NEPAL ELECTRICITY AUTHORITY Kali Gandaki ‘A’ Hydropower Plant Rehabilitation Project Environmental Assessment (EA) (Final Draft)

Public Disclosure Authorized

Public Disclosure Authorized

Submitted to: Large Hydropower Operation and Maintenance Department Public Disclosure Authorized Nepal Electricity Authority Kathmandu, Nepal

Submitted by: Environmental and Social Studies Department NEA Training Center, Kharipati, Bhaktapur, Nepal P.O. Box #: 21729 Kathmandu Phone No.: 977 1 66 11 580 Fax No.: 977 1 66 11 590

Public Disclosure Authorized

January 28, 2013

Table of Contents

Table of Contents ...... ii Abbreviations and Acronyms...... iv Executive Summary ...... 1 CHAPTER ONE: INTRODUCTION ...... 6 1.1 Background ...... 6 1.2 Need for Rehabilitation Works ...... 6 1.4 Environmental Assessment of the Proposed Rehabilitation Project ...... 7 1.5 Proponent ...... 7 1.6 Rationality of Conducting the EA ...... 7 1.7 Objectives of the EA Study ...... 8 CHAPTER TWO: PROPOSED PROJECT DESCRIPTION ...... 9 2.1 The Proposed Project Location ...... 9 2.3 Proposed Project Ancillary Facilities ...... 12 2.4 Human Resources Requirement for the Proposed Rehabilitation Works ...... 12 2.5 Implementation Schedule and Costs for the Proposed Rehabilitation Works ...... 12 CHAPTER THREE: STUDY METHODOLOGY ...... 13 3.1 Impact Screening and Identification Process ...... 13 3.2 Project Impact Area Delineation ...... 13 3.3 Desk Study and Literature Review ...... 13 3.4 Field Study and Data Collection ...... 14 CHAPTER FOUR: LEGAL POLICY FRAMEWORK ...... 16 CHAPTER FIVE: EXISTING ENVIRONMENTAL CONDITIONS OF THE PROJECT AREA ...... 18 5.1 Physical Environment ...... 18 5.2 Biological Environment ...... 24 CHAPTER SIX: ANALYSES OF ALTERNATIVES ...... 27 6.1 No Project Scenario ...... 27 6.2 Analyses of Rehabilitation Alternatives ...... 27 CHAPTER SEVEN: IMPACTS ASSESSMENT AND MITIGATION MEASURES ...... 29 7.1 Key Outstanding Environmental Issues from the original KGAHPP ...... 29 7.2 Newly Emerged Environmental Issues in the area of the Existing KGAHPP ...... 32 7.3 Potential Impacts of the Proposed KGAHPP Rehabilitation Project for which this EA is Conducted 34 Changed flushing regime will affect the water quality downstream (sediment load and turbidity)...... 37 CHAPTER EIGHT: PUBLIC PARTICIPATION, CONSULTATION AND DISCLOSURE ...... 38 8.1 Approach and Process ...... 38 8.2 Consultation Activities during Preparation ...... 38 8.3 Consultation Mechanism during Implementation ...... 39 8.5 Disclosures ...... 39

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CHAPTER NINE: ENVIRONMENTAL MANAGEMENT AND MONITORING ...... 40 9.5 Reporting Requirements ...... 46 9.6 Training and Capacity Building ...... 46 9.7 Grievance Redress Mechanism ...... 47 9.10 Monitoring Cost ...... 49 References ...... 51

ANNEX A: FIELD MEASUREMENTS & DATA ...... 52 ANNEX B: HISTORICAL BACKGROUND ON EIA AND MITIGATIONS ...... 56 ANNEX C: MONITORING PARAMETERS, METHOD, SCHEDULE AND INDICATORS ...... 60

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Abbreviations and Acronyms

ADB : Asian Development Bank CSP : Community Support Program DIA : Direct Impact Areas DO : Dissolved oxygen DDCs : District Development Committees DFO : District Forest Office DHM : Department of Hydrology and Meteorology DOED : Department of Electricity Development KGAHEP : Kali Gandaki ‘A’ Hydroelectric Project KGAHPP : Kali Gandaki ‘A’ Hydropower Plant EA : Environmental Assessment EIA : Environmental Impact Assessment EMP : Environmental Management Plan ESMU : Environmental and Social Management Unit EPP : Emergency Preparedness Plan ERP : Enterprise Resource Planning ESSD : Environmental and Social Studies Department FERC : Federal Energy Regulatory Commission (US). GON : Government of Nepal GRC : Grievance Redress Committee GWh : Gigawatt Hours IIA : Indirect Impact Areas Km : Kilo meter kV : Kilo volt LRMP : Land Resource Mapping Project JBIC : Japan Bank for International Cooperation MBT : Main Boundary Thrust m3/s : cubic meter per second MCT : Main Central Thrusts MIV : Main Inlet Valve MOE : Ministry of Energy MOFSC : Ministry of Forest and Soil Conservation MOSTE : Ministry of Science, Technology and Environment NARC : Nepal Agricultural Research Council NDWQS : National Drinking Water Quality Standard (Nepal) NEA : Nepal Electricity Authority VCDP : Vulnerable Community Development Plan VDCs : Village Development Committees WB : the World Bank

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Executive Summary

1. Original Kali Gandaki ‘A’ Hydroelectric Project (KGAHEP), the largest plant in operation in Nepal, commissioned in 2002 at a cost of US$ 453 million, was funded by the ADB and Japan Bank for International Cooperation (JBIC). Though the plant has been in operation since 2002, it has not been able to generate to its full capacity of 842 GWh due to continuous operation of the project without longer sediment flushing as recommended by the Operation Manual to mitigate the power crisis ‘load shedding’ situation of the country to some extent. At present the plant suffers from i) Damage caused by sediments to equipment, ii) Poor sediment management at the headworks, iii) Safety (damage to the Main Inlet Valve and failure of control systems), iv) Cavitation, and v) Sedimentation of the reservoir, which have a direct bearing on the long term sustainability of Kali Gandaki ‘A’ Hydropower Plant (KGAHPP). 2. The objective of the proposed rehabilitation project is to improve the reliability of power supply of the existing KGAHPP through rehabilitation and safety measures. Rehabilitation Project includes three major components: 1) Civil works and 2) Electro-mechanical works and 3) Technical Assistance and Capacity Building. The Civil works component will address the main items related to civil works and consist of i) Headworks modifications, ii) Improving Dam Safety Monitoring and Instrumentation, and iii) Maintenance Works sub-components. The Electro-mechanical works component comprises of repair and upgrading sub- components at powerhouse and intake. The Technical Assistance and Capacity Building component will help NEA establish i) Dam Safety Plan including Instrumentation Plan, Operation and Maintenance Plan, and an Emergency Preparedness Plan (EPP); ii) Improve Asset Management; and iii) Safeguard Implementation and Capacity Building. 3. As the rehabilitation Project site is located within the territory of the original Kali Gandaki ‘A’ HEP, it will not require additional land acquisition on permanent or temporary basis. No new additional ancillary facilities such as access roads, engineer's camps, construction camps, transmission lines and construction power are required. Small quantities of the boulders, aggregates and sand required for civil works at forebay and access roads will be sourced from the licensed contractors to avoid opening of new quarry site or burrow pits. The existing facilities of the original project will be utilized for the construction camps and waste/spoil management. Manpower requirement comprising of 60 is predominantly skilled. A few numbers of semi skilled and unskilled labor force required will be hired from the local area. 4. The project will be implemented over a period of 40 months at a cost of US $ 29 Million. 5. Environmental screening criteria’s under the current policy and legislative framework of the Government of Nepal does not mandate environmental assessment (IEE and EIA) for the proposed rehabilitation project. However, the environmental safeguard policies (OP/BP 4.01, OP/BP 4.11 and OP/BP 4.37) of the World Bank, the funding agency, mandates environmental and social assessment of the proposed project for bank funding. 6. The study methodologies adopted for the EA study covers the environmental screening and impact identification guidelines of Government of Nepal and the World Bank including extensive review of the available secondary literatures of the original project followed by the field studies on the project’s physical, biological and social environments to generate the baseline environments. The water quality and fishery surveys were carried out in addition to the focus group discussions at various project sites to understand the current status and likely future trends with and without the proposed rehabilitation project. 7. Review of the current legal and policy framework of the government of Nepal in the proposed rehabilitation project context is found to attract i) Environment Protection Act, BS 2053 (1997), and Environment Protection Rules, BS 2054 (1997), ii) Electricity Act, BS 2049 (1992) and Electricity Rules, BS 2050 (1993), iii) Hydropower Development Policy, BS 2058 (2001), iv) National Environmental Impact Assessment (EIA) Guidelines, BS 2049 (1993) and v) EIA Guidelines for the Water Resources Sector, BS 2054 (1997). 8. Physical environment of the proposed rehabilitation project site is dominated by mountainous topography ranging in altitude between 400 to 1600m with subtropical-to-temperate climate characterized by hot and wet monsoon summers and cool and comparatively dry winters. The monsoon period from June to October contribute 60 to 80 percent of the annual precipitation (1500-2000 mm/annum). The project site is located in the V shaped gorge of Kali Gandaki River and is comprised of deeply weathered black phyllite/slate hard rock geology. The shallow soil cover over the hard rock geology is made up of weathered fragments of phyllite rock held in the silty and clayey matrix. Along the valley thick colluvial deposits stand as discrete

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terraces at different heights. Various type of erosion: sheet, rill, and gully are conspicuous and are often associated with shallow landslides on the steeply sloping land units. Shorelines erosion upstream of the reservoir and particularly just upstream of the dam along the access road on the left bank is the recent erosion features. The rural roads on both the banks of the Kali Gandaki River have triggered small slumps and erosion and contribute to the reservoir sedimentation. The Kali Gandaki River hydrology is influenced by the monsoon rain the snow melt in the basin catchment being maximum during the monsoon and minimum during the dry winter periods. Sediment load and sediment transportation and associated erosion in the Kali Gandaki in the Kali Gandaki basin is also influenced by the monsoon being high during monsoon and least during the dry winter. Recent sedimentation measurements in the reservoir section of the Kali Gandaki show deposition of 4 million m3 in 10 years of operation. Such sediment build up in the reservoir is related to the non-compliance with the draft operational manual. The Kali Gandaki River water quality has not changed to the pre-project condition, though dumping of solid and liquid waste from the surrounding areas and motor boat operation into the reservoir is practiced unabated. Riparian release observed in the dewatered zone was higher than the required discharge of 4 m3/s from the dam, however, records of riparian release were not documented. Compliance to religious release of additional 2m3/s during festival is an outstanding issue of non-compliance according to the local people. Similarly the siren sounding in the period of sudden water release from the dam is also an issue of non-compliance with implication to the community safety of the downstream areas. The unfinished rehabilitation works of the original project’s camps and waste management site is also an issue of non-compliance. 9. The proposed rehabilitation site lies outside the geographical limits of the declared national parks and conservation areas of Nepal. The dominant forest types of the project sites surrounding areas are Sal forest, Mixed hardwood forests, Pine forest, and Khair forest with over 500 plant species showing high plant diversity. Some of the common plant species in the immediate vicinity of the project sites are Chutro (Berberis asiatica), Tooni (Cedrela toona), Sunava (Epipactis spp.), Bakaino (Melia azedarach), Sal (Shorea robusta), Barro (Terminalia belerica) and Harro (Terminalia chebula). Though 20 species of mammal and 146 species of bird with a rich diversity of herpetofauna (reptiles and amphibians) are reported from the forest areas of the project surroundings are not likely to be affected by the proposed rehabilitation project due to its location within built up areas of the original KGAHPP. The fish survey conducted during the EA study of the proposed rehabilitation project shows no change on the overall fish diversity across the project affected riverine stretch, however, notes the reduction on species density especially in dewatered zone. 10. No project alternative runs the risk of further damage to the existing operational project which would potentially increase unplanned outage, reduce annual generation and increase risks of catastrophic event. Given the current energy crisis and load-shedding in Nepal, the annual electricity generated by the existing Kali Gandaki ‘A’ Hydropower Plant is critical as it represents 50% of NEA’s annual electricity. In this context, NEA would try its best to recover any generation lost due to outage or catastrophic event at Kali Gandaki from another generation source. As there are no upcoming projects, the potential sources of energy supplement would be increased imports of coal-based power from India or local diesel generation causing generation of greenhouse gases, a concern of global warming. Analysis of rehabilitation alternatives based on the hydraulic model studies suggested various alternatives to improve the hydraulic performance of the headworks. These alternatives were carefully selected with the view of setting aside relatively shorter time for implementation in the prototype, and thus reducing the shutdown time, and maintain the water level at 518m as prescribed by the original designers. 11. The environmental impacts and mitigation measures identified for the project are discussed under three broad categories namely: i) Key Outstanding environmental issues from the original KGAHEP, based on the implementation and monitoring work of Asian Development Bank, ii) Newly emerged environmental issues in the area of the existing KGAHPP and iii) Expected impacts of the proposed KGAHPP Rehabilitation Project for which this EA is conducted. 12. Outstanding environmental issues identified are i) Insufficient Environmental Flow and Additional Flow for Major Festivals, ii) Landscape restoration at former contractor camp and disposal site of the original construction, iii) Continued support for the fish hatchery and fish trapping and hauling program and iv) Strengthening of the existing Siren Warning Systems. To mitigate the identified outstanding issues following measures were mutually agreed with NEA.

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 Compliance with the disclosed riparian and religious water release in the EIA report of original KGAHPP from the dam.  Installation of chart for monitoring downstream flow release.  Set schedule of the demolition and rehabilitation works at non-complied camp and waste disposal sites and ensure the final waste disposal and rehabilitation works as per the IFC standards.  Allocation of sufficient budget to regularly clean the sediment from the hatchery water supply reservoir and regularly monitor the supply water quality for adequate silt free water supply to the hatchery.  Hatchery will be operated at its full capacity with due emphasis of breeding and rearing of targeted species.  NEA will allocate adequate budget required for hatchery operation, trapping and hauling program, open water fish stocking program and fish monitoring program.  The Hatchery operation, trapping and hauling program, open water fish stocking program and fish monitoring program will be tied together and contracted out to Nepal Agriculture Research Council (NARC) or other private party to avoid conflict and strengthened the long term hatchery operation.  The existing siren system will be strengthened in such a way that the people living in the reduced section of the river will be warned of any sudden water releases.  Monitoring of the siren system functioning will be regularly carried out by the dam operation management and the results of monitoring will be properly documented.  An environmental expert from Environmental and Social Management Unit (ESMU) will be positioned at the dam site as a staff of the dam operation management to monitor the environmental and social issues of the dam including siren system on a routine basis. 13. The newly emerged environmental issues identified are i) Sedimentation impacts and water levels at Setibeni, ii) Landslide on the Access Road to Dam, and iii) Catchment Area Watershed Management. To mitigate the identified newly emerged issues following measures will be implemented.  Procurement of state of the art laser guided systems for Real Time Sediment Monitoring to collect comprehensive data on reservoir sedimentation.  An international firm to help NEA design a sediment management program including a suitable watershed management program and a sediment guided operations strategy for Kali Gandaki.  Specific mitigation actions to control the access road landslide consisting of constructing stepped gabion wall, installing surface water control measures and conducting further detailed investigations for permanent works.  Study afforestation of the degraded areas in the immediate vicinity of the reservoir flanks in coordination and active participation of the local communities and local government (VDCs)  Minimize the grazing pressure on the immediate vicinity of the reservoir flank in coordination and active participation of the local communities and local government (VDCs).  Upgrading of the earthen roads opened along the reservoir flanks with protection measures such as retaining wall in the steep cut batter slope, bio-engineering measures in the gentler cut slopes, drainage bypass structures at regular intervals into the natural drainage systems, establishment of side drains, and regular repair maintenance in coordination and active participation of the local communities and local government (VDCs).  The project will co-ordinate with local bodies for mobilization of royalty for the above activities of afforestation and road upgrading. 14. The environmental impacts of the proposed rehabilitation works identified are: i) Temporary increase in flow release below the dam during construction, ii) Improper Waste Disposal and iii) Potential Air and Noise Pollution. To mitigate the identified impacts following measures will be implemented as part of the Contractor’s contractual obligations:  Existing siren systems will be strengthen and siren blowing will be operated 30 minutes, 15 minutes and 5 minutes before the release of water.  The riverine communities covering the 45 km of the Kali Gandaki River and further downstream will be consulted on the date and timing of the flushing operations to ensure that everyone in the community are aware of such operation.

