No. Nepal Electricity Authority Nepal UPGRADING FEASIBILITY STUDY ON UPPER SETI (DAMAULI) STORAGE HYDROELECTRIC PROJECT IN NEPAL ENVIRONMENTAL AND SOCIAL CONSIDERATIONS (ESC) REPORT June 2007 JAPAN INTERNATIONAL COOPERATION AGENCY ELECTRIC POWER DEVELOPMENT CO., LTD. NIPPON KOEI CO., LTD. E D J R 07-079 Upper Seti (Damauli) Storage Hydroelectric Project Pokhara Kathmandu Location Map Bhimad Dajar Reservoir Tutuwa Phedi Khola Dam Site Wantang Khale Powerhouse Outlet River Corridor Study Region Upgrading Feasibility Study on Upper Seti Storage Hydroelectric Project in Nepal Table of Contents PART A ALTERNATIVE STUDY CHAPTER 1 ALTERNATIVE STUDY ........................................................................A-1 1.1 Introduction ........................................................................................................A-1 1.2 Layout Alternatives.............................................................................................A-1 1.3 FSL Alternatives.................................................................................................A-3 1.4 Estimate Methods for Environmental Cost.........................................................A-3 1.5 Environmental and Social Conditions under Various FSLs................................A-4 1.5.1 Physical Environment ...........................................................................A-4 1.5.2 Biological Environment ........................................................................A-5 1.5.3 Resettlement Impacts and Alternative Analysis ....................................A-6 1.5.4 Social Program Cost under different FSLs............................................A-7 1.6 Optimization Study.............................................................................................A-8 CHAPTER 2 ALTERNATIVE WITHOUT PROJECT..............................................A-10 2.1 Impact on alternative without the Project...........................................................A-10 2.2 Estimation on Reduction of CO2 Emission due to Implementation of Project.................................................................................................................A-11 PART B PHYSICAL ENVIRONMENTAL ASSESSMENT CHAPTER 1 PHYSICAL ENVIROMENT IN THE PROJECT AREA....................B-1 1.1 Baseline Data......................................................................................................B-1 1.2 Impact on Physical Environment........................................................................B-5 1.2.1 Construction Phase................................................................................B-5 1.2.2 Operation Phase....................................................................................B-6 1.3 Mitigation Measures for Physical Environment Impact .....................................B-11 1.3.1 Construction Phase................................................................................B-11 1.3.2 Operation Phase....................................................................................B-12 1.4 Mitigation Costs .................................................................................................B-17 1.4.1 Construction Phase................................................................................B-17 1.4.2 Operation Phase....................................................................................B-17 1.5 Environmental Monitoring and Costs.................................................................B-18 1.5.1 Environmental Monitoring....................................................................B-18 1.5.2 Monitoring Cost ....................................................................................B-20 1.6 Conclusion and Recommendations.....................................................................B-20 ESC Report - i - Upgrading Feasibility Study on Upper Seti Storage Hydroelectric Project in Nepal CHAPTER 2 WATERSHED MANAGEMENT...........................................................B-21 2.1 Baseline Data......................................................................................................B-21 2.2 Effort to the Seti Watershed Management ..........................................................B-29 2.3 Framework of Watershed Management Plan......................................................B-30 2.4 Cost for Watershed Management........................................................................B-32 2.5 Conservation for River Water Quality ................................................................B-32 ANNEX B PART C BIOLOGICAL ENVIRONMENTAL ASSESSMENT CHAPTER 1 FORESTRY AND VEGETATION.........................................................C-1 1.1 Baseline Data......................................................................................................C-1 1.1.1 Composition of Vegetation....................................................................C-1 1.1.2 Plant Biodiversity..................................................................................C-3 1.1.3 Conservation Status of Plants................................................................C-5 1.1.4 Ethnobotany ..........................................................................................C-6 1.2 Potential Environmental Impact on Vegetation and Forestry .............................C-9 1.3 Mitigation Measures and Costs ..........................................................................C-12 1.3.1 Mitigation Measures..............................................................................C-12 1.3.2 Mitigation Cost......................................................................................C-13 1.4 Conclusion and Recommendation ......................................................................C-15 CHAPTER 2 WILDLIFE...............................................................................................C-16 2.1 Baseline Data......................................................................................................C-16 2.1.1 Mammal ................................................................................................C-16 2.1.2 Reptiles and Amphibians.......................................................................C-17 2.1.3 Birds ......................................................................................................C-17 2.1.4 Butterfly and Moths..............................................................................C-18 2.1.5 Important Mammals..............................................................................C-23 2.1.6 Wildlife Distribution.............................................................................C-23 2.2 Environmental Impact on Wildlife .....................................................................C-23 2.2.1 Construction Phase................................................................................C-23 2.2.2 Operation Phase....................................................................................C-23 2.3 Mitigation Measures and Costs ..........................................................................C-24 2.3.1 Mitigation Measures..............................................................................C-24 2.3.2 Mitigation Costs....................................................................................C-24 2.4 Environmental Monitoring and Costs.................................................................C-25 2.4.1 Environmental Monitoring....................................................................C-25 ESC Report - ii - Upgrading Feasibility Study on Upper Seti Storage Hydroelectric Project in Nepal 2.4.2 Monitoring Cost ....................................................................................C-25 2.5 Conclusion and Recommendation ......................................................................C-25 CHAPTER 3 FISH AND AQUATIC LIFE...................................................................C-27 3.1 Baseline Data......................................................................................................C-27 3.1.1 Composition of Fish Species.................................................................C-27 3.1.2 Migratory Fish Species..........................................................................C-30 3.1.3 Spawning Ground..................................................................................C-31 3.1.4 Vulnerable, Endangered and Rare Fish Species....................................C-31 3.1.5 Fishing Activity.....................................................................................C-32 3.1.6 Economic Importance...........................................................................C-33 3.1.7 Phytoplankton, Zooplankton and Aquatic Insects.................................C-34 3.2 Potential Environmental Impact on Fish and Aquatic Life.................................C-37 3.2.1 Construction Phase................................................................................C-37 3.2.2 Operation Phase....................................................................................C-37 3.3 Mitigation Measures and Costs ..........................................................................C-39 3.4 Environmental Monitoring and Costs.................................................................C-40 3.4.1 Environmental Monitoring....................................................................C-40 3.4.2 Monitoring Costs...................................................................................C-40