,428 66,677 Transport - district retail center to farm NRs/mt 1,000 910 Import parity price at farmgate NRs/mt 69,428 68,497 Import parity price at farmgate NRs/kg 69.4 68.5 Current actual farm gate price NRs/kg Price per kg potassium NRs/kg 217.0 214.1 a) World Bank Commodity Price Data January 2013 - average price for Jan-Dec 2012

Muriate of Potash (MOP) Item Unit Financial Economic MOP, FOB Vancouver (a) $/mt 459.0 459 Freight - Vancouver- Kolkata - Nepal Border $/mt 132 125 Cost of MOP at Nepal Border $/mt 591 584 Cost of MOP at Nepal Border NRs/mt 50,235 49,608 Custom & handling charges ($18/Mt) NRs/mt 1,530 1,392 Landed price in Nepal Border NRs/mt 51,765 51,000 Average marketing margin (15%) NRs/mt 7,765 6,962 Transport to w holesale market in terai/hills NRs/mt 1,000 910 Wholesale price at district center NRs/mt 60,530 58,872 Transport - district retail center to farm NRs/mt 1,000 910 Import parity price at farmgate NRs/mt 61,530 59,782 Import parity price at farmgate NRs/kg 61.5 59.8 Current actual farm gate price NRs/kg Price per kg potassium NRs/kg 102.5 99.6 a) World Bank Commodity Price Data January 2013 - average price for Jan-Dec 2012

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

Table A 4: Crop Budgets (yields and inputs)

Rice Maize Wheat Millet Oilseeds c) Pulses Potato Winter Vegetables Summer Vegetables Hills without project without without without without without without without without irrigated rainfed with project project with project project with project project with project project with project project with project project with project project with project project with project Outputs: Main product mt/ha 2.1 1.5 2.3 2.8 3.1 1.8 2.2 1.1 1.2 0.2 0.25 0.9 1.1 15.0 16.0 13.0 13.0 9.0 9.0 By-product mt/ha 2.1 1.5 2.3 8.4 9.3 1.8 2.5 1.1 2.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Inputs: Seed kg/ha 50 60 40 30 25 120 100 40 40 6 6 25 25 1000 1200 0.2 0.2 0.2 0.2 Fertilisers - urea kg/ha 25 20 35 30 40 25 40 0 20 0 0 0 0 60 80 120 120 100 100 - DAP kg/ha 15 10 20 10 15 15 20 0 15 0 0 0 0 40 60 120 120 80 80 - MOP kg/ha 0 0 0 0 0 0 12 0000000 30 0 0 20 20 Manure mt/ha 1 1 1.5 1.8 2 1.6 2 0 0 0 0 0 0 3 3 3 3 4 4 Plant protection / chemicals NRs,/ha 00201010000004834 48 48 Bullocks days/ha 20 18 22 18 18 22 18 12 12 0 0 0 0 20 20 20 20 20 20 Labour - family &c days/ha 145 130 150 115 120 115 120 80 80 10 10 50 50 250 275 210 210 250 250 Land tax NRs,/ha 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40

Notes: a) Winter vegetables based on cauliflower; summer vegetables based on tomatoes + cabbage b) Maize is an average of local and improved varieties. Local:improved - without project 3-:7; with project 1:6 c) Oilseeds are intercropped only, in both without and with project cases; yield is assumed to be 20 - 25% that of the stand alone crop. d) Plant protection in "units" of NRs250/ha.

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP Table A 5: Doti Subproject - Estimate of Economic Indicators

without project ha. 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Command Area 25.00 Upland rice - rainfed 5.0% 1.25 24,875 24,875 24,875 24,875 24,875 24,875 24,875 24,875 24,875 24,875 Upland rice - irrigated 5.0% 1.25 48,030 48,030 48,030 48,030 48,030 48,030 48,030 48,030 48,030 48,030 Maize 75% 18.65 1,241,286 1,241,286 1,241,286 1,241,286 1,241,286 1,241,286 1,241,286 1,241,286 1,241,286 1,241,286 Wheat 85% 21.15 631,327 631,327 631,327 631,327 631,327 631,327 631,327 631,327 631,327 631,327 Millet 10% 2.50 7,186 7,186 7,186 7,186 7,186 7,186 7,186 7,186 7,186 7,186 Oilseeds (intercropped) 85% 21.15 305,192 305,192 305,192 305,192 305,192 305,192 305,192 305,192 305,192 305,192 Pulses 5% 1.25 82,741 82,741 82,741 82,741 82,741 82,741 82,741 82,741 82,741 82,741 Potato 5% 1.25 289,329 289,329 289,329 289,329 289,329 289,329 289,329 289,329 289,329 289,329 Total 1.89 47.30 2,629,964 2,629,964 2,629,964 2,629,964 2,629,964 2,629,964 2,629,964 2,629,964 2,629,964 2,629,964 Waterlogged area 4.70 Upland rice - irrigated 90% 4.23 162,532 162,532 162,532 162,532 162,532 162,532 162,532 162,532 162,532 162,532

with project ha. Upland Rice 70.0% 17.50 348,246 471,047 594,216 717,017 717,017 717,017 717,017 717,017 717,017 717,017 Maize 18.0% 4.50 348,566 345,619 341,347 335,668 335,668 335,668 335,668 335,668 335,668 335,668 Wheat 70% 17.50 552,523 627,254 702,209 776,940 776,940 776,940 776,940 776,940 776,940 776,940 Oilseeds (intercropped) 70% 17.50 252,523 276,386 300,322 324,185 324,185 324,185 324,185 324,185 324,185 324,185 Pulses 20% 5.00 331,994 359,873 387,835 415,714 415,714 415,714 415,714 415,714 415,714 415,714 Potato 10.0% 2.50 567,432 573,655 579,896 586,119 586,119 586,119 586,119 586,119 586,119 586,119 Winter vegetables 10.0% 2.50 0 399,222 798,444 1,197,666 1,197,666 1,197,666 1,197,666 1,197,666 1,197,666 1,197,666 Summer vegetables 1 3.0% 0.75 0 75,133 150,266 225,399 225,399 225,399 225,399 225,399 225,399 225,399 Total 2.01 50.25 2,401,284 3,128,189 3,854,535 4,578,708 4,578,708 4,578,708 4,578,708 4,578,708 4,578,708 4,578,708 Waterlogged area Upland rice - irrigated 100% 4.70 93,529 126,510 159,590 192,570 192,570 192,570 192,570 192,570 192,570 192,570 Wheat 85% 4.00 126,133 143,193 160,304 177,364 177,364 177,364 177,364 177,364 177,364 177,364 Oilseeds (intercropped) 85% 4.00 57,647 63,095 68,559 74,007 74,007 74,007 74,007 74,007 74,007 74,007 277,309 332,798 388,453 443,942 443,942 443,942 443,942 443,942 443,942 443,942

Net Revenue (benefits from agriculture) -113,903 668,491 1,450,492 2,230,153 2,230,153 2,230,153 2,230,153 2,230,153 2,230,153 2,230,153 Water supply benefits (household time savings) 177,481 177,481 177,481 177,481 177,481 177,481 177,481 177,481 177,481 177,481 Total benefits 63,578 845,972 1,627,973 2,407,635 2,407,635 2,407,635 2,407,635 2,407,635 2,407,635 2,407,635

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

Table A.5, cont’d:

Project Costs 9,942,759 Beneficiary investment - distribution system 662 ($/ha) 1,406,803 O&M costs 2.5% 248,569 248,569 248,569 248,569 248,569 248,569 248,569 248,569 248,569 248,569 Net benefits -11,534,553 597,403 1,379,404 2,159,066 2,159,066 2,159,066 2,159,066 2,159,066 2,159,066 2,159,066 EIRR (20 years) 14.9% NPV (20 years) 2,100,678

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

Table A 6: Bajura subproject - Estimate of Economic Indicators

without project Crop Net Revenues without project ha. 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Command Area 31.00 Rice - rainfed 5% 1.55 21,531 21,531 21,531 21,531 21,531 21,531 21,531 21,531 21,531 21,531 Maize 80% 24.80 1,518,794 1,518,794 1,518,794 1,518,794 1,518,794 1,518,794 1,518,794 1,518,794 1,518,794 1,518,794 Wheat 80% 24.80 608,462 608,462 608,462 608,462 608,462 608,462 608,462 608,462 608,462 608,462 Millet 10% 3.10 -2,552 -2,552 -2,552 -2,552 -2,552 -2,552 -2,552 -2,552 -2,552 -2,552 Oilseeds (intercropped) 80% 24.80 346,399 346,399 346,399 346,399 346,399 346,399 346,399 346,399 346,399 346,399 Pulses 5% 1.55 99,016 99,016 99,016 99,016 99,016 99,016 99,016 99,016 99,016 99,016 Winter vegetables 5% 1.55 728,045 728,045 728,045 728,045 728,045 728,045 728,045 728,045 728,045 728,045 Total 1.85 57.35 3,319,695 3,319,695 3,319,695 3,319,695 3,319,695 3,319,695 3,319,695 3,319,695 3,319,695 3,319,695

with project with project ha. Rice 65% 20.15 279,909 415,103 550,703 685,897 685,897 685,897 685,897 685,897 685,897 685,897 Maize 30% 9.30 662,700 658,561 651,759 642,132 642,132 642,132 642,132 642,132 642,132 642,132 Wheat 70% 21.70 569,789 660,785 752,055 843,051 843,051 843,051 843,051 843,051 843,051 843,051 Oilseeds 70% 21.70 303,099 332,690 362,369 391,960 391,960 391,960 391,960 391,960 391,960 391,960 Pulses 10% 3.10 198,671 215,956 233,293 250,578 250,578 250,578 250,578 250,578 250,578 250,578 Potato 10% 3.10 667,796 674,319 680,862 687,386 687,386 687,386 687,386 687,386 687,386 687,386 Winter vegetables 10% 3.10 727,508 970,011 1,212,514 1,455,017 1,455,017 1,455,017 1,455,017 1,455,017 1,455,017 1,455,017 Summer vegetables 1 5% 1.55 0 149,305 298,609 447,914 447,914 447,914 447,914 447,914 447,914 447,914 Total 2.00 62.00 3,409,471 4,076,730 4,742,164 5,403,934 5,403,934 5,403,934 5,403,934 5,403,934 5,403,934 5,403,934

Net Revenue 89,776 757,034 1,422,469 2,084,239 2,084,239 2,084,239 2,084,239 2,084,239 2,084,239 2,084,239 Total benefits 89,776 757,034 1,422,469 2,084,239 2,084,239 2,084,239 2,084,239 2,084,239 2,084,239 2,084,239

Project investment 8,600,891 Beneficiary investment - distribution system 662 ($/ha) 1,744,436 O&M costs 2.5% 215,022 215,022 215,022 215,022 215,022 215,022 215,022 215,022 215,022 215,022 Net benefits -10,470,573 542,012 1,207,446 1,869,217 1,869,217 1,869,217 1,869,217 1,869,217 1,869,217 1,869,217

EIRR (20 years) 14.2% NPV (20 years) 1,415,266 34

Building Climate Resilience of Watersheds in Mountain Eco-Regions Project TA 7883-NEP

Table A 7: Dadeldhura subproject - Estimate of Economic Indicators

without project Crop Net Revenues without project % ha. 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Command Area 27.00 Upland rice - rainfed 5% 1.35 23,884 23,884 23,884 23,884 23,884 23,884 23,884 23,884 23,884 23,884 Maize 85% 22.95 1,482,662 1,482,662 1,482,662 1,482,662 1,482,662 1,482,662 1,482,662 1,482,662 1,482,662 1,482,662 Wheat 85% 22.95 640,239 640,239 640,239 640,239 640,239 640,239 640,239 640,239 640,239 640,239 Millet 10% 2.70 4,092 4,092 4,092 4,092 4,092 4,092 4,092 4,092 4,092 4,092 Oilseeds (intercropped) 85% 22.95 327,268 327,268 327,268 327,268 327,268 327,268 327,268 327,268 327,268 327,268 Pulses 10% 2.70 176,427 176,427 176,427 176,427 176,427 176,427 176,427 176,427 176,427 176,427 Total 1.95 52.65 2,654,574 2,654,574 2,654,574 2,654,574 2,654,574 2,654,574 2,654,574 2,654,574 2,654,574 2,654,574 NB: pulses partly intercropped with project with project % ha. Upland Rice 80% 21.60 382,151 531,279 680,856 829,984 829,984 829,984 829,984 829,984 829,984 829,984 Maize 20% 5.40 347,979 362,571 377,206 391,797 391,797 391,797 391,797 391,797 391,797 391,797 Wheat 65% 17.55 519,829 594,277 668,949 743,397 743,397 743,397 743,397 743,397 743,397 743,397 Oilseeds 65% 17.55 250,264 274,196 298,200 322,131 322,131 322,131 322,131 322,131 322,131 322,131 Pulses 15% 4.05 265,494 288,075 310,725 333,307 333,307 333,307 333,307 333,307 333,307 333,307 Potato 10% 2.70 601,364 607,703 614,061 620,400 620,400 620,400 620,400 620,400 620,400 620,400 Winter vegetables 10% 2.70 0 320,963 641,925 962,888 1,283,850 1,283,850 1,283,850 1,283,850 1,283,850 1,283,850 Total 2.00 54.00 2,367,081 2,979,064 3,591,921 4,203,904 4,524,867 4,524,867 4,524,867 4,524,867 4,524,867 4,524,867

