IRADe-SARI-17 (2018) Impact of CBET on Livelihoods and Gender in Nepal and Bhutan About SARI/EI Over the past decade, USAID’s South Asia Regional Initiative/Energy (SARI/E) has been advocating energy cooperation in South Asia via regional energy integration and cross-border electricity trade in eight South Asian countries (Afghanistan, Bangladesh, Bhutan, India, Pakistan, Nepal, Sri Lanka and the Maldives). This fourth and the nal phase, titled South Asia Regional Initiative for Energy Integration (SARI/EI), was launched in 2012 and is implemented in partnership with Integrated Research and Action for Development (IRADe) through a cooperative agreement with USAID. SARI/EI addresses policy, legal and regulatory issues related to cross-border electricity trade in the region, promote transmission interconnections and works toward establishing a regional market exchange for electricity. About USAID The United States Agency for International Development (USAID) is an independent government agency that provides economic, development, and humanitarian assistance around the world in support of the foreign policy goals of the United States. USAID’s mission is to advance broad-based economic growth, democracy, and human progress in developing countries and emerging economies. To do so, it is partnering with governments and other actors, making innovative use of science, technology, and human capital to bring the most profound results to a greatest number of people. About IRADe IRADe is a fully autonomous advanced research institute, which aims to conduct research and policy analysis and connect various stakeholders including government, non-governmental organizations (NGOs), corporations, and Prepared by academic and nancial institutions. Its research covers many areas such as energy and power systems, urban SARI/EI Secretariat development, climate change and environment, poverty alleviation and gender, food security and agriculture, as well as the policies that aect these areas. List of Contributions Study and Research Team: Research Guidance &Technical Support CUTS International IRADe Mr. Udai S Mehta Mr. Rohit Magotra Mr. Arpit Tiwari Ms. Asha Kaushik Disclaimer: This study is made possible by the support of American people through the United States Agency for International Development (USAID). The content of this study do not necessarily reect the views of USAID of the United States Government. Integrated Research and Action for Development (IRADe) does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequences of their use. By making any reference to a particular geographic area, or by using the term “country’’ in this document, IRADe does not intend to make any judgement as to the legal or other status of any area. © Integrated Research and Action for Development (IRADe) 2017. IRADe-SARI-17 (2018) Impact of CBET on Livelihoods and Gender in Nepal and Bhutan IRADe-SARI-17 (2018) Impact of CBET on Livelihoods and Gender in Nepal and Bhutan i FOREWORD The U.S. Agency for International Development (USAID) has been working since 2000 to enhance regional energy cooperation in South Asia through its South Asia Regional Initiative for Energy (SARI/E) program. The program covers eight countries: Afghanistan, Bangladesh, Bhutan, India, Nepal, Pakistan, Sri Lanka and the Maldives. The first three phases of the program focused on awareness raising, building trust and assessing potential transmission interconnections. The fourth phase of the program, called South Asia Regional Initiative for Energy Integration (SARI/EI), which was launched in 2012, focuses on promoting regional energy integration through cross-border power trade. Under the program, a Think Tank Forum (TTF) has been established comprised of leading civil society organizations from the participating South Asian countries. The role of the TTF is to initiate a discourse on the importance of cross-border electricity trade (CBET) in meeting the energy demands of each country. Local think tanks can be an important channel for positioning CBET in the national priorities of the respective South Asian country, and play a key role in engaging politicians, government institutions, media and civil society in shaping the country’s priorities. The TTF has undertaken several studies, and organized events and campaigns to create consensus around the need for regional energy integration. One such study, “Impact of Cross-Border Electricity Trade (CBET) on livelihoods and Gender in Nepal & Bhutan” examines the livelihood impact of the hydropower projects developed under energy cooperation between Nepal-India and Bhutan-India. It assesses the impacts at the household level in the area around the hydro projects, particularly the impacts on women. The hydropower projects that were assessed included Rahughat Hydropower Plant in Nepal and Tala Hydropower Plant in Bhutan. The study revealed that access to electricity has significantly improved the quality of lives of rural households including for students and women. Other services including health, transportation and communications also improved significantly. I would like to take this opportunity to thank Integrated Research and Action for Development (IRADe) and Consumer Unity & Trust Society (CUTS) International for successfully carrying out the study. I am confident that this assessment will be useful to inform decision-making and create consensus around power trade among civil society in the region. Thank you Julia Kennedy Director (A) Clean Energy & Environemnt Office USAID/India Preface The economic performance of the countries in the South Asia region has been impressive in the last decade or so. India has led the way with a 7–8 percent growth in the gross domestic product (GDP), followed by Bhutan with 6-7 percent and Pakistan, Bangladesh, and Sri Lanka each with approximately 6 percent. However, Nepal has experienced relatively slow growth. Regional cooperation and integration is the key to ensure sustained development of the region. Often, it is regarded as a potent instrument of faster collective growth and shared prosperity. The potential benefits of engaging in trade cooperation are significant for South Asian countries. Cross-Border Electricity Trade (CBET) in the region has brought in a sense of shared benefits and prosperity amongst the neighbouring nations. At present, CBET in the region is bilateral G2G in nature. Though, it is limited to between India-Nepal; India-Bangladesh and India-Bhutan on a case to case basis. It is envisaged by the experts that the region may experience a manifold increase in the quantum CBET in the years to come. This would result in the growth of infrastructure. Several studies on the impact of energy cooperation and trade in other regions of the world suggest that CBET is likely to boost socio-economic development in the region. The development of infrastructure projects like power projects often creates employment opportunities for the local community. Studies also suggest that access to electricity brings a positive change in the social status of women in the community. Increased access to electricity has opened doors for various economic and non- economic activities for women. With the reduced burden of the household chores, not only there is an increase in household income but also the improvement in the literacy rate among the women. Thus, it is reasonable to assume CBET gives an impetus to the local economy. In the case of South Asia, there have been studies highlighting the overall socio-economic benefits to the local communities due to regional energy cooperation. However, little emphasis has been laid over the impact of CBET on livelihoods and gender roles. Thus, to advocate the benefits of energy cooperation in the region, the United States Agency for International Development (USAID) formulated the South Asia Regional Initiative for Energy Integration (SARI/EI). This initiative is implemented by IRADe. Under this initiative, CUTS International, one of the leading think tanks in SARI/EI think tank forum and the region, has undertaken the study to assess the impact of CBET on gender and livelihoods in the South Asian region. The objective of the study to assess the socio-economic benefits or costs accrued to the local community in general and impact on local livelihood and the role of gender in the community in particular. The study comprises an in-depth analysis of available literature and impact assessment studies of other regions in the world and an intensive field survey in and around the project site, with support of the local partners. The key findings of the study suggest that in addition to creation of jobs due to increased energy access, various other job opportunities arise for both women and men in the project development and construction activities. Access to electricity amplifies the rural economic activities, such as growth in the hospitality business. Good road conditions, easy transport facilities and the availability of the health centers in close proximity have encouraged more patients to visit the health centers. The benefit comes in forms of employment opportunities for the locals and investment by the projects on education, health facilities, among others, in and around the project sites. iv However, as the countries move towards sustainable development, the energy needs of their people will likely to increase exponentially. Ensuring energy security in the region thus become extremely important. CBET, not just