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NEPAL ELECTRICITY AUTHORITY(An Undertaking of His Majesty's Government of Nepal)

ARUN III HYDROELECTRIC PROJECT

ENVIRONMENTAL ASSESSMENTAND MANAGEMENT

EXECUTIVE SUMMARY

KATHMANDUMay 1993

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NEPAL ELECTRICITY AUTHORITY(An HMG/N Undertaking)

ARUN III HYDROELECTRIC PROJECT

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ENVIRONMENTAL ASSESSMENTAND MANAGEMENT

EXECUTIVE SUMMARY

KATHMANDUMay 193

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NEPALARUN III HYDROELECTRIC PROJECT

ENVIRONMENTAL ASSESSMENT AND MANAGEMENTABBREVIATED EXECUTIVE SUMMARY

INTRODUCTION

The Arun III Hydroelectric Project has been subjected to extensive comparative analysis andintensive design studies as well as envirommental scrutiny. In this summary report,*environment" is used in its broadest sense to mean the total biophysical, socio-economic andcultural setting within which the people of the Arun Valley live. The various environmentalstudies are contained in a large number of professional reports totalling several thousand pages.This Environmental Executive Summary attempts to condense under one cover the contents,findings and recommendations of those reports, and the nature of the environmental managementsystems to be put in place in the Arun Valley as a result.

The major direct environmental inpact of the project concerns land acquisition, compensationand rehabilitation, which is, including the access road, the power project, and the transmissionlines, estimated to affect some 1,760 families, about 0.18% of the total population of the ArunValley. Of these families about 155 are seriously affected, i.e. those whose house is taken or whoare left with insufficient holdings, assets and prospects to reach their previous living standard.The major induced risk of the project relates to deforestation, for which a detailed mitigation planis described below.

POLICY. LEGAL AND ADMINISTRATIVE FRAMEWORK

The environmental scrutiny of the Arun III Project has taken place in an institutional and policyenvironment that has evolved since the project was first conceived. This has included a NationalConservation Strategy (NCS) developed with assistance of the World Conservation Union linkingsustainable development with conservation; the most recent Five Year Plan (1992-97) stressingthe use of envirommental assessment as a tool in project design and implementation, thepreparation and enforcenent of legal provisions emphasizirg sustainability, and public and NGOinvolvement; a series of environmental guidelines developed during the ongoing implementationof the NCS.

Important among legislation relating to the Arun III are the Land Acquisition Guidelines for theArun Access Road (2045) which have been used to implement a Land Acquisition, Compensationand Resettlement Plan (ACRP) which is to be applied to the Project as a whole, that is, includingthe access road, the power project itself, and the transniission lines. This has included extensivesocioeconomic surveys of the project affected families and application of rehabilitation measuresthat include land for land and employment options for Severely Project Affected Families(SPAFS) and rehabilitation grants for all PAFs, beyond the normal compensation stipulated byNepal's Land Acquisition Act.

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PROJECT DESCRIPTN

The Arun III is a 402 MW 'run-of-river' facility that will utilize normal flows in the river,through twin 11.5 Ikm headrace tunnels, rather than depend on water held back in a largereservoir. Development of the project is envisaged in two equal stages of 201 MW. The damwill be a concrete gravity type with a crest length of 155 m and a height of 68 m.

The Arun III power facilities are dependent on the construction of an access road of 122 km thatwill follow the river valley alignment. The power transmission system required for the full two-stage development of Arun III includes a double circuit 220 kV transmission line of 380410 kmfrom the Arun III powerhouse to Kathmandu, passing through substations in the Terai; the firststage consists of a 120 km double circuit single tower 220 kV line linking the Arun III Projectwith the Nepalese national grid and a substation at Duhabi in the Terai..

Project construction is expected to start, with the road, in 1994. The road will take about 40months, including mobilization. For the bulk of the hydropower components, construction willbegin after the provision of road access, post-monsoon 1996. Final design and construction ofthe complete trarsmission line system, including substations for Stage 1, could be completedwithin 43 months from contract award. At the present time, funding is sought for Stage 1 only.

THE SEMNG

The Arun Valley contains natural features of recognized international significance, particularly inthe Makalu-Barun area north-west of the Arun Im site. This area contains one of the fewsurviving pristine forest areas in the Himalayan range, with very high biodiversity values.Features of high ecological and cultural value have also been identified, through a World Bankand UNDP sponsored regional study, elsewhere in the Valley, which is an international flywayfor migrating birds and has a high diversity of aquatic fauna.

the Arun River originates in the Tibet Autonomous Region of China, with approximately 84% ofthe catchment area lying north of the Himalayan Range. The river pre-dates the uplifting of theHimalayan Range, and its down-cutting has kept pace with the rate of uplift. The catchment areaof the Arun at the damsite is approximately 27,000 km2, with that lying within Nepal estimatedto be 5028 km2.

The Arun Valley is home to several hundred thousand people from a great variety of ethnic andcultural backgrounds, with different traditions and expectations and different historical roles inthe society and economy of the Valley. The population of Sankhuwasabha District, whichincludes much of the area to be directly affected by the Project, is estimated at some 160,000.Because most of the settlements and arable land are concentrated on the ridges and terraces alongthe mountain slopes, the access road traverses land which over most of its length is relativelylightly settled and farmed. The same can be said of the hydro project location, as the generaldemographic pattern is on of decreasing population density from soudt to north, with only eightpersons per km2 in the northern part of the Arun Valley.

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Within Nepal, a population of about 450,000 people lives within the catchment area of the ArunRiver. The access road passes through land occupied by some ten different ethnic groups. Theindigenous people are Kirantis, represented by Rais and Limbus (The Arun River is a socialdividing line, with the Rais generally to the West and Limbus to the East). Others present in theare Bhotea, Kar Bhote and Gurungs, similar to the Kiranti in their Tibeto-Burman characteristics,and Brahmin-Chetri, occupational castes, and Newars, all of whom have migrated more recentlyto the valley and are organized along more hierarchical caste lines than the Kiranti.

Most of the Valley's inhabitants live in a rigorous subsistence lifestyle, and some two thirds arefunctionally illiterate. A main determinant and limitation affecting the economy and lifestyle isthat at present virtually all movement of people and goods within the valley is on foot.Consequently, the economy and lifestyle have been largely self-contained and self-sufficient,although the Kiranti have a long tradition of service in the British and Indian Armies, andvirtually all ethnic groups depend to varying degrees on seasonal or long term migration out ofthe valley to India or the Nepalese terai.

Prominent among regional development and conservation efforts has been the Makalu-BarunConservation Project seeking a combination of sustainable community development andconservation within a protected area for the Makalu-Barun valley. This has been the outcome ofa successful programme mounted by an international NGO, the Woodlands Mountain Institute,which has received Global Environmental Fund support, through collaboration with UNDP andthe World Bank.

POTENTIAL ENVIRONMENTAL IMPACTS

The impacts are: direct impacts, resulting from the physical presence of the facilities and the waythey are designed, built and operated; indirect impacts stemming from the economic activitiessurrounding construction; and induced economic effects resulting from improved access. Theseoccur in tw- main phases, during construction and operation. The area of influence of theproject is taken to be the whole Arun Basin within Nepal.

The Arun III Project will have far-reaching social and environmental consequences. Most ofthese will result from construction of the road rather than from the power project. Duringconstruction, the road will require a workforce of an average 6700, peaking at around 9500during key dry periods, about twice that of the hydropower components requirement of about3700, or the some 1300 required for transmission line construction. Many of these workers willbe from the Arun Valley, since the contractors are obliged to give preference to hire localpeople. (The approximately 12-14,000 figure for construction workers - roughly 3% of theValley's 450,000 population - will also inevitably include some double counting).

During construction there will be large concentrations of workers and their dependents both at theContractor's camps at the remote work fronts, plus incomers atracted by economic opportunities.Together, these will create a massive increase in demand for food and fuel with consequentimpacts on prices and forests. There will also be some social disruption and pressure on healthfacilities. Positive impacts will be local employment opportunities with a resulting increase in

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per capita incomes and an increased market for local produce.

Since the Arun IIl Project is a run-of-river scheme, the impacts typically associated with largereservoir hydropower projects not relevant to this project include:

* no resettlement of people or significant loss of agricultural land due to inundation;

* no proliferation of waterborne disease vectors like schistosomiasis or water weeds,due to unsuitable conditions;

* downstream dewatering will not affect agriculture;

* no potential for induced seismicity due to water impoundment;

* limited sediment trapping potential behind dam, minimizing the potential fordownstream erosion, with no loss of water-borne sediments to downstreamriparian areas;

* project life will not be reduced by reservoir sedimentation since it is a run-of-riverfacility;

* negligible alterations in water temperature and biochemical oxygen demand due toimpoundment, given the minimal water retention time;

* no disruption to navigation, since damsite is located in a non-navigable riverstretch;

- minimal danger of destructive downstream flooding in the event of dam failurebecause of the small amount of water retained behind the dam;

a minimal inundation of riparian vegetation due to steep valley sides and smallimnpoundment (50 ha, extending some 4 kn upstream).

Without mitigation, some of the identified negative imnpacts in the Arun Valley duringconstruction are likely to include:

* clearance of forests within the vicinity of the project, resulting in habitat loss forendangered species of wildlife;

* pressure on fish populations;

* permanent land take of agricultural land, with loss of food production and effectson marginal households (this will be minimal for transmission line Right of Ways(RoWs), although some will occur for substations and tower pads);

* temporary land take and disruption of agricultural activities, with effects on

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marginal households;

* hazards to birds (avian hazards) by transmission lines at valley crossings andbreeding sites such as Koshi Tappu in the Terai;

* safety hazards to public of transmission lines;

* encroachment onto RoW of transmission lines by landless squatters;

* possibly, health risks from exposure to electromagnetic fields along transmissionline Rows.

* marginalization of some project-affected families (PAFs) and of women, despitecompensation procedures;

* increased local food deficit;

* food price inflation, with effects on marginal households, especially nutritionalstatus of some women and children;

* development of shanty towns;

3 exacerbation of already existing poor health situation and stress on healthfacilities;

* impact of labour force on local social systems and culture;

* major stresses on all local institutions (in particular local government, schools, andresource management groups).

When the Project is completed, positive impacts during the operational period will be:

-* greatly reduced cost of imported food and manufactured commnodities;

* greatly reduced transport cost for regional exports;

* better access for current outward seasonal and long term economic migration;

* possibility of expansion of feeder road system;

* rapid growth of new economic centres along the road and for maintenancecontract work along transmission line Row;

* increased incomes from livestock;

* * increased tourism (and tourism related impacts);

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* possible return of educated, successful migrants.

Without comprehensive development progranimes in the Valley, negative trends alreadyunderway, and likely to be accelerated, will include:

* increased rate of population growth, and consequent demand on resources;

* major reductions in sale prices of locally-produced grain crops, with worsenedfood balance;

* major reduction in long-haul portering opportunities;

* increased harvesting of forest products to pay for required food and other goods,and forest clearance for cardamom production, with consequent forest degradationand habitat loss, especially through increased construction needs for urbanization;

* further development of shanty towns;

* no reduction in the ongoing processes of impoverishment and marginalization;

* loss of some riverain habitat essential for endangered species;

* loss of forest habitat of other endangered species, and direct threats due tohunting;

- increased disparities in wealth and access to services;

* accelerated erosion of traditional values and culture.

Cumulative iinpacs can also be expected once the access road is completed, as two otherprojects, th.e Upper Arun Hydroelectric Project (UAHP) and the Lower Arun HydroelectricProject (LAHP) are planned for the Valley. A short discussion of these is found in the mainExecutive Summary document.

Some quantifiable impacts of the Arun III Project area, according to latest estimates:

Access Road Power Transmission Line; TotalTOTAL Affected 1014 170 576 1760Population-Families(PAFs and SPAFS)SPAFs 132 19 4 155TOTAL Land Take 394 117 602 1113(Ha)Privately Held 293 77 312 682Land fHa)

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Of the total land take, agricultural land will be 186 ha, which corresponds to about 0.14% of theagricultural land in the Arun Basin.

PROJECT ALTERNATVES

Internally, Nepal has a major unsatisfied demand for electricity. Externally, the country is in aunique position to supply power to the burgeoning South Asian economy. Nepal has enormouseconomically feasible hydroelectric power potential, of the order of 25,000 MW. Therefore, thelogical choice for some rural and most urban and industrial uses is hydropower. The Arun IIIHydroelectric Project was identified as the best major hydropower scheme to be added to theNepal interconnected System under a least cost generation expansion plan (LCGEP) completed byNEA in 1987 and reconfirmed by an LCGEP Update Study completed in 1990.

HMG/N has now initiated analytical work to improve efficiency in financial resource allocationand to prioritize the expenditure portfolio, so that investment in Arun III will not crowd out otherpriority projects, particularly those in the social and rural infrastructure sectors. At the sametime, HMGN is taking steps to open up the electricity supply system to competition byencouraging private sector participation in power generation.

IMPACT MMTIGATION

The Arun III Project has an Environmental Mitigation Plan, which is an integral part of theproject and deals with direct impacts including land acquisition, compensation and rehabilitation(ACRP) and a Regional Action Programme, which has grown out of a Management of BasinwideEnvironmental Impacts Study (MBEIS) by the NGO the King Mahendra Trust for NatureConservation (KMTNC), sponsored by the UNDP and World Bank (October 1991). This latteraddresses the indirect impacts and induced effects, and together the two constitute the'Environmental Management Plan" required by World Bank appraisal procedures (OD 4.01).

The Environmental Mitigation Plan includes design level accommodations, such as avoidance ofsettlements and buildings wherever possible (a major consideration in choosing the Valley routefor the acceas road over the previous Hill route), minimizing earthworks, and slope stabilizationmeasures as well as various controls on the Contractors, such as on methods of and locations forspoil disposal, strict controls on use of wood for any purpose, and requirements to maxirnize useof local labor (especially SPAFs). The ACRP, for PAFs and SPAFs includes, as well associoeconomic surveys prior to acquisition, land for land and employment options for SPAFs,and rehabilitation grants for all PAva:

* guidelines for leasing land, and restoring it, whenever possible;

* inclusion of informal tenants and squatters in the Land Acquisition Guidelines2045;

* compensation for any physical damage caused by the Contractor or any

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subcontractor operating on the project, according to an agreed and publicizedclaims procedure

Measures to minimize the indirect impacts of the access road, and to capitalise on the economicopportunities provided by improved access such as tourism, have been idendfied in the MBEISthe KMTNC. The study listed long-term management options for the area, and proposed aninterim managerent structure, cntered on the National Planning Conmmission (NPC).

The Study's report lists 21 recommended sectoral programmes in six major programme areas(conservation; income generation; insdtutional strengthening; extension and training;infrastrucure and energy; and research, monitoring and infornation) designed to address both theimmediate requirements brought about by the construction process and the longer-term needs forsustainable development within the Arun Valley. In terms of scheduling, five sectoralprogrammes (strengthening local forest management; helping local comununities serviceconstruction-related demands, particularly for wood; strengthening government institutions tocope with impacts; training and education for local human resource development; andenvironmental monitoring) were regarded as priorities for pre-emptive implementation. Theseactivities comprise a "core programnew to be implemented by HMGN as a priority.

Dfrestation

As mentioned earlier, the major induced effect of the Arun m Project is the potential seriousexacerbation of the ongoing deforestation in the Arun Valley. As a framework, it bears notingthat the King Mahendra Trust Study concluded that if existing agricultural practices continued,including the extensive use of 'slash and burn' practices, all the Valley's forest resources wouldbe lost in 5-15 years. The major potential causes of deforestation are the Project workforceduring construction and illegal logging once the access road is completed. Among the mitigationsteps being taken to address these issues are: requiring contractors to give preference to hiringthe local residents (especially SPAFs); instituting strict controls on the use of fuelwood bycontractors for any purpose, making contractrs responsible for operation of illegal loggingcontrol gates during the construction period; locating contractor work canps away from potentialenvironmentl 'hot spots,' after consultation with local NGOs and experts in biodiversity;institting a strict Project Monitoring Plan (see below), as well as an Action Plan for the controlof illegal logging, to be managed by HMG/N. In addition to ihe setting up of the 2,330 km2Makalu Barun National Park and Conservation Area in the northwest quadrant of the Basin, theArun Basin's biodiversity resources would also be covered under the Arun Hydroproject throughthe institutionalization of the Milke Danda Conservation Area along the valley's eastern border.

ENVIRONMENTAL MANAGEMENT RESPONSIBILITIES

The construction team, comprised of the Employer, Engiefer and Contractor, have theinstitutional responsibility for implementing the Project's environmental management saegy, theEnvironmental Management Plan, which will cope with direct impacts. HMG/N will provide theleadership for setting up an administrative mechanism responsible for the Regional Action

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frggalnm which will deal with indirect impacts and basin-wide change. Both components ofthe strategy will require new institutions, and therefore will be the subject of institutionalstrengthening, programmes.

Both the Engineer and Contractor will have at least one full time professional enviromnentalist ontheir staff for the duration of the works, and the Nepal Electricity Authority will undertake aninstitutional strengthening programmne for its Enviromnental Unit, which will include the creationof an Arun III Project Environmental Management Unit, worldng directly with the Engineer'senvironmentalist and having a professional Resettlement Advisor on its staff.

