720MW Karot Hydropower Project

Environmental and Social Impact Assessment Volume I - Non-Technical Summary July 2015

720MW Karot Hydropower Project Pakistan

ss SS SS ss ss MM 26 June 2015 Environmental and Social Impact Assessment 720MW Karot Hydropower Project Pakistan Volume I - Non-Technical Summary Environmental and Social Impact Assessment Volume I - Non- JulyTechnical 2015 S

Mott MacDonald, Victory House, Trafalgar Place, Brighton BN1 4FY, United Kingdom T +44 (0)1273 365 000 F +44(0) 1273 365 100 W www.mottmac.com

720MW Karot Hydropower Project Pakistan ESIA Volume I - NTS

Issue and revision record

Revision Date Originator Checker Approver Description A 3 July 2015 K. Murnane M. Maxwell I. Scott Draft

B 31 July 2015 M Maxwell I Scott I Scott Final

Information class: Standard

This document is issued for the party which commissioned it We accept no responsibility for the consequences of this and for specific purposes connected with the above-captioned document being relied upon by any other party, or being used project only. It should not be relied upon by any other party or for any other purpose, or containing any error or omission used for any other purpose. which is due to an error or omission in data supplied to us by other parties.

This document contains confidential information and proprietary intellectual property. It should not be shown to other parties without consent from us and from the party which commissioned it.

720MW Karot Hydropower Project Pakistan ESIA Volume I - NTS

Contents

Chapter Title Page

1 Introduction 1 1.1 Overview ______1

2 The Project 3 2.1 Why is the Project needed? ______3

3 Managing environmental and social impacts 12 3.1 How was the Project assessed? ______12 3.2 How will people and the environment be affected? ______12 3.3 Cumulative impacts ______15

720MW Karot Hydropower Project Pakistan ESIA Volume I - NTS

1 Introduction

1.1 Overview

This Non-Technical Summary presents the main findings and conclusions of the Environmental and Social Impact Assessment (ESIA) completed for the proposed 720MW Karot Hydropower Project (HPP) (“the Project”).

The ESIA has been prepared in accordance with national legislation, the International Finance Corporation’s Environmental and Social Performance Standards (IFC PS) 2012 and the World Bank’s Environmental, Health and Safety (EHS) Guidelines (2007). The ESIA has also been undertaken in accordance with the requirements of the Pakistan Environmental Protection Act (1997). These international standards and guidelines place emphasis on meeting good international industry practice with more focus on social and health impacts, human and labour rights and stakeholder engagement than the national process might require.

The ESIA takes into account the Updated ESIA prepared by Pakistan Environmental Services (Private) Limited (PES) for national permitting purposes that was submitted to the relevant Pakistan Environmental Protection Agencies in January 2015 (PES Updated ESIA 2015), as well as the Environmental Impact Assessment prepared by SMEC in 2009 for the initial Project design.

1.2 What is the Project?

The Project will be a 720MW run-of-river hydropower scheme constructed on the that will generate electricity to be fed into Pakistan’s State Grid.

The primary components of the Project are: ° A 95.5m high dam at the Karot village on the Jhelum River ° A Powerhouse with four turbines ° A Spillway separate from the dam ° A reservoir, created by the dam, extending approximately 27km upstream of the dam wall

The Project will employ 3,500 people, of which approximately 3,000 will be Pakistani many of whom will be local to the area.

Karot and Azad Pattan road bridges will be replaced as a result of the Project; Karot due to the closeness of the main construction site and Azad Pattan as a result of flooding from the reservoir. In addition the footbridge at Ain Pana will be submerged as well as sections of the -Azad Pattan Road, along the right and left bank of the reservoir, and these will be reconstructed.

An overhead transmission line for export of power to a 500kV transmission line will be built by the Pakistan Government (independently of this Project).

1.3 Who is developing the Project?

Karot Power Company (Private) Limited (KPCL) is the Project Proponent and is a wholly owned subsidiary of China Three Gorges South Asia Investment Limited (CSAIL). CSAIL is an investment holding company

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formed in September 2011 to acquire, develop, build, own and operate renewable power generation projects in Pakistan. . CSAIL is a wholly owned subsidiary of CWE Investment Corporation (CWEI) who is a wholly owned subsidiary of the state owned China Three Gorges Corporation (CTGC) and serve as its dedicated overseas investment platform.