Net Revenue (benefits from agriculture) -287,493 324,490 937,347 1,549,330 1,870,293 1,870,293 1,870,293 1,870,293 1,870,293 1,870,293 Water supply benefits (household time savings) 130,693 130,693 130,693 130,693 130,693 130,693 130,693 130,693 130,693 130,693 Total benefits -156,800 455,183 1,068,040 1,680,023 2,000,986 2,000,986 2,000,986 2,000,986 2,000,986 2,000,986

Project Costs 4,662,025 Beneficiary investment - distribution system 662 ($/ha) 1,566,338 O&M costs 2.5% 116,551 116,551 116,551 116,551 116,551 116,551 116,551 116,551 116,551 116,551 Net benefits -6,501,713 338,633 951,490 1,563,473 1,884,435 1,884,435 1,884,435 1,884,435 1,884,435 1,884,435

EIRR (20 years) 21.4% NPV (20 years) 4,487,717 35

Environmental Assessment and Review Framework

January 2013 Draft

Nepal: Building Climate Resilience of Watersheds in Mountain Eco-Regions

ADB TA 7883-NEP

Prepared by Department of Soil Conservation and Watershed Management for the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 1 December 2012)

Currency unit – Nepalese Rupee (NR) NR1.00 = $0.0115 $1.00 = NR 86.9

ABBREVIATIONS ADB – Asian Development Bank CFUG – Community Forest User Group CPC – Consultation, Participation and Communications (Plan) DAGs – disadvantaged groups DDR – Due Diligence Reports DFO – District Forestry Office DSCO – District Soil Conservation Office DSCWM – Department of Soil Conservation and Watershed Management DSO – DSCO Safeguard Officer DSS – District Safeguard Specialist EARF – Environmental Assessment and Review Framework EIA – Environmental Impact Assessment GESI – Gender Empowerment and Social Inclusion (Plan) GON – Government of Nepal GPP – Grievance Point Person IEE – Initial Environmental Examination MoFSC – Ministry of Forests and Soil Conservation NAPA – National Adaptation Programme of Action NES – National Environmental Specialist PIC – Project Implementation Consultant PMU – Project Management Unit REA – Rapid Environmental Assessment R/LAP – Resettlement and Land Acquisition Plan SPCR – Strategic Program for Climate Resilience SEU – Social and Environmental Unit SWMC – Sub-watershed Management Committee VDC – Village Development Committee VDT – Village Development Team

WEIGHTS AND MEASURES cm – centimeter cu m – cubic meters Ha hectare km – kilometer L – liter m – meter masl – meters above sea level sq m square meter

NOTE (i) In this report, "$" refers to US dollars.

This environmental assessment and review framework is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Direc- tors, Management, or staff, and may be preliminary in nature.

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.

Table of Contents

A. Introduction ...... 1 B. Assessment of Legal Framework and Institutional Capacity ...... 2 C. Project Activities and Anticipated Environmental Impacts ...... 3 D. Environmental Assessment of Subprojects ...... 6 1. Environmental Criteria for Subproject Selection ...... 6 2. Rationale for Environmental Category of Subprojects ...... 7 GON’s Environmental Assessment Requirement ...... 8 ADB’s Environmental Categorization ...... 8 3. Environmental Assessment Procedure ...... 8 Environmental Screening ...... 9 Process for Environmental Due Diligence Report (DDR) ...... 9 Process to Prepare IEE ...... 9 E. Consultation, Information Disclosure, And Grievance Redress Mechanism ...... 10 F. Institutional Arrangement and Responsibilities ...... 11 G. Monitoring and Reporting ...... 14 H. Staffing Requirements and Budget ...... 14 I. Mitigation and Monitoring Costs ...... 14

Annex I: Environmental Assessment Checklist for Subprojects under ADB TA 7883-NEP

List of Tables 1 Potential Impacts and Mitigation Measures 5 2 Summary of Subproject Types 7 3 Proposed Template of Environmental DDR 9 4 Institutional Responsibilities for Environment Management 13

Figure 1 Schematic of Project Organization 13

A. INTRODUCTION 1. The Project Building Climate Resilience of Watersheds in Mountain Eco-regions (BCRWME, the Project) aims at reducing the risks from climate change for middle-hill communities in Nepal. The means for doing so involves a program of integrated watershed management with interventions in upland areas to increase surface water storage, reduce erosion, enhance soil moisture and groundwater recharge, and stabilize slopes and gullies. The expected benefits are improved water availability in dry periods for communities, more stable slopes, increased soil productivity, and reduced stream sedimentation.

2. The Project is founded in the Nepal Strategic Program for Climate Resilience (SPCR) as well as the Government of Nepal’s (GON) National Adaptation Programme of Action (NAPA), finalized in February 2010. NAPA contains a number of adaptation options, several of which call for interventions in watershed management, soil and water conservation, scaling up multiple-use water systems, enhanced water storage, and ecosystem management.

3. The Project Preparation Technical Assistance (PPTA) for the Project carried out feasibility studies of sample subprojects representative of the proposed interventions. Environmental assessments of these subprojects were also completed following the requirements of the ADB's Safeguard Policy Statement (2009); and the GON Environmen- tal Protection Act (1997) and Environmental Protection Rules (1997 and 2007 amendment). Based on the findings from the assessments, this Environmental Assessment and Review Framework (EARF) has been prepared to guide the environmental due diligence on subprojects during the project implementation.

4. The Project Coordination Unit based at the DSCWM in Kathmandu will have a coordinating role and will direct the work of the Project Management Unit (PMU) based in Dadeldhura at the SCO office. The PMU will guide the work undertaken by the Sub- Watershed Management Teams (SMTs) which will be based at the four main DSCOs – Dadeldhura, Doti, and the two to be established in Achham and Bhajang – see the BCRWME Project Implementation Plan. The PMU and SMTs are responsible for overseeing the planning of subprojects (feasibility and detailed design), approving designs, and supervising construction and implementation. It is anticipated that most interventions will be performed by communities near the locations of subprojects using a labour-based approach. Private contractors will be engaged for larger works through national competitive bidding. The SMTs and DSCOs will be responsible for preparing feasibility studies and detailed designs, supported by the PMU, the environmental due diligence, and completion and approval of any environmental assessment documentation required under this framework. Details of the institutional arrangements are summarized in a later section of the EARF.

5. This Framework inclusive of its environmental management procedural guidelines shall apply to all subprojects under the Project to ensure that environmental issues are appropriately addressed and mitigated to acceptable levels. They are intended to provide effective integration of environmental assessment and management planning into the subproject preparation process, in accordance with the laws of Nepal, and in conformance with the requirements of the ADB.

B. ASSESSMENT OF LEGAL FRAMEWORK AND INSTITUTIONAL CAPACITY

6. Requirements of Country Safeguard Systems: Rule 3 of the Government of Ne- pal’s Environmental Protection Rules (1997) stipulates that proposals of the types listed under Schedule 1 require Initial Environmental Examination (IEE), and types listed under Schedule 2 require Environmental Impact Assessment (EIA). These schedules are ap- pended to the EP rules. None of the types of subproject interventions proposed under the Project are listed in either of these two schedules, and hence the GON rules do not require that an EIA or an IEE be conducted for any of the types of proposed subprojects. The English translation of Schedule 1 of the EP Rules includes in its list “watershed management plans”; this is in reference to the Watershed Protection Act (1996) that con- fers protection on watersheds used for water supply and generation of hydropower, and requires IEEs for project activities within those watersheds that might degrade use. Wa- tershed management conservation plans of the type developed under the Project do not require preparation of an IEE. The original Nepali version of the EP Rules is clear in regard to this requirement.

7. ADB's Environmental Safeguard Requirements: ADB has classified projects under four categories depending on the category of its most environmentally sensitive component, including direct, indirect, cumulative and induced impacts in the project's area of influence. The categories are (i) Category A, which requires an Environmental Impact Assessment (EIA); (ii) Category B, requiring and IEE; Category C, which incurs minimal or no adverse environmental impact and thus does not require environmental assessment, although environmental implications need to be reviewed. Environmental Due Diligence will be adequate for such projects; Category FI refers to projects that involve investment of ADB funds through a financial intermediary, and is not applicable to the present Project.

8. The two key parties involved in the environmental assessment of the subprojects under the project are the DSCOs of the selected Project districts (the Proponents) and the DSCWM. The Ministry of Forests and Soil Conservation (MoFSC) through the DSCWM is the Executing Agency (EA) for the project. Responsibilities for preparation of IEEs / Due Diligence Reports (DDRs) and obtaining approvals rests with the project proponent (the DSCWM and DSCOs), and review of the report and giving approval for IEE report rests with MoFSC. Approval of EIAs rests with a committee set up by the Ministry of Environment, which includes MOE representatives as well as those from MoFSC. Ap- proval for DDRs from MoFSC is not a legal requirement.

9. DSCOs and the DSCWM are comparatively weak in conducting environmental assessment, and implementing, monitoring and reporting of the environmental management plan (EMP). The BCRWME Capacity Building Plan covers the coaching and training required. Following training, DSCWM and DCSO staff will be able to conduct environmental assessment including preparation of the IEEs and DDRs for the subprojects. The PMU, SMTs and DSCO staff to be based in the field will be primarily responsible for preparation of environmental assessments/DDRs, as well as for implementing safeguard actions related to social issues (eg. resettlement, indigenous peoples and gender). The PMU includes both environmental and social safeguards specialists, as do the SMTs – each team will be headed by a watershed management/environment specialist, and staffed with Social Safeguards Officer, both of whom will be involved in the planning, implementation, monitoring and reporting of the sub-projects.

C. PROJECT ACTIVITIES AND ANTICIPATED ENVIRONMENTAL IMPACTS

10. Project Activities: The project will assist in achieving the government policies by enabling communities in vulnerable ecosystems to have improved access to and reliability of water resources with equal right for all gender and irrespective of caste or ethnic group. In cooperation with the DSCWM the project will promote local people’s participation in planning, implementation, operation, maintenance, protection and benefit sharing of interventions/activities through a sector wise approach on targeted improvements related to water access and reliability.

11. The project addresses the shortage of water and the main outputs of the project envisaged are:

 Participatory watershed management planning to improve water security demonstrated, and watershed and sub-watershed management plans implemented;

 Subproject water storage and catchment management (that addresses the specific vulnerabilities of women and disadvantaged groups (DAGs)) implemented in priority watersheds;

 Productivity of water is enhanced, and lessons for improving access to and reliability of water resources in vulnerable middle hill regions generated and used by DSCWM in strengthening its management of watersheds.

12. The selection of the subprojects will be made in conjunction with the community to gain benefit of local knowledge and to ensure the infrastructure meets community needs. Implementation of subprojects will improve water access and reliability for communities at risk from climate change and particularly address water shortage issues that result in additional labor for women and difficulties for disadvantaged groups such as the Dalit and Janajati who are often required to subordinate their water needs when there is water shortage. Increased water availability will also allow additional crop production and reduce animal disease from polluted water.

13. The proposed structural interventions to be financed under the project are as follows:

 Water storage ponds/tanks and on-stream reservoirs. The storages will be filled from their local watersheds and from springs and small streams where these are available. Some storage will aim to hold water, while others are designed to recharge groundwater systems. The choice of storage type is site specific, depending on hydrogeologic conditions.

 Water source and infrastructure protection. This ensures the quality and quantity of water arriving at water sources and that infrastructure is not impacted by soil erosion and landslides. The protection undertaken by the project will be land use management measures (landslide treatments, gulley erosion control, grazing rules, etc) in the catchments of water sources developed by storage through the project and upstream of infrastructure. These actions will be designed with community participation and negotiation. This may involve land use management controls (e.g., restricting cattle grazing), and the responsibility for implementing and policing these controls will lie with the community. The project may supply

advice and materials to develop and implement the land use plans, including fodder seeds, seedlings for economic trees, and tools and other equipment.

 Piped water delivery systems. The project will install delivery systems to bring the water close to where it is needed in order to realize and measure the benefit of the communities’ increased access to water. Where there is more than one site for water storage and it is practical, the tanks will be linked together down the landscape. Delivery stand-points (with taps) may to be installed within the settlement area. Should a community wish to have further distribution of water within their settlement, it could provide this on their own.