The NPC has commissioned a Macro-management Study to examnine and refine the managemen;recommendations of the Basinwide Impacts Study, to turn agreed proposals into implementableprograms in time for the start of road construction after the 1994 monsoon. It is likely that theRegional Action Programme would be carried out by a policy making board (the Arun BasinInterim Management Board) assisted by a multidisciplinary executive unit, the Arun BasinEnvirorunental Management Unit (ABEMU), which would work closely with the Districtadministrations.

ENVIRONMENTAL MONITORING AND EVALUATION PLAN

The Arun 111 Project will operate dual enviromnental monitoring and evaluation progranmmes,through the Enironmental Mitigation Plan for direct impacts, and through the Regional ActionProgrammie for indirect impacts. Both roles envisage a critical role for NGOs, not only withinimplementation of social programs, but also as critical and objective evaluators of projectperformance in the envirorunmental (in a broad sense) realm. A post-construction EnvironmentalImpact Audit is part of the overall project planning.

Coordinated by the ABEMU, the Regional Action Programne (RAP) will establish an effectivemonitoring and evaluation system covering a wide range of issues, reflecting the broad coverageof the Basinwide Impacts Study and the various other enviromnentally-oriented projects andactivities related to the Arun III Project.

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ARuN 11 HyYDROELECTRIC PROjECT: ENVIRONMENTAL EXECUTIVE SumMMARY

PREFACE

The Arun III (Access Road/Hydroelectric) Project will be Nepal's biggest development projectto date. It has been the subject of a major planning and design effort extending over severalyears and invoMng a wide range of organisations and experts.

An important feature of the planning process has been the intensive effort which has beengiven to the ervironmental assessment and managernent components of the project. This hasincluded several major environmental studies by the design team, resukting in significantenvironmental inputs into the tender documents and engineering designs, and independentstudy of wider environmental issues related to project implementation. The environmentalwork has involved govemment agencies, local and intemational consultants, internationalfunding institutions, non-governmental organisations, and the people of the Arun Valley.

The various environmental studies are contained in a large number of professional reportstotalling several thousand pages. It is not reasonable to expect interested parties to study allthese in detail. This Environmental Executve Summary attempts to summarise under onecover the contents, findings and recommendations of those reports, and the nature of theenvironmental management systems to be put in place in the Arun Valley as a result.

Nevertheless, it is not possible in so short a document to do full justice to the vast amount ofwork that has been done. Therefore this summary should be treated as a guide only. Thosewishing to follow up on any issue and obtain greater detail are urged to consult the full reports.These are available at the Nepal Electricity Authority's Arun Ill Project Office in Kathmandu.

Some of the environmental assessment work has been undertaken with assistance from theUnited Nations Development Programme, the World Bank and Kreditanstalt fuerWiederaufbau. Thus the primary source of guidance on methodology has been theseinstitutions. However the final stages of analysis and preparation of this Summary have takeninto account the requirements of all the agencies involved in financing the project.

Contact Address:

Dr. J.L KarmarcharyaProject DirectorArur. IlI Hydroelectric ProjectNepal Electricity AuthorityAdwait MargP.O. Box 4909KathmanduNepal

Tel: (+ 977-1) 225973 Fax: (+ 977-1) 226619Telex: 2633 NEA HO NP Cable: BIDYUT

FRr.NEw 00

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ARUN III HYDROELECTRIC PROJECT

ENVIRONMENTAL ASSESSMENT AND MANAGEMENT EXECUTIVE SUMMARY

CONTENTS

1. INTRODUCTION 11.1 Backgound 112 Environmental Studies in the Project Planning Process 21.3 This Report 3

2. POUCY, LEGAL AND ADMINISTRATIVE FRAMEWORK 52.1 Irtroduction 52.2 National Contet s2.3 Irtemraional Contexd 7

3. PROJECT DESCRIPTION 93.1 Arunl!! fHydroelectric Project 93.2 Other Major Hydroelectric Projects Proposed for the Arun Valley 16

4. THE SElriNG 174.1 Natural Environment 174.2 Socio-Econornic Ernirorwnent 244.3 Regional Development 28

S. POTENTIAL ENVIRONMENTAL IMPACTS 305.1 Irtroduction 305-2 Arun Access Road 305.3 Hydropower Components 425.4 Transmission Line System 475.5 Cumulative Impacts 48

6. PROJECT ALTERNATIVES so6.1 Irtroduction so62 Alterative Technologies 506.3 Altemative Sites 51

7. IMPACT MMGATION 567.1 Introduction 5672 Environrnental Mitigation Plan 567.3 Land Acquisition, Compensation and Rehabilitation 657.4 Regional Action Programme 67

8. ENVIRONMENTAL MANAGEMENT RESPONSIBILMES 688.1 Introduction 6882 Project Ervironmfiertal Management

- Implementing the Environmental Mitigation Plan 698.3 Regional Managemnent Strucure 68a4 Instittional Strengthening 71

9. ENVIRONMENTAL MONITORING AND EVALUATION 749.1 Introduction 749.2 Ernirornental Mitigation Plan: Monitoring and Evaluation 749.3 Regional Action Programme: Monitoring and Evaluation 779.4 Further Surveys 78

10. CONCLUSION 80

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ARUN 11 HROELECTRIC PROECT: ENVIRONMENFAL EXECUTIE SUMMARY

APPENDICES

1. ReferrMces A-12. Record of Constltation and Meebngs A-33. Basinwide Impacts Study A-64. MakalF-Barun Conservation Project A-165. Impact Matices A-186. Index to Environmental Sections of Tender Docunents A-32

TABLES

3.1 Characteristics of Power Generation Components, Slaged Development 1032 Characteristics of Arun Access Road 133.3 Characteristics of Power Trarsmission System 133.4 Characteristics of Upper Arun Hydroelectric Project 163.5 Characteristics of Lower Arun Hydroelectric Project 164.1 Rare and Endangered Plant Species Found along Fte Access Road 214.2 Endangered, Threatened and Rare Mammals and Reptiles Known or

Suspected to Occur in the Immediate Vicinity of the Access Road 214.3 Estimated Ethnicity in the Arun Basin 244.4 Average Annual Family Iromne by Source 285.1 Access Road: Most Significant Potential Construction Period Impacts 315.2 Access Road: Most Significant Potential Impacts When Open 315.3 Land Use by Arun Access Road 355.4 Land Take by Hydropower Facilities 455.5 Land Take and Labour Force for Full Transmission Uine System 486.1 Arun Access Road - Comparafive Chart

Distances, Land Use, Land Take and Families Affected 5362 Arun Access Road: Hil Versus Valley - A Qualitative Assessment 54A3.1 Summary Table of Recommended Action Programmes and Projects.

Management of Basirnide Environmental Impacts Study A-12FIGURES

ai Project Enwironmerita Management During Construction 726.2 Project Environmental Management After Caommissioning 72&3 Model for Administration of the Regional Action Programmne 73

MAPS

1. Arun Watershed, Nepal, showing Project Location 4Z. Project Layout 113. Transmission Une Routes 144. Ecologically Sensiive and Protected Areas 22

PLATES

1. Typical Rai House, Arun Valley 22. Phyaksiinda Dobhan, the Dam Site 93. Hile, the Starting Point for the Arun Access Road 124. Phyaksinda - the Intake Area, from the West 205. Rai Girl 256 Porter carrying Builrng Materials from Hile to Khandbari 277. Hinku Vllevy Makalu-Barun National Park 29B. Tunbetar, north of Heluwabesi: Possibie Site for Contractor's

Facilities 339. Tumnlingtar from the North 36

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ARUN 1 HYDROELECTRIC PwEC ENVIRoNMENTAL EXEcuTIVE SUMmARY

NCS National Conservation StrategyNEAL Nepal Electricity AuthoritNGO Non-Govemental OrganiztionNPC National Planning Commission

OD Operational DirectveODA Overseas Development Administraton (U.K)

PAF Project Affected Famly

QNP Qomoiangma Nature Preserve

RAP Regbnal Action ProgrammeRoW Right-of-WayRPO Regional Planning Office

SDC Swiss Development CooperationSPAF Seriously Project Affected FamilySWK Scott Wilson Kirkpatrick & Partners

TRRL Transport and Road Research Laboratory (J.K)

UAHP Upper Arun Hydroelectric ProjectUNDP United Nation Development Programme

VDC Village Development Commiltee

WECS Water and Energy Commission SecretariatWMil Woodlands Mountain Institute

('IF'

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ARUN Nl HYDROELECTRIC PROJECT. ENVIRONMENTAL EXECUTIVE SUMMARY

ACRONYMS AND ABBREVIATIONS

ABEMU Arun Basin Enrironmental Management UnitABIMB Arun Basin Interim Management BoardACRP Acquisiton, Compensation and Rehabilitation PlanADB Asian Development BankADBIN Agricutural Development Bank of NepalAJDS Acquired Immune Def,ciency SyndromeAPEMU Arun Project Environmental Management UnitARI Acute Respiratory Infection

CDO Chief District OfficerCITES Corvention on International Trade In Endangered SpeciesCIDA Canadian International Development Agency

DFO District Forest OfcerDNPWC Departmert of National Parks and Wildlife ConservationDOR Department of Roads

EA Environmental AssessmentE3A Environmental Impact AssessmentEMP Enrrronmental Mitigation Plan

FIDIC Federation Internationale des Ingenieurs ConseilsFINNIDA Finnish Intemational Development Agency

GEF Global Ernvronment FacilityGIs Geographic Information SystemGLOF Glacial Lake Outbust Flood

HEP Hydroelectric ProjectHIA High Impact AreaHMGJN His Majesty's Governmert of Nepal

ICBP International Council for Bird PreservationICIMOD International Centre for Integrated Mountain DevelopmentIDA International Development AssociationIUCN The World Conservation Union

JV Joint Venture Arun Ill Consulting Services

KW Kred1tanstalt fur WiederaufbauKHDP Koshi Hills Development ProgrammeKMTNC King Mahendra Trust for Nature Conservationkm KilometerKPAs Key Planning AreakV kilovolt

LAHP Lover Arun Hydroeectric ProjectLOGEP Least Cost Generation Expansion PlanLDO Local Development OfficerLDFF Landslide Dam Failure FloodLUA Low Impact Area

m.as.L meters above sea levelMBCP Makalu-Barun Conservation ProjectMBEIS Management of Basinwide Environmental Impacts StudyMOFSC Ministry of Forests and Soil ConservationMW megawatt

(VI

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ARuN III HYDROELECTRIC PROJEcr: ENVIRONMENTAL EXECUTIVE SUMMARY1. INTRODUCTION

1 INTRODUCTION

1.1 BACKGROUND

1.1.1 The Arun Ill Hydroelectric Project

Fdlowing extensive comparative analysis and ilensive design studies, the Nepal Electricity Authority(NEA) intends to construct a rn-of-rier hydroelectric project on the Arun River in eastern Nepal (Map1). The project is known as the *Arun IlIl Hydroelectrc Project since the site chosen is the third of sixpotential hydropower sites originally idernified on the Arun River in the 1985 Koshi River WaterResources Development Master Plan. In the couse of iurther studies the number of feasible sites wasreduced to three, namely the Upper Arun, Arun III and Lower Arun projects.

The installed capacity of the Arun IlIl project vnll be 402 MW, which compares with Nepal's currertinstalled hydropower capacity of approimately 250 MW. The project has three principal components:

* an access road - the "Arun Access Roadm;

* a dam, tunnel, powerhouse and associated works;

* a trarsmission line system for power evacuation.

The first 201 MW stage of the Arun IlIl project is to be funded by a consortium of international lendingagencies comprising, among others, the Asian Development Bank (ADB), the Finnish IntemabonalDevelopment Agency (FINNIDA), the International Developnert Association, Washington, D.C. (IDA),and the governrnents of Germany, Japan and Sweden.

It is planned that construction of the access road should comnmence in 1994, with the first powerbecoming available in the year 2001.

1.1.2 Environment and Development in Nepal

Nepal is a poor country with a limited capacity to mobilise its natural resources for economic growth.Development of its massive hydroelectric power potential is seen as a strategic necessity to proideelectriciy for industrialisation to employ the increasing populatiorL In addition to meeting in-countryneeds, there will be opportunities for sale of surplus power to India

Given the wellablished link between poverty and environmental degradation, the primaryenvironmental issue is not whether infastucture development should occur. Instead, the need is toensure that those projects which are implemented are sensitive to the enwironrment and sustainable,and that they bring real and asting benefits to the people of Nepal. It is aLso important to balance localand national needs.

In Nepal, it is well recognised that erviromiental managerment requires an integrated approach to thephysical, biological, social, cultural and economic environmernt In this sunmmary report, menvironment"is used in its broad sense to mean the total biophysical, socio-economic and cultural setting witinwhich the people of the Arun Valley live

CHAPSI-2.NEW 1

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ARUN 111 HDROELECTRIC PRojECr ENVIRONMENTAL EXECUTIVE SUMMARY1. INTRODUCTION

p1.1.1 Typicl Ri House, Awn VaDeyPhoto: Chales Ramble

12 ENVIRONMENTAL STUDIES IN THE PROJECT PLANNING PROCESS

The general characteristics of the AruM Valley are remoteness, diversity (both natural and cultural), andpoverty. A rraor irfrastructure project will buing rapid and irreversible changes to the areaConsequernly, the Arun Ill Hydroelectric Prcgect has been the subject of five dmfferent categories ofenvironmental scrutiny:

(1) Recommendations of avariety of independent national and international observers: at least tworeports with an overview of ervironmental management and developmrent ecology in the Valley.

(2) The project design team (NEA. and their national and interational consultants): three majorenvironmental impact studies plus this environmental executive summary, as well as input toother project repors, the engineering design and specifications, and the tender documents.

(3) A *Panel of Expers (independent specialists, irncluding an environmentalist engaged by NEAto review the design team's recommendations and progress): seven reports to date.

(4) A national conservaton and development NGO, the King Mahendra Trust for NatreConservation, as a consultant to the World Bank: the Managemnent of Basinwde EnvronmentalImpacts Study, a major report on management of incirect and induced impacts in the ArunValley.

(5) Funding agency missions.

CAPsI-V2EW 2

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ARUN It/ HYDROELECTRIC PROJECT: ENVWRONMENTAL EXECUTIVE SUMMARY1. INTRODUCTION

These studies have followed a recogrisable sequenc: iirstly, early independent reports discussing thevalues at risk In the valley and the need for futher analysis relating to management of cne (1);secondly, project-specific reports Investigating probable direct impacts and appropriate mitigatingmeasures (2, 3, 5); and thirdly, analysis of indirect and induced changes, including economficopportunities, and mechanisms for managing hese processes (4, 5).

The consensus of the studies is that the project's direct impacts will be relatively mhnor when comparedwith the national benefits of increased electricity availabilily. However, the indirect impacts and inducedeffects resulting from the project and opening up the Valley are harder to predict and manage. Therewil be major economic opportunities, but tere will also be increased pressures on natural resources,and the danger of inequitble spread of benefts.

Management of bolh the direct and indirect effects necessitaes a major upgrading of administrativemechanisms and capability.

1.3 THIS REPORT

This Summary's layout follows the format suggested in the World BanKs Operational Direcfive onEnvironmental Assessment for a full project-specific EA Report (OD 4.01, 1991).

CHVS1-ZNEW 3

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ARuN iII HYDROELEC PROJEcr ENVRONMENTAL EXECU7iVE SUMMARY

1. INTRODUCTnON

N >MT. EVEREST (SAGARMATHAI

~)~ ~. MT. MAKALU.1, 4Th st / CHINA (TIBET)

|UPPER ARUN HEP

SA f OMDING~~~~NDI

l~ ~ ~ ~ ~~~HTR DHRA __________________

0~~ 5k

1I > 0S\ SYAUr KHLA, >

.RUN WATERSHED BOUNDARIES SINNEPAL

S4)<s, /YAGPANGlNC(

MapWE1 Awn Watershed, Nepal, sh~g Project LocatiGo

cHAPSI-2.NEwHt 4

(Xx NG * \/) ARUN ACCESS ROADi \nN BASI

)\ J CH~INDA

/CHATARA H N

-.. aRuN WATERSHDBUORE IN NEPAL

Map 1 Arun Watershed, Nepal, showing Prqject LocWiOn

CKPSI-2ZNEW 4

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ARUN m HYDROELECTRIC PROJECrf ENVIRONMENTAL EXECUTIVE SuMMARYI POUCY, LEGAL AND ADMINISTRAlTVE FRAMEWORK

2 POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK

2.1 INTRODUCTION

Large infrastructure projects do not occur in a vaun. They emerge from a particular institutionalerMronmerit, and operate at a particular moment in th poldical and socioeconomic history of thepawtner agencies and counties. Over the period of dopment ofthe Arun lIl Project there have beenmajor changes in national and international policy on environment and developmenL The Arun IlIlProject was conceived and largely designed under te Panchayat regime. The revdution of 1990began the process of democratsation in Nepal. with consequert opening up of debate on environmentand development, incuding the role and effects of major projects such as Arun Ill.