The Project’s design has been developed by an established Project Design Company. The Engineering, Procurement and Construction (EPC) Contract has been awarded to a consortium comprising Yangtze Three Gorges Technology and Economy Development Co., Ltd (TGDC – engineering and construction) and China Machinery Engineering Corporation (CMEC - procurement) (EPC contractor) at the beginning of 2015, who will produce the detailed Project design and construct the Project. The EPC contractor is wholly owned by CTGC.

KPCL will operate the Project for 30 years, after which the Project will be transferred to the Government of Pakistan.

1.4 Is there an opportunity to comment on the Project?

In addition to the consultation activities that have already occurred, community members and other stakeholders can provide comment on the Project. If you would like to comment on the Project you can contact the Project Proponent at:

Project Proponent Information Name of Company Karot Power Company (Private) Ltd Address House No. 05, Street No. 72, F-8/3, , Pakistan Telephone +92 51 2287088 E-mail Contact via website (‘Contact Us’ page) Website www.karotpower.com

Further information on the Project can be found on the Project website: www.karotpower.com

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2 The Project

2.1 Why is the Project needed?

The Project is being built in order to increase the supply of electricity being fed into Pakistan’s State Grid.

There is a shortage of electricity supply in Pakistan which leads to frequent power cuts. It is estimated that there is a shortfall of electricity supply that ranges from 3,300MW in summer to 7,300MW in the winter.

In 2008 Pakistan’s Water and Power Development Authority (WAPDA) launched a National Water Resource and Hydropower Development Programme called Vision 2025. This policy prioritises development of hydropower in Pakistan in order to increase energy supply.

Pakistan’s National Power Policy (2013) also outlines the importance of hydropower projects in overcoming Pakistan’s energy shortages. This policy highlights the desire for Pakistan to be self-sufficient in energy generation and to move away from oil based energy generation.

The Government of Pakistan sees hydropower as a means of generating affordable electricity for local people.

2.2 Where will the Project be located?

The Project is proposed to be built on the Jhelum River in Pakistan, in an area characterised by mountainous terrain and a deep gorge. The Jhelum River forms the boundary between the province of Punjab in the west and Azad Jammu and Kashmir (AJ&K) in the east. The dam will be located near the villages of Karot (Punjab) and Hollar (AJ&K) approximately 55km south-east of Islamabad.

The reservoir created by the dam will extend approximately 27km upstream and have a volume of 152million cubic metres (Mm3) at full supply level (FSL) of 461m above sea level. The powerhouse (housing the four turbines) will be located approximately 650m downstream of the dam crest and 300m upstream of the Karot Bridge.

The Project location is shown in Figure 2.1.

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Figure 2.1: Project location

Source: Mott MacDonald based on map included in PES Updated ESIA 2015 and SEA 2014 1

The Punjab province, AJ&K, District as well as the villages of Karot and Hollar are shown in Figure 2.2.

Along with other potential hydropower projects on the Jhelum River the Project has been identified as a potential project for development since the early 1980s that could contribute cost-effective energy to the national electricity grid in order to secure the long-term energy needs of Pakistan.

1 Annandale, David D. and Hagler Bailly Pakistan (Pvt) Ltd. 2014. Strategic Environmental Assessment of Hydropower Development in Azad Jammu and Kashmir. Islamabad: IUCN Pakistan 4

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Figure 2.2: Villages within the Project Area of Influence

Source: Mott MacDonald

2.3 I live near the Project, will I need to relocate?

Approximately 49 households in the village of Karot and 25 households in the village of Hollar will be relocated because these houses are too close to the construction site and will be affected by construction of the main Project components as well as construction noise, including blasting and drilling. Filling up the reservoir will affect approximately 116 further households through loss of income or livelihood. Affected communities have been involved in the consultation process to date, and the relocation or compensation of these households will be managed through a Resettlement Action Plan. It is expected that the majority of the affected households will move to other nearby villages, although a small number could relocate to Beor, Kahuta and Islamabad. The Project will pay to move the affected households to comparable properties or provide monetary compensation in order that new houses can be purchased.

