(SASEC) Power System Expansion Project (SPEP) (Renewable Energy for Rural Energy Acc

149 Pages·2014·2.43 MB·English

Initial Environmental Examination

February 2014

NEP: South Asia Subregional Economic
Cooperation (SASEC) Power System Expansion
Project (SPEP) (Renewable Energy for Rural Energy
Access Project (REREAP) Component)

Prepared by Nepal Electricity Authority for the Asian Development Bank.
This initial environmental examination is a document of the borrower. The views expressed
herein do not necessarily represent those of ADB's Board of Directors, Management, or staff,
and may be preliminary in nature. Your attention is directed to the “terms of use” section of this
website.

In preparing any country program or strategy, financing any project, or by making any
designation of or reference to a particular territory or geographic area in this document, the
Asian Development Bank does not intend to make any judgments as to the legal or other status
of any territory or area.
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CURRENCY EQUIVALENTS
(as of 31 Janaury 2014)
Currency unit – Nepalese rupee/s (NRs)
NRs1.00 = $0.01043
$1.00 = NRs95.91

Abbreviations and Units

ADB Asian Development Bank
AEPC Alternative Energy Promotion Centre
CDM Clean Development Mechanism
CER Certified emission reduction
CFL Compact fluorescent lamp
CFUG Community Forest Users Group
CFUG Community Forest Users Group
COPB Country Operation Business Plan
DDC District Development Committee
DEEU District Energy and Environment Unit
EA Executing Agency
EARF Environmental Assessment and Review Framework
EHS Environmental, health and safety
EMP Environmental Management Program
GESI Gender equity and social inclusion
GoN Government of Nepal
GRM Grievance redress mechanism
GWh Giga-watt hour
IA Implementing Agency
IEE Initial Environmental Examination
IUCN International Union for Conservation of Nature
kW Kilowatt
kWp Kilowatt peak
MMH Mini-micro hydropower mini-grid
MoE Ministry of Energy
MoEnv Ministry of Environment, Science and Technology
MoF Ministry of Finance
MoWR Ministry of Water Resources
MW Megawatt
NGO Non-government organization
NRREP National Rural Renewable Energy Program
PIU Project Implementation Unit
PV Photovoltaic
RE Renewable energy
REA Rapid Environmental Assessment
RSC Regional Service Centre
RoW Right-of-way
SCF Strategic Climate Fund
SPS Safeguard Policy Statement
SWM Solar and/or wind mini-grid
tCO e tons carbon dioxide equivalent
2
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UC User Committee
UNNFCC United Nations Framework Convention on Climate Change
VDC Village Development Committee

NOTE
In this report, “$” refers to US dollars.
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Table of Contents
1. INTRODUCTION 1
1.1 Background 1
1.2 Name and Address of the Proponent 1
1.3 IEE Preparation and Objectives 1
1.4 Scope and Method of the IEE 2
1.5 Structure of the IEE 2
2. PROJECT DESCRIPTION 3
2.1 Project Rationale and Objectives 3
2.2 Project Location 5
2.3 D. Project Cost and Lending Instrument 5
2.4 Project Implementation 5
2.5 Project Components 6
2.6 Sub-Project Development 7
3. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK 8
3.1 Legal Framework 8
3.2 International Environmental Agreements 10
3.3 ADB Policy 11
4. SUMMARY OF PROJECT IMPACTS 12
4.1 ADB Environmental Categorization 12
4.2 Typical Sub-Project Adverse Impacts 13
4.3 Typical Sub-Project Benefits 19
4.4 Net Impact of the Project 21
5. SANI VERI HYDROPOWER SUB-PROJECT 23
5.1 Project Description 23
5.2 Description of the Environment 24
5.3 Impacts and Mitigation Measures 33
6. SIMRUTU HYDROPOWER SUB-PROJECT 41
6.1 Project Description 41
6.2 Description of the Environment 42
6.3 Impacts and Mitigation Measures 50
7. BHORLENI SOLAR-WIND POWER SUB-PROJECT 58
7.1 Project Description 58
7.2 Description of the Environment 61
7.3 District, VDC and Project Area Socioeconomic Profile 65
7.4 Livelihoods 66
7.5 Energy Supply 66
7.6 Water Supply 67
7.7 Transport and Local Services 67
7.8 Impacts and Mitigation Measures 67
7.9 Socio-Economic Impacts 71
8. CHISAPANI SOLAR-WIND POWER SUB-PROJECT 74
8.1 Project Description 74
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8.2 Description of the Environment 76
8.3 District, VDC and Project Area Socioeconomic Profile 80
8.4 Livelihoods 81
8.5 Energy Supply 81
8.6 Water Supply 82
8.7 Transport and Local Services 82
8.8 Impacts and Mitigation Measures 82
9. KYANGSINGH SOLAR SUB-PROJECT 89
9.1 Project Description 89
9.2 Description of the Environment 90
9.3 VDC and Project Area Profile 95
9.4 Livelihoods 95
9.5 Energy Supply 96
9.6 Water Supply 96
9.7 Transport and Local Services 96
9.8 Impacts and Mitigation Measures 96
10. ENVIRONMENTAL MANAGEMENT PLAN 101
10.1 Implementation Responsibilities 101
10.2 Environmental Management Measures 103
10.3 Environmental Management Cost Estimates 108
11. CONSULTATION, INFORMATION DISCLOSURE, AND GRIEVANCE REDRESS
MECHANISM 110
11.1 Consultation and Information Disclosure 110
11.2 Grievance Redress Mechanism 110
12. INSTITUTIONAL ARRANGEMENTS AND RESPONSIBILITIES 113
13. MONITORING AND REPORTING 114
14. CONCLUSION AND RECOMMENDATION 114
Appendices 116
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Appendices