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 Hoarding boards will be placed in the critical location, particularly cremation ghats and religious temples at the bank of the Kali Gandaki River from downstream of the dam to the powerhouse tailrace.  Notification of the flushing date and time of reservoir flushing will be given through the local FM radios of Syangja, Palpa, and Gulmi sufficiently ahead of time.Fishing in 13 km stretch of river from Dam to Badigad Khola confluence at Rudrabeni will be prohibited during the flow variation time. Hoarding board consisting Informative and warning sign shall be placed at different localities  Stockpiling of construction material will take into consideration to maintain proper storage condition and housekeeping using covers for protection and minimizing littering of the construction materials. This will be included in the bidding documents and will be enforced during rehabilitation activities.  The camp waste will be collected and segregated to separate the degradable and non-degradable materials. Only segregated materials will be brought to the existing waste management sites and managed. This will be included in the bidding documents and will be enforced during rehabilitation activities.  Hazardous materials (lubricants, oils, metallic dusts etc) will be collected in separate drums and placed on impermeable surface. To minimize the impacts of leakages and spills of the hazardous wastes adsorbents like sand or sawdust will be used in the working sites for quick handling of small accidental spillages. The absorbents will also be safely collected and stored in the drums for safe disposal at later stage in the nearby sanitary disposal sites.  Water sprinklers will be used to reduce fugitive emission in the unpaved roads and construction sites.  Vehicles carrying fine materials such as cement, soil etc will be covered.  Speed limit will be maintained for all the project related vehicles.  Machinery and vehicles will be inspected with regard to their exhaust, body  Honking of horns will be prohibited  Noisy works at the night time hours in the open area will be minimized.  Use of transport at the night time zone will be minimized. 15. To ensure that the environmental mitigation measures are implemented as recommended an Environmental Management Framework for the rehabilitation project has been chartered. The environmental management framework comprises of an organizational structure comprising of the project stakeholders with distinct responsibilities to oversee, supervise and monitoring of the project implementation works. For the front line day to day internal monitoring and reporting of the project implementation an Environmental Monitoring Unit (ESMU) will be established within the rehabilitation project site office under the supervision of ESSD of NEA. External Monitoring and Evaluation will be conducted by an independent agency appointed by NEA and will be done twice during the implementation of the proposed rehabilitation Project. The environmental monitoring plan framework consists of measurable monitoring indicators, methods, frequency, locations, including monitoring responsibility and costs. ESSD will prepare a detailed monitoring plan prior to start of the implementation in agreement with the KGAHP Rehabilitation Project. For the smooth implementation of the environmental management framework, KGAHP Rehabilitation Project will be responsible for ensuring proper arrangement, resources and logistic support including capacity enhancement of the ESSD and ESMU staffs besides orientations/ trainings to the workers on site on good and bad environmental practices and Environmental Health & Safety aspects. 16. At project level a grievance redress mechanism will be established to allow community to appeal against any disagreeable decisions, practices and activities; technical and general project-related disputes. The community will be made fully aware of their rights and the procedures for doing so verbally and in writing during project information campaign and consultations. 17. The cost of measures identified for mitigations of impacts related to waste disposal, and to dust and noise pollution issues due to construction activities of the proposed KGAHPP Rehabilitation Project are included in the bidding documents and will be the responsibility of the contractor. The total Environmental Management Plan cost, not included in contractor's bidding document, for the proposed Project is estimated NRs. 9,660,000.00 for the implementation of community support programs in the KGAHPP area. The cost for ESMU establishment and its operation, internal and external monitoring and capacity building are included in

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the Social Impact Assessment report (Refer to SIA for detail). ESSD-NEA will continue the environmental monitoring activities during operation phase. 18. The consultation activities undertaken during the preparation of this EA report included focus group discussions and household survey. Major feedbacks that were noted during the consultation process among the vulnerable groups, particularly the women and Bote Community as well as the upstream and downstream communities have been given due consideration in the preparation of this EA. Further NEA plans to disclose the draft final EA and SIA with summaries translated in Nepali through its public website. These documents will also be placed at the project sites offices, project VDCs and central office of NEA. Apart from this, these documents will be disclosed in the World Bank’s website also. NEA/ KGAHPP also plan to inform and further consult local stakeholders on a regular basis during the implementation of the proposed KGAHPP Rehabilitation Project.

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CHAPTER ONE: INTRODUCTION

1.1 Background Original Kali Gandaki ‘A’ Hydroelectric Project (KGAHEP): The Kali Gandaki ‘A’ Hydropower Plant (KGAHPP) is the largest plant in operation in Nepal. The Plant is located in the Western Development Region of Nepal. The access road, headworks and the powerhouse are located in Syangja District in Gandaki Zone and the reservoir, downstream stretch and transmission line are located in other districts of Gulmi, Palpa, Parbat, Kaski and Rupandehi of Lumbini, Gandaki and Dhaulagiri Zones. Kali Gandaki A HPP is a daily pondage type scheme with six hours of peaking and an installed capacity of 144 MW. The original project was funded by the Asian Development Bank (ADB) and Japan Bank for International Cooperation (JBIC)1. The original project construction works started in 1997 and was commissioned in 2002 at a cost of US$453 million. As of the date the plant is the largest hydroelectric power station in Nepal. It supplies nearly 50% of Nepal Electricity Authority’s (NEA) total annual electricity generation. Nearly 25% of the grid connected load of the country depends on this plant. The above facts reflect the importance of the plant in meeting the current electricity demand in the country. Its importance is further revealed by the fact that the country is facing extreme power shortages with round the year load shedding. The load shedding is projected to be above 14 hours a day in the dry season as most of the power plants are run off the river type and depend on the available flow which is at its lowest during the dry season (November – May). Since there are no upcoming new power projects in Nepal to be commissioned within the time frame of 3 to 5 years, in the event of the failure of KGAHPP, the country will face sever power shortages even in the rainy season. Load shedding in the dry season may escalate up to 20 to 22 hours a day. Furthermore, consumption of diesel by the small power generating set to supplement the foregone power from the plant (842 GWh) at the household, institutional, and industrial level will generate nearly 531,769 tons of carbon dioxide.

1.2 Need for Rehabilitation Works Though the plant has been in operation since 2002, it has not been able to generate to its full capacity of 842 GWh due to various factors. Initially it was due to the absence of transmission lines to evacuate the power to the grid and low demand for electricity in the country. More recently it is due to the technical issues including sediments. The KGAHPP is located on the Kali Gandaki River which carries excessive amounts of sediments during the monsoon period. Sediments are one of the key elements affecting power generation. The draft Operation Manual prepared by the original designers of the original KGAHEP clearly stated that “Sediment Management on KGAHPP is one of the key elements in the project operation and recommended sediment management strategies such as regular flushing and shutdown of plants when sediment concentrations reached threshold values”. Since it came into operation, NEA has relied heavily on the plant for continuous generation to match the demand. More recently, there has been heavy reliance on Kali Gandaki ‘A’ for generation due the looming energy crisis in the country. The Load Dispatch Center has not allowed KGAHPP to stop for longer flushing operations as this is in conflict with generation. At present the plant suffers from:

 Damage caused by sediments to equipment  Poor sediment management at the headworks  Safety (damage to the Main Inlet Valve and failure of control systems)  Cavitation

1 The ADB funded Kali Gandaki ‘A’ Hydroelectric Project will be referred to as the ‘original Kali Gandaki ‘A’ Project’ and the proposed rehabilitation project will be referred to as the ‘Kali Gandaki Rehabilitation Project’ in this report.

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 Sedimentation of the reservoir  Absence of a finalized Operation Manual The issues listed above have a direct bearing on the long term sustainability of KGAHPP. Improving the sustainability of the plant requires sediment guided operations in addition to improving sediment management in the reservoir and through the facilities.

1.3 Proposed Rehabilitation Project In the above mentioned background, the KGAHPP Rehabilitation Project has been proposed. The proposed rehabilitation works are aimed to address sediment management issues and repair & installations of electro-mechanical equipment, such as valves, MIV, dam safety instruments, repairs of runners, wicket gates, sediment monitoring instruments etc. The objective of the proposed rehabilitation project is to improve the reliability of power supply of the existing KGAHPP through rehabilitation and safety measures. Chapter two of this report contains detailed description of the proposed KGAHPP Rehabilitation Project.

1.4 Environmental Assessment of the Proposed Rehabilitation Project In view of its national importance, the Government of Nepal decided to rehabilitate the Kali Gandaki ‘A’ Hydropower Plant and approached the World Bank (WB) for funding. As per the Bank’s requirements, NEA initiated the safeguards assessments of Kali Gandaki A HPP. NEA assigned its Environmental and Social Studies Department (ESSD) to carry out the Environmental Assessment (EA). ESSD is one of the four departments of NEA’s Engineering Services and is responsible for safeguards studies. The proposed project is a rehabilitation of an existing hydropower facility which will take place within the premises without major civil works or construction of ancillary facility. The rehabilitation works: i) will not change dam height, ii) will not increase the water level in the upstream reservoir, and iii) will not reduce the minimum water release that was established during the original project. Therefore potential environmental impacts of the proposed project are expected to be minimal. However, the proponent is taking this opportunity to address past issues outstanding from the time of construction of the dam in 2002, as well as a set of issues emerged over the past ten years of operations.

1.5 Proponent The proponent of the proposed rehabilitation project is Nepal Electricity Authority. It is an undertaking of Government of Nepal (GON) and is the largest corporate body responsible for the generation, transmission and distribution of the electric power in Nepal.

1.6 Rationality of Conducting the EA Current policies of the Government of Nepal emphasize the need for environmentally sound and socially sustainable development of power generation projects. Furthermore, the environmental and social safeguard policies of the World Bank (WB), the funding agency, also mandates environmental and social assessment of the proposed project to be implemented under bank funding. The rationality to conduct an EA is to assess, identify and predict the potential environmental impacts associated with the proposed rehabilitation project and propose pragmatic mitigation measures to minimize and/ or mitigate the impacts for environmentally sound and socially sustainable development.

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1.7 Objectives of the EA Study The primary objective of the EA is to identify and assess potential environmental impacts of the proposed rehabilitation project activities. Specifically, the objectives of EA are to assess:

i) Outstanding environmental issues from the KGAHEP, based on the implementation and monitoring work of Asian Development Bank. ii) Newly emerged environmental issues in the area of the KGAHPP, and iii) Expected impacts of the proposed Kali Gandaki ‘A’ Hydropower Plant (KGAHPP) Rehabilitation Project for which this EA is conducted.

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CHAPTER TWO: PROPOSED PROJECT DESCRIPTION

2.1 The Proposed Project Location The proposed Kali Gandaki ‘A’ Hydropower Plant (KGAHPP) Rehabilitation Project is located in the Western Development Region of Nepal, mainly in Syangja and Gulmi District of Gandaki and Lumbini Zones. The proposed project site is located approximately 180 km west from Kathmandu, the capital city of Nepal. The nearest airports are in Pokhara and Bhairahawa. The site is accessible from Pokhara as well as Bhairahawa via Siddhartha Highway up to Galyang from where the existing black topped road provides access to the site.

2.2 Project Components The proposed KGAHPP Rehabilitation Project includes three major components: 1) Civil works and 2) Electro mechanical works and 3) Technical Assistance and Capacity Building.

Component A: Civil Works will address the main items related to civil works and will consist of the following sub-components.

Headworks modifications. Under this sub-component, modifications will be made to the headworks including the intake and the settling basins. The improvements identified includes works related to improving the performance of the settling basin/ intake hydraulics, and making trash passage system or floating debris control/removalmore effective. Currently preferred modifications maintain the reservoir water level at 518 m as prescribed by the original designers (no change in the water level) – hence there will be no change in the upstream water level.

Improving Dam Safety Monitoring and Instrumentation. Under this sub-component, instruments installed in the project will be repaired and others added as necessary to meet state of the art requirements. An operation and maintenance manual will be prepared which will include an instrumentation plan. Real- Time sediment monitoring instrument will be installed. Works under the dam safety improvement includes instrumentation (shifting of dam control and monitoring station), software works for the modification, repair and servicing of the instruments installed for dam monitoring, installation of two Real Time sediment monitoring instrument sets at the dam and one portable particle analyzer, and construction of control room on top of the present control building. The dam safety issues will be addressed in accordance with the Operations Policy 4.37 on dam safety. In case there are issues with dam safety following further detailed investigation from the consultant; NEA will hire an international dam specialist to a) inspect and evaluate the safety status of Kali Gandaki dam, its appurtenances, and its performance history; b) review and evaluate NEA’s operation and maintenance procedures; and c) provide a written report of findings and recommendations for any remedial work or safety-related measures necessary to upgrade the Kali Gandaki dam to an acceptable standard of safety. Necessary additional dam safety measures or remedial work may be financed under the proposed KGAHPP Rehabilitation Project. Laser based real time sediment monitoring instruments will be installed to assist the plant operators with improved sediment guided operations to increase plant availability. The cutoff limit for power generation based on sediment concentrations will be established and recommended in the new version of the Operation and Maintenance Manual.

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Maintenance Works. Under this sub-component, maintenance of the headworks (such as scouring below the dam) and the powerhouse areas, including the stabilization of the slope in the headworks area and the modifications to the tailrace to address cavitations and repair and renovation of project office buildings including those in power house, guest house and modification of control room of headworks. For the maintenance of landslide on the left bank access road, NEA will carry out additional geological investigations and detailed design of remedial measures during implementation of this project. Based on advice from international consultants, a physical model of the Kali Gandaki ‘A’ HPP headworks was constructed (Figure 2.1) and hydraulic model studies were performed.

Figure 2.1: Model Study of the original Kali Gandaki ‘A’ headworks and the proposed modifications (shown in yellow)

Following model studies, NEA decided to opt for the design where the intake wall is lowered by 3 meters to maintain the water level at 518m as prescribed by the original designers and install a curtain wall. HEC RAS model tests supported this alternative as the water levels would not pose a threat of increased flooding in Setibeni 5.5 kms upstream. NEA will recruit an international consulting firm to verify the proposed modification and prepare a detailed design, bidding docs and assist in procuring the most qualified contractor to carry out the works.

Component B: Electro-Mechanical Works. This component consists of mechanical and electrical works and the electrical and mechanical parts in the powerhouse and the intake will be repaired and upgraded. This, for example, includes generator spare parts with coolers, turbine and Main Inlet Valve (MIV) parts; supply, repair and hard coating of turbine parts; supply, delivery, installation & commissioning of trash rack machine; and supply of spare parts & equipment for power house and dam auxiliary system. The proposed KGAHPP Rehabilitation Project will buy a faster cleaning trash rack machine. Rehabilitation of the 3 MIVs is planned. The MIVs involve some modifications in the greasing system and the servomotors to ensure proper closing and opening operation. The turbine parts mainly the runners, wearing rings, facing plates and the wicket gates suffer from abrasion caused by sediments. The project will support repairing damaged runners by welding and gridding and then applying the hard coating. The electrical upgrading works are basically identified in the control system of the generator units, station and auxiliary supply, 132 kV switchyard, 12 kV local distribution, surge shaft, gateway and intake. The upgrading works also encompasses the replacement of level sensors and procurement of spares. Under this sub-component the following works are considered: i) repairing the existing system

10 with spare card and modules; ii) upgrading of the controllers and system software, and iii) Other spare parts as Power supply cards, inverters, sensor etc. At the present moment, the control system in Kali Gandaki ‘A’ HPP has problems with the controllers and the networking system. This has largely limited the communication between devices and operator station. The operators are not trained to operate that system and they are unable to monitor many of the parameters of the waterway, such as the position of the radial gates at intake, position of the radial gates at the desander basins. Level in the surge shaft, position of the head race valve, position of the MIVs, tail race water levels. Important monitoring parameters such as level of vibration, temperature of thrust and guide bearing metal and oil Temperature of cooling system. A combined program including hardware and software upgrading and training of the operators will be launched.

Component C: Technical Assistance and Capacity-Building. Under this component, NEA will recruit an international firm to provide consulting services for overseeing all the three components of the KGAHPP Rehabilitation Project. The consultant will also provide the detailed technical design, help NEA with implementation and procurement, and help prepare the Operation and Maintenance Manual, Emergency Preparedness Plan and the Instrumentation Plan (IP). Technical assistance will be provided to NEA to improve and upgrade their asset management systems and to implement the safeguards management, especially to implement the Environmental Management Plan (EMP), Community Support Program (CSP) and the Vulnerable Community Development Plan (VCDP), including monitoring and evaluation. The Owner’s Engineer will help NEA establish a Dam Safety Plan as per the Bank’s Dam Safety policy 4.37 which requires an Instrumentation Plan, Operation and Maintenance Plan, and an Emergency Preparedness Plan (EPP). The Owner’s Engineer will also work with NEA to re-establish the proper care and maintenance and recommend any additional instrumentation. The Owner’s Engineer shall inspect existing instrumentation and put back in service what can be made good by resources available on site. The Consultant will also assist in NEA to prepare technical specifications, bill of quantity and cost estimates for any new instrumentation that NEA may need to purchase and help train operators in its use. Furthermore, the Consultant will conduct a Potential Failure Mode Analysis (PFMA) workshop according to the methodology developed by Federal Energy Regulatory Commission (US FERC). Improving Asset Management will include: i) Technical archives and Electronic systems for data storage, retrieval and use to be housed centrally in a newly created cell in NEA head office; Preparation of powerhouse operators' instruction manuals and maintenance guidelines, preferably in Nepali; Adaptation of NEA's existing software to implement computer-based scheduling and recording of maintenance and equipment history, and assisting stepwise integration of these measures to other power-plants; Organization of a central cell for asset management and equipment maintenance; Integration with the Enterprise Resource Planning (ERP) at NEA to include a component on Operation & Maintenance/Asset Management; and Organization of a local as well as central sediment management cell. Safeguard Implementation and Capacity Building. This sub-component will provide technical assistance to NEA in implementing the EMP, the Community Support Program and Vulnerable Community Development Plan. Though no major social issues are anticipated since most of the physical activities will be carried out within the existing plant facilities, this component will provide support should any issue emerge during implementation. This sub-component will support implementation of the CSP, including monitoring and evaluation. NEA’s staff will be trained to increase NEA’s capacity in asset management, dam safety instruments maintenance and use, sediment management, safeguard implementation, and operations and maintenance of specialized fields of electro-mechanical equipment such as governor, hydraulic system, programmable logic controller

11 system, etc. 2.3 Proposed Project Ancillary Facilities The proposed Kali Gandaki ‘A’ Hydropower Plant (KGAHPP) Rehabilitation Project site is located within the territory of the original Kali Gandaki ‘A’ Project and it will not require additional land acquisition on permanent or temporary basis. No new additional ancillary facilities such as access roads, engineer's camps, construction camps, transmission lines and construction power are required. The permanent housing and office facilities available at the NEA camp at Mirmi will be used for the residence and office for construction workforce for the civil rehabilitation works at the headworks. Similarly, the NEA camp and other facilities at Beltari at the powerhouse site will be used for the electro-mechanical works. The existing power supply of the KGAHPP at headworks and power house will be utilized for the required power supply for the civil and electro-mechanical rehabilitation works. The civil rehabilitation works is envisaged to require small quantities of the aggregates and sand, limited to a few hundred cubic meters of concrete which could be sourced from the licensed contractors in the region. Hence operation of a fully fledged quarry site or burrow pits involving explosives are not envisaged. The road rehabilitation works will require gabion works, R.C.C. and stone masonry to be used will be also procured from the regional contractors. The proposed project does not involve major excavation works generating muck as spoil material. The construction wastes of the civil works and electro-mechanical repair and maintenance is small and does not require dedicated areas of spoil and waste management. The original Kali Gandaki ‘A’ Project’s spoil management sites at the headworks and power house will be used and rehabilitated for the small amount of spoil materials and waste generated from the proposed rehabilitation works. The responsibility to take care of the spoil and disposable material shall lie with the Contractor.