 Stock watering points. Such points will be provided outside the settlement area in order to keep livestock away and downstream of water storage areas so that water is not contaminated.

14. Supply may be stored for irrigation where (i) there is suitable land and (ii) water supply is in excess of the demand for stock and domestic purposes. Areas for irrigation will be identified and water delivered to these sites, but the responsibility for distributing water within the area to be irrigated will lie with the community.

15. Water storage will generally be provided through use of earthen ponds of around 2,000 – 10,000 sq m surface area with depths ranging from 2 – 5 m. The capacity of an earthen pond will generally not exceed 50,000 cu m. Rectangular reinforced concrete tanks, typically with 50 – 200 cu m capacity, will be rebuilt where they already exist, or installed at new locations. In all cases, storage proposals will be developed in conjunction with sub-watershed management plans for catchments that make up discrete hydrological units within which subproject benefits can be monitored.

16. All civil works under the Project will be small-scale. Earthworks and trenching will generally be done manually and concrete and cement masonry structures erected using local skilled labor. Most aspects of the proposed works engage a limited number of workers to lay piping, construct forms for reinforced concrete structures and prepare ground for planting soil stabilizing grasses and shrubs. Bank protection, landslide stabilization and gully erosion control will utilize gabions and bio-engineering methods. Other features of subprojects could include river bank and intakes, off-take structures, sediment traps, lining of canals, covered canal sections or pipes where the canal passes through areas of permeable soils or landslide zones, cross drainage works, drop structures, division structures, and outlets.

17. The works conducted under the Project will be developed within a context of an integrated watershed management plan. The plan has indicative activities as follows:

. Development of practical guidelines for multi-sector watershed planning and management aimed at improving climate resilience in the Project area. . An approach based on “multiple water sources – multiple water uses”. . Effective partnerships with ongoing programs as means for implementation. . Working closely through DDCs and VDCs.

18. Soil and water conservation activities will be part of watershed and sub- watershed management plans and will be supported by technical services through the

Project. Water source protection and augmentation will be founded on a participatory approach to match source protection measures to the context.

19. Anticipated Environmental Impacts: Minor impacts are possible on subprojects regardless of the environmental classification. Agencies responsible for development of subprojects will be trained to observe, recognize and avoid impacts, including DSCOs and staff working as Environment Officers, the Project Implementation Consultant and its Environmental Specialist, and district level consultants working in subproject development. Impacts – though minor – can accumulate and cause nuisance, and should be mitigated at each stage of the subproject development sequence. Table 1 describes likely environmental impacts stemming from the mix of possible interventions applicable to the types of subproject under BCRWME, proposes potential mitigation measures, and identifies the responsible party for initiating action and/or for monitoring.

Table 1: Potential Impacts and Mitigation Measures Potential Effect Mitigation measure Performance and Monitoring Duties Design and Location Inequitable access for Develop prior understanding of water use DSCOs and SMTs household water and irriga- agreeable to community tion Water conflicts with down- Investigate potential for impact and con- DSCOs and SMTs stream communities duct stakeholder consultations with downstream communities to assure there is no conflict with existing uses Disruption of hydrology Locate to intercept sufficient but not ex- DSCOs and SMTs cess runoff; provide spillway as needed supported by PMU Slope destabilization Slope and soil conditions evaluated to DSCOs and SMTs assure safety and stability supported by PMU Impact on forests Locate facility where there are no trees DSCOs and SMTs or include replacement in cost estimate supported by PMU Unstable soils used in em- Design embankment to assure stability, DSCOs and SMTs bankment results in failure require treatment with grasses to prevent supported by PMU erosion Excess runoff causes chan- Design channels and spillways to safely DSCOs and SMTs nel, embankment or spill- accommodate flows; install piping and supported by PMU way failure channels in stable soils or engineered to withstand soil movements Design of piping results in Piping installation designed with proper DSCOs and SMTs leakage and eventual failure bedding to prevent movement in sur- supported by PMU rounding soil and stress leading to failure Construction: Clearance of trees and un- Minimize removal of trees; coordinate dergrowth with CFUGs/DFO for clearing and follow compensatory plantation policy of DOF (1:25) DSCO/SMTs and Excess spoil and sediment Balance cut-and-fill, dispose of excess contractor, NGO, loss earth at approved location; trenches run- AFEC and/or commu- ning down slope (against contour) to be nity compacted and sodded to prevent rilling Impacts due to quarry and Use materials from immediate area in borrow areas construction, obtain prior approval from DSCO and VDC for borrow, re-grade

area after use Damage to trees in area Prevent damage to trees and vegetation; no cutting of firewood Soil loss in the event of Stop work during heavy rains, heavy rainfall during installation Movement of equipment Avoid disruption of village life and notify and people through settled people in advance of work in their imme- DSCO/SMTs and areas diate area contractor, NGO, Loss of topsoil Stockpile topsoil for final dressing at site AFEC and/or commu- Excess erosion Seed and plant exposed slopes after nity construction Disruption of village life Minimize impact on local community, enact safe work practices; barricade work site Worker and community Assure safe work practice, and prevent health and safety access by local people Operations: Erosion above pond causes Catchments for water harvesting protect- infilling and potential con- ed by limiting access and maintaining tamination good vegetative cover Grazing animals cause Restrict grazing in catchments, along damage to upstream pond embankments, and on pipe align- catchment, embankment ments through agreements among com- and pipe alignments munity members on accepted grazing DSCO/SMTs and lo- areas cal groups, CFUG, Animals contaminate sur- Prevent access to surface supplies; Pro- VDC/AFEC face supplies ject to provide alternative watering points Surface contamination in Set out criteria for land use in recharge recharge zones could affect zone and educate locals; restrict access water supply quality Effects on downstream wa- Assure no disruption of existing water ter use uses AFEC-Agriculture, Forest, Environment Committee; CFUG—Community Forest User Group; DSCO—District Soil Conservation Office (DSCO); SMT-Sub-watershed Management Team; VDC-Village Development Committee

D. ENVIRONMENTAL ASSESSMENT OF SUBPROJECTS

1. Environmental Criteria for Subproject Selection

20. The following environmental criteria for subproject selection will apply during the implementation of the Project:

(I) Subprojects will take place on government land, or on land freely provided (on the basis of benefits gained in the quality of land) to the project, or negotiated at the community level for reasons that benefit the entire community;

(II) Land will only be acquired from willing sellers, without involuntary resettlement, using a process to ensure land losers are not coerced;

(III) Subprojects will have no negative impact on downstream water users;

(IV) Subprojects will not be located in, or cause any direct or indirect threat to, ecologi- cally sensitive areas such as national parks, wildlife sanctuaries or wetlands, conservation areas of international significance, or areas of high historical, archeologi- cal, cultural or aesthetic value;

(V) Subprojects will not obstruct the main flow of perennial streams or watercourses;

(VI) Subprojects will not disrupt the life and property of communities, or indigenous and tribal groups;

(VII) Subprojects will not encroach on cultural features like places of worship, graves, cemeteries and historical monuments.

2. Rationale for Environmental Category of Subprojects

21. Subprojects of the types proposed under the Project have minor or insignificant environmental impacts and are classified as Environmental Category B or C under the ADB’s system of classification as presented in the ADB Safeguard Policy Statement (2009). Newly constructed earthen ponds have the potential for causing minor environmental impact during construction, and subprojects of this type are best classified as Environmental Category B and their potential adverse effects assessed through preparation of an Initial Environmental Examination (IEE). Other subprojects proposed under the Project whose principal feature can include the rehabilitation of an existing earthen pond or construction or rehabilitation of a concrete tank are classified as Environmental Category C because environmental impacts associated with projects of this type are judged to be insignificant and can be assessed using a Due Diligence Report (DDR). Table 2 summarizes the principal types of subproject expected to be implemented under the BCRWME, types of auxiliary activities associated with the subproject, and the environmental category anticipated for the overall activity.

Table 2: Summary of Subproject Types Infrastructure Type Catchment Interventions* Environmental Category Earthen Pond—New Con- Upstream catchment man- Environmental Category B: struction agement; re-vegetation/ minor environmental impact tree and shrub planting; during construction Rehabilitation of Earthen fencing and access control; Environmental Category C: Pond landslide control; sheet/rill/ Insignificant impact Reinforced Concrete gully erosion control; in- Environmental Category C: Tank—New Construction let/outlet structures; pip- Insignificant impact Rehabilitation of Masonry ing/open slot drains; water Environmental Category C: or Concrete Tank taps; livestock access Insignificant impact * Auxiliary elements in general apply to all primary subproject types; the use of any element depends on actual conditions at the site.

22. Findings of the environmental assessment indicate that the proposed activities under the subprojects will have minor or insignificant impact on the environment.

GON’s Environmental Assessment Requirement

23. The environmental assessment requirement of GON does not require an IEE study for any of the types of activities listed in the above sections. Undertaking IEEs for subprojects incorporating these activities is not required under GON rules.

ADB’s Environmental Categorization

24. Environmental Assessments (IEE and DDRs) carried out for the pilot subprojects indicate that they are unlikely to have significant adverse environmental impacts in the subproject areas. Positive impacts of subprojects include storage of water for community use in upland areas, re-vegetation and stabilization of soils and embankments, and recharge of groundwater and soil moisture. These outweigh any adverse impacts, which in any case are temporary and minor.

25. Newly constructed earthen ponds pose the greatest risk among possible subprojects and hence are classified as Category B. Subprojects involving new construction of earthen ponds have a more significant impact because of newly arisen land use and water rights considerations, potential impacts from use of heavy equipment, and the need to control sediment loss during excavation of earth. IEEs will be conducted for this subproject type. Secondary activities that are incorporated into the subproject such as gully erosion control and degraded land rehabilitation will be taken into account in the IEE.

26. Most subprojects remain as Category C activities. Para 50 (iii) of the ADB’s Safeguard Policy Statement, 2009 states that "a proposed project is classified as category C if it is likely to have minimal or no adverse environmental impacts. No environmental assessment is required although environmental implications need to be reviewed". Subprojects involving rehabilitation of existing earthen ponds and construction of above-grade concrete storage tanks pose insignificant risk to the environment and are predicted to cause minimal adverse impact. In any case, the Project as a whole is classified as environment 'Category B', with most subprojects being classified as Category C. Environmental DDR shall be prepared for Category C subprojects, and IEE prepared for Category B subprojects. 27. The environmental assessment reports of the pilot subprojects are presented in separate documents under the following headings (see Supplemental Supporting Docu- ments of the Project Final Report): . Pipal Khola Pond and Catchment Management Subproject, Kuldevmandu VDC, Bajura District (IEE) . Thuldhara Tank and Catchment Management Subproject, Amargadi Mu- nicipality, Dadeldura District (DDR) . Nagardaha Pond and Catchment Management Subproject, Kalikasthan VDC, Doti District (DDR)

3. Environmental Assessment Procedure

28. The environmental assessment procedure for the subprojects is described in the following sections.

Environmental Screening

29. Members of the DSCO/Sub-watershed Management Teams, essentially the Wtareshed Management/Enviroment Specialist and the Social Safeguards Officer, will undertake environmental screening of the subprojects using a Rapid Environmental As- sessment (REA) checklist (see Annex 1)t, to be filled out during the initial identification of the proposed subproject. The findings of the environmental screening will conclude if an IEE is required or an environmental DDR will be adequate.

Process for Environmental Due Diligence Report (DDR)

30. The Environmental DDR is a brief statement regarding the subproject. The report is prepared using the following procedure:

Collection of information: members of the DSCO/SMTs, supported by staff at the PMU, will collect information during the initial identification of the project and document any significant environmental concerns. Information from stakeholders will be collected, including community members and officials of the local VDC.

Preparation of Environmental DDR: Background information on the physical, bio- logical and socio-economic environment of the subproject area will be based on direct observation by the project identification team, primarily the DSCOs/SMTs with support and guidance from relevant PMU staff, the. An REA checklist shown in Annex I will be completed on the basis of field observations, during which any impacts are identified. The proposed template for the Environmental DDR is presented in Table 3.

Table 3: Proposed Template of Environmental DDR

1. Introduction (Brief description of the subproject) 2. Project Proponent and Address 3. Description of the Subproject with Location Map 4. Environmental Screening and Checklist 5. Environmental Implications and Mitigation Measures (Description of impacts, proposed mitigation measures, and monitoring plan) 6. Status of Public Consultation and Disclosure 7. Conclusion and Recommendation

Process to Prepare IEE

31. Subprojects involving new construction of earthen ponds will be subjected to the IEE process. Some aspects of this procedure as it applies to the present Project include the following:

a. Scoping: The IEE scoping is a planning exercise to determine the requirements for the IEE study. Scoping lists the likely environmental impacts, methodology of assessment, extent of impacts and mitigation options, and the IEE study schedule.

b. Assessment Methods: An outline of the activities for conducting IEE study is presented below:

(1) Desk Study: Review of information such as maps, reports, and EARF for the Pro- ject. Checklist for collecting site information is also finalized.

