Cumulative Impact Assessment and Management: HYDROPOWER DEVELOPMENT IN THE TRISHULI RIVER BASIN, NEPAL IN PARTNERSHIP WITH ABOUT IFC IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities where they are needed most. In fiscal year 2019, we delivered more than $19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org. COPYRIGHT AND DISCLAIMER NOTICE © International Finance Corporation 2020. All rights reserved. 2121 Pennsylvania Avenue, N.W. Washington, D.C. 20433 Internet: www.ifc.org The material in this work is copyrighted. 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International Finance Corporation, Washington, DC, USA. ii Cumulative Impact Assessment and Management: HYDROPOWER DEVELOPMENT IN THE TRISHULI RIVER BASIN, NEPAL IN PARTNERSHIP WITH iii Acknowledgments The Cumulative Impact Assessment and Management: Hydropower Development in the Trishuli River Basin, Nepal was carried out by a consortium of ERM India Private Limited, Nepal Environmental and Scientific Services, and Hagler Bailly Pakistan. The contributing authors of the report are Rutuja Tendolkar, Arun Venkataraman, David Blaha, Naresh Rimal, Apoorva Sahay, Neena Singh, Samiksha Bhandari, Vaqar Zakaria, Cate Brown, Halvard Kaasa, Narayanhari Rijal, Salil Devkota, Ramu Subedi, Pablo Cardinale, Kate Lazarus, and Leeanne Alonso. The International Finance Corporation team that commissioned and led the study through the Hydro Environmental and Social Advisory program (www.ifc.org/hydroadvisory) was Kate Lazarus, Pablo Cardinale, Leeanne Alonso, and Upasana Pradhan Shrestha, who provided training, guidance, and feedback and organized various workshops throughout the study. They were also instrumental in setting up the Trishuli Basin Developers Group, which met several times throughout the course of the study to provide input and guidance. We are thankful for the generous support from the Australian Government through the Sustainable Development Investment Portfolio, the Japanese Government, and the Norwegian Ministry of Foreign Affairs. We would like to extend our gratitude to the communities and civil society organizations as well as all participants who were key informants and/or participated in stakeholder meetings for contributing their valuable time and knowledge toward the creation of this report. iv Contents Acknowledgments .........................................................................................iv Acronyms and Abbreviations ..........................................................................xii Executive Summary ......................................................................................... 1 Chapter 1: Introduction ................................................................................. 25 Background .......................................................................................................25 Project Overview ................................................................................................25 CIA Study Context .............................................................................................................. 26 Scope of Work ..................................................................................................................... 27 Scope Exclusions ................................................................................................................. 27 Approach and Methodology ................................................................................28 Adapting the Conceptual CIA Approach ............................................................................. 28 Key Enablers ...................................................................................................................... 30 Limitations ........................................................................................................ 33 Chapter 2: Administrative and Regulatory Framework ...................................... 35 Administrative Framework ................................................................................. 35 River Basin Plans ................................................................................................................ 36 Revised EIA Guidelines ...................................................................................................... 36 Local Governance ............................................................................................................... 37 ESRM Guidelines of the Nepal Rastra Bank ...................................................................... 37 Proposed Chitwan Annapurna Landscape (CHAL) Strategy .............................................. 37 Compendium of Applicable Regulations ...............................................................38 Other Basin-Level Initiatives ................................................................................45 Chapter 3: Project and Study Context .............................................................49 Trishuli River: Major River Basin Characteristics ...................................................49 Hydropower Projects ..........................................................................................49 Transmission Lines .............................................................................................................. 50 Roads and Local Infrastructure ........................................................................................... 50 Construction Phase Resource Requirements ........................................................................ 54 CIA Study Context .............................................................................................54 Spatial Boundary ................................................................................................................. 54 Temporal Boundary ............................................................................................................ 55 Project Development Scenarios ........................................................................................... 56 Initial VEC Identification .................................................................................................... 56 Stressors and Regional Developments ................................................................. 57 Climate Change .................................................................................................................. 57 Unregulated Fishing ............................................................................................................ 58 Aftermath of the Earthquake