The Project will result in 78 commercial business structures along the Jhelum River banks being inundated by the reservoir so will lose their income generating abilities. Of the 78 business structures affected, 10 shops will be acquired as a result of construction of the dam and 40 shops, nine restaurants and a petrol pump on right side of the Jhelum River will be affected by the reservoir. Any economic losses will be fully compensated by the Project. 5

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2.4 What will the Project look like?

A visual representation of the Project and layout of the dam site is provided in Figure 2.3.

Figure 2.3: Project layout

Source: Project Design Company, 2015, Video (2015-04-03) (labels added by Mott MacDonald)

2.5 What are the main Project components?

The key Project components include: ° Reservoir created by the construction of the dam and will stretch 27km upstream of the dam ° Diversion tunnels that will divert the river flow to enable construction of the dam and other Project elements ° Dam of 95.5m high from foundation level and 460m across ° Cofferdams to divert river flow and enable excavation and construction of structures ° Spillway to allow large flows of water to safely bypass the dam in the event of a flood or during closure/maintenance of the powerhouse ° Headrace tunnels that take water from the intake area to the turbines in the powerhouse ° Powerhouse that will generate 720MW of electricity ° Tailrace returns the water to the river after it has been through the turbines

These Project components are displayed visually in Figure 2.4.

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Figure 2.4: Project layout (dam site and lower reach of the reservoir behind the dam)

Source: KPCL (labels and contours of the original riverbed added by Mott MacDonald)

In addition to the roads and bridges reconstructed in the reservoir area, a 1.2km long section of an existing 35kV distribution line within the reservoir area also requires reconstruction at a higher elevation. The towers of this distribution line are expected to be either flooded by the reservoir or located within the defined 20 year flood return period safety buffer at FSL.

Power will be exported from the Project’s dedicated switchyard (exact location is still to be confirmed but will be close to the powerhouse) to the national grid. The transmission facilities from the switchyard are likely to run to major load centres in the western part of Pakistan. The precise route of this transmission line will be identified by the National Transmission and Despatch Company (NTDC) who are reviewing power export needs in the area for a number of hydropower projects under construction or development, and therefore are required to take a strategic approach to planning route options and capacity. If required

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under Pakistan regulation a separate EIA process will be conducted for the transmission line to identify and manage environmental and social issues.

2.6 Are there other proposed developments in the area?

There are other hydropower schemes existing or planned on the Jhelum River. The Project will be located upstream of the existing and downstream of the proposed Azad Pattan HPP, Mahl HPP and Kohala HPP. Eventually, the Project will be part of a cascade of five large hydropower schemes on the Jhelum River. Figure 2.5 shows the position of Karot HPP in relation to other hydropower schemes on the Jhelum River.

Figure 2.5: Proposed hydropower schemes located on the Jhelum River

Source: KPCL

2.7 When will construction start?

It is expected that construction will begin in quarter four of 2015 and will occur over a period of approximately five years, with the completion date scheduled for quarter four of 2020.

2.8 What will happen during the construction phase?

During construction key activities will include: ° Resettlement and land acquisition ° Site enabling works including the construction of new roads and bridges and storage areas; processing and batching plants will be brought to the site

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° Development of a construction camp including worker’s quarters, mess facilities, offices, storage areas, water treatment plant, waste handling area and other required facilities ° Site preparation works including the clearing of both banks of the river ° River diversion works ° Excavations for the dam and other Project components ° Installation of the turbines and generators and associated electrical work ° Completion works including reinstatement of disturbed land

The Project will generate large amounts of earthen material, or “spoil”, from excavating the tunnels, dam foundations, spillway, powerhouse and road functions. Some of the excavated materials will be reused for the construction of the dam, coffer dam, powerhouse, spillway and for road widening. The remainder will be disposed of at four spoil disposal sites which are in near to the Project dam site. It is anticipated that all spoil will be transferred to the spoil disposal sites by trucks.

There will be a peak construction workforce during 2017 of 3,500 people, approximately 85% of whom will be Pakistan nationals, with construction expected to occur 24 hours a day, 7 day per week, with three eight hours shifts for workers. Accommodation for approximately 3,500 workers will be provided, located away from existing villages; the nearest village being Gorah Rajan.

2.9 How will the site be accessed?

Access roads to support the delivery of equipment and personnel to site will be provided to connect all of the main Project components to the existing road network. Road and bridge replacements will be required in the dam area and in the reservoir area. Road widening and strengthening along access routes will be undertaken by the National Highway Authority of Pakistan. All roads will need to be built to accept heavy weights and oversized hauls.