(2) Consultations: Villagers and local stakeholders (community groups and resource users) consulted through focus group discussions. Discussion with concerned government offices at local level (forestry; water supply) also undertaken.

(3) Field Assessment: Assessment of significant environmental issues conducted.

(4) Sampling and Testing: Geotechnical testing may be needed to confirm use of local materials for embankment and assure stability.

(5) Identification of Environmental Impacts and Mitigation Measures: The impacts will be identified in terms of their likelihood and magnitude. Table 1 lists environmental impacts that may occur on the subproject type classified as Category B.

32. The senior specialist at the PMU in Dadeldhura will assist the DSCOs/SMTs in project implementation, and the Watershed Management/Environment Specialist at the PMU will have overall responsibility for preparation of IEEs and environmental due diligence reporting.

33. Environmental Management Plan: IEEs prepared under the Project will include EMPs that specify monitoring requirements for potential environmental impacts. Moni- toring is aimed at assuring performance of mitigation measures, and involves specifying the method of measurement, relevant indicators, frequency of monitoring, and cost and responsible party for undertaking the monitoring. The contents of the IEE report should conform to guidance provided in ADB’s 2009 Safeguard Policy Statement. The EMP will form part of the contract documents and if required will be updated during the construction phase. All bid documents will include a requirement to incorporate necessary resources into the contractor’s bid to implement mitigation measures specified in the EMP.

E. CONSULTATION, INFORMATION DISCLOSURE, AND GRIEVANCE REDRESS MECHANISM

34. The approach adopted for the Project ensures that all subprojects are community-driven ensuring a high level of public awareness and involvement at each stage. A Consultation, Participation and Communications Plan (the CPC Plan) is part of the PPTA final report and will be incorporated into Project implementation guidelines. The Plan addresses procedures for public consultation and disclosure, the main elements of which include (i) obtaining advice and concurrence among the local community on design and siting of subprojects during the planning phase; (ii) provisions for a grievance redress mechanism, with reference to the resettlement and land acquisition plan (R/LAP) and gender empowerment and social inclusion (GESI) plan; and (iii) Project and institutional support for transferring ownership to the community for operation, maintenance and management of subproject works after construction.

35. Steps involved in public participation will include (i) initial confirmation of genuine subproject demand, (ii) participatory, comprehensive and accurate subproject prepara-

tion, (iii) strong community support for the subproject, (iv) committed participation of the VDCs and sub-watershed management committees (SWMCs) in implementation, and (v) effective and transparent communication between the DSCOs project teams and VDCs. Many of these elements are already in place for DSCO physical intervention activities at present, and will be extended and reinforced during project implementation.

36. Information related to the project including environmental information will be made available at a publicly accessible place in a form and language understandable to the general public. For projects which require IEEs, it will be necessary to provide a single page description in Nepali that reviews how key issues have been dealt with in the IEE. IEEs will be made available to any member of the public, if requested, and made available on ADB's web site.

37. Public grievance among local stakeholders may be expressed due to inconven- ience or loss of/damage to private property during the conduct of the work. Grievances from qualified complainants, those living in the vicinity of the subproject or otherwise affected by the subproject, will be addressed through a grievance mechanism.

38. The mechanism includes acknowledgement of the grievance, and evaluation and corrective action on the part of responsible parties: either the contractor, DSCO or the PIC. Grievances can be made at the VDC level through the VDC, or to the DSCO Safe- guards Officer, serving as the Grievance Point Person (GPP), who will bring them to the attention of the DSCO Chief. The mechanism requires establishing a mandatory “grievance register book” at the office of each DSCO. The GPP will use the register book to list (i) date of grievance registered, (ii) name / address of grievance lodger, (iii) nature of grievance being lodged and (iv) location / site of fault requiring correction. The GPP in consultation with the DSCO Chief will prepare a formal, written assessment that describes the complaint and confirms whether the grievance is genuine. A response will be provided within 15 days by the DSCO office, in consultation with the PMU. In case the DSCO is unable to resolve the issue, the matter will be forwarded to the DSCWM. The corrective action will be carried out as per the response or action plan indicated to the complainant, and the response lodged in the register book. The outcome shall also form part of the quarterly progress report to ADB. The details and information on use of this grievance redress mechanism will be communicated to the local communities and beneficiaries during detailed design in a subproject area.

39. The approach for a grievance redress mechanism constitutes the initial step in the grievance redress mechanism for complaints related to compensation under the Re- settlement and Land Acquisition Plan, and is included therein. See the R/LAP for further actions if claims for compensation are not satisfactorily addressed under this approach.

F. INSTITUTIONAL ARRANGEMENT AND RESPONSIBILITIES – FROM HERE

40. The organizational approach for implementing safeguard measures on the Pro- ject involves employment of dedicated staff at both the Project Management Unit in Dadeldhura and the Sub-watershed Management Teams in the DSCOs to oversee safeguard activities – at the PMU, through the Team Leader (Watershed Manage- ment/Environment Specialist) and the Senior Social Safeguards Specialist, and at the DSCOs/S Sub-watershed Management teams (SMTs), through the SMT Team Leader (Watershed Management/Environment Specialist), and the Social Safeguard Officer.

The PMU will receive substantial support from the Project Coordination Unit through the Project Management Consultant. The organizational arrangement is shown in Figure 1.

Figure 1 Project Implementation Arrangement

Project implementation is focused at the District Soil Conservation Offices (DSCOs)1 and the (SMTs), the main role of which will be to initiate management planning and subproject identification in the sub-watersheds.

41. The Team Leader (Watershed Management/Environment Specialist) and the Senior Social Safeguards Specialist at the PMU in Dadeldhura, with support the responsible staff at the SMTs, will be responsible for preparing environmental safeguard documentation for individual subprojects, and classifying the subprojects.

42. The PMU Team Leader will be responsible for capacity building, skills enhancement and coaching of the responsible officers at the DSCWM and SMTs, if necessary through hired consultants – see the BCRWME Capacity Building Plan.

43. The Social Safeguards Officers and Mid-level Technicians working with the SMTs will perform initial suitability screenings of subprojects, and obtain necessary field

1 Thus far there are only DSCOs at Doti and Dadeldura. Doti DSCO has responsibility for Achham and Bajura Districts along with Doti District, and Dadeldura DSCO coverage includes Baitadi District. The Project proposes that additional DSCO offices be mobilized in Bajura and Accham; once that arrangement is in place, the institutional arrangements will be adjusted accordingly.

information to prepare the necessary social and environmental documentation for each sub-project and smaller soil and water conservation activities; this will include conducting public consultations on environmental and social issues, and completing safeguard review checklists. In addition, the Social Safeguards Officers will serve as the first point of call for community and household grievances, as covered by the Grievance Redress Mechanism in the BCRWME Land Acquisition Framework.

44. Specific institutional responsibilities and authorities during the subproject implementation cycle are listed in Table 4.

Table 4: Institutional Responsibilities for Environment Management

Subproject Responsible Person and Responsibilities Stage Organization Overall Watershed Management Support capacity development of envi- /Environment Specialist at the PMU ronmental planning, monitoring, and management. Guidance for environmental planning, periodic monitoring and reporting. Overall review and monitoring of environmental management activities of the project. Prepare environmental safeguard documents (IEEs and DDRs)

Watershed Management Periodic environmental monitoring and /Environment Specialists in evaluation; recommend corrective theDSCOs/ Sub-watershed Man- measures if any. agement teams (SMTs) Screening Social Safeguards Officers and Mid- Screen the subproject requests in light of level Technicians at the SMTs environmental and social criteria. Planning Watershed Management Prepare IEE or Environmental DDR as /Environment Specialists in the required, minimize avoidable losses, (SMTs), supported by other incorporate mitigation measures, and DSCOs/SMT members and PMU prepare EMP. Watershed Management Endorse IEE report and obtain approval /Environment Specialist at the Pro- from ADB. No approval is required for ject Management Unit Environmental DDR. Detailed De- Civil Engineers at the SMTs, sup- Integrate environment issues of IEE/ sign ported by PMU Environmental DDR in design and contract documents. Construction Contractor, NGOs, Communities Implement required environmental through the VDCs and AFECs measures. SMT Mid-level technician with VDC Supervise implementation of environ- support mental measures. Community Social Safeguards Officers and Mid- Implement specific environmental mitiga- Outreach level Technicians at the SMTs, with tion measures incorporated in the com- support from VDCs and AFECs munity outreach programs. PMU—Project Management Unit; SMTs-Sub-watershed Management Teams; VDC—Village Development Committee; AFECs-Agriculture, Forestry, Environment Committees

G. MONITORING AND REPORTING

45. During the subproject Implementation, the DSCO/SMT staff will monitor and document the status of environmental management in the subprojects in keeping with the requirements of the EARF. Issues will be solved at the local level. Any implications for Category C subprojects will be described in quarterly and biannual project progress reports, whereas for Category B projects the PCU will need to submit bi-annual monitoring reports to ADB.

H. STAFFING REQUIREMENTS AND BUDGET

46. The staffing requirements are described in the BCRWME Project Implementation Arrangements. In brief, the PMU, to be based at the DSCO in Dadeldhura will be staffed by a technical team comprising a Watershed Management/Environment Specialist (Team Leader of the consultancy team), a Senior Design Engineer, a Senior Social Safeguard Specialist, a Senior M&E Specialist, and a GIS Analyst. There will be two Sub-watershed Management Teams based at each of the four main DSCOs – each SMT will comprise a Watershed Management/Environment Specialist, a Social Safe- guards Officer, a Community Mobilizer, a Civil Engineer and Mid-level Technician.

I. MITIGATION AND MONITORING COSTS

47. Mitigation measures are generally part of the project design, are undertaken as part of design process, or are readily incorporated into the cost of construction and alongside other aspects of operations, including implementation of watershed management plans. As such there are no clearly separable costs associated with mitigation measures identified in the EARF. The cost of government staffing at the DSCO offices will be provided in the GON budget for the project. Staffing of the PCU in Kathmandu, the PMU in Dadeldhura, and the SMTs at the four DSCOs have been described in the the BCRWME Project Implementation Arrangements.

Annex I Environmental Assessment Checklist for Subprojects under ADB TA 7883-NEP Building Climate Resilience of Watersheds in Mountain Eco-Regions Screening Questions Status Remarks Yes No A. Project Siting Is the Project area near or within the following environmentally sensitive areas?

. Cultural heritage site . Protected Area . Wetland . Buffer zone of protected area . Special area for protecting biodiversity Will the Project obstruct the main flow of perennial streams or watercourses? Is the Project on government land or on land freely provided to the project? Does the Project require involuntary resettlement, or compensation other than in-kind negotiated within the community? B. Potential Environmental Impacts during Con- struction Will the Project cause construction impacts due to the movement of equipment through communities? Will the Project require the use of labor camps for housing construction workers? Will the Project cause excessive air emissions from equipment, or dust from construction activity? Will the Project release excess sediment to streams? Will the Project require removal of trees? Will access roads need to be constructed? Do hazardous conditions exist for workers performing the work? C. Potential Environmental Impacts during Opera- tions Will the project have a negative impact on downstream water users? Will the project adversely affect ecology in the area, including species diversity? Will the project give rise to social conflicts regarding tenure and use of the land? Will the project cause in-migration with opening of roads to upland areas? Will the project adversely affect tourism and recreational opportunities in the area? Will the project create conflicts with established land management policies? Will the project cause ecological problems due to land clearance prior to restoration e.g., soil erosion, disruption of hydrological cycle, loss of nutrients and soil fertility? Will the project cause other ecological problems e.g., pollution of water bodies from fertilizers, pesticides, and herbicides? D. Potential Environmental Benefits Reduction in deforestation Reduction in soil erosion Enhancement in water availability Increase in aesthetic environmental value Improved quality of life

The Knowledge Management Plan

Nepal: Building Climate Resilience of Watersheds in Mountain Eco-Regions (BCRWME)

Project Number: ADB TA 7883

Final Draft, 20 January 2013

This knowledge management plan 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.