In addition, the 1980ls saw rapid advances in both the conceptualsation and acceptance of thenecessity for ervironmentaly berdgn 1f0ms of developmert, culminating in 19gs Earth Summit andthe publicaton of Agenda 21. The establishment of the legal and admfinistrative mechanisms toimplement the new policies have resulted in contnuous revisions to the Projects ernirornmentalprovisons and mandate.

22 NATIONAL CONTEXT

22.1 National Conservaton Strategy

National policy on environment and development has developed rapidly in recent years. In the mid19Bs His Majesty's Govwernment of Nepal, with the assistance of IUCN - the World Conservation Union- prepared a National Conservation Strategy (NCS). It was completed in 1987 and endorsed as podicyin 1988. The strategy, Buildng on Success, places great stress on the interdependence ofconservation and development. The opening sentence of the preface states that

Sustainable development and conservation must be firmly linked if Nepal is to meetthe needs and improve the quality of Ife of its present population and Uregenerations.-

The NCS includes a Conservation Action Agenda which sets out specific actions and policies. Underthe heading Conservation and Large-Scale Projectr the following policies are stated:

o The terms of reference for feasibilky studies related to such projects will include arequirement for the preparation of environrmental and socio-economic impactstatements, including proposed measures to mhinmise possible detrimental effects.

O The proponent of ary large-scale project, either government or private sector, will berequired to:

- establish a conservation fund as part of project capital costs to carry out thenecessary social and environmental programmes associated with the project,the purpose of the programmes would be to mminiise the detrimental social,econoric and environmntal effects that may be caused by the project,

- estabish a conservation secton within the project to manage the social andenvironmental programmes;

CaWi-WEW 5

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ARLIN V HYDROELECTRIC PROECT: ENVRONMENTAL EXECUTIVF SUMMARY2 POUCY, LEGAL AND ADMINISTRA11IE FRAMEWORK

Irnial planning for the Arnm IlI Project was undertaken concurrently with deveopment of the NatnalConservation Strategy, but before it had been confirmed as government policy. Since 1988, NEA'sdesign team has kept abrea of policy developmnts, and has promored the incorporaion ofappropriate aproachs and responses in the design process - etensive environmental and socialimpact work has been carried out, envirorunenteal mmagament tnits will be established bath within andoutside the project to manage mifigaton programmes (Chapter 8), and alfthough the concept of aconservation fund has not been adopted, ernironmental mitigation costs are being incorporated inproject costs.

2.22 Eighth Five Year Plan

The most recent statement of government environmental policy is the environmental chapter in theEighth Five Year Plan (1992-97). Environmental proecdion and management are seen as importantobligations of te State. Eighth Plan pdicies include, amornst others, the use of environmertalassessment as a tool in project design and implementation, the preparation and enforcement of legalprovisions emTphasisirng sustainability, and public and NGO irnolvemenL

2.2.3 Environmental Impact Assessment Guidelines

As part of the ongoing implementation of the NCS, Nepal is rapidly developing its own laws, regulatonsand gtdelines for environmental assessment and managemenL National guidelines for environmentalimpact assessmert were fomially endorsed by Cabinet on 18th September 1992, and sectoralguidelines are being prepared. Key documents indude:

O National Environmental Impact Assessment Guidelnes. National Planning Commission/IUCN,

o Environmental Impact Assessment Bill (draft). HMCG/N, 1992.

o Guidelines for the EnvionmentalAssessment of Water and Energy Policies, Programmes andProjects (draft). Social and Environmental Directorate, Water and Energy CommissionSecetariat, March 1992Q

o Guidelines fora National System of Environmenta Panning in Nepal (draft). National PlanningComrnissiorVlUCN, 1992.

O Envi Rronmentat lmpactAssessment Guidelines for the Festry Sector (draft). National PlanningCommission/Ministry of Forests and Soil ConservatiorVlUCN, December 19W2

As far as possible, the phiosophy of the these guidelines has been incorporated in the ongoingenvironmental assessment actvities of the Project

22.4 Legislation

The acquisition of land for state puposes is governed by the Land Acquisition Act 2034 (1977). andamended for the Arun Ill Project by the Land Acquisition Guidelines 2045 (1968) declared under theact Forests and forestry are controlled by the new Forest Act 2049 (1993).

The most important act relaed to wildlife conservation and protected areas is the National Parks andWildlife Conservation Act 1973 (2029). ft provides for the establishment and administration of protectedareas and Me conservation of animals and birds and their habitat'. The latest amendment of the Actwas in 1989 to allow fbr the estabishment of Conserato Areas.

QOAPS1-ZJEW 6

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ARUN /i1 HYDROELECTRIC PROJECT: ENVIRONMENTAL EXECLMVE SUMMARY2. POUCY, LEGAL AND ADMINISTRAiVE FRAMEWORK

In addition, Nepal is a state signatory to a number of international conventirons relating to wildlife anderwironerital conservation including:

1956 Plant Protection Agreement lor the Asia and Pacific Region1975 Conentio on lrtemational Trade in Endangered Species of Wild Fauna and Flora

(CIrES)1g78 World Heritage Conventin1983 Irtematioa Tropical Timber Agreement1987 Convention on Wetlands of Internatil Importance especially as Waterfowl Habitat

(Ramsar Convenon)

HuLting is regulated by the Nationa Parks and Wildlife Protection Regulations made under the Act(1974, 1975, 1978, 198). Other acts and regldations relevant to biodiversity include the WildlifeReserve Regulations (1977). the Himalayan National Park Regulations 2036 (1979). Regulations forthe recenty gazetted Makalu-Barun National Park and Conservation Area (22nd November 1991), andthe Aquatic Life (Conservation) Act, 1961.

Tourism is cortroled by the Tourism Act 2035 (1979), mountaineering by the MountaineeringExpedition Regulatiors 2035 (1980), and trekking by the Trekking and River Rafting Regulations 2041(1985).

Recent Acts to further the decentralisation process indude the Village Development Committee Act,the Municipality Act, and the District Development Committee Act, all of 1991.

2.2.5 Administration of Environmental Policy

Mechanisms for the implermaon of envrormental policy are at an early stage of developrment inNepal, but are evolving rapidly. Endorsement of the NCS in 1988 resulted in the establishment of ahigh-level umbrella Council for the Conservation of Natural and Cultural Resources. Recently, this hasbeen dissolved and replaced by a powerful Enwment Protecion Councd, chaired by the Prime

rinister, with a wide-ranging mandate to formulate and implement environmental policy. The Councilwnll be assisted by a new Environment Protection Division under the Secretariat of the National PlanningCommission. (At the same time, the name of the Ministry of Forest and Environment was changedback to the Ministry of Forest and Soil Conservation).

One of the Council's main responsiblities will be coordination of the activities of line agencies insofaras they affect the environment (Departmerts of Irrigation, Roads, Forest etc.). At the same time, theCouncil will be taking advantage of Nepals regional development and decentralisafion policies toimprove the capability of district and village level adrmdnistrations. These will have an increasing roleto play in envirorimental management as Nepal moves from a centralised bureaucracy controllingdevelopment to a decentralised one facilitating local and private sector initiatives.

2.3 INTERNATIONAL CONTEXT

Thoughout the 1980I s and early 90s donor policy on environment and sustainable developmentevolved rapidly. All the multilateral and bilateral development agencies now have environmentalassesserit procedures in place to screen projects throughout the project cyde. For examnple, theWorld Bank has envirornmenta assessment policies and procedures

to ensure that development options under consideration are environmentally soundand sustainable, and hat any ervironmental consequences are recogrnsed early andtaken into accout in project design."

OWASI4JIEW 7

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ARUv mx HYDROELECTRIC PROJECT- ENV1RONMENTAL ExECUTiVE SUMMARYI POUCY. LEGAL AND ADMINISTRATVE FRAMEWORK

RFeet Worid Bank publications on enironmntal assessmert methodology relevant to the Arun IlIlProjed nclude:

o Ernvrnmea Assesnsmnt Sour,cbook Vdunes I, II. IIl. Techricel Paper No. 139Envimrrient DepL, World Bank. August 1991.

O World Bank Opeaiona Directive 4.01 EnvoronmaAssessrnent October 1991 (0D 4.011.

O Numerous other relevant World Bank Operational Direcves, Operational Manual Statementand Operational Policy Notes, as Hsted in the Sourcebook.

In additon, there are a number of papers by Bank stiff on subjects such as compensation andresettlement which are specific to Nepal.

These comIprehensive guidelines are paraleled by similar gtidance published by the ADB and oerdevelopment agencies, for example the ADB's Guilines for Socil Anals of Bank Pretects (1991).

As well as considering direct impcs and their mitigation, these irternational EA proceckres are nowfocused increasingly on indirect and induced effects, and on public participation. For example, theWorld Bank's OD 4.01 on Environmentae Assessment requires that project-specific EAs should normallycover: (a) exing environmernal baseline conditions; (b) potenrial envirormnental impacts, direct andinirect, including opportunities for envirorvnental enhancement; (c) systematic environmentalcofparison of atnative inestnernts, sites, technologies and designs; (d) preventive, mitigatory, andCompensatory measures, generally in the form of an environmental mitigation or management plan; (e)environmental managemrent and trairing; (f) environmenta monitoring.

Issues that should be addressed include, amongst others, bidogical diverskty, cultural property,indigenous peoples, induced development and other sociccultural aspects, involuntamy resettlement,natural hazards. and occpaional health and safely. All these topics are cwvered by Bank OperationalDirectives. In addiion, futher Directves or Operational Pdicy Notes cover Dams and Reservoirs,Projects on Internaonal Waterways, Tropical Forests, and Wildlands.

The Arun Ill Project has responded to this increasingly rigorous analytical atmosphere by extending thescope and coverage of its environmental impact assessment studies, and by assistng other governmentagencies to develop the prograrnmes necessary for impact mitigation and the enhancemerit ofeconomic opportunities.

HAMaI-21EW 8

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ARUN l HYDROELEcTIC PRWjEC7 ENIRONMENTAL MEECUTIVE SUMMARY3. PROJECT DESCRIPTON

3;) PROJECT DESCRIPTION

3.1 ARUN III HYDROELECTRIC PROJECT

3.1.1 Introduction

Armn Ill is a 402 MW arun-ot-river Waciltty, that is It will utilise normal flows In te rher rather thandepend on water held back in a large resewoir. Water diverted from the rier will low through a tunnelto an underground powerho, and then be discharged back into the river channel.

Key Features of the Project

* High firm river low due to glacier and snowmelt (7B.5 etls 90% dependable flow)* High head due to steep gradiert in loop of river (286 m net head at full load)

hFirm energy of 1558 GWiannun* Small area to be inundated (30 ha)* High energV outprt per urit of land occupied (MW/ha = 402(430 = 0.93)

Favourabe geology at the lcations of almost all major suctures* Access road which can also serve oer attractive power projects on the same river

(totalling 1045 MW)

Tender design for a staged development (268 MW, 134 MW) was concluded with the April 1991Engineering Design Report Forfinancial and macroeconomic reasons NEA and the funding consortium,led by the World Bank. row erlsage project deelopmenit In two equal stages, each of 201 MW.

Plae 2 Physkainda Dobhan. he Dr SIePhOt: B. D. JoaN

OWNPS34.w 9

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ARuN in HVROELE C PROJECT: ENVRONMETAL EXEcuGVE SUMmARYa PROJECT DESCRPTnON

3.12 Power Gsnemtlon Components

The main permanent components (Map 2) will take up some 47.8 ha of land, and will be:

* Dam and resenvoir (40 ha Inundated), Induding diversion works* Poerr Intake, underground dasanding basins and flushlng systemO Twin 11.5 km headrace tunnels, underground surge tanks and adits* Underground powerhouse and associated structures0 Permnanent offices and housing (5.8 ha)

The dam Is required to dhiert water into the headrace tunnel. It will be a concrete gravity dam with acrest length of 155 m and a height of 68 m. Although the reservoir created by the darn will extendsome 4 km upstream, it will only have a surface area of some 50 ha.

Temporary facilities will cover some 69.1 ha and will include:

* C?Quarries, borrow sites and spoil storage areas (16.1 - 32.4 ha)* Concrete batching and mbding plants* Work end storage areas (1 3.5 ha, inc. batching and mixing plants)* Construction camps, offices and housing (28.5 - 36.5 ha)* Support facilities, including helipads* Construction power supply (22 ha) and local 33 kV transmission system

* Roads and bridges

Table 3.1 CHARACTEFRSTICS OF POWER GENERAllON COMPONENTS. STAGED DEVELOPMENT

COMPONENT FEATURES FIRST STAGE SECONDSTAGE

Dam concrete gravity with Integral to be completedspillway, crest length 155 m, height68 m

Spilway 3 radial gates, discharge capacity to be completed8100 m3Is

Power Intake 4 openings 4 x 13.5 m, trash racks, to be completed except intake tunnels 1,sedimernt flushing system, roler Intake tunnels 1, 2 2gates__ _ _ _ _

Desanding 4 underground, 1- x 28 x 110 m downstream basins 3, 4 upstream basinsBasins and all of flushing system 1.2

Headrace 2 concrete-lined, length 11.51 lon, mountainside tunnel and valleyside tunnelTunnels diameter 5.6 n. surge tank and surge tank

High Pressure 2 steel-lined shafts, 4.3 m diam. shaft f- Units 1-3 shaft for Units 4-Waterways 6

Power Cavern underground, space for 6 generating space for Units 1-3. space for Unitsunits, 22 x 35 x 161 m service bay, unloading bay 4-6

Turbines 6 x Pelton type, 67 MW each, total Units 1-3, 201 MW Units 4-6402 MW 201 MW

Tailrace System 2 lunnels, 2 surgetanks, 1 ouUtet one tunnel and surgetank. second tunnelstructure outlet structure and surgetank

CHAPSs4NJEW 10

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:

liefrar 2000 0 8 tGhopoN KHANrAN

rip~~~~~~~~~~~~~~~~~~~~~r

OYAR 9 o O~~P~aaIdoli

a~~~~~~

Moore. 2000 0 4

LIST OF MAJORUrnOoIg Sluwa thus K I. Mahue.gya hl

IASAIT.PUR emEhl

rurtbn (CitfUd)

~IL Sub, Dholl gRa

Rlver/kJ,oI.

S Leoea Business Centre/Town

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ARUN w HYDRoeLECTRIC PRWEcT ENVRONMENTAL ExECumE SUMMAR3. PROJECT DESCRIPrnON

3.1.3 Arun Access Road

Conrctn and operation of the Arun IIl power faclities is dependent on the corstrucion of an accessroad to link the site with the existing road system. The direct distane from the nearest road head atBasantapur to the dam site is approdmatety 50 km (Map 2). However, the difficut terrain necessiatesa total ength of new road construction of 122 kn, Icluding access to the powercavern.

The road wiv start at the small market town of Hile in Dhankuta Distric (Plate 3). This is the highestpoirt on the rwte, at 1920 .Las.l. The road descends rapidly past Pakhribas to the Arun River, andthen follows the valley throughoutMp 1). Heading noth close to

the river at 260 - 300 rmas l fivemajor tribtries are crossedbefore reaching the Tumlingtar |

plateau. Between Tumlingtar andthe powerhouse site the road 1 _ .

conrinues to follow the left (east) :bank of the river, with the terrain 5 ' ,-_

becoming much steeper and more - * - ldirficult halfway, at Bumring.

At the powerhouLse the road icrosses the river and proceedsnorthwards on the right bank nearriver-level for soie 7km, retuming '%. .to the left bank immediately belowte site of Adit No. 2. Here theroad ascends to avoid very steepand difficult ground near the river, | -

mid then contours at an elevaionof around 1340 m.as.l. pastAmrang, the site for the permanent 7- camp 17 km rath of the i_powerhouse.

The final descent to the Intake siteis made at Phyaksinda, belowNum. g ^icC

11 major bridges will be requiread.including two over the Arun Riveritself, one near the powerhou se -

and one below the site of Adit No.2 (Map 2).

passing plcs wit a sele Pla. i, \e thThe road will be single-lane wih _____ ________passing places, vith a sealed rhft 3 Kdo the Slatng Paint for# Awn AcnessRdsurface. This will minimise Phob: JoH Henleyearthworks, slope disturbance, and maintenance costs.

A road maintenance depot will be built at Tunlingtar, an important staging point hallway to the powerdevelopment sites. Other acirSiies will include Engineer's-camps and resthouses.

CHAPSa4LIEW 12

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ARUN 111 HYDROELECTRIC PRoECr. ENVRoNMENTAL EXECUc E SuMmARY3. PROJECT DESCRIPTION

Table 3.2 CHARACTERISTICS OF ARUN ACCESS ROAD

COMPONENT FEATURES

Length of new construction 122 km single lane with passing places

Cafrlageway 4.5 m with 0.5 m shoulders, widening on curves

Right of Way 30 m widlh taken Irto govemmert ownership

Gradients ruling, 7 %, max: 10 %

Wearing surface double layer surface dressing (stone chip and bitumen spray)

Bridges 1 1 no, with spans from 30 - 104 m; steel trusses with concretedocks, piers and abutments

Culverts 1100 no, concrete pipe or corrugated steeL variable ciam.