Appendix A: Mini-Micro Hydropower Mini-Grid Sub-Project Development Procedure .................. 116
Appendix B: Sub-Project Selection Criteria ......................................................................................... 118
Appendix C: MMH Rapid Environmental Assessment Checklist ....................................................... 120
Appendix D: IEE Table of Contents (for Category B sub-projects) .................................................. 123
Appendix E: Environmental Assessment Checklist (for Category C sub-projects) ........................ 124
Appendix F: Micro-Mini Hydropower Fish Impact Scoping Study .................................................... 126
Appendix G: List of Important Animal Species in Dhorpatan Hunting Reserve .............................. 135
Appendix H: List of Important Plant Species in Gaurishankar Conservation Area ......................... 136
Appendix I: Public Awareness Safety Pamphlet ................................................................................. 137
Appendix J: References ......................................................................................................................... 138
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List of Tables

Table 1.1: REREAP Sub-Projects Assessed ............................................................................................ 2
Table 2.1: Sub-Project Types and Estimated Installed Capacity and Beneficiaries ............................ 6
Table 3.1: Environmental Regulatory Framework Relevant to the Project ........................................... 8
Table 4.1: Estimated Project Annual Generation ........................................ Error! Bookmark not defined.
Table 4.2: Estimated Annual Reduction in Greenhouse Gas Emissions from the Replacement of
Kerosene and Fuelwood Use ................................................................. Error! Bookmark not defined.
Table 6.1: Villages to be Supplied by the Project .................................................................................. 42
Table 6.2: Average Monthly Rainfall - Rukumkot (1986-2011) and Shera Gaun (1986-2000) ............ 43
Table 6.3: Estimated Mean Monthly Simrutu Khola Flow Rate ............................................................ 43
Table 6.4: VDC Population ....................................................................................................................... 48
Table 6.5: Ethnic Composition by VDC ................................................................................................... 48
Table 6.6: Ownership of Agricultural Land and Livestock in Project Area VDCs .............................. 49
Table 6.7: Average Monthly Sani Vera Khola Flow Rate – Existing and Project Operation .............. 50
Table 6.8: Project Land Area .................................................................................................................... 52
Table 6.9: Land Use on Proposed Simrutu MMH Sites ......................................................................... 53
Table 6.10: Excess Spoil Volumes .......................................................................................................... 55
Table 7.1: Main Project Components ...................................................................................................... 59
Table 7.2: Demand Forecast .................................................................................................................... 61
Table 7.3: Estimated Average Daily Electricity Generation .................................................................. 61
Table 7.4: Average Monthly Rainfall - Hariharpur Gadhi Valley (1991-2011) ...................................... 62
Table 7.5: Average Daily Hours of Sunshine.......................................................................................... 63
Table 7.6: Average Monthly Wind Speed ................................................................................................ 63
Table 7.7: VDC Population ....................................................................................................................... 65
Table 7.8: Ethnic Composition by VDC ................................................................................................... 65
Table 7.9: Ownership of Agricultural Land and Livestock in Project VDC ......................................... 66
Table 7.10: Estimated Annual CO2 Emissions Avoided by Project Power Use (kerosene and diesel
replacement) ...................................................................................................................................... 71
Table 8.1: Main Project Components ...................................................................................................... 75
Table 8.2: Demand Forecast .................................................................................................................... 76
Table 8.3: Estimated Average Daily Electricity Generation .................................................................. 76
Table 8.4: Average Monthly Rainfall - Hariharpur Gadhi Valley (1991-2011) ...................................... 77
Table 8.5: Average Daily Hours of Sunshine.......................................................................................... 77