2.4 Human Resources Requirement for the Proposed Rehabilitation Works The total workforce requirement for the proposed KGAHPP at the headwork and powerhouse site of the proposed project is about 60, predominantly skilled, but will also involve some semi skilled and unskilled manpower. Most of the un- skilled work force will be hired from the local area.

2.5 Implementation Schedule and Costs for the Proposed Rehabilitation Works The project will be implemented over a period of 40 months at a cost of US $ 29 Million.

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CHAPTER THREE: STUDY METHODOLOGY

The study methodologies adopted for the EA study of the proposed KGAHPP Rehabilitation Project is based on desk study, review of pertinent literatures, field observation by the team of experts, focus group discussion, interaction and consultation meeting with the local communities, stakeholders and the officials of NEA's and GON line agencies. The details of methodologies applied in conducting the EA of the proposed KGAHPP Rehabilitation Project are presented below.

3.1 Impact Screening and Identification Process The GON’s National EIA Guidelines, 1993 provide the standard impact evaluation criteria most widely used in Nepal. Based on the evaluation, each impact was further categorized as per the guidelines as high, medium and low in terms of magnitude; local, site-specific and regional in terms of extent and short-term, medium-term and long-term in terms of duration.

3.2 Project Impact Area Delineation The KGAHPP Rehabilitation Project impact areas have been delineated differently for the legacy and emerging environmental issues of the original Kali Gandaki ‘A’ Project and the environmental issues of the proposed KGAHPP Rehabilitation Project. For the legacy and emerging environmental issues of original Kali Gandaki ‘A’ Project, the impacts zones defined by the KGAHEP EIA report have been taken as the zones of the environmental impacts whereas the impact zones of the KGAHPP Rehabilitation Project have been categorized as Direct Impact Areas (DIA) and the Indirect Impact Areas (IIA) depending upon the nature of impacts.

3.2.1 Direct Impact Areas (DIA) The direct impact areas are those geographical areas where the impacts of the project are due to the direct intervention on the land and other natural resources. Normally, DIA extends within 150m radius of the direct intervention areas. The DIA for the KGAHPP Rehabilitation Project lies within the original Kali Gandaki ‘A’ Project headworks and powerhouse sites.

3.2.2 Indirect Impact Areas (IIA) The IIA of KGAHPP Rehabilitation Project as it relates to the induced effects of the direct intervention at specified locations due to activities of the rehabilitation workforce and/ or alteration of hydrology, water levels, and ecological conditions extends outside the zones of DIA. As per the Environment Protection Rules, such zones have been defined as the boundaries of the Village Development Committees (VDCs) of the direct intervention namely Harmichaur and the Shree Krishna Gandaki VDCs , have been defined as the IIA, though actual geographical coverage of IIA is less than the geographical areas of VDCs.

3.3 Desk Study and Literature Review ESSD started its work by consulting the original Kali Gandaki ‘A' HEP Project safeguards documents. Prior to the original project construction, the following planning documents related to the

13 environmental and social safeguard were prepared in compliance with the ADB/ JIBC and Government of Nepal guidelines and legislative provisions: • Environment Impact Assessment • Mitigation Management and Monitoring Plan • Acquisition, Compensation and Resettlement Plan for Facilities and Access Road All of the documents related to environmental and social aspects of the original KGAHEP prepared prior to the construction, during construction and after the commissioning of the original Project have been collected and reviewed which are referred in the reference section of this report. The primary objective of this review was to understand the key environmental issues identified and considered in the original KGAHEP and the mitigation action undertaken to abate the environmental impacts during the construction and operation periods. Apart from the above review, District profiles of Syangja, Gulmi and Palpa published by the District Development Committees (DDCs); 2011 Census data published by the Central Bureau of Statistics, GON and VDCs profiles were also collected and reviewed to understand the existing development activities across the existing KGAHPP sites and its surrounding areas. To assess the physical environmental conditions of the existing KGAHPP, 1:25000 Topographic maps and the recent Google images were evaluated in conjunction with the information on physical environment presented in the KGAHEP EIA report. General information regarding the forest area, vegetation types, and community forest areas of the district was based on review of District Forest Office publications for the Syangja, Gulmi and Palpa Districts. The fisheries data were largely derived from a review of the EIA report and report published by Nepal Agricultural Research Council (NARC).

3.4 Field Study and Data Collection Field observation and the survey work at the proposed KGAHPP Rehabilitation Project implementation area started in December 2012 by the multidisciplinary team of experts (Annex 3.1). The EIA team visited existing KGAHPP headworks, powerhouse, access road, upstream reservoir, and downstream dam areas. The objective of the field survey works was to establish the environmental baseline vis a vis identify the legacy and emerging environmental issues of the existing KGAHPP. A walkover survey was done along the downstream dewatered region below dam, reservoir area and upstream of the reservoir area to assess the residual impacts of KGAHPP on river morphology, water quality, sedimentation and river erosion and on safety issues. The landslides along the area were observed, sketched and the coordinates were noted from the motor boat in the upstream region of the reservoir. Since the coordinates of the slide area were taken from motorboat the location of the landslides can be considered tentative. Photographs of the slides were taken. Focus group discussions with the local people were done to collect information on the downstream impacts, safety issues due to flushing of the reservoir and transportation activities.Water samples were collected from four sites namely upstream and downstream of the dam and powerhouse. In situ measurements for parameters like pH, dissolved oxygen (DO) and temperature were done. During the field survey, consultation with the concerned stakeholder including chief of the Kali Gandaki Hatchery, local fishermen, Operating engineers of the existing KGAHPP Power Plant, community forest users group etc were accomplished. Field survey also accomplished sampling of fish at six (6) different sites along the Kali Gandaki River using cast net were the main methodology applied for the study. Altogether 200 efforts were made at

14 each site to document fish diversity and density in Kali Gandaki River. The sampling locations were chosen similar to that of KGAHEP EIA (1996) study, Environmental Impact Audit (2003) and monitoring studies conducted for the original KGAHEP Project. Fish species caught at each station were identified, measured and weighed. Standard data sheet was used for data collection. Fish species caught during the field visit at each sampling site were identified using standard method of taxonomy (Jayaram 1981 and Shrestha1994, Talwar & Jhingran 1991). Apart from this, interaction was conducted with the local people of Andhimuhan, Darpuk and Rudrabeni area to collect information about the fish diversity, migration pattern, open water stocking program and other relevant aspects.

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CHAPTER FOUR: LEGAL POLICY FRAMEWORK

The prevailing plans, policies, acts, regulations and guidelines required for the development of the original KGAHEP were reviewed while preparing the present EA report in addition to the guidelines and policies of the World Bank (including IFC). Table 7.1 briefly lists these.

The acts and guidelines listed in Table 7.1 provides overall legal framework for considering environment in any development activity in Nepal. For a new hydropower project, many (not all) provisions mentioned in the acts/ rules listed in Table 7.1 are attracted and applicable. In the case of the proposed KGAHPP Rehabilitation Project, as the proposed activities are confined to the existing premises of the KGAHPP and proposed activities are repair/ maintenance and improvements of the existing facilities, only a few of the provisions are relevant. The most relevant provisions include:

 Environment Protection Act, BS 2053 (1997): Articles 3 and 4 related to IEE/EIA study, and Article 7 related to prevention and control of pollution.  Environment Protection Rules, BS 2054 (1997):Rule 3 and 4 related to environmental screening for IEE/EIA study. Rule 15 related to prohibition on pollution beyond prescribed limits.  Electricity Rules, BS 2050 (1993): Rules 12 (f) and 13 (g) are related to environmental studies.  Hydropower Development Policy, BS 2058 (2001): Related to environmental studies, environmental flow, benefit sharing with local people.  National Environmental Impact Assessment (EIA) Guidelines, BS 2049 (1993): Guideline in conducting environmental assessment, impact prediction etc.  EIA Guidelines for the Water Resources Sector, BS 2054 (1997): Guidelines for the Water Resources sector in 1993 to cover the environmental management of hydropower projects The above rules and guideline were developed at different time period. The Environment Protection Act, 1997 and Environment Protection Rules, 1997 are the umbrella legal tools for environmental management in Nepal, and will prevail in case of any conflict or ambiguity.

Table 7.1: Summary of the attracted legislations, policy, guidelines and international agreements and funding agencies policies

S. Policy Legislations, guidelines and manuals Provision Attracted No. A NATIONAL ACTS A.1 Interim Constitution of Nepal, 2063 (2007) Article 35 (5) related to environment. A.2 Aquatic Animal Protection Act, BS 2017 (1960) Section 5b related to protection to aquatic life A.3 Soil and Watershed Conservation Act, BS 2039 (1982) Article 2 (B), Article 3, and Article 10 related to soil conservation and activities prohibited. A.4 Water Resources Act, BS 2049 (1992) Section 8, Subsection 1 related to pre-project environmental assessment. Section 9, 18, 19 , 20 related to hydropower development and pollution control. A.5 Labour Act, BS 2048 (1992) Related to working standards, prohibition on child labor , working hours and overtime, and minimum wage etc. A.6 Electricity Act, BS 2049 (1992) Section 3 related to license. Section 4 related to mandatory legal process that needs to be followed. A.7 Environment Protection Act, BS 2053 (1997) Articles 3 and 4 related to IEE/EIA study. Article 7 related to prevention and control of

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pollution. A.8 Local Self-Governance Act, BS 2055 (1999) Section 25(e) related to soil conservation. Sections 28 and 189 related to environmental protection responsibility. B NATIONAL RULES AND REGULATION B.1 Electricity Rules, BS 2050 (1993) Rules 12 (f) and 13 (g) are related to environmental studies. B.2 Water Resources Rules, BS 2050 (1993) Rule 17 (e) related to license provisions. Rule 19 related to pre –project notification. B.3 Environment Protection Rules, BS 2054 (1997) Rule 3 and 4 related to environmental screening for IEE/EIA study. Rule 15 related to prohibition on pollution beyond prescribed limits. B.4 Local Self-Governance Rules, BS 2056 (1999) Article - 7 (68) related to the authority of the local governments related to environment. C NATIONAL STRATEGIES/ PLANS / POLICIES C.1 Water Resources Strategy, BS 2058 (2002) Related to the environmental principles related, inter alia, to the integration of ecological aspects at every level of the hydropower development. C.2 National Biodiversity Strategy, BS 2059 (2002) Related to biodiversity conservation, management and sustainable use, including the sharing of equitable benefits derived from the usage of biological resources. C.3 Nepal Environmental Policy and Action Plan, BS 2051 Related to institutionalization of environmental and BS 2055 (1993 and (1998) protection in the development processes. C.4 Hydropower Development Policy, BS 2058 (2001) Related to environmental studies, environmental flow, benefit sharing with local people. C.5 National Water Plan, BS 2062 (2005) Related to environmental studies and protection of aquatic ecology. D NATIONAL GUIDELINES D.1 National Environmental Impact Assessment (EIA) Guideline in conducting environmental Guidelines, BS 2049 (1993) assessment , impact prediction etc. D.2 EIA Guidelines for the Water Resources Sector, BS Guidelines for the Water Resources sector in 2054 (1997) 1993 to cover the environmental management of hydropower projects. E INTERNATIONAL CONVENTIONS AND TREATIES E.1 Convention on Biological Diversity (CBD), 1992 Related to obligations related to the conservation of biological diversity and sustainable uses of its components. E.2 United Nations Framework Convention on Climate Related to adaptation to the impacts of climate Change (UNFCCC), 1992 change. F WORLD BANK OPERATIONAL POLICIES F.1 Operation Policy OP 4.01 and Bank Procedure BP 4.01 Related to Environmental Assessment. F.2 Operation Policy OP 4.11 and Bank Procedure BP 4.11 Related to Physical and Cultural Resources. F.3 Safety of Dams OP/BP 4.37 Related to Dam Safety.

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CHAPTER FIVE: EXISTING ENVIRONMENTAL CONDITIONS OF THE PROJECT AREA

The brief description of the existing environmental condition on physical, biological and social environment of the proposed rehabilitation project area is presented below:

5.1 Physical Environment 5.1.1 Topography and Land Use The Kali Gandaki basin cut across the High Mountain and Middle Mountain Physiographic Zones as it emerges to the project site. The watershed contains different natural zones characterized with different landforms, climates, vegetation and socio-economy. Most of the Kali Gandaki basin is mountainous and the river itself is deeply incised and confined in a V shaped gorge. Elevation range between 400m and 1600m in the project area. The area is geologically young and tectonically dynamic. Around the project site, the hard rock geology is comprised of deeply weathered black phyllite/slate. The soil cover over the hard rock geology is made up of weathered fragments of phyllite rock held in the silty and clayey matrix. The depths of surface and subsurface soils are shallow and vary from 0-15 cms to 15 - 100 cms respectively. The soils are light in texture, mostly ranging from acidic to slightly alkaline and the organic matter content is high. Various type of erosion: sheet, rill, and gully are conspicuous and are often associated with shallow landslides on the steeply sloping land units around the project area. Topsoil erosion is high in the open less vegetated unmanaged agricultural areas due to steep nature of the terrain and has a risk of runoff wash by heavy rains in the monsoon season. The Kali Gandaki River and its tributaries are quite active in cutting through rocks vertically as well as laterally.

Figure 5.1: Google Map showing the Kali Gandaki River Stretch extending from the Dam site to the Powerhouse.

The access road linking the various project sites passes mostly along the East-West ridge and crosses diverse geologic conditions in steep and hilly terrain. The soil along the existing access roads is dominated by colluvial deposits over the phyllite rocks and traverses several areas with prior landslide history. The alignment avoids the large landslide areas downstream of the power plant site. The minimum right-of-way (ROW) of the access roads is 10 m from center line with a total width of 20m. This ROW covers about 1054 Ropanies (about 61.2 ha) of land (EIA 1996).

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5.1.2 Climate and Meteorology The Kali Gandaki basin covers a wide range of climates, and extreme climatic differences occur over short distances. Altitude and local topography exert strong climatic influences. The climate in the project area is subtropical-to-temperate with hot and wet monsoon summers and cool and comparatively dry winters. Temperatures reach about 40oC (maximum) in early summer, and typically do not drop below 10oC during the winter. The monsoon period from June to October contribute 60 to 80 percent of the annual precipitation. Total annual rainfall in the project area is approximately 1500- 2000 millimeters (mm). Annual precipitation in the watershed, however, can range up to 4000 mm.

5.1.3 Watershed and Geology The Kali Gandaki watershed is comprised of the rock formations of the Tibetan Tethys Himalaya, Higher Himalayas and the Lesser Himalayas. The rock formations includes sedimentary, meta- sedimentary to high grade metamorphic rocks. Tectonically, the watershed area is characterized by a number of thrust faults. The most important of the thrust fault is the Main Central Thrusts (MCT) separating the Higher Himalayan high grade metamorphic of the north from the Lesser Himalayan meta-sedimentary rocks of the south. The MCT lies about 75 km to the north of the project site. The rocks of the Tibetan Tethys comprising fossiliferous sedimentary rocks have a tectonic to unconformity contact with the Higher Himalayan high grade metamorphic. The project area is located in the Lesser Himalayan meta-sedimentary rocks. The rocks exposed at the project site are the black to grey phyillite/ slates with interbeds of silicious dolomites: it is locatedbetween the Main Boundary Thrust (MBT) and Main Central Thrust (MCT). The area is geologically young and dynamic. Erosion such as sheet, rill and gully erosion is common and is often associated with landslides on the sloping land around the project area. Erosion rates for the watershed are approximately 4 mm/year, based on sediment discharge for a very wet year with a 1-in-100 year flood event. The total sediment load of Kali Gandaki River is 45 million ton per year (EIA, 1996).