Retaining walls 0.57 M m3 masonry. gabion

Eafhworks soft cut: 1.1 M m3

rock cut 0.9 M m 3

fill: 0.95 M m'

3.1.4 Power Transmission System

The power tansrission systern required for the full two-stage developrnent of Arun Ill includes adouble circuit 220 kV transmission line from the Arun IIl powerhouse to Kathmnandu, passing througha 220/132 kc substation at Duhubi nwar Biratnagar, a 220 WV switching station at Dhaikebar in theTerai, and terminating in a 2201132 kV substation near Kathmandu (Map 3). The total length of linewill be 380-410 kmn, dependring c.n final alignmnrt decisions at the Sapta Kashi crossing.

For Stage 1, only the section Anun Ill - Duhubi will be needed (120 Iam). The 33 WV transmissionsystem used for the conruction power supply at the project site will be retained for local use.

Table 3.3 CHARACTERISTICS OF POWER TRANSMISSION SYSTEM

COMPONENT TYPE DIMENSIONS

System double circuit single tower, 220 kV

Length powerhouse - Duhubi 120 kmpowerhouse - Kethmandu 380-410 km

Right of way Controlled laid use width estimated at 40-45 m

Towers standard rigid lattice galvanised steel; height 40-45 m, footprint 15 x 15 mpossibly wire stay type in Terai approx, average span 400 m +

Conductors twin bundled from Aun Ill - Duhubi;remainder single

Substations 220 kV/132 kV Duhubi, Kathmandu

Switlching 220 WV Dhalkebar

station

CKLPS34&tEW 13

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Q 4 % 4 ~~~~~~~~~~~~~~~C H I N A (TIBET)