Table 8.6: Average Monthly Wind Speed ................................................................................................ 78
Table 8.7: VDC Population ....................................................................................................................... 80
Table 8.8: Ethnic Composition by VDC ................................................................................................... 80
Table 8.9: Ownership of Agricultural Land and Livestock in Project VDC ......................................... 81
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Table 8.10: Estimated Annual CO2 Emissions Avoided by Project Power Use (kerosene and diesel
replacement) ...................................................................................................................................... 86
Table 9.1: Main Project Components ...................................................................................................... 89
Table 9.2: Demand Forecast .................................................................................................................... 90
Table 9.3: Estimated Average Daily Electricity Generation .................................................................. 90
Table 9.4: Average Monthly Rainfall (1991-2011) ................................................................................... 91
Table 9.5: Average Daily Hours of Sunshine.......................................................................................... 92
Table 9.6: VDC Population ....................................................................................................................... 95
Table 9.7: Ethnic Composition by VDC ................................................................................................... 95
Table 9.8: Ownership of Agricultural Land and Livestock in Project Area VDCs .............................. 95
Table 9.9: Estimated Annual CO2 Emissions Avoided by Project Power Use (kerosene and diesel
replacement) ...................................................................................................................................... 99
Table 10.1: Summary of Environmental Management Measures for Mini-Micro Hydropower ........ 103
Table 10.2: Summary of Environmental Management Measures for Solar/Wind Mini-Grids .......... 106
Table 10.3: Summary of Environmental Management Measures for Solar and Solar-Wind Mini-Grid
.......................................................................................................................................................... 108
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List of Figures

Figure 5.1: Sani Veri Headrace Canal (initial section) and Settling Basin .......................................... 26
Figure 5.2: Sani Veri Headrace Canal (final section), Forebay and Powerhouse ............................... 26
Figure 5.3: Tallo Sera and Upallo Sera Settlements (looking upstream) ............................................ 27
Figure 5.4: Location of Sani Veri Powerhouse and Load Centres ....................................................... 28
Figure 5.5: Kuchai Khola HEP – disused penstock and powerhouse ................................................. 32
Figure 6.1: Simrutu Project Layout ......................................................................................................... 44
Figure 6.2: Simrutu Settling Basin Site and Adjacent Community Forest .......................................... 45
Figure 6.3: Settlements at Simrutu Bazaar ............................................................................................. 46
Figure 6.4: Location of Simrutu Mini-Grid .............................................................................................. 47
Figure 7.1: Location of Bhorleni Mini-grid .............................................................................................. 60
Figure 7.2: Bhorleni Powerhouse Site .................................................................................................... 62
Figure 8.1: Location of Chisapani Powerhouse and Benefiting Households ..................................... 75
Figure 8.2: Chisapani Solar Panel Site – foreground and mid-ground ............................................... 77
Figure 8.3: Chisapani Forest Areas and Distribution Line Forest Crossing ....................................... 79
Figure 9.1: Kyangsingh Village – looking west ...................................................................................... 91
Figure 9.2: Kyangsingh Village Land Use Pattern ................................................................................. 92
Figure 9.3: Gaurishankar Conservation Area......................................................................................... 94
Figure 11.1: VDC-Level Grievance Redress Committee ..................................................................... 112
Figure 11.2: District-Level Grievance Redress Committee ................................................................. 112
Figure 12.1: Vertical Slot Fishway ......................................................................................................... 131
Figure 12.2: Pool-and-Weir Fishway ..................................................................................................... 131