At the dam site, a 2.8km section of the Rawalpindi-Kotli Road will be relocated. The new road will run from the Rawalpindi-Kotli Road through a forest and lead over the Jhelum River to Hollar across the new Karot Bridge. The Rawalpindi-Kotli Road will be cut off before the spillway but after a shrine and small community graveyard at Karot which are located adjacent to the Rawalpindi-Kotli Road, approximately 300m before the spillway.

The required road and bridge works in the upper section of the reservoir comprise the following: ° Reconstruction of the Azad Pattan Bridge ° Reconstruction of the suspension bridge in Ain Pana (located approximately 7km downstream of the Azad Pattan Bridge) ° Relocation of a total of about 6.8km of various sections of the Kahuta-Azad Pattan Road along the right and left bank of the reservoir, including four concrete bridges with a 20m span and 15 culverts (structures that allows water to flow under a road) over tributaries of the Jhelum River. These are all due to higher water levels as a result of inundation by the reservoir

The bridges and road sections will be relocated at higher elevations and be reconnected to the existing Kahuta-Azad Pattan Road that will remain in situ. Figure 2.6 shows the access routes that will be used to access the Project site, note that road 5 will not be used.

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For the overall construction period of five years, the Project is expected to generate approximately 720,000 additional vehicle movements over the four external access routes that are likely to be used for the Project. Of these vehicle movements around 624,000 will be heavy vehicle movements. This additional traffic will peak during the second year of construction between months 17 and 22 when average daily traffic movements are expected to be highest on the Beor to Karot option route, with an average of an additional 400 daily traffic movements encountered.

There will also be significant a large number of traffic movements within the Project site boundary associated with excavation and spoil disposal, which is typical of a construction project of this . These movements will not use the external access roads and dedicated site access roads will be constructed for this purpose. Project site traffic movements will not have the same peaks as the external roads as there will be ongoing excavations and construction for the five year Project construction duration.

A Traffic Management Plan will be included within the ESMP and will address the measures to be applied to mitigate the impacts from both external and internal construction traffic.

Figure 2.6: Project location and access routes

Source: Mott MacDonald

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2.10 What will happen during operation?

During the operation of the hydropower plant, the water retained in the reservoir behind the dam will flow through the water intake into the headrace tunnels which will accelerate the speed of the water prior to entering the powerhouse. At the end of the headrace tunnels the water will flow through the turbines which will generate electricity, and be discharged back into the Jhelum riverbed through the tailrace channel. Inflows from the Jhelum River into the reservoir, which exceed the capacity of the turbines, will be discharged through gates in the spillway.

The Project is expected to generate approximately 3,200GWh of electricity during a year. This is enough power to provide electricity to approximately 7 million homes. The production of electrical energy will fluctuate between higher and lower values throughout the year depending on available inflow volumes from the upstream catchment of the Jhelum River into the reservoir. Inflows are influenced by runoff from rainfall, snowfall and snowmelt within the catchment area.

During the dry season from October to February (winter), the river inflows are significantly lower and will need to be stored on a daily basis within the reservoir until sufficient volumes are available for power generation. During these months, electricity will be produced during peak demand periods only. During the intermittent months of September and March the ability of the Project to generate electricity at full capacity will depend on the available flow. The actual electricity output of the Project will be regulated on a daily basis and determined by NTDC (subject to water availability and permitting requirements). It is expected that the life of the Project will be around 100 years for all permanent structures.

In the dry season and during times of intermittent flows in the Jhelum River, operations will be limited and this will result in periods of no flows in the downstream river stretch after the powerhouse outlet. In addition, the change in the reservoir level of the Mangla Dam means that the length of the river stretch impacted will change throughout the year and be longer during the dry season than during the wet season. To maintain aquatic ecosystems downstream of the dam and the human livelihoods which depend on them at least 15m 3 per second (around 10% of the average annual minimum flow) will be released. During reservoir filling this water will be released through a pipe in one of the diversion tunnels. The exact location of the release during peaking periods in the operational phase hasn’t been determined; however it is assumed that it will be released at the powerhouse.