MARSYANGOI KATHMANDU CITY 1 oOOEAKHA ,f

~~~~~~SB ST22/132 bVt

KULEKHANII11 A AUN ll|20 z,gKULEKHANI I 0s oRAMECHHAP POWER HOUSE

$ \ ZH~~~ETAUDA >"<oHNSRI

3 ̂ tL ~~~~~SINONULIMAOI o OKHALDHUNGA S§ l X ! tg§HILE % 0

" ~ S ~~9hITCH. St. 220 kV

LEGEND~~~~~~~~~~~~~~Q I NDIA ||

O~~~~AN -m~~~~NAM

&B,RATNAI

EXISTING 132 kV LINE xOSHI TAPPU a TxPOPr mouTiFUTURE 132 kV LINE WILDLIFE RESERVE *

= PROPOSED 220 kV LINE

SUBSTATION/SWITCHYARD Ito 10 ° g KMMAJOR ROAD &PURNEA o

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ARUN 111 HYOROELECTRIC PRoEcT ENwRONMENTAL EXECu77VE SUMMARY3. PROJECT DESCRIPrnON

3.1.5 Construction Schedule

Caucien ofthe first 201 MW stage of the project is scheduled to commence on 01.01.1994, withcommissioning tests of the first trbine on 01.05 2001. The implemntation schedle fthe second 201MW stage has yet to be decded. Consruucon planning sudies have resutted in the folowing keydates and periods for Stage 1 consrucon:

Letter of Acceptane fbr Lots Cl, C3 (dam, desanding caverns,access road, headrace tunnel, surge tank, NEA camp) 1.11.1993

Start of road corsruction post-monsoon 1994Air support 1.09.1994 - 1.05.1997Fist road access to damsite 1.10.1996Compblion of corstucton power supply 1.10.1996Compblion of penent camps 1.03.1997Competion of river diversion tunnel, start of coffer dam 1.11.1997Spoil disposal to Arun River moansoon 1998, '99, 2000Closure of diversion tunnel and fiiiing of waterways 1.032001Completion of transmission line 1.032001CommiTssioning tests for Power Unit 1 1.042001Demobilisation of cornractor(s) 04.2001

Road Constuction To meet this schedule, overall construction time for the access road will be limitedto 40 months, including mobilisation. Work Will start in 1994 and proceed simultaneously on anestmated seven separate worklronts, with extensive air (heicopter) support. The road labour force willaverage about 6700, peaking at around 950D during key dry season periods. Camps will beestabrished at Hile, Tumlingtar, and an estimated two points furter nortth The contractor for the roadwill also consruct the permanent NEA camp at Amrang.

Hydropower Components Constructon The hydropower comnponents are divided into ciil,mechanical, electrical and hydrauic steel structures lots. The bulk of the work will begin after theprovision of road access, in the 1996197 dry season. Labour force requirements for Stage 1 areestimated at a minimum of 3700, plus at least 140 Employer's/Engineer's supervisory staff, over aperiod of some four years. Temporary camps will be constucted at two main locaions, thepowerhouse and the intake. Additional Land wil be required for storage and assembly areas, concretebatching plants, quanies and aggregate processing, temporary spoil storage, and other facilitiesincludirig pre-assembly yards at Tutmlingtar.

Construction of Stage 2 (remainder of power cavem and 3 further turbines, plus remaining intakes,desanding basins, valleyside tunnel, surge tank, high pressure waterway, outlet tunnel and surgetank)would require a smaller labour force since the road, dam and camps would already be builL

Transmission Line Construction Final design and construction of the complete transmission linesystern including substations for Stage 1 could be c3mpleted within 43 months from contract award.The exact btmng of construction of the various elemerts depends partly on te pattern of growth indemand and the location of irtermefiaLte generating facilities. A tentative schedule is:

by 2001 constuct 220 kV double circuit system Arun III-Duhubi-Purneaconstruct Duhubi substation

by 2005 exend 220 kV lines from Duhubi to Kathmranduupgrade Dhalkebar switching station and Kathmandu substations

Each major secton of line will require a labour torce of some 500, on several workfronts. Substationconsruction will require about 55 workers.

at4P934EWW 15

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ARUN IM HYDROELECTRIC PROJECT- ENIRONMENTAL EXECUTIVE SUMMARY3. PROJECT DESCRIPnON

32 OTHER MAJOR HYDROELECTRIC PROJECTS PROPOSED FOR THEARUN VALLEY

32.1 Upper Arun Hydroelectric Project

A deiled feasiblity study of this proposed prqedt was completed in 1991. It is another run-o-riverscheme, with a prqected first stage power output of 335 MW. The underground powerhouse will besied some 24 km north of the Ann IlIl hake site, inked by a headrace tunnel to a dam site 16 kmupstream and approAimately 15 km south of the border with te Tibetan Autonomous Region of China(Map 1). It will require exension of the Arun lIl access road by approximately 47 km. 35 km of 220kV double circtit tansmission line, generally following the access road, would cornrvey power to the ArunIII swtard.

Table 3.4 CHARACTERISTICS OF UPPER ARUN HYDROELECTRIC PROJECT

Dam/irtalke Concrete gravity, radial gated splwy, height 37 m;low 62-5 m'Is 90 % dependable

Headrace tunnel length 7.84 km, diam. 5.5 m, concrete-lined; head 454 m

PowerhoIse underground. 21 x 35 x 105 m

Turbines Peoton: first stage 4 x 83.75 MW, total 335 MW; second stage 2 x 83.75, total500 MW

Access road 46.8 km single carrlageway, Inc. 1.8 km tunnel

32.2 Lower Arun Hydroelectric Project

The Lower Arun Hydroelectric Project is another attractive hydropower project an the Arnm River. It hasbeen irNestigated at pre-feasiliy evel, and would have a power output of 308 MW. The proposedsite is downstream from the Arun ill powerhouse, immediately nhwest of Tumlingtar (Map 1).Desanded water from the Arun lIl turbine low would be diverted directly irto a headrace tunnel leadingto the Lower Arun powerhouse. Two weirs across the Arun would provide supplementary and bypasslows. Addiffinal water woLdd be diverted from the Kaguwa and Sankhuwa Kholas. The whole projectsite wouLd be very close to the access road already buift for the Arun IlIl Project

Table 3.5 CARACTERISTICS OF LOWER ARUN HYDROELECTRIC PROJECT

Divesion structures concrete fIod crest weir across Arun above Waleng Khda, gated weir atArun III outlet structure, dbrivon on Waeng Koa, Intake strcure and

_ t~~~~~~~unnel and surge lank; max flcw 160 m'ls l

Headrace tunnel nlegth 14.3 - 15.9 km, diam. &8 - 9.2 m; head 204 - 235 mi

Powerhouse underground caem

Turbines Pelton; instaled capacity 308 MW

Access road single carriageway, very short

CIAPS3.4NEW 116

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ARuN 11 HYDROELECTRC PRFECT. ENVIRONMENTAL EXECUT7VE SUMMARY4. THE SETIING

4 THE SETTING

4.1 NATURAL ENVIRONMENT

The Arun River rises in Tibet, where over 80 % of its basin les. The river predates the upliftng of theHimalaya, and in its passage to India has cut a deep and narrow valley for some 155 km through themountains of Nepal. In Nepal, the northern part of the Valley is remote, extremely rugged, and has fewinhabitants. The southern part of the Valley is lower, warmner, and densely populated. Overall thepopulation of the 5000 knm Arun Basin in Nepal is about 450,000, from 10 ethnic groups.

The Arun Valey contains natural features of recogrised intemnational significance, particudarly north-westof the proposed power prolect sites. Here, the new Makalu Barun National Park and Conservation Areacontains one of the few surviving pristine forest areas in the Himalayan range, with very highbiodivrsity and heritage values, and adjoins Sagarmatha ¶L Everest) National Park to the west.Features of high ecological and cultural value have also been ideriflied elsewhere in the Valley, whichis an international flyway for migrating birds and has a high diversity of aquatic fauna

4.1.1 Physical Environment

() The Dynamic Landscape

The mountains of Nepal are the product of an ernormous colirsion - the Indian continental plate movingnrxth and being forced under the larger Eurasian plate. The Himalaya are the world's highestmountains, and are still rising at a rate of perhaps 1 firrVyear. This is extremely fast in geologicalterms. These high mountains intercept the annual south-east monsoon, resulting in very high rainfallover a short period. 600 mm of rain within 24 hours have been experinced in Darjeeling, immediatelyeast of Nepal. Except at high elevations, temperatures are high, so rock wealheiring is rapid.

The combination of rapid uplift, weak rock and intense rainfall results in a highly active landscape.Rivers are eroding rapidly, attempting to reach the base level of the Ganges Valley. The lower sideslopes of the valleys, undercut by the rivers, are steep. In the Middle Hills gentler terrain is found onthe higher slopes, but these are subject to erosive attack by the rivers from below. Along the Arun rapidriver erosion combined with bedrock joint orientations dipping into the hillside has created steep rockslopes or rock ciffs. Mass wasting (landsliding) is the normn as slopes attempt to retreat to stableangles. Some of the terrace deposits in the Himalayan valleys result from catastrophic events invoMngseveral cubic lilometres of debris - glacial lake outburst or landslide dam failure floods (GLOFS andLDFFS), sometimes triggered by earthquakes

(i) Climate

Most geogaohers classify areas of the Valley below 1000 m as being tropical, with a sub-tropical zonefrom 1000 - 2000 m. The dominant feature of the climate is the summer monsoon. Pre-monsoon rainsin April and May trigger vegetative growth, with the fuI monsoon setting in from early June. Rainfalltends to peak in July, and then tail off to virtually nil in November.

Rainfall totals vary from an average of 1470 mm at Paklu-ibas (1650 m.as.l.) to some 4000 mm at Num(1497 m.as.l.). Along the Valley and on north slopes there is a rainshadow effect, with annual totalsat Leguwaghat (330 m.as.l.) being only 790 mm, and at Tumlingtar (403 m.a.s.l.) 1198 mm.

17

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ARUN 111 HYDROELECTRIC PROJECT: ENVIRONMENTAL EXECU71VE SUMMARY4. THE SEtMlNG

Temperatues are elevaton-depandent The nrMa atudinal decline of C6 C per 100 m Is modifiedby topographical effects, in particular slope aspect. South-facing slopes are markedly warmer and dryerthan norhern slopes. Cloud cuer above 2000 ma.s.l. EmiSt crop cultivaton.

OIl Geology, Topography and Soils

Artn Acces Roau The access road runs through the Middle Hills of the Nepal Himalaya Essentlallya Une between Heluwabesi (Bumligtar) and Khandbari separates hilly terrain with extensive soildevelopment and coliwial deposits to the south, from steep, mountainos and rocky terrain to the north.

The Hills generally consist of weakly to moderately metamorphosed rocks with rel2dively gernle slopes.especialy on the weak phyllites. Steeper slopes are associated with harder rocl: types, particularlyschists and quartzites. Elevations vary trom 500-2000 m.as.l. The Arun is an antecedent river (i.e.t existed in roughly Rs present course belore the Himalaya formed). Consequertly the Arun valley isvery deep. Tributary valleys are structurally controlled. Terrace deposits, in a few cases extensive andknown as tars, can be found on the sides of most valleys.

The eastern slopes of the Arun catchmert (where the access road is to be locatecq are drained by asmall nuLmber of large tributary valleys, many of which have cut deep gorges upstream of theirconfluences with the Arun. In the southern part of the area, erosion and slope instability in thesetributary valleys have resulted in the deposiion of extensive fan surfaces at their mouths. The steeperslopes in this area usually occur on the lower valley sides due to stream incision and vally sideerosion. Much of the natural drainage pattern on the tributary valley sides has been disturbed byirrigation, which tends to increase catchment storage and leaves many river channels dry, even duringthe wet season.

Soils on slopes tend to be young, formed in colkuial (gravity-transported) debris. As a general rule,slopes in the hilly, southern portion of the road corridor are less than 350 and are martled by locallydeep (up to 5 m) residual silty, sandy sodis on the broad rkige and spur summits, with colluvial sols,also up to 5 m deep, located on the lower valley side slopes. A conspicuous feature along the Valleyare areas of red soil (ralo mato). These old soils occur in areas of greatest landscape stability. Theduration of weathering has resulted in soils of low fertility and little agricultural value. They are highlysusceptible to accelerated surface erosion.

From a road alignmrent point of view, the lower valley side slopes are less favourable owing to generallysteeper slopes, wetter soils, river scour, and slope failure or soil creep on irrigated farnland. Bedrockat the surface is generally moderately to highly weathered except where it is exposed in structrallycontrolled diffs, or where it has been recenty exposed by slope failure.

Hydroelectric Power Components The rock mass in the area of the power facilities mostly consistsof Pre-Cambrian augen gneiss, granitic gneiss and mica schists. The bedding is regular, and majorfaults rare. Major structures such as the dam, the desanding caverns, the upstream part of theheadrace tunnel, the pressure shafts, the tailrace tunnels and the outlet structure are located in gneisswhich is of medium strength. Some 4.15 km of the headrace tunnels pass through an area wherevariable quality mica schists outcrop.

Transmission Une The lines will run through both the Middle Hills and the alluvial lowlands, the Terai.In the hills erosion processes are widespread and demand great care in line routing and tower padlocation and design. In the Terai the terrain is fiat, but latera river erosion can be rapid and this againdemands care in Fine routing and tower foundations.

CKAPS3.4.NMW 18

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ARUN 111 HYDROELECTRIC PRaECJ: ENVRONMENTAL EXECUTiVE SuMMARY4. THE SETnNG

(Iv) Smiadciy

The area is seismically active, but the power sites are well rth of the Main Cental Thrust faulL Thelast major eatquake occured in 1988, with an epicentre in the easten Terai. The seismic risk shtundertaken for the project in 1990 indicated a low risk of a darmging earthquake at the power sites,and concmded ftht a horizona design oDefficient of 0.12 woutd be adequate for important stuctures.

Cv) Hydrdogy

The Anun River originates in Fe Tibet Autonomous Region of China, with approximately 84 % of thecatchment area lying north of the Himalayan Range. The river pre-dates the uplifting of the HimalayanRange, and its down-cuting has kept pace with the rate of uplift. The catchment area of the Arun atthe damsite is approimately 27,000 km2, of wtich rore than 90% lies in Tibet. The area of the basinlying within Nepal is estimated to be 5028 km2 (Map 1).

The Arun River low fllows the seasonal varia2ion in rainfall. Minimum flows occur in February, andaverage 79.5 m3s. Highest flows occur during the monsoon season in July and August (average 890rJ/s and 910 m3/s, respectively). The flood with an average retum interval of 1 00 years at the damsiteis estimated at 4177 m3/s. The Probable Maximum Flood for the dam and powerhouse sites isesbimated as 8100 and 10,780 m3/s, respectively.

Floods: GLOFS and other Catastrophes In addition to occasional floods due to extreme rainfall,there is a possibility of a Glacial Lake Outburst Flood (GLOF) or Landslide Dam Failure Flood (DFF)in the Arun Valley. These events are episodic, with a low probability of occurrence, but high damagepotential when they do occur. For the Arun Ill Project the major potential GLOF hazard is a glacial lakeat the head of the Barun Khola, which joins the Arun upstean of the dam site. LDFFs may occur inthe main valley or any of its tributaries. The Project's 1993 fisk AnaWis and Insurance Studyconcluded that the probability of rain-caused floods and GLOFS capable of damaging the project whenunder construction (flows of 3600 m3/s or more) was was once in thirty years for each type of event

4.1.2 Biological Environment

Nepal, and the Arun Basin in particular, is home to a very large number of different forms of rife, bothplant and aninal. This is due to its remarkable diversity of habitats and to Nepal's location within Asica,where the Himalaya form boti a boundary and corridor between drferent biogeographic provinces(principally Eurasia and South and South-east Asia). The Arun river is itself a distinct ecologicalboundary for sorne mammal and bird species.

The biodiversity of the area is under severe pressure due to man's actiitbes. Many species of faunaare forest-dependent Some 14 endangered or poterkially threatened plant species, 14 endangered,threatened or rare mammal species, 2 endangered reptle species, 4 threatened bird species, at least4 rare and one endangered species of butterfly, and 1 rare species of fish are known or suspected tooccur in the immediate vicinity of the Access Road and power sites (rables 4.1, 4.2). Ecologicallysensitve and protected areas wifin the Valey are shown in Map 4.

(i) Vegetation and Forest Habitat

Wthin the area of the Arun Valley to be traversed by the access road, a number of distinct habitattypes can be recognised. In the Tropical Zone (c 1000 m.asi.) these include Hill Sal Forest,Evergreen Riverimne Forest, and Deciduous Riverine Forest. The hll sal forests consist of nearly purestands of sal (Shorea robusta), with few epipytes or climbers. Trees are some 12-16 m high.Evergreen riverine forest is the narrow strip of dense jungle which occurs on steep slopes adjracert tothe river and its tributaries. These forests support marry species of tree and shrub, are richly endowedwith dimbers and epiphytes, contain endangered species of plats such as the tree-fern Cyatheaspinufosa (Table 4.1), and form important habitat for rare mammals and reptiles (see below).

CHAPS3EN 19

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ARUN 1 HYDoELECTRIC PROJECT: ENVIRONMENTAL EXCulvE SUMMARY4. THE SEtIING

I- -- -. - 2~~~~~" - - -

I 1>~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~PRat 4 Phyakeinda - the Irdake Ares, mm Fte West

Photo: Jwmes Rwnsay

Deciduous nvenne forest occurs on dryer southem exposures and along river banks. The mostprominent tree is Acacia catediu, often on new allwAimn as between Drae and the Sabhaya Khola

The Subtropical Zone (1000-2000 m.as1.) supports ( ) cir pine forest, a type dominated by the singlespeies Pinus roxburghrl and found an the dry ridge at Salleri between Gorlikharka and Diyale, and (1)Chesnut (Castanopsis spp.) and mixed Chestnut-Sdihna forests. These occur north of the Adit No.2 site. Natual stands of the higher-eevation chestnut, Casnopsis Iribulides, have a closed canopy,with trees as tall as 30 m. Rainfall in this zone is high.

As elsewhere in Nepal, mwch of the forest in this zone has been destroyed and the land converted toagricuiture. The remaining forests are extremely important for willife, particLuarly for deep-forest birds.

ii) Wildlife

Mammals and Reptiles The riverine fbrests of the Arun Valley shelter a number of rare andendangered species of mammals, reptiles and birds prdtected by national law and internationalconvertions. Wildlife-people interactions are at a high level, with very signilicant economic lossesreported due to crop damage and predation on livestock. Hunring for food is widespread, as well asfor religious rituals, for medicinal purposes, to control problem animals, and for trade.

Mammals of note irnclude Clouded Leopard, Leopard Cat, Asiatic Golden Cat, Otters, Spotted Linsang(dvet), Assamese Macaque, and Pangolin (scaly ant-eater). Reptiles include Python and Indian MonitorLizard Popdation sizes are unknown but are likely to be decreasing, principally due to habitatdestrucfion. 10 mammal and both reptile species are protected uider CITES Appendix I as speciesthreatened with extinction (Table 4.2).

CHAPaWW 20

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ARUN INI HYDROELECTrRIC PROJECT- ENVIRONMENTAL EXECUTIVE SUMMARY4. THE SETIlNG

Table 4.1 RARE AND ENDANGERED PLANT SPECIES FOUNDALONG THE ACCESS ROAD

Sdientfic Name CITES __HMG/N_| MBEIS

Aisanba echoioads QI) ,+Amndho grminffola +Cyathe' spinuosa pl) + +CYCspeC&ISt pgoI + +Chowrspondias adilAds +Dendroblun densifom m1)Lycopodlum clavafum +Michelia champaca +Muss Sp. +Rhododendron arboroum +Shorea robusta +Terninala behaca +Temninala cheoba +Pandanus nepaensis +

Total 14 4 10 7

Note: CIES: Convention on Intrnaion Trade in Endangered Speciesof Wld Faunaand Flora (to which Nepal bocamnea State Party In 1975).

11 Appendbx 11: Specs poluWially threatened. Npl ha proposed aevel planb for CITES sihng(shown aboe In parenhse)

HMG11 Lted in Mastr Pban bor te Faresy Seclor (HMGIADBJFINNIDA 1 988)MBEIS: Considred to be endangered in Nepal by scienti6e consensus and hIad in the Management of Basinwide

Evionmnnsl Impacs Stud

Table 4.2 ENDANGERED, THREATENED AND RARE MAMMALS AND REPTILESKNOWN OR SUSPECTED TO OCCUR IN THE IMMEDIATE VCINITY OF

THE ACCESS ROAD

Common Name Scienfific Name CITES HMG/N

Mammals

Asiatk Black Bear SeSnarcs thbetanus ILeopard Panthers paru I +Clouded Leopard Neofelis nebulosa I +Leopard Cal Feils begahnsis horsfeldl I +Asialic Golden Cat FelNs tommirncid IJungle Cat Fegs chaurOtters Al Lut2h IISpotted lJnsang Pnonodon pardicolor I +Assamese Macaque Macaca assamensis I +Rhesus Macaque Macwa muata ii +Common Langur Presbytis entilius IPangolin or Scaly Ant-Eater Manis spp if +Mainland Serow Capricamis sumnatraensis I +Goral Nenmorhaedus goral I

RRepiles

Python FPytn mounrus I +Indian Monitor Varanus bengabless I

Note: CnTES aus categores we:I Appendbt I: Speies theatened with enction11 Appendix II: Species not yet theatened with exgnction. but which could become so if trade (or otr

irnpacw) is not controedHMG)N: potbcted in Nepal under Schedule I (Section 10) of ihe Natioal Parks and Wldrae Conservation Act 2029

C HAPS34EW 21

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ARUN Wo HYDROELECTRIC PROJEcT: ENVIRONMENTAL EXECUTIVE SUMMARY4. THE SEMTNG

QOMOLANGMA NATURE PRESERVE

I t t CHINA (TIBET)

|POWRNIER O E

KVATLUE ountAid

SITE /

* B EHO JP V < ^i}fis

/ ~) t,DHANKU 8 _

ArV9 \ G~~~~~~~~F HIGH ECOLOGICAL! -{ } . ~~~~~VALUE t outside

protected areas)/ > ACCESS ROAD

KOSHI TAPPU RUWILD LIFERESERVE \ / Sn

Map 4 Ecologically Sensitive and Protected Areas

GHAPS34JEW 22

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ARuN IV HYDROELECTRIC PRaECT: ENVIRONMENTAL EXECUTIVE SUMMARY4. THE SEtrIING

Birds There are 124 bird species whose breeding distiuons are restricted to an area encompassingthe Himalaia, north-east Indi4 northern south-east Asia and south-west China, for which Nepal mayhold hiterntlonaty significant populatios A total of 82 of these species have been recorded In theArun Valley (excduding the Barun valiy). The riverine forest tird community Is distinct, with 28 specesassociated only with this forest type. Reconna_ssne ecological surveys of the hill sal forests In thelower Sabhaya Khola valley near Tumiingtar have conflirned the presence of 17 species of bird forwhich Nepal may hold irernationially significant breedirg populations, and three rare species ofFlycatcher.

Four species recorded In the Arun Valley (excluding Barun) have been Identified as globally threatened:the Cinereous Vulture, the Lesser Kestrel, the 'Wood Snipe, and Blyth's Kingfisher.

In addition to resident birds, Nepal is the temporay host to very large numbers of migratory birds. TheNepaJ Himalaya are pierced by several very deep valleys such as the Arun, and these act as tlywaysfor migratory birds travelling between the Indian sub-continent and the rest of Asia to the north.

Butterflies and Moths The area between Num and Hedangna (the Intake site), is a centre of diversiyfor Lepidoptera (butterflies and moths). More than 20 species of those present are endemic or rare.