5.1.4 Catchment Area and Slope Stability The Kali Gandaki ‘A’ dam of 44m high has created a reservoir extending 5.3 km upstream with a surface area of 65 ha. Approximately two-thirds of the reservoir was previously riverbed. The reservoir has a capacity of approximately 7.7 million m3. The reservoir operating level is kept at the 518m during monsoon and is operated as run-of-river plant. During the dry season, the project operates as a peaking facility and the reservoir operating level is kept close to 524m with drawdown occurring twice a day, water levels fluctuating between minimum operation level 518m to full supply level 524m. During the field visit it was observed that approximately 500m upstream of the dam forest and bushes were seen on the lower slopes of both the banks which was followed by cultivated land on the right bank and dense forest on the left bank (Khabar community forest) further upstream. At some stretches of the reservoir, river banks on the upper slope were bare and exposed with no vegetation. Shorelines erosion upstream of the reservoir and particularly just upstream of the dam along the access road on the left bank has been observed. Whether such erosion is related with the daily fluctuation on the reservoir water level or not are not fully understood. The landslide on the left bank upstream intake across the access road close to the confluence of the Kali Gandaki and the Andhi Khola rivers (Figure 5.2) was first noticed in 1998, which gradually was activated in the subsequent years with a major movement in the monsoon of 2011. Recent geological and geo-technical investigations (Richards, 2012) on the landslides notes that the inferred breakout of the slide is above the top lake level and

19 therefore not significantly affected by changing water levels, however, requires further investigations in future.

Figure 5.2: Area of landslide

It was observed and reported that the shotcreted area on the left bank of Kali Gandaki River at Andhimuhan is being borrowed by the locals and the extracted materials are being sold. Similarly, on the left bank near the Bailey bridge, boulders are being extracted and being used for construction purposes by the local people which may later have an impact on the foundation of the bridge. It was seen that the operator of the motor boat was hitting the left bank of the river to halt the boat which has apparently led to the sliding of existing gabion walls. During the field visits on Dec 2012, the rural roads being constructed on both the banks of the Kali Gandaki River were observed to be contributing a lot of sediments to the Kali Gandaki reservoir through unplanned dumping of soil, and landslides and erosions that might have been triggered by the road construction activities. The sediment coming into the reservoir upstream of dam could deteriorate the performance of the headworks in future and also reduce the volume of the reservoir.

5.1.5 Hydrology and Sediments

Basin Characteristics. Kali Gandaki is a major tributary of Sapta Gandaki River located in the Western Region of Nepal. The river originates from the Tibetan Plateau at an elevation above 6,000m and drops to the elevation of about 500m at the project site. The river flows across the Himalayan Range creating a world’s deepest gorge between the snow peaks of Mt. Dhaulagiri and Mt. Annapurna. In its southern course in the Lesser Himalaya it joined by a number of tributaries originating in the southern slopes of the Higher Himalayas such as Myagdi Khola, Modi Khola, Seti Khola, and Andhi Khola as it emerges to the project site. The total length of the river up to the project site is 200 km. The catchment area at the dam site of KGAHPP is around 7,618 km2. Because of the topographic features and the exposition to the monsoon, precipitation varies greatly in the river basin. The upstream part (north of Himalayan Axis)) of Kali Gandaki has very low precipitation, while the downstream part (south of the High Himalayan Axis) receives considerably higher amounts. The strongly varying meteorological conditions within the basin are reflected in significant differences between specific runoff volumes in the upper and lower parts of the river basin.

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Snow storage and snowmelt are important features at higher altitudes in the upstream part of Kali Gandaki. The project site is situated in the lower reaches of the river experiencing the tropical climate having characteristics dry/cold winters and wet/hot summers.

Stream Flow Gauging Stations. The Department of Hydrology and Meteorology (DHM) has established six stream flow gauging stations in Kali Gandaki River upstream from the dam site of KGAHPP. In addition, Nepal Electricity Authority (NEA) has also established a gauging station at the dam site in the year 1993. There are four gauging stations established by DHM in tributaries namely Badigad, Myagdi Khola, Modi Khola and Andhi Khola located upstream of the dam site (Table 5.1).

Table 5.1: Stream flow gauging stations located in Kali Gandaki River

Drainage Area, Average Flow, Station Index Station Name Period of Record Km2 m3/s 403 Kali Gandaki, Jomsom 3,034 32.30 2001-2007 403.2 Kali Gandaki, Syangja 3,176 35.40 2001-2008 403.4 Kali Gandaki, Tatopani 4,019 87.63 2004-2008 410 Kali Gandaki, Setibeni 7,130 279 1964-1995 NEA Kali Gandaki ,Dam Site 7,618 297 1993 49.1 Kali Gandaki, Ansing 10,200 429 1996-2006 420 Kali Gandaki, Kota Gaun 11,400 443 1964-2006

Hydrological Data. The mean monthly flows of Kali Gandaki River at the KGAHPP dam site based on daily measurement records are given in Table 5.2.

Table 5.2 Mean Monthly Flows at KGA Dam Site (m3/s)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 63.8 56.7 58.0 74.2 104.9 306.1 832.0 914.9 637.6 293.8 133.7 83.6

The mean annual flow is 296.6 m3/s. The estimated floods of Kali Gandaki River at the KGAHPP dam site are given in Table 5.3.

Table 5.3: Estimated Flood Values at KGA Dam Site (m3/s) Return Periods in Years 2 10 20 100 1000 10000 PMF Flood Discharge 2,260 3,310 3,740 4,770 6,400 8,260 12,000

The KGAHPP diversion structure is classified as intermediate size with low hazard potential. Based on the US Army Corps of Engineers guidelines, the recommended design flood could be from 100 year to 1/2 PMF flood. The hydraulic design of spillway is carried out for 6,400 m3/s, which corresponds to 1,000 year flood at the dam site. The selected flood is slightly higher than that half of the PMF flood.

Sediment Data. Sediment transport and the heavy sediment load is a natural phenomenon in the Himalayan rivers, including Kali Gandaki. Given the sediment conditions in the river, regular and periodic repair and maintenance are curing need for the KGAHPP. Opening of village level motorable roads along the either banks of the Kali Gandaki in the reservoir and upstream section in the recent years have added a new dimension in the reservoir sedimentation. The ill managed earthen roads are the

21 prime site of erosion and increasing reservoir sedimentation during the monsoon season. The emerging towns and villages on the banks of the Kali Gandaki and Andhi Khola rivers also contribute to the floating debris consisting of household garbage such as plastic and paper that clog the trash rack of the Kali Gandaki plant. The sediment sampling at the dam site of KGAHPP has been carried out regularly by NEA. The typical suspended sediment concentration for different rive discharges for the year 1993 measurement is given in Table 5.4. Table 5.4: Suspended Sediment Concentration at KGA Dam Site (ppm)

Discharge, m3/s Sand Fine Total 40 5 15 20 75 10 20 30 125 20 220 240 200 160 740 900 300 625 1,675 2,300 500 1,450 2,300 3,750 800 2,250 2,850 5,100 1,200 2,600 3,500 6,100 2,000 33,200 4,500 37,700 5,000 4,500 6,500 11,000

Sedimentation measurements in the reservoir section of the Kali Gandaki show that the reservoir has lost about 4 million m3 in 10 years of operation which is about 51% of the original capacity of the reservoir and 7 % of the total live storage capacity. Thus sedimentation in the reservoir has depleted the reservoir volume, and in turn reduced the peaking capacity causing buildup of sediments along the river channel. This phenomenon can adversely affect the intake weir that controls the sediment entry with the power flow, and access to the Holy Stone in Setibeni. Such sediment build up in the reservoir is related to the non-compliance with the draft operational manual which mandates flushing of the reservoir to lower the river bed. Such flushing operation for three days has been envisaged to lower the river bed level up to the religious site.

5.1.6 River Water Quality The diversion of river has created reduced flow stretch of 13-km between dam and the confluence with the major tributary, the Badigad River. To maintain the water quality as well as the other ecological functions of the river in the dewatered zone, the EIA of original KGAHEP recommended a continuous flow of 4 m3/s, particularly during dry months, for the operation period. Though there were no systematic monitoring records of the environmental flow measurements at the dam (something that needs to be done in the future), during the field visit it was observed that there was considerable flow in the river stretch (more than the quantified riparian release of 4 m3/s ) mostly contributed by leakages from the gate. Due to water regulation for power generation there are no noticeable changes in the water quality in the downstream region as well as in the upstream reservoir areas. As the project operates in daily peaking mode with low retention time the changes in the water quality is low. The in-situ measurements of parameters like pH and DO revealed that the operation of the project has not degraded the river water quality. The analytical results from the laboratory depicts that the there is very less changes in the river water quality except for fecal coli form. Fecal coliform was detected in all four samples indicating that

22 water is being polluted from open defecation, dumping of waste into the river, and runoff from the surrounding watershed etc. It was interesting to note that the fecal count was less from the sample collected in upstream and downstream of the powerhouse which may be due to dilution of the river from other tributaries. The count was more in the upstream of dam and dewatered section which may be due to the run- off from the surrounding watershed and low flow in the dewatered section etc. Specific conductivity was far below the NDWQS permissible level indicating that dissolved ions in the water were less. The values were all same for four samples indicating that wastes are not being diverted into the stream. An abrupt change in conductivity indicates that water or wastes are being diverted into the stream from a new or polluting source. Similarly, analytical values for sulphate, phosphate are all within the permissible value indicating that the river water has not deteriorated from project operation. Water quality results are presented in Annex A, Table I: Field Measurements. However, during the field visit it was observed that dumping of solid and liquid waste from the surrounding areas into the reservoir was being practiced. The transportation facility consisting of motor boat in the reservoir area has also, to some extent, contributed in polluting the river water quality. The greases from motor boat, tossing of solid waste (plastics, food materials) by the passengers into the river has aesthetically degraded the river water quality.

5.1.7 Siren Warning System The existing safety siren system currently is inefficient and ineffective. The local people of Kotakot VDC of Syangja and Aslewa VDC of Gulmi of downstream area informed that the siren system is inaudible. The local people even cited several incidences when local people and properties have been washed away due to sudden release of discharge from the dam indicating the inefficiency of the installed siren system. The local people complained that no prior notification through siren sounding has been so far done while releasing the peak flow and while flushing the desander, downstream of the powerhouse and dam site respectively. However, the engineer informed that the gate opening was done slowly step by step to avoid the sudden rush of flow and maintain gradual flow of water.

5.1.8 Riparian Release The diversion of water through the headrace tunnel has resulted in the reduction of water flow along a 45 km long river stretch. However, at 13 km downstream of the dam Badigad river joins the Kali Gandaki River. Similarly, Ridi Khola joins the Kali Gandaki River 6 km downstream of Badigad confluence. As a mitigation measure for the above mentioned impact, a release of a compensatory flow (riparian flow) of at least 4 m3/sec during the dry season was proposed in the EIA study of the original KGAHEP. During the field visit in December 2012 it was observed that the riparian release was probably higher than the required discharge of 4 m3/s from the dam. However, no measurement was conducted for verification. The officials at the site informed that increased amount was due to the leakages from the gate which was being repaired. Although the minimum riparian release is 4 m3/sec from dam, the flow is not continuous throughout the dewatered stretch. Several stagnant pools were observed along the 13 km stretch especially up to Badigad confluence where the river meanders. Sand deposits were seen along the reduced flow stretch especially at turning point and low gradient river stretch. Islands were not seen.

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5.1.9 Ambient Air and Noise Quality The ambient air quality in the project area is good except for intermittent dust pollution from the plying vehicles. There are few public transports which operate up to Mirmi village. There is no pollution from other industries and transport. As the traffic of motor vehicles is limited, there is no impact on air quality. The project is located basically in a rural area, far from the urban area and industrial activities. The ambient noise level of the project area noise is the natural background of the environment and is envisaged to be below 50 dBA. The baseline sound emissions are mainly from the running river, motorboat and NEA vehicles in the core project area (dam site).

5.2 Biological Environment The project site lies outside the geographical limits of the declared national parks and conservation areas of Nepal. Figure 5.3 presents the location of the project in relation to the national parks and conservation areas.

Figure 5.3: Project location in relation to protected areas

5.2.1 Vegetation and Forest Resources The natural vegetation of the existing KGAHPP area surroundings resembles the transition of tropical and sub-tropical forests. Land Resource Mapping Project (LRMP, 1986) classified the project area into two main groups: Tropical mixed hardwood forest and shrubby vegetation with regenerating trees. At the beginning, the original KGAHEP area (16,880 ha) consisted of 6,085 ha of forest i.e. approximately one-third of the total land area (EIA, 1996). As a result of harvesting practices and population pressures, primary (old growth) forest was limited to steep, almost vertical and inaccessible area in the

24 river canyon. The distribution of vegetation communities found in the vicinity of the existing dam site, power plant site, and transmission line (TL) line were:aquatic communities,Sal forest, Mixed hardwood forests, Mixed hardwood and Pine forest, Khair forest (subtropical riverine forest), and Open shrub and grass land The plant diversity in the existing KGAHPP surrounding area is high with an estimate of more than 500 plant species recorded in the dam, power plant, and access road sites (Norconsult 1993, EIA 1996). The dominant species found in the KG A HPP area were Sal (Shorea robusta), Khair (Acacia catachu), Chilaune (Schimawallichii) and Ficus sps. Original KGAHPP Project EIA annex 2.1-2 provides the list of the species found in the KGAHPP area. EAST consult (1992) reported that more than 100 species in the dam, power plant and access road have important economic value. Chutro (Berberisasiatica), Tooni (Cedrelatoona), Sunava (Epipactis spp.), Bakaino (Meliaazedarach), Sal (Shorea robusta), Barro (Terminaliabelerica) and Harro (Terminaliachebula) were the listed species found in the original KGAHEP Area during EIA study of 1996. The project activity sites of the proposed KGAHPP Rehabilitation Project are located within the built up areas of the original KGAHEP and are devoid of vegetation cover.

5.2.2 Wild Fauna The existing KGAHPP area hosts a variety of habitats and niches typical of tropical and sub-tropical ecosystems with an altitudinal variation from 480m to 2,100m. Twenty species of mammal and 146 species of bird with a rich diversity of herpetofauna (reptiles and amphibians) were found in the project area (EIA 1996). Out of the existing animals, altogether 14 animal species (mammal, bird and reptile), having national or international significance exist in the project area. Out of 14, nine species (6 mammals, one bird and 2 reptile) were listed as CITES – I (threatened with extinction) and five species (3 mammals and 2 birds) as CITES – II (not yet threatened but that could become endangered). The details of the species with their scientific names can be obtained from project EIA report 1996. The proposed KGAHPP Rehabilitation Project area is devoid of wildlife habitats as the project activity sites of the KGAHPP Rehabilitation Project are located within the built up areas of the existing/original KGAHEP.

5.2.3 Fish

Present Status of Fish Diversity and Spices Density in Kali Gandaki River. The fish sampling result shows that overall fish diversity is maintained in Kali Gandaki River and none of the species eliminated from the river system due to construction of the original KGAHEP. However, the species density is reduced at some localities especially in dewatered zone. Altogether 20 pools of different size are found in the reduced flow stretch and the presence of fish is noted in pool section of the river only.The present status of fish in Kali Gandaki River at different sampling site compared to previous studies is presented in sections below. Although, the presented data is not fully comparable with the previous observations, this however gives an overall/indicative comparison only. This is due to differences in sampling period at different phases of study. Since location and sampling method (gears, number of efforts) is similar, the data presented in Annex A, Table II to VI give an indicative picture regarding fish diversity and species density.

Kali Gandaki at Setibeni (Upstream Area). Nine species of fish was recorded from this station at different level of studies. Twenty four fish of 4 species were recorded at this location during original

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KGAHEP Project’s EIA survey (Sep-Oct 1993) whereas 6 fish of 5 species were caught during environmental audit study (2003). The environmental monitoring conducted in 2005 document the presence of 9 fish of 3 species whereas 9 fish of 4 species are recorded during present survey (Table II in Annex A). The fish density declined in comparison to the baseline data of 1993. However, both diversity and density is maintained since 2005.

Dam and Upstream of Andhi Khola. Nine species of fish was recorded from this station by different studies carried out in different times. Forty-seven fish of 7 species were caught in the original KGAHEP Project’s EIA survey (Sept-Oct 1993) where as 3 fish of 2 species was recorded in Environmental Audit Study 2003 (Table III in Annex A). The present survey documents the presence of 24 fish of 4 species. The study shows that fish diversity and density both increases in reservoir area and immediate upstream of the Andhi Khola reservoir section. The presence of Snow trout is not noted in this section after creation of reservoir.

De-water stretch of River (Dam to Rudrabeni, 13 km). Four species of fish was recorded from this station by different studies. The species diversity and density both declined in this stretch of river due to existing KGAHPP Project operation. Altogether 20 pools consisting 14 large sizes and 6 small sizes are found in this stretch and the presence of fish is noted in pool section of the river only. The observed pools are located just below the existing belly bridge at Mirmi, Ding Khola confluence area, Pandi area and Aslewa area. The important species such as River Carps and Copper Mahseer found in previous survey is not noted during present study (Table IV in Annex A).