Table of Contents

List of Acronyms ...... 3 Executive Summary ...... 4 1. Introduction ...... 5 2. Methodology ...... 6 3. Background to Knowledge Management ...... 6 4. Rationale and Context ...... 8 5. Objectives of the Project Knowledge Management Plan ...... 11 6. Targeted Users/Beneficiaries ...... 12 7. The Knowledge Management Strategy ...... 12 8. The Knowledge Management System ...... 14 9. Knowledge Sharing ...... 18 10. Timeline for Establishing the Knowledge Management System ...... 19 11. Knowledge Management Plan Implementation Cost Estimate ...... 21

Annexes…………………………………………………………………………………..from page 22 Annex 1 References Annex 2 Typology of Knowledge Annex 3 Knowledge Management System Annex 4 The Knowledge Management Log-frame Annex 5 The Knowledge Product Database

List of Acronyms

ADB Asian Development Bank AFEC Agriculture, Forest and Environment Committee (at the VDC level) BCRWME Building Climate Resilience in Watersheds in Mountain Eco-regions Project CAP Catchment Area Plan CBOs Community Based Organization CCDP Climate Change and Development Portal CIF Climate Investment Fund CMS Content Management System COP Community of Practice CTF Clean Technology Fund DANIDA Danish International Development Agency DDC District Development Committee DFID United Kingdom Department for International Development DFO District Forest Office DSCO District Social Conservation Office DSCWM Department of Soil Conservation and Watershed Management EA Executing Agency FLOW Filed Level Operations Watch GEF Global Environmental Facility GPS Global Positioning System I/NGO International/National Non Governmental Organization IT Information Technology KM Knowledge Management KMP Knowledge Management Plan KMS Knowledge Management System KMStr Knowledge Management Strategy KS Knowledge Sharing LAN Local Area Network M&E Monitoring and Evaluation MDB Multilateral Development Bank MOE Ministry of Environment PF Partnership Forum PIU Project Implementation Unit PMO Project Management Office PPTA Project preparation Technical Assistance SCP Strategic Climate Fund SMS Short Message System SPCR Strategic Program for Climate Resilience TOR Terms of Reference TUBs Target Users and Beneficiaries UNDP United Nation Development Program UNFCC UN Framework Convention on Climate Change VDC Village Development Committee WM Watershed Management WMP Watershed Management Plan

Executive Summary

1. This Knowledge Management Plan has been prepared for implementation by BCRWME. It will establish a culture and system which supports and sustains the information and experiences gathered and gained by the project through efficient storage, dissemination, assessment, application, refinement, and creation of relevant knowledge. Following capture of the knowledge generated by the project, this knowledge will be shared with the DSCWM, and the national and international communities practicing watershed management.

2. The purpose of the BCRWME knowledge management plan is to create a conducive environment for the project stakeholders to manage knowledge and lessons learnt in improving access to, and reliability of water resources in mountain regions vulnerable to climate change. The aim is to strengthen future actions in improving the access to, and reliability of, community water resources.

3. Establishing sound knowledge management procedures will enable the sharing of knowledge within the Project itself which will not only add value to the learning process but further enhance the effectiveness of the Project and the sub-watershed plans. The Plan operates at several different levels, local, national and international, and aims at setting directions for water resource management into the future in the light of knowledge about climate change and its expected effects on watershed resources and watershed mountain communities.

4. In the context of the BCRWME Project, given the capacity, accessibility and operational possibilities of information technologies and the IT capacity of the target users and beneficiaries, the knowledge management system that will be developed combines both IT and other cultural and traditional means for knowledge management and sharing.

5. The Plan is aligned to the Project’s M&E and reporting systems, which include data, information sheets, and progress reports, which are also information and knowledge products. To assist in monitoring progress and achievements, a logframe for the Knowledge Management Plan has been prepared.

6. The strategy for the establishment of the Plan centers around where the information is located or generated in the various Project institutional and implementation components and how they can be strategically processed and managed as knowledge.

7. It is recommended that at the field level, modern data collection and transfer systems can be used – for example, FLOW (Field Level Operations Watch) used and tested in the region for locating and monitoring water sources.

8. The action plans and indicative cost estimates for the implementation of the knowledge management plan has been prepared for five years; a budget of US $ 1,056,000 is proposed. An additional US $ 105,000 has been allocated in the Capacity Building Plan for senior staff training in knowledge management and monitoring and evaluation; the courses run in Bangkok by IMA International are recommended.

1. Introduction

9. The development of the knowledge management plan was part of Package 2 under the Project Preparation Technical Assistance (PPTA) Building Climate Resilience of Watersheds in Mountain Eco-Regions – TA7883-NEP. This document constitutes the knowledge management plan document which the consultants were required to produce.

10. The Watershed Knowledge Management Expert was required to: i) conceptualize and design a process to collect and create knowledge products on action- based watershed management interventions that address water stresses in mountain environment in Nepal; ii) organize facilitated consultations and dialogues that harvest new knowledge and promotes change in planning and practices, as necessary; iii) prepare a compendium of 10-12 already documented case studies that harvests evidence, best practices and experiences replicable in Nepal's watersheds; iv) identify 2 to 3 additional case study sites for documentation, and prepare those case studies; v) lead the preparation of visual products such as short documentaries, video clips/posters including the preparation of story lines and scripts, and in producing the finished visual products; vi) design a knowledge management system for implementation during the Project.

11. An overview of the concepts, typology (Annex 2), various definitions and notions related to knowledge and KMS are discussed in sections 3 and 4, while successive sections describe the design and implementation of the Project KMP.

12. An action plan for the implementation of the KMP of the Project is documented in section 10 and a five year cost estimate for implementation of the KMP is presented in section 11.

13. References are presented in Annex 1, and a typology of knowledge is presented in Annex 2.

14. Conceptual background on the Project knowledge management plan is presented in Annex 3, and a simple KMP Log-Frame is included as Annex 4 to monitor the operation and effectiveness of the Project KMP.

2. Methodology

15. The methodology for preparing the KMP included several steps:

a) an assessment of existing climate change knowledge networks at the national and international levels was first undertaken, followed by an evaluation of the existing DSCWM knowledge management capacity and practice; b) based on these assessments, a preliminary KMP concept was envisioned and designed; this was included in the PPTA Interim Report, and is included as Annex 3 to this document; c) relevant literature concerning knowledge management systems and practices were then reviewed and analyzed; d) the PPTA concept note and other relevant documents prepared by the PPTA were reviewed and used as resource materials; the three sub-watershed plans and other supplementary plans prepared by the PPTA were the primary point of reference for preparing the KMP.

3. Background to Knowledge Management

16. There is no standard, universally accepted definition of knowledge management, although it is generally accepted that a knowledge management system should consist of the initiatives and systems that sustain and support the storage, dissemination, assessment, application, refinement, and creation of relevant knowledge.

17. It should involve the understanding of:  where and in what forms knowledge exists;  how to make the right knowledge available to the right people;  what the organization needs to know;  how to best generate or acquire new relevant knowledge;  how to promote a culture conducive to learning, sharing, and knowledge creation;  how to manage all of these factors so as to enhance performance in light of the strategic goals of the organization or project.

18. A sound knowledge management system must therefore create and provide the right tools, people, structures and culture so as to enhance learning; the value and applications of the new knowledge created must be understood, and knowledge must be stored in a form that ensures it is readily available for the right people at the right time. Knowledge management is all about change, is an active process, and combines people and technology.

19. Knowledge in its raw form is stored as information and may be widely available in organizations and projects; not all this information will be converted into useful and relevant knowledge. A strategy is required to convert raw information into knowledge.

20. Most knowledge management systems are nowadays based on an IT system that stores and retrieves knowledge. A simple knowledge management system can be just about collecting and documenting information or data regarding an organization’s/project’s activities, research, processes, and case studies, and feeding it into an IT system which packages it as knowledge products.

21. This information or knowledge is made accessible to targeted users or beneficiaries in either printed form (in libraries or documentation centers of organizations or projects), electronic form (as downloads), or in archived online form such as a website. Knowledge products can be produced in any form of media (print, audio, visual or online) and shared through any kind of platform appropriate to the targeted users or beneficiaries.

22. If knowledge is not shared then it defeats the whole purpose of establishing such a system. A knowledge sharing community is comprised of a group of like-minded people with common interests who are willing to share knowledge.

23. The sharing of knowledge constitutes a major challenge because some employees tend to resist sharing their knowledge with the rest of the organization or on a public fora. Knowledge is often seen as property, and ownership becomes an important issue. In order to counteract this, individuals must be reassured that they will receive some type of incentive for what they create.

24. The risk in knowledge sharing is that individuals are most commonly rewarded for what they know, not what they share. If knowledge is not shared, negative consequences such as isolation and resistance to ideas occur. Shared knowledge offers different viewpoints and possible solutions to problems.

25. To promote knowledge sharing and remove obstacles to knowledge sharing, the organizational culture should encourage discovery and innovation.

26. The flow process from information to knowledge sharing is represented in Figure 1 below.

Figure 1: Diagrammatic Representation of the Knowledge Management Strategy Process

Knowledge Sharing

4. Rationale and Context

27. The BCRWME is one of five components identified in Nepal’s Strategic Program for Climate Resilience. The SPCR was developed by the Government of Nepal with the support of ADB, the International Finance Corporation (IFC), and the World Bank, and was endorsed on 28 June 2011 by the Pilot Program for Climate Resilience (PPCR) Sub-Committee of the Climate Investment Fund (CIF).

28. SPCR as five component projects and the overall objective is to build long-term climate resilience in Nepal through an integrated water resource and ecosystem-based approach, focusing on community-based management. The proposed BCRWME will assist in achieving this impact by enabling communities in vulnerable ecosystems to have improved access to reliable water resources.

29. During the project concept stage, it was anticipated that the Project would be organized into four outputs. The project knowledge management plan is primarily linked to output 4: lessons for improving access to and reliability of water resources in vulnerable mountain regions generated and incorporated into country programmes.

30. Since the BRWME is funded by the Asian Development Bank through the CIF, the Project is linked to the SPCR knowledge sharing at both national and global levels.

31. Under the CIF’s knowledge and learning component, the following are foreseen at the global level: a) partnership for a, b) monitoring and evaluation, and c) pilot country meetings.

32. The partnership fora are designed as annual gatherings of all stakeholders engaged in the CIF, including donor representatives of donor and eligible recipient countries, Multilateral Development Banks (MDBs), UN and UN agencies, Global Environment Facility (GEF), UN Framework Convention on Climate Change (UNFCCC), the Adaptation Fund, bilateral development agencies, NGOs, Indigenous Peoples, private sector entities, and scientific and technical experts. So far three PFs have taken place: Inaugural PF (2008); 2010 PF; and 2011 PF.

33. Under the pilot country meetings, the people who work on CIF-financed operations in CIF pilot countries gather annually in a series of open and collaborative meetings. In these meetings, representatives of CIF pilot country governments are joined by their counterparts from the multilateral development banks, contributor country governments, and other stakeholders to share knowledge, learn from experience in CIF implementation, and foster mutual trust and accountability.

34. Under the monitoring and evaluation provision, each MDB is required to follow its procedures for monitoring and evaluation. There will be annual reporting of the Strategic Climate Fund targeted programmes by the MDBs to the Trust Fund Committees, and an independent evaluation of the operations of the Trust Funds.

35. In addition to the above three specific provisions, knowledge sharing under CIF is managed through learning workshops, and webinars.

36. In the national context of Nepal, the BCRWME Project is expected to undertake knowledge sharing aligning with or in alliance with existing community of practice and national knowledge networks.

37. At the national level, there are several climate change knowledge networks currently operational. The main one is the Climate Change and Development Portal (CCDP) managed by the Ministry of Environment (http://www.climatenepal.org.np/main/), launched with funding support from DFID, DANIDA, GEF and UNDP. It is described as a portal collaboratively managed by the Ministry of Environment (MOE) and the climate change community of practice in Nepal. It provides climate change practitioners a platform to conduct research, network, discuss, and share climate change knowledge. It aims to empower and support individuals, institutions, and communities to undertake climate change action.

38. The Project knowledge management plan has been designed to share knowledge in such a way so that it is aligned with both national and international SPCR systems, as well as feeding into the project’s own learning cycle in relation to the project implementation plan and sub-watershed management plans. The KMP was prepared as a learning process for the Project itself, and as a means of sharing it’s knowledge with the national and international community of practice.

39. The BCRWME will be active in 65 sub-watersheds, and three sample sub-watershed plans and sub-projects have been identified and prepared in Bajura, Dadeldhura and Doti Districts.

40. The Project institutional and implementation plan is presented below in Figure 2.

Figure 2: Project Institutional and Implementation Plan

41. Figure 3 provides the background for the knowledge management plan in terms of the problems, challenges and potential solutions that will be experienced.

Figure 3: Problem Tree Analysis of BCRWME in Relation to Knowledge Management

Improved access to and reliability of

Climate change resilience in MAIN EFFECTS water resources in vulnerable mountain water resource management regions

Sharing the learning and knowledge on climate change resilience in mountain eco-regions on water source management and protection with international community of practice or learning alliance

CORE PROBLEMS BCRWME Project: Sharing the learning and knowledge through community of practice Knowledge or learning alliances to influence climate change resilience in water Management source management and protection and watershed management System/Plan and planning and replications in mountain eco-region in Nepal Knowledge Sharing Pilot project implementation and learning/knowledge generation on building climate resilience of watershed ecosystems and communities in a watershed project and between watershed projects with a focus on water resource management and protection

Watershed Management Projects in Lower West Seti and Budhi Ganga Eco-region Sample Sub-Watersheds

Watershed Management Planning in Mountain Eco-regions CAUSES Current state of knowledge, Reduced water availability/security for communities and ecosystems gaps in knowledge management Impacts of climate change Climate change resilience of on watershed in the communities in watersheds mountain eco-regions in mountain eco-regions

5. Objectives of the Project Knowledge Management Plan

42. The overall objective of the BCRWME knowledge management plan (KMP) is to generate and manage knowledge and lessons for improving access to and reliability of water resources in vulnerable mountain regions, and incorporate best lessons into the country programmes.