Fisheries The Arun is the largest river in the Koshi river system, which is thought to contain 108spedes of fish. Of these, 13 spedes may be endemic. A field study at six sites along the Arun in theproject area in 1989 indicated the presence of 17 fish species, in particular the rare migratory CopperMahseer (Nep. Kate: endangered throughout its range in the Himalaya due to darn-building) andresident Mountain Snow Trout (Nep. Chuche Asata). Reconnaissance fisheries surveys for the UpperArun Hydroelectric Project upstream found 25 fish species.

The fish fauna of the river system forms the basis of a complex food chain, involving mammalianpredators (including threatened species such as oters), and avian predators (induding rare idngfishers).It also supports fisherfolk. Local fishing techniques indude cast nets (some now with rylon thread),speas, fishing rods with looped snares, bamboo diversions, herbal toxins, and recertly, insecticidesand exposives.

Crop Diversity In the project area crop driersity is very high. For example, 59 cultivated varieties ofrice have been idenified so far. The introduction and use of improved varieti'. .has been limited, sota the area remains rich in crop genetic resources.

Ethnobotarry Limited data on ethnobotany is available for the Arun Valley. However, of the 630 plartsof medicinal value so far recorded in Nepal, 512 have been reported from the east of the country. Fieldsurveys have identified 87 species of medicinal plarts in the Arun basin. Of tl .'e, about 30 occur atless than 1000 m.as.l.

In the Arun Valley, plants aid plant products have irmumerable uses. In addibon to medicinal use,some plants have religious significance and importance for ritual purposes. Despite difficult access.the valley is a major exporter of herbs to the lowland market -The main exported herb is chiraito(Sweria hirayia). Reportedly, 129.5 tonnes of medicinal plants were exported from the Khandbari areain 1990. The sustainability of existing rates of harvest is questionable.

aP30Ew 23

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ARUN i1l HYDROELECTRIC PRWECT ENRONMENTAL EXECUTE SUMMY4. THE SETNG

42 SOCIO-EC'NOMIC ENVIRONMENT

42.1 The People

The Arun Valley Is hame to some 450.000 people from a great variety of ethnic and cuturalbackgrounds, with different traditons and apeclations and different historicra roles in the society andeconomy of the valley. Project facilitis will be located In three districts, Dhankuta, Bhojpur andSarikhuwasabha

(9 Popuaton

The most recent study of poputitlon dynamics in the basin gives an annul population growth rate of1.62 %, less than the national average of over 2%. The populaion of Sankhuwasabha District grewby only 0.84 %. The natural gowth rate Is offset by oumgration of people hI secrch of bettereconomic opportunities than are currently to be found in the Arun Valley. Household size averages 5.4persons. AJmost all settlement is rural - the few towns all have populations of less than 15,000.

The populaton of SanlduLwasabha District (3840 km). which includes much of the area to be directlyaffected by the Project, is estimated at some 160,000. This gives an overall poopulation density of 42persons per km2. This average conceals great disparities since most of the settlements aid arable landare concentrated on the ridges and terraces, whi most of the rest of the terrain is unsuitable forculivation or habitation. In 1981 the total population was 129,414. The general pattern is one ofirceasing population deity from rath to south, from only eight persons per km2 in the norhern partof the valley to more than 100 persons per km2 in the south, and with conDcenatons in the vicinity ofHile and Basantapur, Chainpur and Tumlingtar-Khandbari. The access road traverses land which overmost its length is relavely lightly settled and farmed due to its low and previously malarial elevationad to steep terrain.

(1 EthicRty

The access road passes through land occupied by some ten different ethnic groups (Table 4.3). Theindigenous people are Kirantis. They are represented by two main ethnic groups, Rais (generally foundwest of the river) and Umbus (generally to the east of the river). In addition, there are other groupswho have Tibetan characteristics in their socio-cultural pattern, i.e. Bhotea, who are concentrated in theupper part of the basin, and Gurungs, who resemble the Kirantis in many respects but migrated from

ifd-Westem Nepal. In 1981 40 % of the population of Sankhuwasabha District claimed a non-Nepalimother tongue. 14 separate Rai languages idertffied in 1880 were still spoken in 1979.

The lower Arun has faced a rapid change of its population cmposition since Brahr'n-Chetri (organisedalong hierarchical caste lines), Newar, Gurung and occupational castes began to migrate into the areain the late 18th century. While castes fromn the Hindu society have integrated therselves with theindigenous agriculture orietated society, Newars mainly settled in towns as business and craftsmen.Brahffin-Chhetri penetration of the hills appears to stop at Hedangna (immediately north of the damsite), which is also the nothernmost limit for rice cultivafforL

Table 4.3 ESTIMATED ETHNICITY IN THE ARUN BASIN (%)

Ral, Umbu, Gurung, Magar 53

Brhmin, Chhetri 27

Occupational castes 7

Tarnang, Sherp4a, Than 7Newar SOm 1

CHiPS3cAw 24

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ARUN i1/ HYDROELECTRiC PROJECT: ENVIRONMENTAL EXECUTIVE SUMMARY4. THE SETMlNG

PlatS PaliaXPhoto: PRA Nepal

(iiQ Disadvantaged Groups

The largest group to be cisadvantaged is women. As elsewhere in Asia, this is a major socio-culturaland developmental issue. Groups paricularly disadvant -id by ethnicity and caste include theKumnhals of Turnlingtar and occupational castes, the Kamis of Diding, and a high proportion of Raisthroughout the valley. The Kumhals are at the bottom of the economic ladder, and are known to beheily ecploited and massively disadvantaged. They have already lost land at Tumlngtar for theairstrip and the permanent road camp. They will lose more, both to project facilities and to speculators(see Chapters 5, 7).

Qv) Land Tenure

In the Arun Basin, to those who live on it land is much more than simply an econornic asset. Itprovides its occuparnts with a social and a spiritual home as well as a place to raise crops and animals.The importance of this relationship tends to be greatest amnong poor and disadvantaged groups.Wealthier and more educated people trade in land as a commodity, and are able to follow economicopportunities wherever they arise. This has important implications fur the payment of cornpensationfor land.

Traditionally, the land use and land tenure system especially among Rais and Umbus was based ona communal tenure system known as 'Kipat. Members from outside the community had no access toland, while indiriduals or families belonging to the community had unchallenged rights to use their land,includilng forests. Shifting cultivation (Nep: khorea; Bhote: so4e) became deeply rooted in theagricultural system. Primarily this irwolves poorer farmilies, and for these it is vital as a survivalmechanism. Areas fbr sfting cultivation tend to be rkned and discrete. Forest conversion forcultivation is a separate, albeit related, process

CHAPS34JW 25

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ARUN at HYROELECTRIC PRMECT ENVRONMENTAL EXEcu11vE SUMMAoRY4. THE SEMtING

When the Goverment encouaged the rnigraton of high-caste Hindus to the are th trdtinl kiatland use syserm became weakened. It was formally abolshed by the Land Act of 1964, when kpatland became legally conetib to raw. Nevertheless, It Is probable hat communltes stIf practisetheir traditional system in areas where no cadastral survey has been uertaken yeL

Land under cullivation along the access road Is held under raikai the orny kegalisad form of lani tenurewhich allows cultiation, and which allows the holder buying and seilirg rights. There is a high levelof hidden tenancy. A famis lanr holdings are often fragmernted, though usually one plot Is near thtouse. Average land hoicings vary from 0.5 - 1.5 ha depeiding on the region. The average size of

holdirgs affected by te access road's previous hill alignment was 1.3 ha, with considerable differencesfrom area to area.

Cadastral Survey A cadastral survey, which registers individual title to land, is complete for DhankutaDistrict. In Sankhuwasabha District it Is proceedcig northwards, and by August 1992 had covered sixVillage Deveopment Committees in the district.

(v) Cultural Hleritage

The remoteness and difficulty of access of the Arun Valley has enabled the rich variety of local culturesto maintain marny of their distinctive features. There are fine local traditions of metal and woodwork,pottery, and of using local plart fibres to weave fabrics.

A major cutural feature is the Kirnt cultural heritage of the Rais and Uimbus, which is bound up withthe natural world This may be responsible in part for the beter preservation of the forests of the ArunBasin when compared with areas furter west, as may the related kipat land tenure and resourcemanagemnent system.

The access road passes dose to a number of shrines, temples and sacred places, which are commonto all tha region's various ethnic groups. The most importat is Manakamara Mai, on the left bank ofthe Arun immediately north of Tulrlingtar. Phyaksinda Dobhan, the Intake sie ehe confluence of theArun, Khoktak and Num rivers) is the site of an annual Mbla focal rerigious gathering). Every yearduring the winter month of Magh (Jan-Feb), local people and others from surrouncing districts gatherhere to worship and participate in the Mela, which is a continuation of the larger annual Barun Melaheld upsteam at the BarurttArun confluence.

422 The Economy

Most of the Valley's inhabitants live in poverty in a rigorous subsistence lifestyle that has changed littleover hundreds of years Some two thirds of the population are functonally illiterate. A maindeterminant and imitation affecting the economy and lifestyle is that at present virtually all movementof people and goods witin the valley is on foot. There are no roads north of Bastpu (Map 2), andsome settlements are 10 day's walk from the nearest roadhead. Thousands of men (and some womenand children) earn a living as porters, transporting goods to and from the remote setlemenis, carryingloads of up to 100 kg for several days. Apart from the extreme physical demands, the practicallirnitations, time and costs of porter tansport nean that it is difficuk for the people of the valley tocoffimuicate with and trade with the outside world. Consequently, the economy and lifestyle have tobe largely self-contained and self-sufficient.

The main economic activity in the Arun Valley is subsistence agricuture, in which the central featureis dependency on forests as a source of nutrients and biomass for maintaining cropland ferbtliy.Livestock are essential to the system, principally for processing plants into fertiliser, for dairy and otherproducts, and for ploughing. In the southern part of the project area major crops are irrigated rice(below 1700 m), and maize and millet on rainfed teraces. Wheat is grown in winter as a second crop.A few cash crops are of local importance, such as citus and cardamfom. In the higher, cooler, northonly 2.8 % of the land is cutivated. The main crops here are barley, buckwheat and potatoes.

aPSJW 26

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ARuN 111 HYDROELECTRIC PRatEcT ENVRONMEETAL ExCuTiE SUMMARY4. THE SETTMNG

Alhough classWied by HMG/N as a food grain surplus area, large pats of Sa asabha District arein food deficit. Most households depend on ofer sources of Income besides farming. Portering,collcing medicinal herbs and thr forest products, labour an daily wages, and temporay migratinto work In the Terai and India are the main souces of cash Incxme

Ph.S S Porr cwrig bdkding meials taom Hie to KhudboaiPhoto: K.9h Ga

Of signdicance is the interilocking economic and agricultural system of the middle and upper Arun basin.The <ar Bhote peoples north of Hedangna (at the Arun Ill intake site) depend on a complex set ofirterlocking economic relationships between different communities which serves to keep the villagesof the north Arun viable. These include in particuiar annual migration of Kar Bhotes to lower elevaionsin the wiriter to trade, labour, and generaily subsist, and a h:-i level at persistently unequaldependency on middle Anun Gurungs for morney supply thrugh loans, tied in wih the Gurung utilisationof upper Arun Bhote pastures for sheep.

,ll sources of informafion on income data in the Project area show the prevalence of great poverty, withmany households in no position to take advantage of the opportunities offered by the Project due tolack of resources and skills for investmnt, dependency and debt, and illiteracy. Indicators of povertyfound by the Basinwide Impacts Study team during their household survey were:

- up to one third of famiGes surveyed had mortgaged land to buy food in the past year (1 98990);- 58 % of families suffered food deficits in the previous year.

Although agriculture provides over half the income of the population of the Project area, it still fans farshort of the subsistence requirements of most farming families. The findings from surveys on averageannual income in Sankhuwasabha District by the Basinwide Impacts Stuly (Table 4.4) are broadlysimilar to those of the land acquisition studies for the Hill access road, except that gross incomes inthe latter averaged NRs 3000-4000. This may be due to a lower level of poverty arnong families onthe ridges, where most economic actiiy is concentrated.

CHAPS34AM 27

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ARUN 1 HYDROELEcRIC PROJECT: ENVIRONMENTAL E(ECUlJvE SUMMARY4. THE SETIING

Table 4.4 AVERAGE ANNUAL FAMILY INCOME BY SOURCEl ffi(;ANKHLANASASHA WSTRICr: 1990

Souce T NRs Pern of Total Income

Crops 1507 55Wages 356 13Llvestock 329 12Manuhturng 247 9Portering 192 7Exports 110 4

Total 2740 100

42.3 Healtlh

The food deficit mnans that some fanliies are unable to meet their main nutritional requiremerts year-round (usually towards the end of the dry season, MarchVApriVMay). Malnutition affects children inparticular. TWr lives are futher threatened by the three commonest diseases: acute respiratoryinfection (ARI), measles and diarrhoea. Domestic living conditions plus the extremely variable climateranging from very cold in the winter months to hot and wet in the summer provides ideal condilions forARI to develop, and as a result it also the commonest health problem in the area.

Diarrhoeal diseases are second to ARI in frequency. This is due to people having to use springs andsmall streams to obtain their drinrndg water. These are often cortaminated by open air defecation andlack of ltine acilities common throughout Nepal. Intestinal parasites such as round worm, hookworm,tapeworm, Giardia, and Trkhuris are extremely common. Anaemia due to hookworm is a particularproblemL

Having been largely eradicated from the Terai in the 1 95s, malaria is a minor health problem in theproject area Below 1200 m.as.l. the Arun Valley is low enough for mosquitoes to breed. The mainmosquito is Anopheles fluviatils which favours rivulets and small streams shaded by vegetation, andcan be a malaria vector. Health posts treat occasional malaria patients, with the assistance of theDistrict Public Health Office, by collecting blood samples and getting them tested in the dirmict hospital.

4.3 REGIONAL DEVELOPMENT

4.3.1 Local Government

The hydropower facilities will be lcated in Sankhuwasabha District; the access road begins inDhankuta District, and, where it crosses the Arn north of the powerhouse, passes through BhqjpurDistrict

The most senior govemrment official in each district is the Chief District Officer (CDO). The district-levelactivities of the line departments of central government ministries are coordinated by the LocalDevelopment Oflicer (LDO). Vilage level administration is carried out by elected Village DevelopmentCommittees and Boards.

A variety of resource management groups and systems exist in the Valley, includirig informal Rai andUmbu groups operating the traditional kipatmarnagement of forests, oter locally-initated forest securitycommittees, and governmentristablished groups. The effectveness and sutainability of thesemanagement mecharniss varies widely.

In 1991 the National Planning Commission re-instiAuted a Regional Planning Office (RPO) in Dhankuta,with UNDP assistance. This is likely to become a focus for regional planning activities.

CH&=J3E.NW 28

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ARUN III HYDROELECTRIC PROJECT- ENVARONMENTAL EXECUTIVE SUMMARY4. THE SETTING

4.32 Makalu-Barun Conservaton Project

Nalbnal and intemadonal recognition of the high heritage values of the eastern Himalayan region hasresulted In the establishment of three large protected areas around Sagarmtha (Mt. Everest,Oamczlanma). These are Sagarmatha National Park, the new Makalu-Banrn Naional Park andConsban Area, and Tibet's Qomolangma Nature Preserve.

The last two protected areas arethe outcome of a successfuprogramme mouited by aninterratoa NGO, the WoodlandsMountain Insitue (WMI), to assistthe goverunents of Nep and theTbet Autonomous Region indeveloping adjoining mountain 1 * . -. '-

protected areas, both of which -,combine conservation with -comnmunity developmert. In .Nepal, WMI Is working with theMinistry of Forest and Soil _o. 4Conservation's Department ofNational Parks and WildlifeConservation under a 12-yearcooperation agreement to build upthe now park and conservationarea. The project is funded by aconsoriumn of international pulicand private sector donors, and isindependet of the Arun 3 Project.

4.3.3 Koshi HillsDevelopment Programme

For a number of years the U.K'sOverseas DevelopmentAdministration (ODA) has beensponsoring a rural developmentprogramme in Dhankuta andSankhuwasabha Districtssofeastern Nepal. The third phase ofthis programme (wK30) concentrates an forestry and Ehorticulture. When this phaseterminates in mid-1993, the Pt7 Hku Valley, Makmlu-Barun National Parkforestry programme will be Pholo: Ang rta Sherpacontinued as a component of the larger NepaVUK Community Forestry Project currently in preparation.

4.3.4 Other Projects and Programmes

Nepal's Agricultural Development Bank (ADB/N) has a Small Farmers' Development Programme whichthe MBEIS reports as being active and effectve in Sankhuwasabha District, having worked with 178local groups in the agricultural sector. Other projects indude the Northern Belt Pasture DevelopmentProject and the Pakhribas Agricultal Centre, an agricultural research statin near Hile which issupported by the ODA.

CHAPS34NEW 29

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ARUN I HYDROELECTRIC PROJECT: ENVIRONMENTAL EXECUTIVE SUMMARY5. POTENTIAL ENVARONMENTAL IMPACTS

5,J POTENTIAL ENVIRONMENTAL IMPACTS

5.1 INTRODUCTION

The impats of major infrastructure projects can be divided into two prnnipal categories. Firdy directImpacts, which result rorn the physical presence of the facinties aMd the way they are dasigred, builtand operaed. Secondly, indiret impacts. Incirect impact stem from the economic activiiessurrounding construction and the induced economic effects resulting from improved access. Theseimpacts occur in two main phases - during con,slrictimn and during operaton.

In this chapter, potental impacts ideriified by the Proect's internal ernvironmental assessment exercisesand by the KMTNC Management of Basinwide Environmental Impacts Study, are divided into thoseoccurring during the construction phase and the operational phase, and are discussed for each of themajor project elemares in turn: the access road, the hydropower components, and the transmission linesystem. A final section discusses cumldai impacts.

T-s sumnmary does not corsider the ermironmental effects of increased electricity availability nationally.The area of influence of the project is taken to be the whole Anun Basin within Nepal. In judgingsigrificance, relevant factors are the intensity, duration, scale, and reversibiity of the impact in question.

Impact matrices are atached at Appendix 5

5.2 ARUN ACCESS ROAD

521 Potential Road Impacts: Summary

The Arun IlIl Project will have far-reaching social and environmental consequences. Most of these winresut from the road ra than from the power project.

Duirig road consuction (1994-1997), there will be large concentrations of workers (max. 9500 plussome dependants) both at the Contractor's camps and at the remote worktronts, plus incomersattracted by economic opportunities. Together, these w1il create a massive increase in demandt for foodand fuel along the alignment, with consequent impacts on prices and forests. There wil also be somesocial disruption and pressure on health faclities.

When the road is opened to the public in 1997 there will be rapid short term and far-reaching long termeconomic adjustmnents and opportunities. Studies of new roads elsewhere in Nepal show that whileroads are a prerequisite for rapid economic development, they are not sufficient to cause developmentby themselves. There has to be some other mqor economic impetus to allow roads to liberate theeconomic potential of an area. Where this is not present a rnew road does little for the economicwelfare of the people in its vicinity, and it may bring disruption to local communities and severe damageto forests and other natural resources due to easier access from outside.

Tables 5.1 and 52 overleaf summarise the most significant potenial construction period andoperational period impacts.

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ARUN Ix HYDROELCTRIC PRoWEC ENVJRONMENTAL EXECUTVE SUMMA4RY5. POTENTIAL ENVlRONMENTAL IMPACTS

Table 5.1 ACCESS ROAD: MOST SIGNIFICANT POTENTIAL CONSTRUCnON PERIOD IMPACTS

Positive J Negalve (asuming no mitigation)Local ompoymnmnt oppornE Clmance of fret along RoW and dogradaion of foret In the v1inily. iuaung inand resuWtng tenporary Increae In hitat Ibu for endangsrd spes of wikdf.par cap hoon_. Presu on fthorelIncased rme t for local produce. Ponnant te ofl gdeulral kLnd: bls of food production and effcts an

mqgnal holuodTemporamy b take and dbsuption of agrkculural acties: effec on marginalhomeholds.Marghallalon of aome project-affected famles and some woren, despinocompnsation produre.Increased locai food defic.Food pdes laion: effcts on marginal housaholds, espsecally nutitional sattus ofsome women and ehildron.Developnt of shwnty town.Exaebation of por heoath sluaion and abse on heoah facilities.Impect of lbour foe on ca socdal systerms and cuRias.Maor *_a on al oca Institutions (in percular bcal governent schools, andrsource mangement groups).

Table 5.2 ACCESS ROAD: MOST SIGNIFICANT POTENTIAL IMPACTS WHEN OPEN

PosItive Negative Impacts, and E,dstlng Negative Trends Ukely to beof Imp d Acceleratd n r Mlgalon