Reduced Flow Zone (From Rudrabeni to Powerhouse). The species diversity has been high at this station where 16 species was recorded in August and Sep-Oct months by different studies. Thirteen fish of 7 species is recorded during the present survey (Table V in Annex A). Species diversity and density both declined at this station during present survey with respect to previous studies. The reason might be the high man made disturbances in Badigad Khola and increased fishing pressure in this stretch of river.

Powerhouse and Immediate Downstream. Eight species of fish was recorded from this station by different studies. Present survey show that the species diversity is similar with respect to previous studies whereas density is slightly reduced (Table VI in Annex A).

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CHAPTER SIX: ANALYSES OF ALTERNATIVES

6.1 No Project Scenario This KGAHPP Rehabilitation Project is highly time-sensitive for Nepal as the powerplant runs the risk of further damage which would potentially increase unplanned outage, reduce annual generation and increase risks of catastrophic event. Furthermore, in the absence of rehabilitation and of the proactive sediment management program brought in by the project, operations will become increasingly disrupted, if not and subject to much greater risk of a catastrophic failure. The no-project scenario would avoid the minimal impacts of the KGAHPP Rehabilitation Project described in Chapter Seven of this report but would have other local and global environmental potential impact described below. Given the current energy crisis and load-shedding in Nepal, the annual electricity generated by the existing Kali Gandaki ‘A’ Hydropower Plant is critical as it represents 50% of NEA’s annual electricity. In this context, NEA would try its best to recover any generation lost due to outage or catastrophic event at Kali Gandaki from another generation source. Nonetheless, no other existing generating asset matches the 144 MW capacity of the existing KGAHPP, nor is there a project of this size expected to be commissioned soon in the coming years. Therefore, Nepal would have to rely on increased imports of coal-based power from India or local diesel generation. Both diesel-based self-generation and imported coal-based generation would produce Greenhouse gases (GHG). These avoided emissions of the project were taken into account in the economic analysis. In the case of diesel self-generation, the relevant emission factor is 0.686 kg CO2/kWh, reflective of oil combustion in diesels. In the case of coal base load power in India, the total losses between the generation point in Bihar and Nepal is 9%, and therefore for calculation of the avoided GHG the displaced energy at the generation bus bar in Bihar increases to account for the transmission losses. The emission factor for coal is taken as 820 gm/kWh. Emissions from diesel self-generation are highly damaging to human health. Emissions occur at ground level in densely populated areas and without emission controls: particulate emissions are particularly damaging. The impact of kerosene use for lighting in confined indoor spaces is comparable to that of smoking. Moreover, in addition to the problems associated with kerosene combustion to produce light, the simple wick lamps used by poor households are a major source of accidents and fires.

6.2 Analyses of Rehabilitation Alternatives Based on advice from international consultants, a physical model of the Kali Gandaki headworks (Figure 6.1) at a scale of 1:40 was constructed in Kathmandu (Figure 6.4) and hydraulic model studies were performed. Based on the preliminary review, the following main areas for improving performance of the headworks were identified: i) by improving the intake hydraulics which in turn would improve the performance of the settling basins with respect to their ability to trap suspended sediment and thus reduce the amount of sediment which is passed on to the turbines; ii) by making the trash passage system more effective, it would help in reducing the amount of trash entering the intake. Such improvements would help to improve the overall performance of the intake and settling basins and also to reduce the head-losses at the headworks; iii) modify the reservoir operation strategy which could potentially increase the power generation. Hydro lab suggested various alternatives to improve the hydraulic performance of the headworks. These alternatives were carefully selected with the view of setting aside relatively shorter time for implementation in the prototype, and thus reducing the shutdown time. Modification B2 (Figure 6.5) comprised of a siphon type forebay inlet arrangement which draws water over the existing forebay wall. The minimum reservoir operating level was proposed at an elevation of 521m. In a second alternative

27 termed as C2 (See Figure 6.6), the existing forebay wall was trimmed down by 3 meters to maintain the water level at 518m as prescribed by the original designers. HEC RAS model tests supported this alternative as the water levels would not pose a threat of increased flooding in Setibeni 5.5 kms upstream. NEA will recruit an international firm in the first year of the project implementation to verify the alternatives and prepare a detailed design, bidding documents and assist in procuring the most qualified contractor to carry out the work.

Figure 6.1 Distorted Google map showing the reservoir Figure 6.2 Setibeni and Holy Stone (Kali Gandaki is stretch from the damsite up 5.5 km to Setibeni flowing right to left)

Figure 6.3 Kali Gandaki headworks prototype. Figure 6.4 Kali Gandaki headworks model.

Figure 6.5 showing Alternative B2 featuring a curtain wall to Figure 6.6 showing Alternative C2 (right) deflect floating debris away from the trash rack at the intake. showing the existing wall trimmed down by 3 meters up to elevation 516.

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CHAPTER SEVEN: IMPACTS ASSESSMENT AND MITIGATION MEASURES

This chapter will present the environmental impacts and mitigation measures identified, following the approach explained in Chapter one:

 Key Outstanding environmental issues from the original KGAHPP, based on the implementation and monitoring work of Asian Development Bank.  Newly emerged environmental issues in the area of the existing KGAHPP.  Expected impacts of the proposed KGAHPP Rehabilitation Project for which this EA is conducted.

7.1 Key Outstanding Environmental Issues from the original KGAHPP Based on discussion with NEA, on public consultation/focus group described in Chapter 8, on review of the documents of the original construction and the Project Completion Report, ADB, 2004, and on site visits of environmental experts, the outstanding environmental issues described below were identified and mitigations measures were proposed.

Issue # 1: Insufficient Environmental Flow and Additional Flow for Religious Purposes The EIA of the original KGAHEP envisaged two modes of riparian release of water in the dewatered stretch of the Kali Gandaki downstream dam. The release of 4 m3/s is a continuous release to maintain the ecological and downstream user needs in the normal period, while additional 2 m3/s was to be released during the major festivals period for religious observation. Though the 4 m3/s of water was observed during the field visits in the dewatered stretch, there were no records of monitoring of the water release documented neither at the headwork site. Local people also complain that the additional water release was not observed as promised in the pre-construction consultation meetings conducted by the Kali Gandaki ‘A’ HEP. The impact of not complying with the EIA water release on the aquatic ecology and the community water uses of the downstream areas.

Mitigation The KGAHPP Rehabilitation Project will have a discussion with the NEA management to ensure the followings apart from technical and financial support:

 Water release provisions of the original KGAHEP Project’s EIA (1996) will be observed at all time by the dam operation management.  Installation of charts for monitoring downstream flow releases will be maintained at all times at the headwork and central office.  As per the provision, the 2 m3/s will be released during the major religious festivals as mentioned in Environmental and Social Operation Manual of the KGAHPP.

Issue # 2: Landscape restoration at former contractor camp and disposal site of the KGAHEP. A camp for the project civil contractor, Impregilo, was established at the permanently acquired land at Mirmi in Shree Krishna Gandaki VDC. This camp was abandoned by the contractor upon completion of the project. Now, the camp made of pre-fab materials remains in adverse condition. This camp looks

29 like a ghost camp and has negatively affected the aesthetic beauty of the area. This is a non-compliance issue regarding the demolition and rehabilitation of the facilities sites used by the contractor. The disposal site of the original KGAHEP construction was located at Thulobagar near the powerhouse area at Shree Krishna Gandaki VDC of Syangja District. This site has not been cleaned and restored after the completion of construction. It is a non-compliance issue of the site clearance and rehabilitation to the near pre-project condition by the contractor. Altogether total of 23 containers are still at the site. Out of total containers 18 were kept outside the fenced area on the left bank of the Kali Gandaki River. All of these containers lying outside the fenced area contains fiber steel. The doors of most of the containers were open and packets of steel fibers were exposed and dispersed around. A hoarding board is still placed outside the fenced area of the disposal site making people aware about the potential hazards of the disposed waste. Apart from the waste containers, unused tyres, drums with grease, empty drums, ribs for tunnel, rods, empty gas cylinders, prefabricated concrete structures, cement bags, empty bottles, etc. were seen stored at different places inside camp. Similarly, electronics waste, computer parts are also seen stored at the existing powerhouse site. The above wastes, especially the lubricants, are reported to be washed out annually in rainy season contributing water and soil pollution of Thulobagar area. This is a matter of concern to the health of aquatic ecology as well as to the community health of the surrounding areas.

Mitigation This issue was discussed with the existing KGAHPP officials and the NEA management. NEA has expressed commitment that the existing structures of the camp will be demolished and site will be rehabilitated as to the required standard to enhance the site beauty. NEA official state that the rehabilitation works will be undertaken after finalization the issue with the contractor (Impregilo) who built the original KGAHEP Project. NEA has expressed commitment that the disposal of surplus construction materials and solid wastes will be properly disposed off after finalization of issue with the civil contractor. To speed up the rehabilitation works of the camp site the proposed KGAHPP Rehabilitation Project will undertake the followings.

 Set the schedule of the demolition and rehabilitation works with NEA.  Ensure that the scraps and demolition wastes are disposal properly.  Ensure that the site is landscaped and maintained to blend with the surrounding environment.

Issue # 3: Continued support for the fish hatchery and fish trapping and hauling program The Kali Gandaki ‘A Fish Hatchery was built to mitigate the impacts on aquatic life associated with the construction and operation of the original KGAHEP dam. The Fish Hatchery was designed to produce 0.7 million fingerlings of targeted species annually. The concept of hatchery design was to implement capture and hauling program parallel to minimize the requirement of brood ponds as well all to facilitate the upstream migration for those species for which breeding technology is not available. The Kali Gandaki Fish Hatchery was also anticipated to research on breeding technology of other mid-range and long distance migratory fish found in Kali Gandaki River for which breeding technology is not developed. The hatchery suffers from the following problems: i. Fine sediment contain in Water Supply to Fish Hatchery ii. Production of the Target Fish Species and release to the River iii. Trapping and Hauling Program iv. Fish Monitoring

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Mitigation i) Fine sediment contain in water supply to fish hatchery. To minimize or/ mitigate the fine sediment contain in water supply, alternative source of water supply will be explored and regular cleaning operation of the deposited silt in the reservoir tanks and fish ponds will be done. Water quality will be regularly monitored and documented. ii) Production of the target fish species and release to the river. The following will be done:

 Hatchery will be operated at its full capacity with due emphasis of breeding and rearing of targeted species.  Hatchery will also focus on research of breeding technology of other commercially important species found in Kali Gandaki River.  NEA will allocate regular budget required for hatchery operation to meet the mitigation objectives.  NEA will consider for long term MoU to be signed with NARC or any other parties defining the production goal and targeted species.  The release of fingerlings will be done upstream of the reservoir (Kusma area) in flowing condition rather than in stagnant water.  Project conduct following activities to improve the Hatchery Complex and to meet the production needs for open water fish stocking: o Construction of 3 nursery ponds with water surface area of about 750 square meters. o Feeding canal (water supply canal) 100m. o Water outlet canal 100m. o Galvanized wire fencing of additional ponds. iii) Trapping and Hauling Program.

 Trapping and hauling program will be reviewed for lesson learned and further action.  The Hatchery operation and the trapping and hauling program will be tied together and contracted out to NARC or other private party to avoid conflict and strengthened the hatchery operation. iv) Fish Monitoring.

 ESSD will carry out the all seasons (12 months) monitoring of fish population and species diversity in Kali Gandaki River at various 6 locations) and its review will be initiated to document the status of fish in the river and for further action.  Based on the monitoring and review, the effectiveness of the hatchery and open water stocking and trapping and hauling program will be evaluated to draw an adoptive management strategy and programs in future.

Issue # 4: Strengthening of Siren Warning System There is a provision for siren warning system as per the recommendations made in the original KGAHEP Project’s EIA (1996). The existing safety siren system is currently inefficient and ineffective. The local people of Kotakot VDC of Syangja and Aslewa VDC of Gulmi in the downstream area informed that the siren system is inaudible. The local people even cited several incidences when local people and properties have been washed away due to a sudden release of discharge from the dam indicating the inefficiency of the installed siren system. This is an issue of disregard of monitoring of the established system in the operation period by the existing KGAHPP operation management and is a risk to the community safety living in the dewatered stretch of the river below dam.

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Mitigation The KGAHPP Rehabilitation Project will discuss the matter with NEA and will ensure the followings:

 The existing siren system will be strengthened in such a way that the people living in the dewatered stretch of the Kali Gandaki river below dam will be warned of any sudden water releases.  Monitoring of the siren system functioning will be regularly carried out by the dam operation management and the results of monitoring will be properly documented. Monitoring personnel, a mid-level environmental monitoring expert, will be positioned at the dam site as a staff of the dam operation management to monitor the environmental and social issues of the dam including siren system on a routine basis.

7.2 Newly Emerged Environmental Issues in the area of the Existing KGAHPP

Issue # 1: Sedimentation impacts and water levels at Setibeni Since the project started its operations in 2002, the river channel in the upstream reach of the reservoir where Setibeni is located, is accumulating sediments due to backwater effects of the reservoir. The original designers anticipated that the elevated water level would cause aggradation of the river channel upstream of the dam and adversely affect the Holy Stone at Setibeni where the aggradations can interfere with the access for people who visit the temple. This is mentioned in the Draft Operation Manual, 2001. Subsequently, bathymetric data collected by NEA documents that sediment deposition near Setibeni has increased the river bed elevation by approximately 3 meters since the dam operation in 2002. The historical pattern of sediment deposition documented by the NEA cross sections suggests that sediment accumulation is continuing. Studies2 show that continued sedimentation of the river bed in this area will increase future flood levels. This is not surprising as the original Draft Manual for Kali Gandaki from May 2001 mentions the channel bed aggradations phenomenon at the Holy Stone in Setibeni. In fact, the original designers designed the sediment handling at the KGAHPP with three main objectives: i) to control sediments entry in the headrace tunnel leading to the powerhouse, ii) control the bed level at the intake weir, and iii) control the water levels at the Holy Stone. For this reason the operating level of KGAHPP during the dry season was fixed at 518 meters to avoid excessive sediment buildup in the reservoir3. It is precisely for this reason that NEA has opted not to change the operating levels in the proposed rehabilitation project.

Mitigation Kali Gandaki as any Himalayan river carries huge amounts of sediments and floating debris during the monsoon season. The original designers of KGAHPP had mentioned in the Draft Operation Manual that if the expected bed level at the Holy Stone was too high or the water level at the Holy Stone during the dry period was above the provided access, the possibility of lowering the bed level to acceptable limits by operational measures such as periodic flushing of the reservoir should be explored. Contrary to these recommendations, the reservoir has rarely been flushed. Measurements show that the KGAHPP reservoir has lost about 4 million m3 of storage capacity in 10 years of operation which is about 7 % of the total live storage capacity. The original designers estimated that flushing the reservoir

2 Hydraulic Analysis of the Impact of Proposed Headworks Modifications, Kali Gandaki Dam, Nepal, Nov 2012, GM Engineering COOP. 3 NEA, Kali Gandaki A, Draft Operation Manual, K Mahmood, D Shrestha, May 2001, Pg 14

32 to lower the river bed all the way to the religious site takes no less than 3 days without generation. Given the current load shedding of up to eleven hours per day, at present, in Nepal, stopping the plant for 3 days for sediment flushing is not permitted by the Load Dispatch Center of NEA. In order to identify the long term sedimentation effects on the reservoir and the river channel and possible remedies to reduce the sediment load, detailed studies needs to be carried out. Therefore, the proposed KGAHPP Rehabilitation Project will finance i) procurement of state of the art laser guided systems for Real Time Sediment Monitoring to collect comprehensive data on reservoir sedimentation, ii) an international firm to help NEA design a sediment management program including a suitable watershed management program and a sediment guided operations strategy for Kali Gandaki.

Issue # 2: Landslide on the Access Road to Dam The road that provide access to dam has been affected by the landslide near the intake area. The land slide first appeared in 1998 and show major movement in 2011. There is no other alternative access road to the dam. This road also providing transportation facilities to the VDC located on right banks of the Kali Gandaki River in the downstream of dam.

Mitigation The landslide is under investigation for the cause of the landslides. Final assessment will provide the details of the mitigation for the landslide stabilization. The preliminary investigations conducted by Richards (2012) recommend specific mitigation actions consisting of constructing stepped gabion wall, installing surface water control measures and conducting further detailed investigations for permanent works. The proposed KGAHPP Rehabilitation Project will fund the necessary works for stabilize the landslide.