43. The specific objectives of the KMP is to enable knowledge management and sharing within the Project at the four different levels:

i. the project level - project personnel such as managers, engineers and other technicians, planners, researchers and other relevant COPs related to watersheds; ii. the local level – community, VDC and District level reaching the DSCOs and other district line agencies, the DDC staff, local NGOs, CBOs and other ward-level community groups; iii. the national level with government agencies, donors, I/NGOs, academia, other development partners, and other relevant COPs, and learning alliances; iv. the international level with SPCR, CIF and other COPs.

44. It is envisaged that knowledge and experiences of the BCRWME will be beneficially enhance water resource management after the third year of project operations.

45. The objective of the KMP is diagrammatically represented in Figure 4 below.

Figure 4: The Objective of the Knowledge Management Plan

6. Targeted Users/Beneficiaries

46. The targeted users and beneficiaries (TUBs) represent the community of practice or the learning alliance of the Project.

47. The TUBs, illustrated in Figure 5 below, are categorized as follows:

i) project level stakeholders (project managers, planners, engineers/technicians, community organizers, watershed managers and others); ii) local level stakeholders (DSCOs, DFOs, DDCs, VDCs, CBOs and others at the district/local level); iii) national level stakeholders (national climate change networks, national governmental agencies such as ministries, departments and others, donors, I/NGOs, academia, private organizations and others); and - iv) international level stakeholders (SPCR, CIF, MDBs, UNFCCC, and others).

Figure 5: The Targeted Users and Beneficiaries of the Knowledge Management Plan

7. The Knowledge Management Strategy

48. The knowledge management strategy is the process by which raw information can be converted into knowledge, relevant to different levels of users and beneficiaries.

49. It is first necessary to identify where the information is located and who generates the information which can processed into knowledge. An information map, to be prepared by the Project Management Unit in the first 6 months of the project, will define where is the information, and how can it be processed into relevant knowledge.

50. The national executing agency of the BCRWME is the DSCWM. At the project level the project will be managed by Project Management Unit, based at the DSCWM in Kathmandu. Management at the sub-watershed level will be undertaken by the DSCOs based in the project districts of Achham, Bajura, Dadeldhura, and Doti. Under the DSCOs, there will be Village Development Teams and Sub-watershed Committees consisting of various committees at the village level such as the CFUGs, VDCs and the AFECs - see Figure 2.

51. These different project stakeholders will generate their own information sets all of which need to be shared with different TUBs in one form or another.

52. The BCRWME knowledge management strategy thus centers around where the information is first generated and then located at different project levels (the information map), and how the generated information can be strategically processed, managed, stored and disseminated as knowledge. As not all the information generated, collected and stored will necessarily be processed into knowledge, the selection of appropriate information is important.

53. The strategy is presented in Figure 6 below.

Figure 6: The Knowledge Management Strategy

54. The knowledge management database will be arranged into four sections, each section housing data and information relevant to each of the four TUB levels – the project, local, national and international level.

8. The Knowledge Management System

55. Given the capacity, accessibility and operational possibilities of information technologies and the IT capacity of the TUBs, the BCRWM project knowledge management system will combine both IT and other conventional, cultural and traditional means of knowledge management and sharing. The system will therefore have several sub-sections corresponding to the needs and abilities of the different TUBs, as shown in Figure 7 below.

56. It is envisaged therefore that the project system will incorporate both: a) an IT system which stores and retrieves data, case studies, information and knowledge, locates knowledge sources, mines repositories for hidden knowledge, captures and uses knowledge – this part of the system is accessible to targeted users or beneficiaries in electronic or printed form (in libraries or documentation centers) and will be available online on the project website; b) and the transfer of knowledge through other platforms suited to the different target groups – such as music, different media, FM radio, street theatre, jingles, mobile phone messages.

57. The basic and preliminary Concept Flow Chart of the system was included in the interim report of the PPTA – see Annex 3.

Figure 7: The Different Layers of the Project Knowledge Management System

58. The types of information and the flow system envisaged for the BCRWME knowledge management system are shown in Figure 8.

Figure 8: Types of Information and Tools

59. The knowledge products can be categorized as: i) online/digital (IT based); ii) audio-visual; or iii) print.

60. Table 1 records the knowledge source and product as well as some of the sharing and dissemination methods and tools that might be used at the different levels for the BCRWME project.

Table 1: BCRWME KMS, Knowledge Products and Sharing

Information Knowledge Source and Type of Knowledge Product Methods and Tools Level Level Responsible 1 and 2: SWCC, VDTs, PIUs, PMO Online/Digital  online SMS web compatible data- Project and  Periodic electronic bulletin on project updates & progress base, integrated in a multimedia Local  Project field and progress reports content management system website  Research/assessment/surveys/planning workshop reports  Project review, monitoring and evaluation reports  intranet/LAN/collaborative space  Case studies and success stories tools (such as Dropbox - see section 9)  Lessons learnt reports

 Monitoring reports - eg. on rainfall pattern, vegetation, biodiversity, soil slips, landslides, erosion events etc.  e-mails

Audio-visual  social networking tools (Facebook, Linked-in, Twitter, YouTube etc)  Multimedia digital stories

 Photo monitoring and documentation project knowledge sharing  Video documentation  seminars/workshops/meetings  Audio documentation

Print  FLOW : for transfer of data from field to the central level database – see  Project field and progress reports Research/assessment/surveys/planning workshop reports section 8, from para 62  Project review, monitoring and evaluation reports  FOR COMMUNITY and VDC Case studies and success stories   LEVEL: in Nepali – training, Lessons learnt reports  coaching, awareness raising  Monitoring reports - eg. on rainfall pattern, vegetation, handouts, pamphlets, brochures, biodiversity, soil slips, landslides, erosion events etc. posters, street theatre, FM radio  Photo monitoring and documentation broadcasts, mobile phone voice  Posters mails

Information Knowledge Source and Type of Knowledge Product Methods and Tools Level Level Responsible 3 and 4: PMU, DSCWM- MFSC Online/Digital  intranet/LAN/Collaborative space National and  Periodic electronic bulletin tools (such as Dropbox – see section International  Project field and progress reports 9)  Research/assessment/survey/planning workshop reports  Project review, monitoring and evaluation reports  E-mails/list-serves  Case studies and success stories  Lessons learnt reports  social networking tools (Facebook,  Various monitoring reports - eg. on rainfall pattern, Linked-in, Twitter, YouTube etc) vegetation, biodiversity, soil slips, landslides, erosion events etc.  project knowledge sharing seminars/workshops/meetings Audio-visual  Multimedia Digital Stories  national events – eg. annual conferences, quarterly management  Photo monitoring and documentation workshops  Video documentation

 Audio documentation  national/international publications Print - available at National Level only if required (both online and print), such as journals, bulletins etc  Project field reports Research/Assessment/Survey/Planning workshop reports  FOR INTERNATIONAL LEVEL: Project progress reports  selected documents available on-line Project review/evaluation reports   on project website Case studies  electronic biannual progress bulletins Lesson Learned Reports   webinars Various monitoring reports (on rains fall pattern,   international conferences, workshops vegetation/biodiversity; soil slips/erosion etc)  and seminars Photo documentation   Posters

61. The knowledge management system will incorporate the Project’s M&E and communication products (as described in Table 1) which simultaneously serve as knowledge products.

62. Recent software and applications will also be used in the Project’s system of knowledge management. One example is FLOW (Field Level Operations Watch), which is a software promoted by Akvo, for field level data collection. FLOW has been used in Liberia for water-point mapping by the Government of Liberia and the World Bank’s Water and Sanitation Programme in 2011.

63. FLOW can be uploaded onto any Android smart-phone with a GPS function and camera and will transform it into an integrated mapping device connected to a central database. A FLOW- enabled phone can therefore be used to: a) accurately locate a water source or recent erosion event through the GPS, b) fill in an on-line survey form using a touch-screen, c) take a picture of the survey object with the phone camera (photo-monitoring), and d) submit all the data over a mobile phone-line to a central server.

64. FLOW thus addresses three key challenges of any mapping and survey project. Firstly, it minimizes errors during the data collection phase as it provides an easy-to-use touch-screen interface and combines key tasks (eg. survey data collection, recording a photo report, and GPS location). Secondly, it facilitates monitoring and evaluation, as project management staff can review incoming data in near real-time – providing there is network coverage. If there is no current network coverage, data is stored safely on the phone’s SD card and can be extracted at a later time.

65. Once uploaded, the stored data is then available to stakeholders, and a zoomable overview map can be automatically created using Google base maps; the raw data is then available for more detailed analysis on-line or off-line.

66. FLOW and other IT based reporting systems promoted by Akvo, such as the RSR (Really Simple Reporting system) have been tested satisfactorily in Nepal in the field, by the Dutch WASH Alliance in early 2012, with their partner the Bio Gas Sector Partnership (BSP) in their rainwater- harvesting project. Further details can be found at: http://www.akvo.org/blog/?p=5459

67. FLOW is an open-source software thus free of cost; data hosting costs are minimal, and suitable Android devices are now priced below the US$100 mark. It is recommended that four of these phones are purchased by the Project, as BCRWME is primarily focused on water and water source management.

9. Knowledge Sharing

68. Knowledge sharing is the process through which knowledge is exchanged between stakeholders other interested parties and organizations, and local level communities – key amongst these are the project staff members involved in management, planning, monitoring and evaluation.

69. As important as the technology utilized are the organizational culture, trust, and incentives relating to free exchange of information. Specific management efforts will be required to ensure that knowledge is acquired, stored and shared freely and properly.

70. A project dropbox has already been established by the PPTA. This includes all documentation and maps prepared in the planning of BCRWME. This data and info-base will be widely accessible and arranged in such a manner as to be easily navigated. It will be managed by the Project Coordination Unit, and accessible to all project staff at the DSCWM HQ and at the 18

DSCOs. Material in final format will be extracted from here for wider sharing at both the national and international levels. Documents will be given a specific numbered notation, as shown in a current draft version in Annex 5.

71. Knowledge sharing will be carried out in terms of the four targeted user groups. The methods or tools for knowledge sharing must be appropriate to the available access to technology and knowledge capacity of the four groups - see Table 1.

72. Figure 9 below illustrates the basic flow of knowledge sharing for the BCRWME.

Figure 9: Knowledge Sharing Scheme

International Level (CIF, PPCR/SPCR, UNFCCC)

National Level/DSCWM-MFSC

PMU/DSCWM

DSCO DSCO DSCO

SMCs, SWCC (CFUGs, VDCs…)

10. Timeline for Establishing the Knowledge Management System

73. The proposed knowledge management system will be established in year 1 of the project; a local database specialist will be hired for 3 months to assist in database design and management, and subsequent staff training. In year 2, the database specialist will liaise with the consultancy team attached to the PCU, who will be responsible for national policy development and legislative reform in the field of integrated watershed management.

74. The Project Management Consultant at the Project Coordination Unit is in overall charge of both the monitoring and evaluation of project progress and also the establishment and upkeep of the knowledge management system. She/he and others at the Project Management Unit and from the DSCO/SMT implementation teams will require specific training in monitoring and evaluation and knowledge management in the first year of the project – see the Capacity Building Plan.

75. Following the establishment of the system, project personnel at all levels need to be trained on the operations and functions of the system. In each of the DSCOs-SMTs, one staff member will be made responsible for feeding in district-level and watershed-level data.

76. By the second half of the year 1 of the project, the knowledge management system should be fully operational, and knowledge sharing should commence for TUBs 1 (Project) and 2 (Local).

77. By the beginning of the year 2, the system should be able to share knowledge at level 3 (national) and 4 (International).

78. The action plan is presented below in Table 2.

79. To monitor and evaluate the operation and effectiveness of the system, an M&E Logframe is presented in Annex 4. Formal M&E surveys will take place quarterly, and lessons learnt will feed into the improvement of the system.