Gratly reducod cost oflImpord food and Incr_d rato of population gwth due to reduced oulmigmfatin andmwnuscWred comnodxf. Imnproaved health. and corwAoquent demnd on rwoures.Gmty recduced heamport cost fhr rgional Major reducons in sale prie of becdy - produced grain cropcs|ox(porls. worseoiod lood bdance |Poasiblity Of enSIOn M aer road or reduction In long-haul poctuuing opportunities.*y ten Incrdsu hanring of kwet products to pay for roWired food and otherFhpid growt of now economxc crnlres goods, and forest deararce for crdamom production, with corsequentalong the road. fort degmdadZon and habit [on.Inceased incnws kmon bss No raduction in ongoing proessam of impovishment and marginau ation.Increese tourism (and tourism ndaled Inceod shh and bum of hig biodiwr«lty forst due to InrceosingImpcb). poverty and nwrgin m v aclrPogble rebum of eduraied. sucel Lose of some rivcrine hebibt asesenba for rKenganered species.mtrwa. lose of forst: habkl«t of other endgongred species, and direct tbea dueEnhanced cornfesial opportunides for to huntng.women of some ethnic groups esp. Ker Increased dispariXe in weadth and acec to services.BDhole. Gurung, Kiranti. Acedkwaed ewmion of ftaidonel valuas and culture.Increaed aes to outskide for migratr Furdw development of shanty towmhbour, eg. of Kar Bhote

52.2 Access Road: Potential Impacts during Construction Phase

Tis section notes potentWa direct and indirect imnpacts of the road constuction phase (40 months) onthe physical, biological, socio-economic and cultural environments.

5.2±1 Impacts of Road Construction on the Physical Environment

( Air Quarlty

The only significant air quality consideration is potential impacts on human comfort and health. Quarryo.erations and blasting will be localised, with limited, local impacts. However, in Nepal mary diseaseage.t reimd settlemrents are carried on dust particles. Traffic-generated dust along the road will bean appreciable nuisance and possible heath hazard in existing and new settlements, articularlyTLxnfingtar, for the shoo peniod before the new road is sealed.

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ARUN IJI HYDROELECTRIC PRWECfr ENVRMENTAL EXECuTVE SUMAY5. POTENnAL ENVARONMENTAL IMPACTS

(II) Waler Quality

Chemical Polutlon Umited watr polluton could occur due to tanker acddents, accidental spis, orImproper disposal. Materials idled would be kerose, disels, hjbcating and shutterng oils, andpossibly petrd (gasoline) and liqud explosives. Overall, chemical potLfion Is not considered asignficant threat to water qualify.

Sedimnen Pollution Sediment pollution arlsing from construction activites is Inevitabte. However, anyImpacts are likely to be limited in scale and duration, and so are considered of low significance. Moreimportant is the possible contamination of irrigation watb. with sediment, and the bacteriologicalcortmination of drinking water supplies (spdngs, streams and piped systems). Any impacts woild belocalised and are amenable to mitigation, so this potential Impact is not regarded as significant.

(Ilf Slopee and Solls

Slope Failure Deep slope failures may be triggered by road constuction. The road crosses a numberof areas of known instability south of Tumlingtar, and north of Bumling it enters the steep andgeomorphologically active gorge area Here there is a higher risk of large scale slope failure. The roadhas been designed to cope with these risks. Nevenrheess, significant impacts may still occur.particuiarly for the section of road north of Bumling. Despite the care taken in route selection, roaddesign, and construction meftods, it is probable that the access road will be subject to slope failuresor other damaging geomorphic events during the HEP constuction period over a minimum distanceof 2.3 km. These wil result in temporary loss of access until cleared.

Spoil DIsposal Along the access road, the proximity of the river will give numerous sites wherecorntrolled spoil disposal can take place. Between Adit No. 2 and the Intake site strict conrols on spoidsposal will be enforced. Wthout such control spoil disposal could have significant local impacts.

Surface Erosion Sheetwash, rilling, gullnrig and shallow slope failure are Luiversal problems alongroads built in Nepal's hills. Particular difficulies are likely to be experienced in the Arun Valley betweenMargma and Tunlingtar (35 km) in areas of erosive red soils. High temperatures, southern exposures,low rainfall and low fertility sites will make establishment of the necessary vegetative slope protectionon cut and fill slopes a challenge. Localised slope failhes will be experienced until successfulbioengirnering techniques are developed.

In addition to potential damage to the road, the significance of surface erosion lies in the downstreameffects of the eroded sediments on () small local irrigation systems; (ii) springs and seeps required forlocal water supplies; (iii) damage to cultivated areas. Generally these features do not coincide with themost erosion prone areas along the valley bottom, so the overall significance of this impact is regardeJas low.

Lack of attention to slope stabilisation causes sediment blockage of drains. Blocked irains and culvertsfrequently result in washouts and loss of tr roadbed. This is a major, significant problem for roadmaintenance everywhere in Nepals hills and mountains.

5222 Impacts of Road Construction on the Biological Environment

Q) Vegetation

Direct Impacts The drect impacts of road construction an vegetation will include loss of individualplants throughout the Right of Way (RoW) due to the permanent works, and other temnporary lossesdue to land take for ancillary features - quarries and camps. The road will traverse forested areas forabout one quarter of its length (approx. 33 kmn out of 122 kin: Table 5.3). The toal forest area fallingwithin the 30 m right-f-way is estimated at 106 ha, but vegetation clearance within the RoW will bestricly imited to the area of the Permfanent Works.

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ARUN IN HYDROELECTRIC PROJECT: ENVIRONMENTAL EXECUTAVE SUM MARY5. POTENTIAL ENVIRONMENTAL IMPACTS

Areas of vegeion of ecological interest to be directly affectd by the acces road include, fron southto north, Guransedanda (rhododendron hili, Saleri, Piluwa r, Sabhaya river, Satighat, Kartikebhir,Simle, Tumbetar, the powerixouse site, the site of AdIt No. 2, the permanent NEA camp site, and thedescent to the lntake site. Most of these areas show high species diversity, presence d rare, endemicand endangered species (e.g. Pandanusnepainsis, Cyafha spinubsa), orchids, and fILorsic elementsrepresertaive of tropical evergreen forest. The best forests In these localibes are relatively dense, andare found along river gullies, gorges and rocky cliffs with slopes of 40 or more. North of TumlingtErthere will be direct impacts on the nationally scarce riverine forest, as weil as on subtropical forestsnear the site of Adit No. 2.

I.~~~~ Direct impacts on wild vettiper se are considered to be ofmoderate significance locally, butof litte significance in a regionalcontext. However, considereda eloss of habtat for vertebrates, theimpact couid be significant (see (I)below).

Indirect Impacts Indirect impacts |on vegetation during theconstrction phase will includedemands for forest products forthe labour force, their dependarts,and incomems, plus additionaldemand created by avalable cash,and accidertal fire. Theseimpacts will be concenrrated -

around (i Hile; (a) Tumlingtar; (in1)Heluwabesi; Civ) Pukhuwa (the -

poweDrhose site); (v) Adit No. 2site below Sholakhani; (vi) Amrang -

(the pmanent camp site); (vii)Phyaksinda (the intake site). Airoperabons out of Tumbetar, northof Heluwabesi, could also attract alabour force which would affect thenearby forest areas (Plate B).Except for Hile, there are areas ofhigh botanical value in the vicinillyof all these sites.

Potential indirect impacts on forestresources during the constuctionphase are considered to be highlysignificant locally. plwt. Tumbetr. north of Hakuwabesi:

poaibe aft lor Contrsctos fabliies(ii) Wildlife Photo: Jmes ramsey

Mammals and Reptles The rmad will run close to the Arun Rier for somne 67 km. Construction ofthe road will have direct impacts on mammalian and reptilian riverine wildlife due to habitat destruction,severance of territory, disturbance (incuding by helicopter operations over at least 25 months), andincreased accss for hunting. Quantitative data on wildlife population sizes are not available. Thenationally and internationally threatened status of many of the species involved suggest that these

msses cotld be significant nationally.

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ARUN lll HYDROELECTRIC PRWECT. ENRoNMENTAL EXECUTvE SUMMAY5. POTENTIAL ENvIRONMENTAL IMPACTS

Birds Habitat lass and ground and alr dsturbance wIll also affect birds partculrl territorial breedngbirds. In addiion, the Arun Valley appears to be a llyway for many autxnn and spring riTgrants, butdaa are limited. Some of the spades involved are endangered and rare. The bwer Arun river appearsto serve as a resting place for migratory birds during winter and spring. There may be impacts onnmgratory bird species due to loss of hatitat and disturbance. From south to north, sensitive birdhabitat areas that could be affected are:

- open mixed forest at Diyale and tropical riverine forest at the Leguwa Khola;- hill sal forest on the left bank of the Arun river south of Tumlingtar (Sabhaya Khola,

Gandhepani, Khahare and Damar);- evergreen riverine forest and hill sal forest on the left bank of the Arun from Satighat

northwards (Jholunge, Betyari, Kaikebhir, Thijo Andhere and Khyuta;- tropical deciduos nvenne forests of TLunbetar, south and north of Tumbetar, Pukhuwa (the

powerhouse site) and the area immedriately to the north;- tropical evergreen forest at Phyaksinda. the Intake site.

Impacts on birds and bird habitat during the road construction phase are regarded as being potentiallylocally significant and potentially nationally significant for some species.

(iii) Fisheries

During construction, the road will have minimal direct impacts on aquatic biology. However, indirectimpacts could be significant locally due to a grealy increased market for fish. Fishing intensity willincrease to meet the demands of the labour force and incomers. Detrimental fishing technologies maybe used, specifically the ecologcaly damaging ones of explosives and insecticides.

The ability of the river to sustain higher rates of fish offtake is not known. Reduced fish populationsand disturbance associated with fishing could affect shy iish-dependent species such as otters andsome predatory birds (raptors). There will also be economic consequences for fisherfolk. Impacts willvary according to the level and sustainability of the catch.

52.2 Impacts of Road Construction on the Socio-Economic Environment

(1 Land Take

Estimated land take for the road is given in Table 5.3 below. The totl permanent land take for the 30m Right of Way will be approxdmately 375 ha (plus 19 ha for temporary uses). There will be directeffects on some 1146 households. Of these, approximately 100 stand to lose buildings, either theirhouses, cattesheds, or both. Surveys indicate that some 4550 timber trees, 2900 fodder trees, and500 fruit trees are likely to fall within the RoW when it is pegged out. In regional terms the loss of lessthan 400 ha of land, of which some 169 ha is culfivated, is of only moderate significance. However,for marginal families including formal and informal tenants, loss of land can be disastrous, triggeringa downward spiral ir"o absdlute poverty.

Further loss of productive land will be caused by severance and fragmentation, particularly aroundhairpin stacks such as at Sholakhani (Adit No. 2). Off-site damages may also occur - land and cropdamage due to rolling debris, erosion and sedimentatiorL This impact could be signfficant locally.

Land will be needed temporarily for pilot tracks, canips, quarries, storage and handling yards, andhelipads. These impacts will be particularly significant at Tumlingtar, where the cumulative effect oftemporary and permanent land requirements for the road and power components (road reserve 22.5ha; permanert road camp 3.1 ha; temporary project facilities estimated at 6.9 ha) will take up anappreciable proporton of the agricultural land on the plateau (12 %), without allowing for associatedtxbarisatiom

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ARUN 11 myDROELECRmIC PRojECT, ENVIRONAENTAL EXECUTlvE SUMAw4RY5. POTENflAL ENVIRONMENTAL IMPACTS

Table 5.3 LAND USE BY ARUN ACCESS ROAD |

Land UmPJeVgtUon Type land Tak Distance Pce I1. Fores 106 33 272. Shjb mnd Gmzing . 119 37 303. Culilvted

) LWvelTerrace 106 33 27b) Sloping Terrace 63 20 16

Total 394 122 10

* Figures rounded

(ri) Employment and Income

Labour AvalbilIlty Surveys indicate a high level of labour under-utDisation in the area. of the orderof 50 %. Consequently, there should be no knock-on effect on agricultural productiorL However,women's houhold workdoads may increase further if men are absent on constructon jobs.

Employment Income The road contractor will employ on average an estimated labour force of 6720,rising by 50 % during peak dry season periods, falling by 50 % during the monsoon, and spread oversome 7 workcft smultaneously. Assuming a 75 25% sprit in laboLr force empoyment behween localand outside mbour, road constui wAll have a significant Inpact on average per capia income inSankhuwasabha DistricL It is estimated that this wil rise by up to 15 % over the 40 monrh roadconstuction period (1994-1997) due to road-related employe Some $4 to 5 million in wages willenter the Valley's economy each year duing this period soley irom road cntrion, a massive figure.Increased incomes will result in increased import to the arem and consequent Increases inempoyrmert for porters (until the road opens).

The value of the employment income to the local population vAll be dependerit on hiring practice andconstruction technology. Assuming a high level of local recruitmert for a labour-intensive cornstuctionefort, the impact of road construction employment on lcal cash availability will be highly signdicarL

(ii. Food Availability, Prices and Nutrition

The hills are a food-deficit area Currerntly many farm households in Sankhuwasabha District are notself-sufficint in food production and depend on additional sources of income to purchase food.Virtually all imported food is brought into the drict by porters. This will continue until the new roadis completed

An increased per capita income plus an influx of migrant lbour plus incomers to supply services willmake the food balance siubtion worse. Modelig indicates an annual food defcit increase for theperiod of construction from 1.51 kg to 19.35 kg per capita in the project impact zone. Sone portersare expected to take up paid pbs on the project, so tat the number of available local porters will bereduced while the demand for their services will increase. This is likely to be reflected in increasedportering charges, higher food prices, and possibly temporary food shortages. Poor families could facereduced food availabiity. The nutrtional standards of tose not able to access the constructon-relatedcash stream are likely to fal further.

For those affected, these impacts could be sgnificarn Surveys for the Basinwide Impacts Studyindicate that one third of families in the area have already mortgaged some of their land to buy food.

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Qv Settemnt

The impacts of road constucto will be felt most Irmedlate in exsting settlements along thealignmnert Aready, land speculation has accelerated greatly and new construction projects haveincreased. Wdh initiation of the construction programme, the popultions of the major roadhead villagesand the power facility construction cetres will swell with the lnfilux of contractor, engineer and workerpopulations, their dependants, and incomers.

The most dramatc effects will be at TLunlingtar (Plate 9), which will become a boom town. Othergrowth poirns will be Hile, the powerhouse site and the NumVPhyaksindrHedangna area around thedam. These impacts will be highly significant localy.

tt.

Plate, Tuwlngtu from tlie NorhPhot: Jams Rammay

(v) Health

The concentration of workers and incomers and their dependants will create a greater demand forhealth re. Existng health facilities have never been sufficert in the area

The concentration of a labour force of some thousands will encourage prostituion, which will assist thespread of Acquired Immune Deficiency Syndrome (AIDS) and other sexually-transmitted diseases.Particular risk groups are long-distance truck drivers, who are often responsible for diseasetransmission, and returning Nepali prosttutes from outside the country.

Another health related problem is likely to be malaria, which is prevalent in the Terai despite eradicationcampaigns. Inrected incoming workers could transmit the disease to the vector mosquitoes in the ArMunValey, which could then affect the labour force and local residerts. However, although the impact ofmalaria on individuals is high, the disease is normally treatable and vector control measures arefeasible.

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The cidence of waterbome dseases and acute respiratory hit nctis Is already very high. However,schistosamisls will not be a problem since It does not occur wihin Nepal, due to the absence ofappropriate conditions. Oher diseaes likely to be increased are alcoholism, and possibly tuberculosis.

Together with the stress an health facilities, these Impacts are considered to be potentially highlyslgnMicanr locally.

(v Inratutions and Services

Water Supplies An adequate water supply is rare in most areas of the hills. The concentration of roadlabour will add further pressure to local water systems, particularly in Hile and Tumlingtar. The effectswll be felt mostly by women and children, who are normnally responsible for supplying famnilies withwater. Frequently water sources are polluted, with the result that diarrhoea and other waterbornediseases are common. Pressure on water supply systems will increase the risk of spreading thesediseases. These impacts are considered to be of moderate, local significance.

Education Road construction is likely to increase demand for education in the Project area. The mainimpetus will be provided by increases in the income of families with members employed in constructionor anciilary seivices. To the extern that the contractor's workfhrce is drawn from local communifies,additional demand for school places exerted by incoming workers and their families will be avoided.This impact will be temporary and of relatively low sigrificance.

Government Services The sudden and intensive construction effort and rapid pace of change willplace exceptional demands on goemrnment services at all levels in the Valley. This will be a highysignificant impact locally.

(vil) Women

Some women will benefit from economic opportunities arising from road construction, through bothdirect labour and the provision of services and commodities to the work force. Women of some ethnicgroups are quite independent - Kiranti, Gurung, Kar Bhote, Bhote, Newar - and are likely to take upopportunities offered, especially if assisted by appropriate programmes. Others, particularly from poorerlamilies, will be adversely affectedl Numbers on both categories are hard to estimate.

There will be three principal negative irmpacts on women. Firstly, road construction ernploymentopportunities will be granted mainly to men. They wil gain access to the cash economy, and since inmost farm families it is the men who control the money while women look after the tinily and the food,women will tend to remain in the subsistence sector. This is an equity issue. Secondly, male labourabsent or occLuped on road construction may increase the already high worWdoad of the women andchildren left at home, particularly on agricultural duties. Thirdly, when compensation is paid for landit is the head of household - the man if there is one - who gets the money. Money paid to the malehousehold heads may be used to pay off loans, purchase consumer goods, or hold expensive ritualssuch as weddings, rather than for the purchase of replacemernt land. Women, especially in poorerhousehDods, would then be left trying to feed their families on less land.

For the families and individuals affected, these could be significant impacts.

(viii) Vldnerable Groups

In the Valley, some groups of formerly urtouchable occupational castes - Kami, Dhamai, Sarki, theKumhals of Turlingtar - are characterised by chronic poverty. Their survival depends as much on aset of close social and economic ties with their neighbours and kin, as on individual fluctuations inforturne If such a group is dispersed through dispossess;on of its lands, its members become extremelyvuer*able. Since they are unused to handling any but the smallest amounts of money, cashcompensation seldom enables members of these groups to rehabilitate themselves.

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The nunber of Serously Project Affected Familles (see Section 7.3) IdentIfied by iland acquisitionsurveys Is 132, out of 1146 estimated to be affected by road-relatedi land take.

(bx Social Fabric and Security

Community Relations Although mot res affected by the road are etnically diverse, many groupshave formed a set of relatively stable relationships. These are normally based on a combination ofkinship, residental proximity, economic cooperation and mutuality, and are essential to the subsistenceof manw households, especially poorer ones. These social relationships and patterns will be disturbedby the influx of the large number of labourers and job seekers expected during road construction.

The intensity and significance of these impts will be directy proportional to the percentage of labourhired non-locally. Construction of the labour-Intensive Dhankuta-Hile road was possible withoutdisruption of existing seasonal agricultural labour inputs since almost all labour was recruited locallyand many workers were able to travel home .i night. This scenario is likely to be repeated on thesouthern half of the larger access road project, but will not be possible for the northern sector (northof Btunling) due to low local population densities.

Security The project's large, anonymous and transiernt workforce is ikely to cause an increase in thelevel of crime and social disturbance: theR, gambling, alcohol and molestation of women commonlyoccur in these circumstances. Such problems have already been reported from Hile, and can beexpected around any establishment comprising single men with money. The capacity of localcorm.unities and of the police to cope with an increase in the incidence of crime and social disorderis limited.

Overall, potential impacts on the social fabnc are regarded as of moderate, local significance.

5224 Impacts of Road Construction on the Cultural Envronment

The Valley Route passes through an area of considerable ethnic diversity and near a number of sitesof religious importance. The variety and the cultural integrity of local commrunities has remained largelyintact because of their isolation. Road construction would influence indigenous culture by, firstly,introducing more money and terefore more freedom of individual choice into traditionally orientedcommunities; secondly, introdudng new people from other more cosmopolitan cultures.

Culural change is occurring in ary case, and cannot be reversed. The road will greatly acceleratethese changes.

52.3 Access Road: Potential Impacts after Opening to the Public

These impacts will be the major consequence of the Arun Ill Project and so are described at somelength.

Direct Impacts Following construction and public opening in 1997, the direct impacts of the road willinclude (i) conrtinuing impacts on and from water, soils and slopes depending on maintenance inputs;iH) a continuing risk of accidental fire for roadside vegetation (ii) disturbance to any remaining wildlife