2.11 What will happen at the end of the Project?

The operational phase of the scheme is likely to be 100 years, with the life of installed equipment estimated to be at least 50 years. During the decommissioning of the Project the impacts would be similar to that experienced during construction and include impacts associated with: ° Waste disposal ° Removal of steel gates and/or part of the dam and Project components (e.g. powerhouse) ° Impacts related to restoring areas to a natural habitat ° Disposal of hazardous materials ° Retrenchment planning in the unlikely situation that a significant number of jobs are affected

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3 Managing environmental and social impacts

3.1 How was the Project assessed?

The main stages in the ESIA process are: ° Establishment of the baseline to understand current conditions at and around the proposed Project sites ° Prediction of impacts of the construction and operational phases ° Identification of mitigation measures to be included in the design and ongoing management

The assessment process was supported by consultation with local people and organisations to ensure that these views were considered.

A Project Environmental and Social Management Plan (ESMP) has been developed that includes all of the mitigation measures identified in the ESIA and how these will be implemented. The ESMP includes a range of underpinning management plans specific to the impacts that have been identified.

The significance of an impact is based on the function of the sensitivity of project affected persons/ environmental receptor and the magnitude of impacts (scale, nature, duration). Where the ESIA found that the Project could cause significant impacts then actions or procedures (referred to as mitigation measures) have been developed to avoid, reduce or otherwise mitigate the effects. A great number of potential impacts can either be avoided or reduced through mitigation; however some impacts may be unavoidable.

A summary of the key findings and the main mitigation measures identified for the social and environmental impact is set out in this section. The ESIA presents the impacts of the Project in the following chapters:

° Hydrology and Water Quality ° River Morphology ° Geology, Landslides and Seismicity ° Biodiversity ° Air Quality and Greenhouse Gas Emissions ° Materials and Waste ° Noise ° Landscape and Visual ° Socio-Economics, Community and Culture ° Health and Safety ° Climate Resilience ° Cumulative Impacts

3.2 How will people and the environment be affected?

Whilst environmental and social issues interact, the findings of the ESIA broadly cover the following themes: ° Effects on people ° Effects on the river and physical features ° Effects on the natural environment and resources

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3.2.1 Effects on people

The most significant effect on people is the physical resettlement of 74 households living in the villages of Karot and Hollar. In addition, the loss of commercial structures on the river banks will affect the ability of people to run their businesses. A Resettlement Action Plan (RAP) identifies all of the assets and people affected and sets out the approach to compensating those affected individuals; both in terms of their homes and their livelihoods. The objective of the RAP is that no people will suffer economic loss or be provided with housing that is less than they have now.

A number of places of cultural importance will be affected by the Project, including the relocation of four mosques and four graveyards.

The Project is expected to require 3,500 workers at the peak of the construction phase. The generation of employment is a beneficial impact of the Project. This provides opportunities for local people to access jobs and to undertake training to develop new skills.

The construction activities will generate traffic, noise, dust and emissions, and waste. There will be a large increase in the amount of traffic using particular routes, including heavy goods vehicles. Therefore measures to manage traffic and prevent accidents will be employed.

In addition to noise from traffic, activities such as blasting, construction of bridges and roads and night-time construction can create a nuisance. This potential nuisance can be reduced through avoiding traffic routing through community areas where possible and undertaking construction activities in accordance with best practice. Separating local villages from the main haul routes by a minimum distance of 30m will also reduce the impacts of noise. Impacts from dust and emissions will be managed by techniques including dust suppression by dampening, no burning of waste, speed limits for trucks and vegetating surfaces of stockpiled materials.

The operation of the hydropower plant will increase the supply of electricity for Pakistan. This will have national benefits for the economic development of the country.

3.2.2 Effects on the river and physical features

The Jhelum River near the Project site is in a deep narrow V-shaped valley with limited land or floodplain adjacent to the river as it cuts though the Himalayan Mountain range and Siwalik Hills influenced by local geology. The flow regime of the Jhelum River is typical of mountainous catchments where runoff is supplied from both rainfall and snowmelt.

The Project will result in changes to the landscape which will be experienced by local people at various locations around the Project area who will have views of various project components as well as changes to the scenic Jhelum River valley caused by spoil deposition.

Mitigation measures to avoid these landscape and visual impacts include minimising vegetation removal, regeneration of areas at the end of construction, design construction lighting to limit light spill, creating non- engineered slopes that can be integrated into the natural topography, additional planting in areas identified by local people to compensate for loss of woodland.