Issue # 3: Catchment Area Watershed Management Sedimentation of the reservoir is one of the burning issues faced by the existing KGAHPP. Despite limited sediment flushing, contrary to the operation manual suggestion, the KGAHPP has been able to sustain it live storage with a 7% reduction in volume over the past ten years. If all the sediments brought by Kali Gandaki River were to be deposited in the reservoir, the reservoir would have been filled within a year which has not happened. Therefore, the reservoir is possibly functioning as per the design expectations. Full flushing operation would have further improved the situation. The sediments in the reservoir are transported from the catchment area. The problem in the reservoir sedimentation seems not to be the finer sediments but the coarser sediments of size larger than sand. As the coarser bed load of the river is dumped at the anterior end of the reservoir when the river velocity is checked by the stagnant water conditions of the reservoir, the sediment building is high in these areas. The flooding risk to the Setibeni might be related with this change in the river bed level. Besides, within the reservoir limit the new opening of earthen motorable access roads through haphazard construction and operation (through the use of bulldozers and excavator) have also added coarser sediment to the reservoir during road opening and subsequent monsoons runoff in the form of small slumps, slides and debris flows. The sediments into the river are the result of a number of anthropogenic activities (agriculture, deforestation, cattle grazing, and infrastructure development such as roads) and the naturally occurring or human influenced mass wasting in the river catchment. The extent of such activities in the catchment greatly increases the sediment load into the river. The original KGAHEP’s EIA study (1996) has a

33 limited focus on the watershed management to minimize the sediment load into the Kali Gandaki River and then into the KGAHPP reservoir. As a result, there is little effort from the original KGAHEP in the watershed management. Further, it is also not known which part of the Kali Gandaki catchment is contributing higher sediment load into the river. The proposed KGAHPP Rehabilitation Project EA study observed degradation of the catchment in the immediate vicinity of the reservoir which includes deforestation, heavy grazing, and excavation of earthen, often non-engineered roads construction by local authorities or by users through the use of bulldozer and excavator in haphazard manner is contributing to the sediment load in the reservoir.

Mitigation For the sustainable operation of the KGAHPP, there is a need to control the sediment load into the river from the basin catchment. This mandates first to understand the critical section of the basin contributing high sediment load and second to develop strategy for the watershed management in the critical areas. This includes raising awareness with concerned authorities about the adverse consequences and risks of haphazard dumping of spoil into the Kali Gandaki and Andhi Khola Rivers in the vicinity of the reservoir. As stated above, a consulting firm will help NEA design a sediment management program including a suitable watershed management program which will look at the following options:

 Afforestation of the degraded areas in the immediate vicinity of the reservoir flanks in coordination and active participation of the local communities and local government (VDCs/DDCs).  NEA will coordinate and actively follow up with the concerned authority to minimize and mitigate landslides and erosion in the immediate vicinity of the project reservoir due to haphazard dumping of soil from the road.  The Project will co-ordinate with local bodies for mobilization of royalty for the above action of afforestation.

7.3 Potential Impacts of the Proposed KGAHPP Rehabilitation Project for which this EA is Conducted Existing KGAHPP is a run-of-river hydropower plant with six hours of daily peaking capacity. Originally, the plant was largely funded by the Asian Development Bank (ADB) and Japan Bank for International Cooperation (JBIC) and commissioned in 2002. This important plant is currently facing lower availability of generation capacity from erosion and cavitation from sediments leading to severe damage to its power generation equipment and safety management issues. The Government of Nepal requested the World Bank to finance the rehabilitation of the KGAHPP. The Bank is considering funding the rehabilitation project which will consist of three components: i) headworks modifications to achieve better sediment control, ii) repair of electro mechanical equipment in the powerhouse, and iii) technical assistance and capacity building. The proposed rehabilitation works will not alter the dam height, will not reduce the minimum water release that was established during the original KGAHEP and there will be no new impacts on forests, natural habitat, and land use. Most of the civil works will involve skilled workers with no major quarry or concrete mixing operations, consisting mainly of pre- fabricated parts. The works in the powerhouse will consist of replacing parts. Good housekeeping and monitoring will be introduced for the repair works. Chapter Two of this report provides detailed description of the proposed rehabilitation works. All activities will be confined to the original KGAHEP Project area, mainly in the headworks and the powerhouse. Land acquisition will not be required and the rehabilitation works will not have new footprint and will not require any new associated facilities such as access roads, transmission lines,

34 workers camps etc. As a result the proposed project will not cause significant impacts associated with traditional new hydropower projects. However, limited environmental impacts are anticipated from the proposed rehabilitation works. The impacts can be divided into two parts – impacts during construction and impacts during operations, after the rehabilitation works are completed.

Impacts during construction The likely environmental impacts identified for the proposed KGAHPP Rehabilitation Project during construction include: downstream impacts due to flushing of sediments, disposal of mucks from forebay, and disposal of repair maintenance works from the powerhouse.

Impact #1: Temporary increase in flow release below the dam during construction During the rehabilitation works in the dry season, the intake may need to be partially blocked to allow dewatering of the powerhouse and water released downstream of the dam. Although the duration is short, maximum 30 days, water will have to be carefully released in order not to negatively affect downstream stretches of the dam. This may impact water quality. Flushing operation will: i) temporarily increase suspended sediment load and turbidity, ii) have positive impacts during the spawning time of popular Snow Trout.

The variation of flow in 13 km river stretch during plant shut down and immediate operation of the power plant will also have some adverse impacts on fish because fish moving in normal condition will be unable to maintain them immediately with respect to changes in river flow regime. The fishermen took this opportunity and catch them using different gears which will have some adverse impact on the fish population in the river which is already facing high fishing pressure. The other activities conducted inside the powerhouse complex will have no significant adverse impact on aquatic life.

Mitigation Change in the river morphology downstream the dam due to sediment flushing operation is unavoidable. The water quality change particularly turbidity related to increase in suspended sediment is also not avoidable and will remain as the short term residual impact of the project. To minimize the risk to safety of the local people due to sudden release of water from the reservoir following measures will be implemented.

 Existing siren systems will be repaired and strengthened, and siren blaring will be operated 30 minutes, 15 minutes and 5 minutes before the release of water.  The riverine communities covering the 45 km of the Kali Gandaki River and further downstream will be consulted on the date and timing of the flushing operations to ensure that everyone in the community are aware of such operation.  Hoarding boards will be placed in the critical location, particularly cremation ghats and religious temples at the bank of the Kali Gandaki River from downstream of the dam to the powerhouse tailrace.  Notification of the flushing date and time of reservoir opening will be given through the local FM radios of Syangja, Palpa, and Gulmi at regular intervals two days before the flushing operation.

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 Fishing in 13 km stretch of river from Dam to Badigad Khola confluence at Rudrabeni will be prohibited during the flow variation time by placing hoarding board consisting information and warning sign at different localities, and information dissemination to local community with the help of local administration offices.

Impact # 2: Waste Disposal Two major streams of wastes are expected during the rehabilitation works namely from construction/rehabilitation sites and from the construction camps. Construction for the intake modification will have a limited volume of construction wastes (cement, sand, iron scraps, jute bags, wrappers etc) apart from the muck. Similarly, at the powerhouse electro-mechanical rehabilitation works are potential to generate several types of waste like chemical and hazardous wastes like oil, grease, paints and leftovers of welding rods and metallic dusts generated during grinding operations. These wastes disposed haphazardly could impact the land and the receiving water bodies locally. The wastes from the construction workers are mostly of organic origin and include solid wastes similar to municipal waste composition. Other concern is the human excreta, if open defecation is practiced by the construction and rehabilitation workers. As the number of the construction workforce is limited to around 60 and divided into two camps, the expected volume of the waste is small. However, littering of the waste will cause damage to the aesthetic environment as well as to the health and sanitation status of the surrounding communities as part of the Contractor’s contractual obligations.

Mitigation To minimize the impact due to waste generation a proper disposal plan will be made. The existing waste management sites of the powerhouse and headworks will be used for the proper disposal of the camp wastes. To minimize the impacts of the construction and camp wastes, following measures will be implemented.

 Stockpiling of construction material will take into consideration to maintain proper storage condition and housekeeping using covers for protection and minimizing littering of the construction materials. This will be included in the bidding documents and will be enforced during rehabilitation activities.  The camp waste will be collected and segregated to separate the degradable and non-degradable materials. Only segregated materials will be brought to the existing waste management sites and managed. This will be included in the bidding documents and will be enforced during rehabilitation activities.  Hazardous materials (lubricants, oils, metallic dusts etc) will be collected in separate drums and placed on impermeable surface. To minimize the impacts of leakages and spills of the hazardous wastes adsorbents like sand or sawdust will be used in the working sites for quick handling of small accidental spillages. The absorbents will also be safely collected and stored in the drums for safe disposal at later stage in the nearby sanitary disposal sites. This will be included in the bidding documents and will be enforced during rehabilitation activities.

Impact # 3: Potential Air and Noise Pollution Short term fugitive dust and emission from vehicles and equipment used in the construction works have the potential to affect the air quality. Since most of the road is paved, the number of the vehicle plying for the construction works are few and the equipment to be used for the construction rehabilitation

36 works are also few, the expected fugitive and gaseous emissions is less significant to cause ambient air pollution. The repair works particularly at the powerhouse involve welding, grinding etc, could cause some amount of indoor air pollution in the repair maintenance room of the power house. As the site is well ventilated, the impacts of the indoor air pollution are of low significance. The noise is an inevitable environmental impact during construction. Since the envisaged construction work does not involve heavy equipment operations in the open area, the expected noise impact is of low significance. The vehicular noise during transit along the road corridor may affect the adjoining communities at road side. As this is a short term, noise is of low significance in terms of community health.

Mitigation The following prevention method will be implemented to control dust resulting from construction related activities;

 Water sprinklers will be used to reduce fugitive emission in the unpaved roads and construction sites.  Vehicles carrying fine materials such as cement, soil etc will be covered.  Speed limit will be maintained for all the project related vehicles.  Machinery and vehicles will be inspected with regard to their exhaust body.  Honking of horns will be prohibited.  Noisy works at the night time hours in the open area will be minimized.  Use of transport at the night time zone will be minimized.

The above measures will be included in the bidding documents and be implemented by the contactor, and will be monitored during implementation.

Impacts during operation Changed flushing regime will affect the water quality downstream (sediment load and turbidity).

An international consultant will be recruited to study the sediment management system in Kali Gandaki River. The consultant will recommend appropriate flushing regime considering environmental consequences and mitigation, if necessary.

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CHAPTER EIGHT: PUBLIC PARTICIPATION, CONSULTATION AND DISCLOSURE

This chapter presents the approaches and process on public consultation and participation during the project preparation and implementation stage of the proposed project works. Following approaches and processes were adopted for the public participation and consultation in the proposed rehabilitation project.

8.1 Approach and Process The approaches and the process adopted for the consultation and the participation of the stakeholders included interaction meetings, interview, focus group discussion and selected households’ survey covering headwork, powerhouse, reservoir areas and access road.

8.2 Consultation Activities during Preparation The consultation activities undertaken during the preparation of this EA report included mainly focus group discussions and household survey. Major feedbacks that were noted during the consultation process among the vulnerable groups, particularly the women and Bote Community as well as the upstream and downstream area are presented as follows:

Table 8.1: Consultation Activities S. Location Numbers of Issues and concerns of local people No. participation

Focus Group Discussion: Women in Beltari, SKG VDC  Employment opportunity to women. 1 20 at powerhouse area.  Renovation of irrigation scheme and water supply in Beltari.

 Income generating activities.  Priority in Boat transportation business. Vulnerable Bote Community  Maintenance of Bote resettled houses and the at Andhimuhan village, SKG Bote Primary School. 2 15 VDC at headworks area.  Transfer of ownership of resettled houses and the School.  Daily wages staff at Project Fish Hatchery to be made permanent or temporary.

 Protection works at Setibeni Bazaar.  Maintenance of Setibeni Sheela (Holy Stone). Local people in the Upstream 3 at Setibeni Bazaar 15  Reliable electricity supply.  Construction of cremation site.  Fair distribution of royalty of KGA HPP.

Local people and priest of  Additional release of 2 m3/s of water during Rudrabeni Shree Ram major festivals.  Protection of banks at Ram Mandir. 4 temple at downstream area, 8 Aslewa VDC(Dewatered  Effectiveness of Siren Warning System. stretch at Rudrabeni)  Adequate discharge during dry season twice in a month to flow remaining of funerals rites.

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8.3 Consultation Mechanism during Implementation Following consultation mechanism is proposed during the implementation of the KGAHPP Rehabilitation Project

7.3.1 Upstream Area at Setibeni Bazaar The local people at the Setibeni Bazaar will be closely consulted during the implementation of the proposed KGAHPP Rehabilitation Project works for Setibeni Sheela. Moreover, protection of Setibeni Bazaar due to flood and construction of cremation sites will be addressed with due consultation with the local people of the area. A committee comprising local key persons and the project officials will be formed for proper implementation of the proposed programs.

7.3.2 Downstream area at Rudrabeni The famous religious site of Rudrabeni Shree Ram temple is located at dewatered area in about 13 km from the dam before joining the Badigad River. The area holds significant importance for performing the final ritual that has been impacted due to low flow of the river. The local key persons and the priest of the Rudrabeni temples need to be consulted for maintenance works of bank protection in the area.

7.3.3 Head works Area The Bote Community is the marginalized and vulnerable community residing at the head works area of the KGAHPP Rehabilitation Project. They need to be consulted for the implementation of the proposed CSP works related to them.

8.5 Disclosures During the preparation of this Environmental Assessment (EA) and the Social Impact Assessment (SIA), consultations were held with proposed KGAHPP Rehabilitation Project area communities and stakeholders (see Chapter Eight of this report for details, and also Social Assessment Report Section 4.3 and Section 5.6). Potential issues and mitigation options were also discussed with the local people. Information has been disseminated to local community members during the assessment process. At the initial stage, ESSD staff informed the community about the project through group meetings. NEA plans to disclose the draft final EA and SA through its public website. These documents will be disclosed in the World Bank’s website also. The executive summaries of the EA and SA will be translated into Nepali and project information brochure with social and environmental mitigations will be made available at the NEA at centre and at KGAHPP Site office, SKG VDC at Powerhouse Area. NEA/ KGAHPP also plan to inform and further consult local stakeholders on a regular basis during the implementation of the proposed KGAHPP Rehabilitation Project. Social and Environmental Specialist will provide information to the community on the activities that will be taken up.

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CHAPTER NINE: ENVIRONMENTAL MANAGEMENT AND MONITORING

This chapter describes the organizational arrangement, roles, and responsibilities for implementing environmental safeguard activities including mitigations works, monitoring, and management during the KGAHP Rehabilitation Project implementation.

9.1 Environmental Management Approach During the implementation of the proposed KGAHPP Rehabilitation Project, following approach will be used;

 Implementation of the mitigations measures described in Chapter Seven of this EA report,  Liaison with local community, local level GON line agencies and central level line agencies;  Coordination with the KGAHPP,  Environmental monitoring; and  Reporting.

9.2 Organizational Framework KGAHPP will have direct overall responsibility for the implementation; management and monitoring of environmental safeguard measures. KGAHPP will be assisted by ESSD in implementation. An Environmental Management Unit (ESMU) will be established under the supervision of ESSD at project site for the construction phase monitoring of the KGAHPP Rehabilitation Project. The ESMU will ensure that the mitigation and monitoring activities proposed by this EA are duly implemented. The main institutions that will play major role in implementation process are:

 KGAHPP  NEA / ESSD  ESMU  Local GON Line Agencies  Line Departments and Ministries The table below provides the detailed roles and responsibilities of each institution.

Table 9.1: Roles and Responsibility S. No. Responsible Body Roles and Responsibilities  Overall responsibility to implement EMP.  Provide guidance on policy matters to ESMU. KGAHPP  Ensure timely release of funds for implementation. 1  Internally monitor implementation progress by calling monthly review meeting.  Coordination with other line agencies as and when required.  ESSD will provide expert guidance and supervision to ESMU.  Planning and designing of implementation strategy for environmental and social safeguard measures. NEA / ESSD 2  Preparation of quarterly progress reports.

 Liaison with GON line agencies.  Participate in monthly review meeting.  Coordinate the training programs.

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 Management of ESMU office at site.  Managing regular environmental monitoring (compliance and impacts) and recording data/information.  Develop rapport with the local community. 3 ESMU  Co-ordinate with the local GON line agencies and the community.  Undertake project information campaign.  Assist EESD in preparation of quarterly environmental reports.  Helping community members to file grievances.  Maintaining records of grievances with decision taken. Local GON Line  Facilitate successful implementation of the rehabilitation project. 4 Agencies  Co-ordinate with KGAHPP and local communities.  Helping community members to file grievances.

Environmental and Social Management Unit (ESMU): The ESMU of the proposed KGAHPP Rehabilitation Project will be established at site for day to day environmental management of the KGAHPP Rehabilitation Project activities, implementation of proposed mitigation measures and to carry out environmental and social monitoring. For the logistic purpose, the unit will be located under the Project Manager office, but for technical aspects it will be under ESSD supervision. The technicians/ supervisors will be hired locally. The following human resources will be deployed in the unit.

 Environmentalist/ Unit Chief ………..1 person  Environmental Specialist……………..1 Person  Social Specialist……………………….1 Person  Mobilizer………………………………2 Persons  Supporting Staffs……………………...1 Person This unit will also be responsible for the implementation of community support program, coordination of work with VDCs, DDCs, and district forest office and district level line agencies. The unit will also coordinate with central line agencies such as Ministry of Energy, and Ministry of Science, Technology and Environment (MOSTE).

Project Manager for KGAHPP Rehabilitation Project: The Project Manager will have prime and overall responsibility for the implementation of the proposed mitigation measures and monitoring plan. The Project Manager may delegate this responsibility to the ESMU but ultimate authority must rest in the Project Managers as construction activities and logistic will closely linked with the mitigation efforts.

Construction Contractors: The construction contractors will be responsible for implementation of mitigation measures specified in the part of contractor and compliance with the tender clauses. The contractors will also be responsible for developing Occupational Health and Safety Plan. The contractor will be responsible for the implementation of Occupational Health and Safety, water quality protection measures etc.