Table 2: BCRWME KMS Action Plan

Timeline over 5 years KMS Action Plan 1st 2nd 3rd 4th 5th 1. Setting up the knowledge management system and preparation of the information map 2. Appoint local database specialist for 3 month consultancy 3. Senior project and DSCWM staff attend first training courses in Knowledge Management and M&E at IMA Bangkok (see section 12 and the Capacity Building Plan) 4. Initial training of project personnel on the knowledge management system 5. Senior project and DSCWM staff attend 2nd training courses in Knowledge Management and M&E at IMA Bangkok 6. Senior project and DSCWM staff attend 3nd training courses in Knowledge Management and M&E at IMA Bangkok 7. Continues training and awareness raising and training of project personnel on knowledge management 8. Bi-annual reviews of knowledge management status

9. Producing knowledge products:

at project level at local level at national level at international level 10. Monitoring and Evaluation

11. Knowledge Management Plan Implementation Cost Estimate

80. A cost estimate for establishing and operating the knowledge management plan is presented below in Table 3.

Table 3: KMS/KS/FLOW Implementation Cost Estimate (in US$)

KMS/Sub-systems/KM/KS/Product/Activity Year 1 Year 2 Year 3 Year 4 Year 5 Sub-total 1. Training on KMS for 50001 x 4 5000 x 2 5000 x 2 = 5,000 x 4 5,000 x 4 80,000 DSCWM/DSCOs/Projects = 20,000 =10,000 10,000 = 20,000 = 20,000 2. Sub-system 1 Digital/Online 10,0002 5,000 5,000 5,000 5,000 30,000 Audio/Visual 20,0003 20,000 20,000 20,000 20,000 100,000 Print 10,0004 10,000 10,000 10,000 10,000 50,000 Seminars/Workshops 10,0005 10,000 10,000 10,000 10,000 50,000 (local/district/project level) 3. Sub-system 2 Digital/Online ------Audio/Visual 20,0006 20,000 20,000 20,000 20,000 100,000 Print 10,0007 10,000 10,000 10,000 10,000 50,000 Seminars/Workshops 10,0008 10,000 10,000 10,000 10,000 50,000 (local/district/watershed level) 4. Sub-system 3 Digital/Online ------Audio/Visual 20,0009 20,000 20,000 20,000 20,000 100,000 Print 10,00010 10,000 10,000 10,000 10,000 50,000 Seminars/Workshops (national level) 10,00011 10,000 10,000 10,000 10,000 50,000 5. Sub-system 4 Digital/Online ------Audio/Visual 20,00012 20,000 20,000 20,000 20,000 100,000 Print 10,00013 10,000 10,000 10,000 10,000 50,000 Seminars/Workshops 10,00014 10,000 10,000 10,000 10,000 50,000 (international level) 6. FLOW Training and Testing/Applying 10,000 10,000 10,000 10,000 10,000 50,000 Sub-total 960,000 Contingency @10% 96,000 Total 1,056,000

81. It is recommended that senior staff from DSCWM and the DSCOs, as well as project staff members of the PCU, PMU and SMTs attend Knowledge Management and Monitoring and Evaluation Courses in years 1, 2 and 3 of the project. Courses run by IMA International in Bangkok are recommended. Eight staff will attend the knowledge management course and ten staff the M&E course. Budgets for these courses have been included in the Capacity Building Plan.

1 Travel/Person = US$ 75 + Per diem = US$ 120 (30 x 4 days) = (US$ 3900) + Resource Persons/Trainers (US$ 150 x 4 days) = US$ 600 + Resource Person Travel (for 1) = US$ 75 Resource Person Per Diem = 30 x 4 days = US$ 120 = US$ 4695 + US$ 305 (venue, tea, stationeries, miscellaneous) = US$ 5000. 2 Cost for designing the project website = US$ 5000 + Host Server/Internet Cost = US$ 5000; In the succeeding years US$ 5000/year for website maintenance, host server and internet cost. 3 Includes costs for producing radio and TV programs and broadcasting. 4 Costs for producing print materials for project level use/knowledge sharing (brochures, posters etc). 5 Cost for knowledge sharing seminars/workshops/events at project level with project team (US$ 2500 x 4). 6 Costs for equipping PIUs/DSCOs with video and digital cameras for capturing visual knowledge and working with local/district level media (radio/TV for wider knowledge sharing). 7 Costs for producing print materials for district/local level use/knowledge sharing (brochures, posters etc) 8 Knowledge sharing seminars/workshops/events between at sub-watersheds, sub-projects at the district/regional levels (US$ 2000 x 5). 9 Producing audio/visual knowledge products (Radios/TVs) and broadcasting at the national level. 10 Costs for producing print materials for national level use/knowledge sharing (brochures, posters. reports etc). 11 To organizes national level project knowledge sharing seminars (US$ 5000 x 2). 12 Producing audio/visual knowledge products (Radios/TVs) and broadcasting at international level. 13 Costs for producing print materials for international level use/knowledge sharing (brochures, posters. reports etc). 14 Cost for attending international seminars/conference for BCRWME knowledge sharing (travel, hotel etc) 21

Annex 1 References

 ADB, (September 2011), Concept Paper, Project Number: 44214, NEPAL: Building Climate Resilience of Watersheds in Mountain Eco-Regions

 ADB, Knowledge Management in ADB (June 2004)

 ADB, Enhancing Knowledge Management under Strategy 2020, Plan of Action 2009–2011

 ADB, (24 October 2011),Technical Assistance Completion Report, TA 7092-IND: Knowledge Management for Enhanced Operational Effectiveness, Executing Agency: Department of Economic Affairs (DEA), Government of India

 A Knowledge Management Resource Site (http://www.knowledge-management-tools.net/)

 Buchholz, Georg, (April 2005), Information and Knowledge Management (IKM) Systems within the context of Natural Resource Management in Southeast Asia, Experiences from 25 Years of German Technical Cooperation, GTZ

 Climate Change Network Nepal Website: http://ccnn.org.np/

 Department of Soil Conservation and Watershed Management Website: http://www.dscwm.gov.np

 Dixit, Ajaya, (October 2010), Scoping Assessment on Climate Change Knowledge Platform in Nepal, Summary, Adaptation Knowledge Platform, Institute for Social and Environmental Transition-Nepal Carlson , Floyd W.,(14 March 1999), A Guide To Planning A Knowledge Management System, University of Maryland Bowie State University

 Hess , C. G. (May 2006), Knowledge Management and Knowledge Systems for Rural Development, In: READER: GTZ Knowledge Management. GTZ Sector Project Knowledge Systems in Rural Development, (www.gtz.de/agriservice)

 Milner, Hugh, (28/08/2012) BCRWME TOC Watershed Management Plan, V1 (Draft), PPTA 7883-NEP Package-2

 Serrat, Olivier (April 2012 ), Managing Knowledge in Project Environments, Knowledge Solutions, Asian Development Bank (www.adb.org)

 UNDP, (March 2007), Knowledge Management Toolkit for the Crisis Prevention and Recovery Practice Area

 Lytras, Miltiadis D., et al, (2008), Knowledge Management Strategies: A Handbook of Applied Technologies, IGI Publishing

 USAID, (June 2011), Understanding and Improving Knowledge Management Systems in Development, Micro Report # 170

 UNDP, (March 2005), UNESCAP – UNDP Knowledge Management Workshop Report

 Hovland, Ingie, (August 2003), Working Paper 224, Knowledge Management and Organisational Learning: An International Development Perspective, An Annotated Bibliography, Overseas Development Institute, 111 Westminster Bridge Road, London, UK

 Whitington, T, Draft, (13 August 2012), Consultation, Participation and Communications Plan, PPTA 7883-NEP Package-2

 Whitington, T, Draft, (14 August 2012), BCRWME Outcome Monitoring Proposal, PPTA 7883- NEP Package-2

 http://www.akvo.org/web/introducing-akvo-flow (information on FLOW)

 Veer, Cor, (December 2004), Working Paper 14, Best Practices and Knowledge Sharing in Watershed Management in the Lower Mekong Basin, Lessons, Prospects and a Way Forward, Consultancy Report, MRC-GTZ Cooperation Program Agriculture, Irrigation and Forestry Program Watershed Management Project (WSMP)

 Nevo, Dorit, Developing Effective Knowledge Management Systems, University of British Columbia, Vancouver, BC

 Nepal Climate Change and Development Portal website: http://www.climatenepal.org.np/main/?p=home

 United States Environmental Protection Agency, (May 1997), Office of Water, Washington, DC 20460, Designing an Information Management System for Watersheds

 Sijing , Li, Analysis and Design of Knowledge Management System, A Case Study –– Analysis and Design of Knowledge Management System in SDIC/CAAS, Scientech Documentation and Information Centre (SDIC, ) Chinese Academy of Agricultural Sciences(CAAS), 100081,Beijing, P.R. China

Annex 2 Typology of Knowledge

Knowledge is an integral part of any human undertaking, and thus occurs in many forms in different situations, within and at the periphery of organizations. Many ways of classifying knowledge have been put forward.

Tacit knowledge is implicit and personal. It consists of highly subjective insights, intuitions, and instincts, and its personal quality makes it difficult to formalize and communicate. On the other hand, explicit or codified knowledge can be communicated in formal systematic language.

Embedded knowledge is the organizational knowledge, which cannot be owned and used in isolation by an individual – an example is organizational culture which exists in norms, attitudes, and relationships among individuals or groups within an organization. In contrast, explicit knowledge captured as formulae, designs, manuals, books, or pieces of machinery is called migratory knowledge because it can move out of an organization.

Experiential knowledge is knowledge gained from actual personal experience, while reported knowledge is learned from reports of other people’s first-hand experience or expert investigation. Intimate knowledge would be knowledge kept to oneself, and declared knowledge is put forward and shared with others.

Other references consider that there are four levels of professional intellect: i) cognitive knowledge is the lowest level, and consists of know-what knowledge; ii) advanced skills refer to know how; iii) systems understanding is know why, and; iv) self-motivated creativity is care why knowledge.

There are four types of knowledge in any knowledge management plan: i) process knowledge, methods for doing things well; ii) factual knowledge, basic empirical information about people, things, and events; iii) catalogue knowledge, knowing where things are, and; iv) cultural knowledge, understanding the values, rules, and norms of an organization.

Individual knowledge or knowledge that resides within the individual’s mind is differentiated from collective knowledge or knowledge possessed by groups of individuals or the whole organization.

Practical classification of knowledge talks of types of knowledge critical to an organization, or knowledge without which a goal cannot be achieved.

Annex 3 Knowledge Management System

Concept Flow Chart

Knowledge Process/Products Process documentation (lessons Department of Soil Conservation and Global learned, case study etc); database; Watershed Management (DSCWM) website; e-mail list serve; power CIF/PPCR/SPCR/UNFCCC FORUM (Central) http://www.climateinvestmentfunds.org/cif/con points, videos; photo - Watershed Information Section tent/knowledge-and-learning (pre/ongoing/post project); - Monitoring and Evaluation Section presentation, newsletter; - Extension and Training Section e-bulletins other publication; (District) National/Local (linked through the project

workshop/consultation etc - DSCOs website as the CCKN Knowledge Partner)/Public domain/Climate Change Knowledge Partnership Communication Strategy/Products

Brochure; brief; poster; media tool (http://www.climatenepal.org.np)/main/)

kit; radio/TV program; media at Ministry of Environment (MoE); PROJECT IMPLEMENTATION UNIT feature/media fellowship; Nepal Climate Change Knowledge Project’s Kowledge Maageet/ multimedia website; social media Management Centre (NCCKMC) at Nepal Communication/M&E System tool etc Academy of Science and Technology (NAST)/ http://www.climatenepal.org.np/main/?p=research&sp=ce nterhttp://www.climatenepal.org.np/main/?p=research&sp Monitoring and Evaluation =center Activities/Products Project/watershed plan M&E log frame; project progress report; data collection; database; field report; Asian Development Bank project review etc Knowledge Management and Learning System

Annex 4 The Knowledge Management Log-frame

Knowledge Management Outputs Outcomes Verifiable Indicators Means of Assumptions/Risks Activities Verification 1. Project Level  setting up the KMS  number of KM trainings  KM, KS and  operation of KMS  project progress  workshop/training could not  training on the KMS  number of KS events learning capacity  number of KMS trainings reports be organized as planned  project level knowledge sharing  KM on WM and planning of BCRWME to  number of KS  project monitoring due to political disturbances workshops/seminars  WM related data make the workshops/seminars at reports (strikes etc) watershed  research/surveys  number of study reports the Project level  training reports  training and testing on management FLOW may take more time  project database  project database  number of  field visits planning more due to the availability of  project progress reports research/survey effective in terms  project monitoring reports/products Akvo foundation’s busy of water resource schedule  FLOW training/testing  number of monitoring management and reports  effective application of climate resilience  nature, content and FLOW depends on the operation of the Project reliability of the internet database connectivity in the districts  number of FLOW training  proper capacity building, and its use by the Project motivation and willingness in surveys/mapping and of the field level Project transferring data personnel is critical to the success of using FLOW 2. Local Level  project website/social network tools  BCRWME website  knowledge sharing  BCRWME website up and  project progress  production of knowledge  brochures/information sheets  number of brochure/ by BCRWME at running reports products and sharing/  local level knowledge sharing information sheets or the local/district  presence of BCRWME in  project monitoring dissemination is influenced workshops/seminars knowledge products level with multiple social media or networks reports by the timely  project site visits  number of stakeholders on  broadcasting of BCRWME  training reports implementation of other WM, planning and Project activities  radio/TV programs media/knowledge related programs in  field visits water resource  video documentation products national radio/TV management and  photo documentation  number of local level KS  number of video/photo events climate resilience knowledge products  street theatre and cultural shows for awareness raising and coaching