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The potential impact of water pollution incidents during the construction period can be managed through standard procedures to avoid spills of oils and other pollutants, including the control of erosion and treatment of contaminated water that could affect the river.

A dedicated waste water treatment plant will be constructed to treat all sanitary wastes from the construction workers camp prior to discharge into the Jhelum River.

The creation of the dam is expected to change the average water flow volume and patterns of water flow through this part of the gorge. Measures to release water to maintain a minimum level of downstream flow will be implemented and monitoring of river flows and water quality will be undertaken.

Sediment is produced by erosion, seismic activity and from the tributaries to the Jhelum River. Sediment can reduce the storage capacity of the reservoir and the downstream river. The Project will reduce the amount of sediment from moving downstream and this is not considered to be a significant impact in isolation. However, further analysis is required to establish if the reduction in sediment load downstream of the Project combined with the proposed hydropower schemes upstream would cause significant adverse impacts downstream.

The assessment found that there are no significant adverse impacts predicted following the application of the mitigation measures which include development of a sedimentation and erosion control plan, installation of slope supports, the avoidance of blasting (where possible), designing cut slopes for seismic actions, planting vegetation in areas subject to erosion, conducting a landslide risk assessment and monitoring increase in seismicity due to reservoir activities.

3.2.3 Effects on the natural environment and resources

The Project is expected to generate some adverse impacts on the local natural environment. During the construction phase adverse impacts are expected on terrestrial habitats and flora due to the loss and degradation of terrestrial and riparian habitat and the introduction or spread of non-native species. In aquatic habitats there will be a change in water quality from an increase in turbidity, permanent loss of habitat and obstruction to fish movement and changes in flow patterns of the Jhelum River.

During operation terrestrial and riparian fauna will experience adverse residual impacts due to permanent habitat fragmentation, increased disturbance of noise and dust, an increase risk of road kills and changes in environmental flows. Aquatic habitats and species will be impacted by the creation of the reservoir, the physical barrier created by the dam, changes in water quality (temperature, sediments and chemical composition) and changes in water flow.

The golden mahasheer (Tor putitora ) fish is found in the Jhelum River and is globally endangered. The golden mahasheer is known to live in reservoirs (such as the Mangla Reservoir) but will need to migrate to upstream sections of the river where spawning habitat is available. Mitigation measures will be implemented to allow fish movements upstream and downstream of the Jhelum River to re-establish connectivity to spawning habitats.

Mitigation measures also include development of a Biodiversity Management and Action Plan, a Catchment Management Plan, education and awareness raising for local communities, a Habitat Removal

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and Restoration Plan, providing support to the nearby -Kotli Sattian-Kahuta National Park, eradication of invasive species, on-site restoration of areas where possible, off-site habitat creation or enhancement, a ban on hunting native species, implementing speed limits where appropriate and reducing artificial lighting and noise emissions.

There will be large volumes of spoil generated from the excavation works during construction. The spoil material that cannot be reused in construction activity will be distributed to four disposal sites; three located on the left of the river bank (when looking downstream) and disposal site #2 is in the river channel, crossing both sides. It may be possible to engineer the spoil disposal sites to provide cultivatable land for the local community. Where other wastes are produced, these will be also be re-used or recycled whenever possible.

In considering the impacts on greenhouse gases, the construction of the Project is predicted to generate approximately 830,000 (tCO 2e) of carbon emissions. The operation of the project will provide a beneficial effect, by avoiding around 1.6 million tonnes of CO2 each year, by using hydropower to generate electricity compared to fossil fuel sources of power production.

3.3 Cumulative impacts

The ESIA considers cumulative impacts. The Project is only one of a number of hydropower projects that are under development in the river basin, and one of five projects in the Jhelum River cascade. Cumulative impacts are predicted to occur as a result of extended employment for construction workers (as they gain skills and move from one project to the next), but this does come with a potential downside of crowding caused by in-migration.

Benefits from the increase in capacity and reliability of electricity supply in the region are expected. Measures to develop a basin level biodiversity action plan are already underway to address cumulative impacts on the Jhelum River Basin. In addition, measures to manage sediment flushing are needed to avoid loss of reservoir storage downstream and to enhance the form of the Jhelum River and habitats downstream.

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