Line Agencies: The district level line agencies such as District Forest Offices, District Soil Conservation Offices and VDCs and DDCs will be consulted during implementation of mitigation measures. The cost for the required technical input for the implementation of program will be borne by

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the project. Besides, the central level line agencies, such as Ministry of Energy, Department of Electricity Development and Ministry of Science, Technology and Environment shall have responsibility for the monitoring of project activities with regards to Environment Management, Mitigation and Monitoring Plan.

9.3 Environmental Management Plan Following Environmental Management Plan (EMP) has been prepared for the KGAHPP Rehabilitation Project. It is an important part of the EA as it deals with the mechanism including the plan for the implementation of proposed environmental mitigation and enhancement measures, monitoring activities, public concern issues and coordination of the work with different stakeholders. The EMP will provide a guideline to the Project Proponent, Contractors and the Consultant. It will also be a guiding document for the line agencies such as Ministry of Science, Technology and Environment (MOSTE), Ministry of Energy (MOE), Ministry of Forest and Soil Conservation (MOFSC), Department of Electricity Development (DOED) and District Forest Office (DFO). KGAHPP/ NEA, being the proponent of the Rehabilitation Project, will have the prime responsibility for the implementation of Environmental Management Plan.

Table 9.2: Environmental Management Plan Issue Proposed Mitigation Measures When By Whom

Key Outstanding Environmental Issues from the Original KGAHEP Issue # 1: Insufficient Environmental Water release at all time as per All time, and KGAHPP/ NEA Flow and Additional Flow for original KGAHEPP’s EIA additional water Religious Purpose (1996), i.e. 4 m3/s; and 2 m3/s during major of additional water to be release festivals twice a during religious festivals. year. Installation of chart monitoring Within 6 months KGAHPP/ NEA downstream flow release. of project effectiveness. Issue # 2: Landscape restoration at Set schedule of the demolition KGAHPP/ NEA former contractor camp and disposal and rehabilitation works with site of the original construction. NEA. Disposal of scraps and End of Nepali KGAHPP/ NEA demolition wastes Fiscal Years Site is landscaped and Within project KGAHPP/ NEA maintained to blend with the completion (Dec. surrounding environment. 2015) Issue # 3: Continued support for the Regular cleaning operation of NARC fish hatchery and fish hauling the deposited silt in the reservoir program tanks. Operation of hatchery in its full Ongoing. NARC capacity, and research on breeding other commercially important fish species found in the Kali Gandaki, and release of fingerlings. Improve the Hatchery Complex Within 6 months KGAHPP/ NEA

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(Construction of 3 nursery from the starts of ponds, Feeding canal, Water the civil works. outlet canal and fencing). Trapping and Hauling Program One year NARC Will be reviewed for lesson covering all learned and further action. seasons. Fish Monitoring at various 6 12 months ESSD-NEAor NARC locations (periodic monitoring of covering all fish population and species seasons. diversity in Kali Gandaki River upstream dam). Issue # 4: Repair of Siren Warning Strengthened the existing siren 6 months within KGAHPP/ NEA System system to ensure downstream the starts of the people will be warned of any project. sudden water release. Monitoring the functioning of Regular KGAHPP/ NEA the siren system (monitoring personnel)

Newly Emerged Environmental issues in the area of the Existing KGAHPP Issue # 1: Sedimentation impacts and Procurement of state of the art First year of KGAHPP/ NEA water levels at Setibeni laser guided systems for Real project Time Sediment Monitoring to implementation. collect comprehensive data on reservoir sedimentation. Sediment management program By the end of the KGAHPP/ NEA including a suitable watershed project. management program and sediment guided operations strategy for Kali Gandaki ‘A’ HPP will be prepared by an international firm. Issue # 2: Landslide on the Access Stabilization of the landslide. KGAHPP/ NEA Road to Dam Issue # 3: Catchment Area Watershed Start afforestation of the By the end o the KGAHPP/ NEA Management degraded areas in the immediate project. vicinity of the reservoir. NEA will coordinate and Immediately. KGAHPP/ NEA actively follow up to minimize the landslides and erosion in the immediate vicinity of the project reservoir due to haphazard dumping of soil from the road. Potential impacts of the proposed KGAHPP Rehabilitation Project Impact #1: Temporary increase in Strengthened existing siren Regular/ prior to KGAHPP/ NEA flow release below the dam during systems (siren blaring 30 flushing. construction minutes, 15 minutes and 5 minutes before the release of water) Dissemination with the Regular/ prior to KGAHPP/ NEA downstream riverine flushing. communities (on the date and timing of the flushing

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operations) Placing hoarding boards in the Within 6 months KGAHPP/ NEA critical locations, particularly from the starts of cremation ghats and religious the project. temples at the bank of the Kali Gandaki river. Broadcast/ notify, through FM Regular/ prior to KGAHPP/ NEA radios, approximate flushing flushing. date and time of reservoir opening will be given through the local FM radios. Prohibit fishing in 13 km stretch During flow KGAHPP/ NEA of river from Dam to Badigad variation. Khola confluence at Rudrabeni during the flow variation time by placing hoarding board, information dissemination to local community with the help of local administration offices. . Impact #2: Waste disposal Cover stockpiled construction During Project contractor. material minimizing littering. construction phase. Segregated degradable and non- During Project contractor. degradable camp waste (non- construction degradable to be brought to the phase. existing waste management sites and degradable to be placed on approved pits). Collection of hazardous During Project contractor. materials (lubricants, oils, construction metallic dusts etc) in separate phase. drums and placed on impermeable surface (absorbents will used in the working sites for quick handling of small accidental spillages of hazardous wastes. Absorbents to be collected in the drums). Impact #3: Potential Air and Noise Water sprinklers in the unpaved During Project contractor. Pollution roads and construction sites. construction phase. Cover vehicles carrying fine During Project contractor. materials such as cement, soil construction etc. phase. Maintain speed limit for the During Project contractor. project vehicles. construction phase. Inspection and maintenance of During Project contractor. machinery and vehicles with construction regard to their exhaust emission. phase. Prohibited honking of horns. During Project contractor. construction phase.

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Minimize noisy works at the During Project contractor. night time hours in the open construction area. phase. Minimize use of transport at the During Project contractor. night time construction phase. .

9.4 Environmental Monitoring Objective of Environmental Monitoring: Internal and external monitoring will be carried out for the following objectives;

 The environmental mitigation measures (Chapter Seven and Section 9.3 above) are implemented satisfactorily in time. (Environmental Compliance).  The environmental mitigations are effective and sustainable. (Environmental Impacts).  Capture and report any unforeseen issue (Surprise), and initiate discussion on potential ways to address any such unforeseen issue. Internal Monitoring. Environmental and Social Studies Department (ESSD) of NEA will be responsible for the monitoring of the impacts and mitigation measures of the KGAHPP Rehabilitation Project. As described above, KGAHPP Rehabilitation Project will be responsible for ensuring proper arrangement, resources and logistic support for compliance as well as impact monitoring during the implementation period. The monitoring will also cover measures to address the outstanding environmental issues and non-project emerging/new issues. An Environmental Engineer/officer position will be created for the monitoring of the KGAHPP Rehabilitation Project, initially as part of the ESMU team for construction period of KGAHPP Rehabilitation Project and later in the KGAHPP for other monitoring obligations during operational stage. In short environmental monitoring during implementation of the KGAHPP Rehabilitation Project will focus on the following;

 Measures for addressing key outstanding environmental issues from the original KGAHEP.  Measures for addressing newly emerged environmental issues in the area of the existing KGAHPP.  Measures for mitigating potential impacts of the proposed KGAHPP Rehabilitation Project. Building on this EA Report recommendation, particularly Section 9.3 Environmental Management and Chapter Seven (Impact Assessment and Mitigation Measure), ESSD will prepare a detailed monitoring plan prior to start of the implementation of KGAHPP Rehabilitation Project. The detailed environmental monitoring plan will be agreed with KGAHPP Rehabilitation Project (Annex C contains a sample of the monitoring plan).

Table 9.3: Environmental Monitoring Plan Monitoring Issues Frequency Parameters By Whom

Issue # 1: Insufficient Environmental Release of 4 m3/s ESMU/ Dry months and during major Flow and Additional Flow for Religious regular and KGAHPP festivals. Purpose additional 2 m3/s during major festivals twice in a year. Issue # 2: Landscape restoration at former Land ESMU/ Once and for all. contractor camp and disposal site of the reinstatement. KGAHPP original construction. Issue # 3: Continued support for the fish Smooth operation. NARC/ Regular basis.

45 hatchery and fish hauling program. KGAHPP i. Water Supply to Fish Hatchery contains Sand free water NARC and Quarterly fine silt and sand supply. KGAHPP/ NEA ii. Production Target of the Target Fish Target and release NARC Regular as per plan and Species and release to the River. of fish. program. iii. Trapping and Hauling Program Review and ESSD/ NARC 12 months covering all seasons. monitoring. iv. Monitoring of fishes at various 6 Nos. of Fish EESD/ NARC 12 months covering all seasons. locations species and diversity. Issue # 1: Sedimentation impacts and Deposition of KGAHPP/ NEA By the end of the project. water levels at Setibeni. sediment in the reservoir. Issue # 2: Landslide on the Access Road Maintenance of KGAHPP/ NEA Regular during maintenance. to Dam. road. Issue # 3: Catchment Area Watershed Control of KGAHPP/ NEA Regular. Management. landslides and soil erosion. Impact # 1: Temporary increase in flow Increase in flow. ESMU/ During dry months release below the dam during KGAHPP construction. Impact # 2: Proper Waste Disposal. Disposal at ESMU/ Monthly designated place. KGAHPP Impact # 3: Potential Air and Noise Dust and ESMU/ Weekly Pollution. vibrations. KGAHPP

The ESMU will be responsible for carrying out regular environmental monitoring, both compliance and impacts and keeping records.

External Monitoring and Evaluation: NEA will engage an independent agency for monitoring and evaluation of environmental performance and compliance to the environmental mitigations and management measures. The external monitoring and evaluation will be done twice during the implementation of the KGAHPP Rehabilitation Project: first at the mid-term, providing input to the Mid-Term Review and second at the end of the project completion. The KGAHPP Rehabilitation Project will provide financial resource for the external monitoring and evaluation.

9.5 Reporting Requirements Internal Environmental Monitoring Reports will be prepared quarterly during the entire period of KGAHPP Rehabilitation Project. The report will be submitted to KGAHPP Rehabilitation Project and to the World Bank as well as shared with the concerned GON line agencies at central and local level. ESSD/ ESMU will be monitoring and recording data/information on regular basis. ESMU will prepare monthly brief on the environmental status, performance and compliance, which will be discussed during monthly review. Any matter that needs urgent attention will be reported by ESMU to the KGAHPP Rehabilitation Project, NEA and ESSD immediately.

9.6 Training and Capacity Building Establishment of adequate implementation capacity to launch and carry out the components of EMP must be completed before the start of civil works for rehabilitation project. To enhance capabilities, the

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ESMU staff will be sent on exposure visits to other projects with good practice of environmental management. The following areas have been identified as essential for ESSD to receive training in:

 Overview of environmental issues: Environmental issues; methodology followed for EA; and legal frameworks including Bank operational policies.  Environmental Impact Assessment: Definition and processes to carry out an EA; and issues to look at for preparation of EA; institutional capacity.  Implementation of EMP: Various aspects of EMP implementation, Issues, best practices etc. Besides the ESSD/ ESMU staff, orientations/ trainings should be given to the workers on site/ field on good and bad environmental practices and Environmental Health & Safety aspects. ESSD, prior to start of works at site, will prepare a detailed plan for such orientation and training to site staff including machine operators, labor-group leaders: this plan will be agreed upon with the KGAHPP Rehabilitation Project and implemented prior to start of civil works.

9.7 Grievance Redress Mechanism At project level, a grievance redress mechanism will be established to allow community to appeal against any disagreeable decisions, practices and activities; technical and general project-related disputes. The community will be made fully aware of their rights and the procedures for doing so verbally and in writing during project information campaign and consultations. Grievance Redress Committee (GRC) will be formed much in advance in order to address the grievances of local people. The GRC composition, arbitration, and grievance resolution mechanism is described in detail in Social Impact Assessment, Section 6.5.

9.8 Environmental Management and Monitoring Cost The cost of measures identified for mitigations of impacts related to improper waste disposal, dust and noise pollution issues due to construction activities of the proposed KGAHPP Rehabilitation Project will be included in the bidding documents and will be the responsibility of the contractor. There will be no separate budget for these. The cost for other mitigation measures that will be funded under the proposed KGAHPP Rehabilitation Project is estimated as follows:

Table 9.4: Environmental Management and Monitoring Cost Issue/Impacts Mitigation Measures Cost Key Outstanding Environmental Issues from the original Kali Gandaki A Project. Issue # 1: Insufficient Environmental Calibration of the downstream flow release through fish No cost required. Flow and Additional Flow for passage. Religious Purpose. Issue # 2: Landscape restoration at Proper disposal of scraps and demolition wastes. No cost required former contractor camp and disposal Contractors’ camps, landscaping to blend with the surrounding site of the original construction. environment. Issue # 3: Continued support for the i) Explore alternative sand free adequate water supply to fish No cost required fish hatchery. hatchery, regular cleaning operation of the deposited silt in the reservoir tanks and monitoring of water quality ii) Production of the target fish species and release to the river. Regular budget The following will be done.

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• Operation of the hatchery at its full capacity with due Regular budget emphasis of breeding and rearing of targeted species • Research budget for developing breeding technology of other Regular budget commercially important species found in Kali Gandaki River • Budget required for hatchery operations Regular budget • Release of fingerlings upstream of the reservoir (Kusma area) Regular budget in flowing condition rather than in stagnant water • Construction of 3 nursery ponds with water surface area of about 750 square meters NRs.9.2 Million • Feeding canal (water supply canal ) 100 m

• Water outlet canal 100 m • Galvanized wire fencing of additional ponds iii) Trapping and Hauling Program. • Operational funding for the trapping and hauling program will NARC/KGAHPP be arranged • Supply of the required healthy brood regularly to the hatchery. Regular budget • Regularly monitoring of the fish at the dam site and release Regular budget the fish upstream dam wall which are not required at the hatchery. iv) Fish Monitoring. • Periodic monitoring of fish population and species diversity in Regular budget Kali Gandaki River upstream of the dam.

Issue # 4: Strengthening of Siren • Strengthening of the existing siren system. Included in SIA Warning Systems. New Emerged Environmental Issues in the area of the KGA Hydropower Plant. Issue # 1: Sedimentation impacts and i) Procurement of state of the art laser guided systems for Real Included in water levels at Setibeni. Time Sediment Monitoring to collect comprehensive data on Project reservoir sedimentation Component A ii) An international firm to help NEA design a sediment Included in management program including a suitable watershed Project management program and sediment guided operations strategy Component C for Kali Gandaki. Issue # 2: Landslide on the Access Protection of Landslide with surface and subsurface water Included in Road to Dam. control measures including Gabion, R.C.C and stone masonry Project structures Component A Issue # 3: Catchment Area Watershed A consulting firm will help NEA design a sediment Included in Management. management program including a suitable watershed Project management program and other measures. Component C Potential Impacts of the Proposed KGAHPP Rehabilitation Project for which this EA is Conducted. Impact #1: Temporary increase in flow Consult with the communities downstream of the dam to ensure Included in SIA release below the dam during that the community is aware of sudden flow releases and place construction. hoarding boards. Impact # 2: Proper Waste Disposal. Good housekeeping for storing construction material and proper Contractors cost. waste management for hazardous material Impact # 3: Potential Air and Noise Speed limit, honking of horns prohibited, no noisy works at Contractors cost. Pollution. night, machinery and vehicles will be inspected with regard to their exhaust body.

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Table 9.5: Cost for Mitigation Measures S. Measures Costs (NRs) No. 9,200,000.00 1 Fish Hatchery

2 Extension of Siren warning system downstream Included in SIA

3 Miscellaneous (5%) 460,000.00 Total A 9,660,000.00

Cost for Community Support Programs

4 Maintenance works at Setibeni Sheela (Holy Stone) Included in SIA

5 Bank protection at Rudrabeni Ram Temple Included in SIA

6 Reliable electricity supply at Setibeni Bazaar Included in SIA

7 Miscellaneous (5%) Included in SIA

Total B 0.00

Total A + B 9,660,000.00

9.9 Environmental Management Plan Cost The total Environmental Management Plan cost for the proposed Project is estimated NRs. 9,660,000.00 for the implementation of community support programs in the KGAHPP area. The cost for ESMU establishment and its operation, internal and external monitoring and capacity building are included in the Social Impact Assessment report (Refer to SIA for detail).

9.10 Monitoring Cost ESSD-NEA will continue the environmental monitoring activities during operation phase.

9.11 Implementation Schedule The total period required for the implementation of the KGAHPP Rehabilitation Project is estimated 40 months. The following implementation schedule is proposed for the environmental activities of the project (Table 9.6).

