Report No. 89109-IN July 1, 2014 The Inspection Panel In Memoriam Alf Morten Jerve (1953 – 2014) The Inspection Panel Acknowledgements The preparation of this Report would not have been possible without the support and valuable contributions of many people. The Panel wishes to thank the Requesters and the communities in Uttarakhand who met with the Panel in the Project area and welcomed them into their villages. The Panel expresses its appreciation to the many government officials in India with whom the Panel met. They provided valuable insights and information. The Panel also conveys its appreciation to the staff of Tehri Hydro Development Corporation (THDC) India Limited for spending time in Chamoli and in Rishikesh with the Panel team thereby facilitating a better understanding of the Project. The Panel also wishes to thank the World Bank Staff in Washington D.C. and in the India Country Office for assisting with logistical arrangements, providing documents, and responding to requests for information. Similarly, the Panel extends its thanks to the members of civil society organizations working in India who met with the Panel, generously gave their time, and provided valuable insights. The Panel is grateful for the expert advice provided by its consultants Malavika Chauhan, Dipak Gyawali, A.K. (Dunu) Roy, and Richard Fuggle and appreciates the objective judgment and professionalism they exhibited at all times. The Panel would also like to thank its interpreter/translator Nidhi Agarwal for the excellent support she provided throughout, especially during the field visits. The Panel wishes to express its deepest gratitude to the late Alf Jerve, former Panel member and lead inspector during the first phase of the investigation, for his guidance, support, and tireless efforts in fulfilling the Panel’s mandate and function. Special appreciation also goes to Panel member Zeinab Elbakri who competently and efficiently took over the reins of the investigation midway. Finally, the Panel wishes to convey its gratitude and appreciation to the members of its Secretariat for their professionalism in processing this investigation. i Abbreviations, Acronyms, and Terms ADB Asian Development Bank AHEC Alternate Hydro Energy Centre BP Bank Procedures BPL Below Poverty Line CES Consulting Engineering Services (India) Private Limited Cumec Cubic Meter Per Second DHI Danish Hydraulic Institute DO Dissolved Oxygen EA Environmental Assessment E-flow Environmental Flow EFR Environmental Flow Requirement EIA Environmental Impact Assessment EMP Environmental Management Plan FDC Flow Duration Curve GHG Greenhouse Gas GOI Government of India GRC Grievance Redress Committee Ha. Hectare HEP Hydro Electric Project HIV/AIDS Human Immunodeficiency Virus Infection/Acquired Immunodeficiency Syndrome HRT Head Race Tunnel IBRD International Bank for Reconstruction and Development ICIMOD International Centre for Integrated Mountain Development IDA International Development Association IIT-R Indian Institute of Technology-Roorkee IMG Inter-Ministerial Group INR Indian Rupee IPN Inspection Panel kWh kilowatt-hour MoEF Ministry of Environment and Forests MR Management Response MW Megawatt NGO Non-Governmental Organization NGRBA National Ganga River Basin Authority NRRP National Resettlement & Rehabilitation Policy (2007) OMS Operational Manual Statement OP Operational Policy PAA Project Affected Area PAD Project Appraisal Document PAF Project Affected Family PAP Project Affected Person PIA Project Influence Area PIAA Project Immediate Affected Area ii R&R Resettlement and Rehabilitation RAP Rehabilitation Action Plan/Resettlement Action Plan1 REA Regional Environment Assessment SBMA Sri Bhubaneshwari Mahila Ashram SEA Sectoral Environmental Assessment SHG Self-help Group SIA Social Impact Assessment TBM Tunnel Boring Machine THDC Tehri Hydro Development Corporation Limited TRT Tail Race Tunnel VDAC Village Development Advisory Committee VPHEP Vishnugad Pipalkoti Hydro Electric Project WB World Bank WII Wildlife Institute of India 1 The RAP has 5 volumes that are alternatively titled Resettlement Action Plan (volumes 1& 4 which are executive summaries of the main document), and Rehabilitation Action Plan (volumes 2 & 5 which are the main documents). iii Table of Contents Acknowledgements .......................................................................................................................... i Abbreviations, Acronyms, and Terms ............................................................................................ ii Table of Contents ........................................................................................................................... iv Executive Summary ...................................................................................................................... vii Chapter 1: Introduction and Background ...................................................................................... 1 A. Organization of the Report ..................................................................................................... 1 B. Issues raised in the Request for Inspection and Management Response ............................... 2 C. Additional Issues raised during Panel Eligibility Visit .......................................................... 6 D. Description of the Project and its Context ............................................................................. 6 E. Panel process ........................................................................................................................ 12 Chapter 2: The claim that the Project will contribute to regional and cumulative impacts that have not been adequately assessed and addressed ........................................................................ 14 A. Introduction .......................................................................................................................... 14 B. Cumulative impacts of multiple dams on the Alaknanda .................................................... 15 1. Requesters Claims and Management Response ......................................................... 15 2. Panel observations and analysis ................................................................................. 21 2.1 Link between the Project and harm or potential harm ................................................ 21 2.2 Assessment of the issues in Project and other documents .......................................... 24 2.3 Relevant provisions in Bank policy ............................................................................ 35 3. Panel findings – Assessment of Cumulative Environmental and Cultural Impacts ... 36 Chapter 3: Claim that Project is likely to cause serious adverse local environmental impact .... 39 A. Introduction .......................................................................................................................... 39 B. The risk to village water sources from blasting and tunneling ............................................ 39 1. Requesters’ claims and Management Response ......................................................... 39 2. Panel Observations and Analysis ............................................................................... 40 2.1 Link between the Project and the harm or potential harm .......................................... 40 2.2 Relevant provisions of Bank policy ............................................................................ 42 2.3 Assessment of the issues in Project documents .......................................................... 42 2.4 Mitigation measures introduced and Bank supervision .............................................. 49 3. Panel findings on issues of policy compliance and harm ........................................... 50 C. Risks relating to structures, landslides, and earthquakes ..................................................... 51 1. Requesters’ claims and Management Response ......................................................... 51 iv 2. Panel Observations and Analysis ............................................................................... 52 2.1 Link between the Project and the harm or potential harm .......................................... 52 2.2 Relevant provisions in Bank policy ............................................................................ 55 2.3 Assessment of the issues in Project documents .......................................................... 55 2.4 Mitigation measures offered under the Project ........................................................... 57 3. Panel findings on issues of policy compliance and harm ........................................... 58 D. Risk to aquatic life and ecology from altered flow and sediment release ........................... 59 1. Requesters’ claims and Management Response ......................................................... 59 2. Panel observations and analysis ................................................................................. 60 2.1 Link between the Project and the harm or potential harm .......................................... 60 2.2 Relevant provisions in Bank policy ............................................................................ 62 2.3 Assessment of the issues in Project documents .......................................................... 62 2.4 Mitigation measures introduced and Bank supervision .............................................. 64 3. Panel findings on issues of policy compliance and