Knowledge Management Outputs Outcomes Verifiable Indicators Means of Assumptions/Risks Activities Verification 3. National Level  project website/social network tools  BCRWME website  knowledge sharing  BCRWME website up and  project progress  brochures/information sheets  number of by BCRWME at running reports  radio/TV programs brochure/information the national level  presence of BCRWME in  project monitoring

 video documentations sheets or knowledge with multiple social media or networks reports stakeholders on  national level knowledge sharing products  broadcasting of BCRWME  training reports

workshops/seminars  number of WM, planning in related programs in  field visits terms of water maybe delayed due to  project site visits media/knowledge national radio/TV  products resource  number of video/photo political disturbances  number of national level management and knowledge products  production of knowledge KS events climate resilience products and sharing/ 4. International Level dissemination is influenced by the timely  project website/social network tools  BCRWME website  knowledge sharing  BCRWME website up and  project progress implementation of other  brochures/information sheets  number of by BCRWME at running reports project activities  radio/TV programs brochure/information international level  presence of BCRWME in  project monitoring

 video documentations sheets or knowledge on WM, planning social media or networks reports in terms of water  international level knowledge sharing products  broadcasting of BCRWME  training reports workshops/seminars attendance  number of resource related programs in  field visits management and  project site visits media/knowledge national radio/TV products climate resilience  international journals/media  number of video/photo  number of BCRWME knowledge products knowledge products in international KS events

Annex 5 The Knowledge Product Database

BUILDING CLIMATE RESILIENCE OF WATERSHEDS IN MOUNTAIN ECO-REGIONS (ADB PPTA 7883 NEP)

Knowledge Product Database (20/12/2012)

SN Product Name Product/File Type Access/Location Date Added/Folder/File Name Produced By/Contact Person 1. Compendium of WM Case Word Document PPTA Dropbox 21/11/2012/Knowledge PPTA/Kishor Pradhan Studies (Knowledge Products/Compendium of WM [email protected] Management Case Studies-21-11-2012 om Folder) 2. BCRWME Knowledge Word Document PPTA Dropbox 11/11/2012/Knowledge PPTA/Kishor Pradhan Management Plan (Knowledge Products/BCRWME_KMP_11-12- [email protected] Management 2012-Revised-KP om Folder) 3. SYNOPSIS, Knowledge Sharing Word Document PPTA Dropbox 22/11/2012/ Knowledge PPTA/Kishor Pradhan Seminar: Best Practices in (Knowledge Products/SYNOPSIS_NKSS-22- [email protected] Integrated Watershed Management 11-2012 om Management: Challenges and Folder) Ways Forward 4. SYNOPSIS, Knowledge Sharing Word Document PPTA Dropbox 06/12/2012/Knowledge PPTA/Kishor Pradhan Seminar: How to Address Water (Knowledge Products/SYNOPSIS_NKSS- [email protected] Availability in Mountains of Management HAWAIMN-28-11-2012 om Nepal?, 28th November 2012 Folder) 5. Watershed management Power Point PPTA Dropbox 04/09/2012/Knowledge PPTA/Hugh Milner planning for climate change in (Knowledge Products/WM planning - [email protected] Far West Middle Mountains Management DSCWM-PPTA-Final-04-09-2012 Folder) 6. Magar Gaon Normal Multiple Word Document PPTA Dropbox 24/09/2012/ Knowledge PPTA/Kishor Pradhan Water Use System (MUS), Kavre, (Knowledge Products/MUS Kavre Fact Sheet- [email protected] Field Knowledge Documentation Management 24-09-2012 om

Fact Sheet Folder)

7. On-site Case Studies and Filming Word Document PPTA Dropbox 19/09/2012/Knowledge PPTA/Kishor Pradhan for Visual Knowledge Product (Knowledge Products/CS_VKP_19-09-2012 [email protected] (video) Management om 15-18 September 2012 Folder) SNAPSHOTS

8. CASE STUDY Word Document PPTA Dropbox 29/08/2012/Knowledge PPTA/Kishor Pradhan Ecological Approach to (Knowledge Products/EAWMP-Revised-29- [email protected] Watershed Management Management 08-2012 om Planning Folder) Qinghai Forestry Resources Management Project Huangshui River Catchment, North West China 9. Best Practices in Mountain Word Document PPTA Dropbox 29/07/2012/Knowledge PPTA/Kishor Pradhan Ecosystem Watershed (Knowledge Products/REVISED-DRAFT-WM [email protected] Management Management Case Study Synthesis om Synthesis of Case Studies Folder) 10. Script/Visual Log for a Visual Word Document PPTA Dropbox 27/09/2012/Knowledge PPTA/Kishor Pradhan Knowledge Product (Knowledge Products/Draft PPTA-Video- [email protected] (documentary) Management Script-Visual Log-KP-27-09-2012 om “Watershed Management: Folder) Lessons from Nepal”, Duration: 10 minutes 11. Watershed Management in Power Point PPTA Dropbox 09/11/2012/NKSharing Seminar- Dr. Jagannath Joshi Nepal: Examples of Best (Knowledge IWM-IWRM-9th Nov [email protected] Practices Management '12/Presentations/IWM Best om Folder) Practices in Nepal-Joshi 12. Integrated Watershed Power Point PPTA Dropbox 09/11/2012/NKSharing Seminar- Iswer Raj Onta Management in Nepal (Knowledge IWM-IWRM-9th Nov [email protected] Management '12/IWRM_Presentation_Ontajee om

Folder) 13. IWRM, Water, Land and Socio- Power Point PPTA Dropbox 09/11/2012/NKSharing Seminar- Vic Hobcroft politics (Knowledge IWM-IWRM-9th Nov '12/Pres for [email protected] Management TA-7883 IWRM-Vic om Folder) 14. IWRM & IWM Power Point PPTA Dropbox 09/11/2012/NKSharing Seminar- Hugh Milner An example of International (Knowledge IWM-IWRM-9th Nov '12/IWRM- [email protected] Experience Management IWM Int Exp-Hugh-09-11-12 om Folder) 15. Building Climate Resilience of Power Point PPTA Dropbox 29/11/2012/NKSharing Seminar- Pabitra Gurung Watersheds in Mountain Eco- (Knowledge 2-HAWMN-28-11-2012/ Appendix [email protected] Regions, Nepal, IWMI Management 1-Presentation - West Seti River om Presentation on Vulnerability Folder) Basin Modeling Assessment and Hydrological Modeling 16. Addressing Water Availability in PDF PPTA Dropbox 29/11/2011/ NKSharing Seminar- Madhukar Upadhaya Mountains of Nepal (Knowledge 2-HAWMN-28-11-2012/ Appendix [email protected] Management 1-Presentation-Watershed Nov om Folder) 28 2012-Madhukar 17. CC Vulnerability IWMI Final Word Document PPTA Dropbox 09/03/2012/Final Report Luna Bharati Report IWMI Vulnerability [email protected] Mapping 18. GIS Maps JPG PPTA Dropbox 07/10/2012/GIS Maps Pawan Ghimire Data-District [email protected] Profile 19. BWRWME CPC Plan Word Document PPTA Dropbox 20/12/2012/Draft RRP/Draft CPP PPTA/Hugh Milner PPTA Final Report final (fig updated) [email protected]

20. BCRWME Draft GESI Final Word Document PPTA Dropbox 20/12/2012/Draft RRP/Draft GESI PPTA/Hugh Milner PPTA Final Report final [email protected]

21. BCRWME Resettlement Planning Word Document PPTA Dropbox 20/12/2012/Draft RRP/Draft IPPF PPTA/Hugh Milner

Document PPTA Final Report final [email protected]

22. SOCIAL AND POVERTY Word Document PPTA Dropbox 20/12/2012/Draft RRP/Draft SPA PPTA/Hugh Milner ANALYSIS OF BCRWME PPTA Final Report final [email protected] (DRAFT)

23. BCRWME Environmental Word Document PPTA Dropbox 03/12/2012/Draft RRP/EARF Dec PPTA/Hugh Milner Assessment and Review PPTA Final Report 2012 draft [email protected] Framework

24. Sector Assessment: Watershed Word Document PPTA Dropbox 18/12/2012/Draft RRP/Sector PPTA/Hugh Milner Management PPTA Final Report Assessment - HM 16-12-12 [email protected]

25. BCRWME Organizational Chart Word Document PPTA Dropbox 02/12/2012/Draft PPTA/Hugh Milner PPTA Final Report PAM/Organization Chart TW 2- [email protected] 12-12 26. Financial Management Capacity Word Document PPTA Dropbox 02/12/2012/Draft PAM/Financial PPTA/Hugh Milner Assessment of DSCWM PPTA Final Report Management Assessment -02- [email protected] 12-12 27. Selection and modeling of Word Document PPTA Dropbox 04/12/2012/Draft PAM/PAM PPTA/Hugh Milner watersheds, sub-watersheds and PPTA Final Report Annex 1 - Sub-watershed [email protected] subprojects selection

29. PAM Annex 2 Word Document PPTA Dropbox 04/12/2012/Draft PAM/ PAM PPTA/Hugh Milner Sub-watershed Management PPTA Final Report Annex 2 - SWMC proposal [email protected] Committees

30. RRP Draft Word Document PPTA Dropbox 29/11/2012/Draft RRP/RRP draft PPTA/Hugh Milner PPTA Final Report 29-11-12 [email protected]

31. Short project description Word Document PPTA Dropbox 08/11/2012/Draft RRP/Short PPTA/Hugh Milner PPTA Final Report project description [email protected]

32. Population in watershed Word Document PPTA Dropbox 08/11/2012/Draft PPTA/Hugh Milner PPTA Final Report RRP/popn_in_WS HM 08-11-12 [email protected] 33. PPTA Inception Report Word Document PPTA Dropbox 09/05/2012/Inception Report PPTA/Hugh Milner PPTA Inception, [email protected] Interim, Field Reports 34. PPTA Interim Report Word Document PPTA Dropbox 20/12/2012/Interim Report PPTA/Hugh Milner PPTA Inception, [email protected] Interim, Field Reports 35. June Field Report Word Document PPTA Dropbox 21/11/2012/June Field Trip PPTA/Hugh Milner PPTA Inception, Reports [email protected] Interim, Field Reports 36. August Field Trip Reports Word Document PPTA Dropbox 19/09/2012/August Field Trip PPTA/Hugh Milner PPTA Inception, Reports [email protected] Interim, Field Reports 37. Sept Field Report Word Document PPTA Dropbox 30/09/2012/Sept Field Report PPTA/Hugh Milner PPTA Inception, [email protected] Interim, Field Reports 38. Capacity Assessment of DSCWM Word Document PPTA Dropbox 20/12/2012/Institutional Analysis PPTA/Hugh Milner n Stakeholders Giri 14 Sept Hugh Institutional [email protected] Comment 16 Nov r RG Analysis 39. Governance Risk Management Word Document PPTA Dropbox 14/09/2012/Institutional Analysis PPTA/Hugh Milner Plan (GRMP) Institutional [email protected] Analysis

40. Institutional Arrangements for Word Document PPTA Dropbox 18/11/2012/Institutional Analysis PPTA/Hugh Milner Watershed Management Plan Institutional [email protected] and Project Implementation Analysis

41. Stakeholders Analysis Matrix for Word Document PPTA Dropbox 18/11/2012/Institutional Analysis PPTA/Hugh Milner BCRWME ADB PPTA Institutional [email protected] Analysis 42. Feasibility Study Word Document PPTA Dropbox 04/12/2012/Feasibility Study PPTA/Hugh Milner WM Plan and SP [email protected] Feasibility 43. Intervention_GIS maps JPG PPTA Dropbox 04/12/2012/Intervention_GIS PPTA/Hugh Milner WM Plan and SP maps [email protected] Feasibility 44. Sub-watershed Plan Word Document PPTA Dropbox 03/12/2012/Sub-watershed Plan PPTA/Hugh Milner WM Plan and SP [email protected] Feasibility 45. PPTA planning process - draft PDF PPTA Dropbox 26/09/2012/PPTA planning PPTA/Hugh Milner 26-09-12 WM Plan and SP process - draft 26-09-12 [email protected] Feasibility 46. Watershed Management Plans Word Document PPTA Dropbox 03/12/2012/Watershed PPTA/Hugh Milner and Planning Process WM Plan and SP Management Plans and planning [email protected] Feasibility 1-12-12 47. Best Practices in Watershed Video - (first draft produced on PPTA/Kishor Pradhan Management: Lessons from 15/10/2012) [email protected] Nepal om