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Table 9.6: Implementation Schedule S. Major Tasks Schedule (6 months) No. 1-6 7-12 13-18 19-24 25-30 31-36 1 MOU signed between ESSD and NEA Prior to start Of project. 2 Functional ESMU office at site Prior to start Of project. 3 ESMU Monitoring Activities 3.1 Monthly review meeting at site Every first month 3.2 Quarterly review meeting at ESSD and Every quarterly and reporting. reporting 3.3 Mid-term review by external parties Mid-term evaluation 3.4 Final review at the end of the project Final evaluation 4 Capacity building 4.1 Orientation to ESMU staff After establishment of ESMU 4.2 Exposure visit to other project Exposure visit 5 Monitoring of project works Continue till the end of the project.

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References

ADB (2004) Project Completion Report on the Kali Gandaki "A" Hydroelectric Project (Loan 1452- NEP[SF]) in Nepal. Manila: Asian Development Bank ( ADB)

------(2011) Project Performance Evaluation Report on the Kali Gandaki "A" Hydroelectric Project (Loan 1452-NEP[SF] in Nepal: Manila: Asian Development Bank( ADB)

Environmental and Social Studies Department (2003) Post Construction Environmental Impact Audit Study of Kali Gandaki ‘A’ Hydroelectric Project. Kathmandu: Environmental and Social Studies Department (ESSD)/ Nepal Electricity Authority (NEA)

------(2002) Panel of Experts Reports No. 1 - 8. Beltari, Syangja District: Nepal Electricity Authority, Kali Gandaki ‘A’ Hydroelectric Project.

Kali Gandaki ‘A’ Hydroelectric Project (1996) Mitigation Monitoring and Management Plan (MMMP).Kathmandu: Kali Gandaki ‘A’ Associates. Morrison Knudsen International

------(1996) Environmental Impact Assessment (EIA) Report. Kathmandu: Kali Gandaki ‘A’ Associates: Morrison Knudsen Corporation, USA, Norconsult International, Norway and IVO International Ltd, Finland.

Hydraulic Analysis of the Impact of Proposed Headworks Modifications, Kali Gandaki Dam, Nepal, Nov 2012, GM Engineering COOP.

NEA, Kali Gandaki A, Draft Operation Manual, K Mahmood, D Shrestha, May 2001.

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ANNEX A: FIELD MEASUREMENTS & DATA

Table 5.5: Water Quality Results

Recorded Values of the Sampling Spots S. Sampling WHO Parameters Upstream NDQWS No. Upstream Downstream Downstream method GV of of Dam of Dam of Powerhouse Powerhouse 1 Date 2069/08/3 2069/08/30 2069/08/29 2069/08/29 0 2 Time 10:35 11:05 16:20 15:40 3 Weather Clear Clear, sunny Clear Clear, sunny 4 Air 11 0C 15 0C 19 0C 21 0C In-situ Temperature 5 Water 16 0C 14.5 0C 16.5 0C 15.7 0C In-situ Temperature 6 pH 8.59 8.5 8.61 8.61 In-situ 7 DO 9 mg/l 10.3 mg/l 10.2 mg/l 10.2 mg/l In-situ 5 5(10) 8 Turbidity 1.0 <1.0 <1.0 <1.0 Lab test NTU 9 Conductivity 202 212 213 213 Lab test 1500 us/cm 10 TSS mg/l <1.0 <1.0 <1.0 <1.0 Lab test 11 TDS mg/l 120 130 128 132 Lab test 12 Total hardness 150 152 168 160 Lab test 500 500 mg/l as CaCo3 13 Total 142 110 162 142 Lab test 500 - Alkalinity mg/l as CaCo3 14 Chloride mg/l 5.9 11.8 5.9 6.9 Lab test 250 250 15 Iron mg/l 0.15 0.07 0.04 0.05 Lab test 0.3 0.3(3) 16 Sulphate mg/l <5.0 15.2 8.6 5.0 Lab test 250 250 17 Phosphate <0.4 <0.4 <0.4 <0.4 Lab test mg/l 18 Total Nitrogen 0.7 0.98 0.98 0.84 Lab test mg/l 19 E. Coli 58 50 10 22 Lab test CFU/100ml Source: Field data, Dec. 2012 and Lab. report N.B WHO GV World health Organization, Guideline Value 2006 Update: NDWQS: National Drinking Water Quality Standard (Nepal)

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Table 5.6: Comparative Assessment of Species Diversity and Density in upstream of the dam at Setibeni S. English EIA Environme Environment Scientific name EIA No. Name Study ntal Audit al Monitoring Sept-Oct Aug-03 Aug-05 Dec.2012 1993 1 Neolisocheliushexag Copper 10 1 0 onolepis Mahseer 0 2 Labeodero River carps 2 2 0 0 3 Schizothoraxplagios Snow trout 0 1 0 tomus 2 4 B. bendelisis Minor carps 0 0 2 4 5 B.barila Minor carps 0 1 6 1 6 Garraannandalei River catfish 0 1 0 0 7 Garragotyla Stone roller 0 0 1 0 8 Cyprinonsemiplotu 8 0 0 m 0 9 Tor putitora Mahseer 4 0 0 2 Total 24 6 9 9 Source: Field Survey 2012 and previous studies

Table 5.7: Comparative Assessment of Species Diversity and Composition at dam Site S. English Environmental Environment Scientific name EIA Study EIA No. Name Audit al Monitoring Sept-Oct Aug-03 Aug-05 Dec.2012 1993 1 Neolisocheliushex Copper 20 1 5 agonolepis Mahseer 10 2 Labeodero River carps 5 0 1 8 3 S. progastus Snow trout 2 0 0 0 4 B.barila Minor carps 2 0 4 0 5 Garragotyla Stone roller 0 1 0 6 Cyprinonsemiplot 10 0 0 um 0 7 Tor putitora Mahseer 3 2 0 4 8 Tor tor Mahseer 5 0 0 0 9 Anguilla Eel 0 0 0 bengalesnsis 2 Total 47 3 11 24 Source: Field Survey 2012 and previous studies

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Table 5.8: Comparative Assessment of Species Diversity and Composition in De-water Zone

S. English EIA Environmental Environmental Scientific name EIA No. Name Study Audit Monitoring

Sept- Aug-03 Aug-05 Dec.2012 Oct 1993 1 Labeodero River carps 2 1 3 0 2 Neolisochelius hexagonolepis Copper 12 5 0 Mahseer 3 B.bendalesis Minor 0 0 1 7 carps 4 Cyprinonsemiplotum Khurpe 14 3 2 0

Total 28 4 11 7 Source: Field Survey 2012 and previous studies

Table 5.9: Comparative Assessment of Species Diversity and Composition in Reduced flow zone S. English Environmental Environmental Scientific name EIA EIA No. Name Audit Monitoring Sept- Aug-03 Aug-05 Dec.2012 Oct 1993 1 Neocheilushexagonolepis Copper 15 15 5 Mahseer 1 2 Tor putitora Mahseer 4 0 4 0 3 Labeodero River carps 0 1 3 0 4 Schizothoraichthysprogastus Snow trout 0 0 1 1 5 B. bendelisis Minor 0 2 1 carps 3 6 B.barila Minor 0 0 1 carps 2 7 B.barna Minor 0 3 0 carps 1 8 Garragotyla Stone roller 0 0 6 9 Garraannandalei Stone roller 2 0 0 10 Noemacheilusbevani Loaches 0 1 0 11 Botiaalmorhae Loaches 0 1 2 4 12 Pseudotrapiusathernoides River 2 0 0 catfish 13 Crossocheiliuslatius Stone roller 0 2 3 14 Channagachua Bhoti 4 0 0 15 Cyprinonsemiplotum Khurpe 10 5 0 1 16 Barbs chilinoides Karange 0 0 9 Total 37 30 35 13 Source: Field Survey 2012 and previous studies

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Table 5.10: Comparative Assessment of Species Diversity in downstream part of Kali Gandaki River S. English Environmental Environmental Scientific name EIA EIA No. Name Audit Monitoring Sept- Oct Aug-03 Aug-05 Dec.2012 1993 1 Neocheilushexagonolepis Copper 0 6 2 3 Mahseer 2 Tor tor Mahseer 1 10 4 0 3 Tor putitora Mahseer 7 0 0 1 4 Cyprinonsemiplotum Khurpe 8 0 0 0 5 Labeodero River carps 5 9 6 4 6 Garragotyla Stone roller 0 0 2 3 7 Channagachua Bhoti 4 0 0 0 8 Crossocheliuslatius Stone roller 0 0 4 2 Total 25 25 18 13 Source: Field Survey 2012 and previous studies

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ANNEX B: HISTORICAL BACKGROUND ON EIA AND MITIGATIONS

1. Historical Environmental Situation Kali Gandaki ‘A’ Hydroelectric Project is a 144 MW peaking run-of-river plant located in front of the Mahabharat Range in the Middle Mountain Physiographic Zone of Western Development Region of Nepal. It utilizes the head available in a U shaped loop of Kali Gandaki River in front of the Mahabharat Range covering a distance of over 45 km across a 6 km wide mountainous terrain between Mirmi and Beltari of Syangja district. Kali Gandaki ‘A’ HEP was commissioned in 2002 at a cost of USD 453 M. It is the largest hydroelectric power station in Nepal supplying about 25% of the country’s total annual electricity generation. The key civil components of the original construction were the followings:

 44m-high concrete gravity dam,  Spillway, comprising three 15m wide bays, closed by 19.0 m high radial gates,  Power intake on the left bank,  Twin desanding basins with a combined width of 70m,  6 km long headrace tunnel, 7.4m diameter inside the concrete lining,  Surge shaft (28m in diameter and 56m deep),  Steel-lined high pressure shaft and pressure tunnel,  Surface powerhouse. The ancillary facilities completed in 2002 are:

 Access road linking powerhouse and the headworks from the Shidhartha highway (27 km),  Construction and engineer's camps including mechanical yards, storage yards and batching plants at Powerhouse and Headworks sites,

 Spoil disposal sites at Powerhouse and Headworks.

2. Environmental Management during the original construction From the initial stage of project conceptualization, environmental concerns were an integral part of design optimization. The interaction and consultation programs during project preparation stage reflected views of different stakeholders, which were considered in the detail design phase of the project and possible adverse environmental impacts were avoided to the extent possible. The design parameters modified based on the inputs of the environmental studies and stakeholder consultations are as follows:

. Optimization of full Water Supply Level: The full supply operation level was carefully adjusted to ensure that the water level did not inundate the religious Shaligram (Holi Stone) and the Setibeni Market at the anterior end of the backwater zone.

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. Optimization of the Environmental Flow: To sustain the aquatic and wildlife in the reduced flow zone below diversion dam the result of model studies recommended riparian (environmental flow) release of 4 m3/sec from the dam during dry season and additional 2 m3/sec during religious events. . Sitting of the project structures and ancillary facilities: Locations of project sites including the access roads and transmission line alignments, spoil placements and locations of the construction camps were carefully selected to avoid major settlements, school, hospital and cultural, religious and environmentally sensitive areas. For those environmental impacts which could not be avoided, Kali Gandaki Environmental Management Unit (KGESMU) carried out the following social and environmental planning with the objective of restoring and improving livelihoods of the affected people and mitigate adverse impacts on natural environments. • Environment Impact Assessment, • Mitigation Management and Monitoring Plan, • Acquisition, Compensation and Resettlement Plan for Facilities and Access Road. The key environmental impacts identified by the KGESMU on the various aspects of the natural and social environments were as under: • Submergence of 65 ha land due to creation of 5.3 km-long reservoir (submerged area include forest and other land); • Hydrological changes in the 13 km stretch of Kali Gandaki, downstream dam between the dam and the confluence with the major tributary, Badigad due to water regulation by the dam; • Hydrological changes downstream of the power plant due to peaking operations restricted to the dry season with safety implications to the downstream water users; • Generation of large quantity of muck/spoil (about 6.2 million tons); • Soil erosion and landslides due to project construction works and changes in the natural drainages; • Air, water and noise pollution due to the construction works and related equipments and vehicle operations, and disposal of the camp and construction waste of diverse kinds; • Impact on migration of long range migratory fishes due to fragmentation of the river by the dam barrier, and hydrological changes due to water regulation; • Removal of 6,093 trees in total. Potential disturbance to wildlife around dam, powerhouse sites and nearby areas due to project implementation; • Acquisition of 209 ha of land area. Of which, 54 ha of land were acquired for the construction of access roads; 149 ha for building the main facilities, including dam and reservoir, power house, and camp sites; and 7 ha for building related substation and transmission lines; • Acquisition of the private land (94 ha) and property affected nearly 1468 families out of which 263 families were defined as seriously project-affected families (SPAF) and 1205 families as project-affected families (PAF). Of the SPAF sixteen Bote (an indigenous fisher community) families require resettlement and rehabilitation.

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The KGESMU was responsible for the implementation of the mitigation measures and its supervision and monitoring as per the environmental and social planning documents of the Asian Development Bank. The KGESMU in co-ordination with the contractor and the local level stakeholders implemented the following mitigation measures to minimize the conceived environmental and social impacts of the project during pre-construction and construction phases of the KGAHPP. . Protection measures for air, water and noise quality at project areas. . Management and control of 6.2 million tons excavated materials as per the approved plan submitted by the project contractor. . Restoration of the disturbed sites using bio-engineering measures at headwork site, powerhouse site, access road and transmission line tower locationsInstallation of siren warning system in dam site and powerhouse. . Provision of riparian release of 4 m3/ s of water during dry season and additional 2 m3/s on religious days. . Establishment of siren system downstream headworks and powerhouse . Establishment of project central nursery with production capacity of 60,000 seedlings/ year and grass slip production (150,000 – 200,000/ year) for bio-engineering and slope stabilization purposes in project sites. . Establishment of satellite nurseries to provide seedlings to local communities. . Plantation of 319,694 seedlings of different species at different project components and community land. . Restriction on illegal hunting and poaching activities. . Construction of trash rack and fish bypass system. . Establishment and operation of Fish Hatchery for the production of the targeted fish fingerlings . Implementation of Open Water Stocking Program . . Implementation of Fish Trapping and Hauling Program. . Implementation of compensation and resettlement program, . Implementation of reconstruction program for resettled people . implementation of an intensified employment and skill training program for the affected households, . implementation of an elaborated community development program for the Bote indigenous community, and . and implementation of a rural electrification program.

3. Implementation Performance of KGESMU An implementation evaluation was conducted during project commissioning by the POE in 2002. The POE reports that the project has delivered its environmental and social mitigation measures as recommended in the planning documents. In addition to the recommended measures a number of corrective measure have been implemented as a part of adaptive management during the project construction period to suite the then field conditions. The POE on its performance evaluation concludes

58 that: • Overall socio-economic conditions of affected families have improved • Access to electricity, transportation and communication stimulated to improve the quality of life in project areas • Construction activities increased economic activities in project and surrounding area; • Integration process of rural economy with regional and national economy was intensified • Substantial cash income flow to project area due to preferential hiring has improved living standard of local people • On the job and off the job skill training provided human capital to be used in future for income generation activities • Previous levels of income, consumption and household expenditure patterns are improved considerably.

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ANNEX C: MONITORING PARAMETERS, METHOD, SCHEDULE AND INDICATORS

Parameters Indicators Method Location Schedule Responsibility I Construction A Physical Environment Kali Gandaki River at Environment officer, Water quality Turbidity Visual observation downstream Daily assigned by ESSD Headworks, and powerhouse Air pollution Fugitive dusts Visual observation Headworks site Daily -ditto-

Noise and Direct observation vibration Headwork site and Disturbance and nuisance and stakeholder Weekly powerhouse site consultation Solid waste/ Headwork and muck disposal powerhouse earlier disposal Volume of spoil, sites (designated construction and Observation Weekly disposal site for domestic waste the KGAHP Rehabilitation Project also). Biological Environment

Number of fishermen Appoint river guard Dam to Badigad found fishing in 13 km Fish catch for monitoring at Khola section ( 13 Daily for 10 days stretch if any during 10 river bank km river stretch) days period Construction of additional ponds, canal Fish Hatchery and improvement of As per specification Hatchery complex Quarterly complex existing hatching , incubation and laboratory facilities Operation Long term MOU with NARC or other private party for hatchery Kali Gandaki Hatchery operation, trapping and Prior to expiry date Signed document Project operation hauling and monitoring of of previous MOU site/Kathmandu fish in the dam site and upstream areas of kali Gandaki Target fish Number of fingerlings Direct observation Upstream of Kali species and targeted species and documented Gandaki River Twice in a years production produced and released by results (Setibeni /Kusma) Release of the contractor of hatchery

60 fingerlings

Direct observation Changes in fish and records of Changes in species March/April , population and contractor Fish Six sampling sites diversity and density in June /July and species sampling ( 200 cast mentioned above reservoir and other areas Sept/October diversity at each site ) by the hatchery contractor Water quality Direct observation Sedimentation Turbidity and suspended of the hatchery and records of the tanks and hatchery Every fifteen days sediment load supplied water hatchery contractor ponds

Sediment Flushing operation by the As required by Flushing from operator as per the Direct observation Headwork site operation manual Reservoir operation manual Sediment removal from Direct observation Sediment removed by the Hatchery water the hatchery and records of Every months hatchery contractor supply tank water supply hatchery contractor tanks 4 m3 /s water is Direct observation Riparian discharged from the dam and documented headwork Every month Release at all times records Additional Additional 2 m3 /s water Direct observation water is is discharged from the and documented headwork Festival time released at dam at the festival time records festive period

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