due to traffic noise end night-time lights; (i) healfth impacts through accidents and () employmentopportunities in road maintenance. These impacts are all localised, but will be long-term. The irdensityof the impacts will be largely dependent on managemrent decisions on road design and on maintenanceregimes and inuts. The significance of these direct impacts is regarded as moderate, but low inrelation to the major indirect impacts that will result from opening the road.

Indirect Impacts The indirect impacts of the road are regarded as much more significant than thedirect impacts. Without comprehensive developmrent programmnes in the Valley. some existing negativetrends are likely to be accelerated.

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52.31 Impact of Road Opwaton on the Physical Environment

During operation, the road will be affected by as well as itself affecting the physical environrent.

(Q Erosion: Slope Falluoe and Drainage

Slope Saure Is a major hazard to all roads In Nepal's hills. Soil creep and slow flow can producedeformation and disrupt drainage. Major slope failures can result In complete blockage of roads andloss of roadbeds. Minor failures, and high rates of sediment and debris production from unstabilisedcuitlopes, frequenly block side drains and cuhvts. The resulting flow of water over the roadbed cancause damage out of proportion to the scale of the initial blockage.

Major unavoidable geomorphological hazards along the access road are the Dandakharka mudslidebetween the Leguwa and Kenwa rivers soutih of Tumlingtar, arnd a variety of stability problems on thenorthern section, from debris torrents to rockfail. Periodic road loss due to slope failure is certain over1.3 km and probable over at least a further 1.0 km. This will necessitate a relatively high level ofmaintenance input.

fi) Floods: GLOFS and other Catastrophes

The road design has recognised that a GLOF passing downstream from the dam is a major potentialhazard since such occurrences can have devastating effects on both the valley floor and lower slopes,including post-flood falures. JV studies have predicted the magnitude and durabon of the GLOFimmediately downstream of the dam. Computer modeling predicts that between the IntakelDam andPowerhouse, a GLOF wil cause an increase in water level not exceeding 10 m. Downstream from thePowerhouse and where the widening of the valley is more sigrificant, the rise in water level reducesrapidly, and is negligible about haff way between the Kaguwa and Chyawa Kholas. The chosen roadalignment is generally well above predicted GLOF levels, dropping only near river crossirgs. Over theength of the river paralleed by the road, there is a danger of washout by extreme floods over some

7 km.

52.32 Impacts of Road Operation on the Biological Environment

Onoe open to the public, and if not mitigated, the access road could result in significant adverseenvironmental effects through accelerated degradation of natural resources.

{i) Vegetation and Habitat

The road will represent a major new opportunity for earning cash by selling open-access goods,principally forest products such as timber, fuelwood, medicnal herbs and orchids. The increasedcommercial (non-domestic) demand for biomass for local and external markets will accelerate forestdegradaton in the vicinity of the access road. Cardamom production is likely to increase, resulting inclearance of some lower temnperateforest. Households marginalised by adverse price adjustments lossof portering opportunities and/or inadequate compensation may expand slash and bum cultivation intoforest areas, and will also sel forest products. There will be a continLmng risk of fire for roadsidevegetation.

These potential indirect impacts are regarded as being highly significant nationally owing to their likelyscale, effect on the local economic resource base, impact on biodiversity values, and irreversibility.

(5) Wildlife and Fisheries

Along the road, remaining wildlife will be disturbed by traffic noise and night-time lights. This is a minorimpact comnpared to the indirect effects of improved access and higher levels of economic activty:wildlife throughout the Valley will be affected directy by increased disturbance and hurting, and

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In*ectly by loss of habitat arsig from accelerated forest degradation and clearance, particularly inthe vIcirnty of expanding slements along the valby botom. In addition, fisheries wig be more heavilyexploIted for rnw markets.

These potendial impacts will accelerate the decirne of endangered species and are regarded as beingpotentialy significart in the national conteKL

56233 Impacts of Road Operation on the Socdo-Economic Environment

(I) Economic Adjustment

Price Adcustoent When the Access Road Is opened to the public, there will be very large priceadustments. The road will connect the hills with the Terai. Freight costs will no longer be a majorfactor hi separating the economies of the two regiorns, and prices will rapidly change to reflect this. Theprice of staples will be greatly reduced, but there will be fewer portering opportunities and lwer saleprices for some locally produced goods. There will also be greatly increased demands on tho forestsof the basin to supply now markets, and changes in settlement patterns and cultual activity. The plainshave a relative economic advantage for the production of most commnodities, and prices of similarlocally produced goods in the hills will drop. The most significant immediate effect wil be a dramaticdecrease in the price of rice, some other food staples, cement, kerosene and fertilizer. These pricereductions will affect sale prices of locally-produced goods. The impact of the adjustment on any familyor group will depend on the availability of cash and relative requirements for, and prices of,commodities.

The price of land is likely to rise rapidly, partic 4.arly along the right-of-way. Speculative purchases arealready occurring in advance of construction.

Production Sectors and Food Balance The road will provide access to southern markets for hillproduce. Agriculturally, the most important cofmmodities will probably be livestock products andcardamom, for which the hais have a relative advantage. There will also be a massive demand fromthe south for forest products from the relatively abundant hill forests. In Sankhuwasbh District, thelong run impact of the road is likely to include net reductions in the contribution of the crop sector, andnet increases in the contribution of the livestock sector, to total income. Uvestock product prices areexpected to rise, and livestock exports will increase, enhancing livestock income Nevertahe, withoutconplementary investments, economic modelling by the Basnwide Impacts Study indicates hat theoverall food balance scenano will become worse than before the road.

(IQ Employment and Income

Employment Wthout cornplemertary investmerts, the overall long run impact of the road on localemployment is likely to be negative. This is largely due to two factors: loss of long-haul porteringopportunities between Hile and the north, and a roadinduced depression in local food prices whichreduces cropped area and therefore labour use. Anticipated increases in employment from, e.g.,increased cardamom production are not sufficient to offset this decline. Labour use is predicted todecrease from 50 % in 1995 to 47 % in 2010 without the road, and from 58 % (Nhgh due to Arun Illemployment) down to only 38 % with it.

In the upper Arun area portering is a mainstay for mrany arnilies. Much of the work involves forwardingsubsidised rice to Hatiya for the Nepal Food Corporation. For this task, porters' wages are paid in nce,not cash. Road consrution will wipe out long-haul portering opporturnties, although there will be acontinuing low-level need for road maintenance crews. Wages may be paid in cash rather than in kind.Cash may be no substitute for food. There could be increased seasonal outmigration of people lookingfor work in the Terai and elsewhere. This would occur especially in the northem part of the Projectarea which is now 5 to 7 days walk from Hile.

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ARuN If HYDROELECTRIC PRoJECl EVRoNMENTAL EXECuTE SUMMARY5. POTENTIAL ENVIRONMENTAL IMPACTS

Houshold Incom There will be a sigriicnt Increase In the contributon of the export sector tohouehold Income. The livestock sector will replace the crops sector as the dorinant cori[butor tohousehold income. However, the khease In Income from livestock Is not expted to outweigh the lossIn Income from reduced sale prices of locally-produced crops and loss of long-haul portering Income.

(HQ Povwty and Margflnlleatlon

Economic modelling by the Basirwide Impacts Study indicates that (i) poy Is Increasing; (ii) theAccess Road Project will not, by ltsekt, halt this process; pIl small compkementary Investmerits Ineffective Income-generating programmes will give major economic benefits to cusNon Project impacts.The reasons for these concusions are complex They Include a predicted Increase In population, adeclne in cropped area, a reduction in crop prices, an increase in labour surplus, and a marked dedinein income from portering.

If the econornic model is valid, those who are able to avail themselves of the economric opportunitiesduring and after construction will prosper, while the majority will initially be worse off, and could taketwenty years to improve on their present marginal situation. Marginalisation is most often characterisedby a household slipping into tenancy, and then attempting to make up for the loss in access toproduction by employment in the non-farm sector. The landless are likely to seek areas for cultivationby converting remaining forests. Fuelwood sales from open-access forests offer another bright prospectto the poor.

Motgaging and selling land and other asse is only done as a last resorL In the project area, 30 %of households surveyed had mortgaged their land to meet food needs. ff mortgaging and selling lardis taken as a sign of severe economic stress, and if the predicted econromic impacts of the projectspread throughout Sanrhuwasabhar as would happen without mitigation, then rn this District about9,000 families could be too poor to weather the period of economic hardship foreseen following openingof the road. If these findings are correct and withou mitigation, the Project wil impose severe costson the poorest people of the Arun Valley, who already live on the margin of subsistence.

cm) Setenment

New Setmlenents The access road will attract increased settlement at many points along its length.especially near footbridges over the Arun. An estimated 60 % of the population incease would bemigrants from surrounding rural areas; the remaining 40 % would be incamers, mainly entrepreneurs.

Settlement Form Given the usual desire of landowners to present their faces to the road, traditionalforms of village settements may be radically re-ordered to a roadside ribbon of commercial orientation(Plate 4). Some of the effects would be temporary (i.e., for several years), but many can be expectedto be permanent. These impacts will be highly significant localy.

(v) Health

Curently paients have to walk or be carried to hospitals with surgical facilfies, or to the roadhead atBasantapur. The presence of the road wil greatly improve access to hospital facilities for seriouscases. In additon, the road wil encourage an upgrading of local health facilities, as well as improvedlevels of literacy and improved water supplies which both have major impacts on standards of publichealthL However, there will be a continuing health impact through traffic accidents which would nothave occurred in the absence of the road

(vi) Institutions and Services

Government Road impacts on local government organizatiors are expected to be both positive andnegative. The road will provide easier access to natural resource management and law enforcementagencies, while also increasing demnands on the resources. Communication between regional, district

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ARLjvN I HYDROELECTRIC PROECT. ENIRONmENTAL EXEcuTE SummARY5. POTENTIAL ENVWRONMENTAL IMPACTS

mnd fild offices will be enharned as will communicatlon between these offices and ocal communmites,but mAny field offices win be reqdred to expand their services to keep pace wih demands.

Local Groups There will be both direct and Indirect Impacts on community mnaged activities. Directknpacts will occur where consruction Is undertaken In areas currently occupied by Irrigation canals,potable water sources, fbrests and other resources that have been mrnaged by adjacent communifies.The mIgraion of village elites to the rew road, to take advantage of econornic opportunities, cotldundermine the effectiveness of community organizations In the villages left behind.

(viQ Women and OUr Dibadvantaged Groups

The immediate effect of opening the road will be drastic price adjustmerts for both Imports and exportfrom the area (see ( above). Impacts on women will vary according to the economic condition of eachhousehold and its ability to weather the chwages and take advantage of new opportunities (e.g. inadapting cropping patterns to exploit new markets) (see discussion at 5.2.23 vii above). In the longrun, insofar as new wage labour opportunities tend to be taken up by men, there may be increasingabsence of males from the home and therefore further Increases hi already very high homestead workfor females. However, the presence of the road wil also accelerate the cultural changes that mayevertuaily Improve womens' status, particuialy through improved educational serices end thereforethe chance to attain literacy.

(viii) Social Fabric

The road is expected to encourage greater disparity in socioeconomic conditions between communftiesclosest to and farMest away from the road. Households closest to the road will have greater accessto new employment and income generating opportunities, transportation to market centres, education,health and other services.

523.4 impt of Road Operation on the Cultural Environment

The road's possible impacts on the cultural heritage of the Valley may be summarised as

- Erosion in traditional social and reiigious values, although this is already occurring without theroad, and is not all rngate.

- Greater invasion of external media and communications, leading to less emphasis on traditionalsongs and dance forms.

- Invasion of consumer products that may dispiace traditiona crafts and cottage industries.- Houses will become more substantive, with greater use of non-traditional materials.- A major growth in construction activity in the market centres.- Greater Use of temples and shrines alongside or close to the road, possibly leading to

increased income for effective maintenance.- Changes in the physical form and social patterns of settemernts, including greater economic

disparities and stresses on community infrastructure.

5.3 HYDROPOWER COMPONENTS

After listing impacts which will not occur, this section describes possible impacts of the hydropowercomponents (dam, irnake, desanding basins, headrace tunnels, powercavem, outlet, permanernt camop)on the physical, biological and socioeconomic environment during construction and operation. Animpact matrix is atached at Appendfi S.

5.3.1 Impacts Which Will Not Occur

The Aunm Ill project is a run-of-river scheme. Thereore, impacts typically associated with largereservoir hydropower projects not relevant to this project include:

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ARLiN W HYDROELECTRIC PRWECT- ENVIRONMENTAL EXECUTIE SUMMARY5. POTENT1AL ENVIRONMENTAL IMPACTS

No resettlement of people or signifficat los o' agricultural land due to inundation.* Minimal Inunaon of riparman vegetation (30 ha) due to steep valley sides and small

impoundment (50 ha suface area).No proifNeration of watbore diseae vecors like schistosomiasis or water weeds, due toursutable condifions.Downstream dewatering will not affect agricitwre.

* No potential for inducad seismicity due to water impoundment* Umited sediment trapping potential behind dam, minimising the potential for downstream

erosion. There would be no loss of flood-borne sednerits to downstream riparian areas.* Project life will not be reduced by resrvoir sedimentation since it is a run-of-river facility.* Negligible alterations In water temperature and biochemical oxygen demanr due to

impoundmrient given the minimal water retention time.* No disruption to navigability, since damsite is located in a non-navigable river stretch.* Minimal danger of destuctive dowrnstream Iloodirig in the event of dam failure because of the

small amount of water retained behind the dam.

5.3.2 Hydropower Components: Potential Impacts During Construction

5.3±21 Impacts of HEP Construction on the Physical Environment

(i Air Quality

Locally significant impacts on dry-season air quality are expected from dust over some four years.These impacts will cease following completion of construction and the vegetative stabilisaion of slopesand bare ground.

Q) Water Quality

Leakage of oil and hazardous materials from project construction and operating facOities cOL d havean impact on local water supplies, tributary strearns and the Arun River. Concrete batchilig plantoperations at the dam and powerhouse sites will produce liquid wastes from mixers, washing of trucksand other equipment, and solid wastes in the form of sub-standard concrete. Liquid wastes, diesel oil,lubricag oils, grease, paints and oter chemical and ol based materials will be used as well as storedin the tunel shops, fuel storage areas and other operational facilRties. These impacts could besignificant locally.

fiii) Topography and Soils

Quarry and Borrow Pits Quarry, borrow pit and spoil disposal area requirements are estimated at23.1 ha at the dam site, 6.0 ha at Adit No. 2, and 14.0 ha at the powerhouse. There will also berequirements for temporary roads, storage and handling yards, and Contractor's camps. Openingquarry and borrow pits and constucting temporary roads will result in changes in local drainagesystems, loss of vegetation cover, cutting of slopes, creation of steep highwall sections, erosion hazard,and loss of cultivated land. These irpacts will be signicant locally in terrns of land use and availability,unti all consruction activities have ceased (Stages I and 2) and the land reclaimed.

fiv) Spoil Disposal

Disposal to River An estimated 1.43 million m3 of excavated rock (spoil will need disposal at thepowerhouse, adit and dam sites during Stage 1 construction. Of this some 490,000 m3 can be usedin the works, as quarry and borrow-pit backfill, and for costruceion of raised terraces for servicebuildings at the powerhouse site. The absence of suitable Iccations for spoil dumps and the highsediment-carrying capaciy of the Arun River during the monsoon suggest use of the river for disposalof the remaining 940,000 e 3.

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ARUN i11 HYDROELECTiC PROJECTr- ENVIRONMENTAL EXECUTnvE SUMMARY5. POTENTIAL ENVARONMENTAL IMPACTS

The average annual bediod transport capacity of te Arun for represedave debris dcameters of 83aMd 180 mm is estimated at 35.1 migion tyr and 19.8 ffillion Wr respeively. The actual loadbansported Is not more than 50 % of the bransport capacity. Under-utilised annual capaciy iscalcudated at between 9.9 million tonnes and 1.7 million tomes, wiich is well In excess of the totalvolume of spoil reqtiring disposal over the enlire construction period (abot 2.5 miilion tomes for Stage1). The reservir behind the dan wil its retain more sediment tan is to be disposed of duringconruction. The composition of the spoil Is no different to that of the existing bedload. Thusconrroiled spoil disposal to the river over three monsoon seasons (1998-2000) (max. diameter 500 mm,no dumping when tlow is is less tan 160 m0/s) is not considered to be likely to cause significantimpacts on either water quality or downstream channel form.

Temporary Spoil Dumps Temporary spoil dumps wil be requked to store spoils at the dam site, AcitNo. 2 and the powerhouse ruitil monsoon flows permit river disposal. These will contain a maximumof 309,000 m3 of material in 199B, with lesser amounts in 1999 and 2000. Of necessity th temporazyspoil dumnps are located in both rivenne forest and cultivated land. This land take is significant locally,but not in a national contexk Reinstatement of the temporany dumps will be a challenge owing to thelocal topographyr and Infertile substrate; they are likely to be reactvated for Stage 2, after whicn finalreclamation can be carried out.

5.322 Impacts of HEP Construction on the Biological Environment

Although overall facility impacts on rare or endangered species are not thought to be significant in thenational conrext, data are limited.

() Vegetation and Forests

The major direct impacts on naural vegetation cover will occur at the dam site, in the areas selectedfor quarrying and spoil disposal activities (approx 30 ha of riverine and sub-tropical forest), in theflooded zone of the reservoir (15 ha of riverine forest), and along access roads on steep slopes.Elsewhere, construction activities will utiUse areas of fairly level land which are generally cleared ofatral vegetation and have been developed for agriculture. Dust is hilcely to coat vegetation during the

dry season, and there will be fire risks. These direct impacts on forests will be significant locally, at themajor construction sites - the dam, powerhos and acits.

Indirect impacts an forest cover wilI occur as a result of increased demand for forest products,clearance for new housing and slash and burn by marginalised families. Th3se impacts are consideredto be potentially very significant locally.

(il) Mammals and Birds

During construction, mrammals and birds are likely to suffer from dcshirbance due to constructionactivities (including air support until road access is provided in 1996), increased hunting and trappingpressure from the work force and incomers, and the creation of more discontinuous forest habitat.Normal movement, feeding and other activities wil be disrupted. This will be significant locally, but notnationally.

(ii? Butterflies and Moths

Mhe Arun Valley between the Num and Hedangna ridges (the Intzke site) is a centre of Lepidopteradversity and endemism bterulies and mots). Consrucion and economic activities in this area areEkely to result in major changes in vegetation cover. Impacts could indude loss of plants required forinsect lifecycles, and problems due to attraction of moths to HEP area Ulights at night, with subsequerntdeath, dsorietato or behavioural changes. In terms of the possible reduction of national biodiversily,these impacts could be significarnt

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ARUN 111 HYDROELECTRIC PRoEc7 EwIRONMENTAL EXCuVE SuMARY5. POTENnAL ENVIRONMENTAL IMPACTS

F32 3 Impacts of HEP Conhtructuon on the SocIa-economic und Culural Environments

(I Land Take

Proj consbuction is expected to have a sigicant impact on local farming comnmnities. Theproject's pernanent facilkies at te hydropower sites will require some 48 ha of land pnduding 16 hacutived), with a furthr 69 ha needed for temporay use by the Contractors including 46 hacutivatd: Table 5.4). Land acquisition for proect use will result in the displacement of approximately170 households. When combiried with the land take for the access road, these impafcs will be highlysignificant locally.

[ Table 5.4 LAND TAKE BY HYDROPOWER FACIUIlES

Permanent Temporary TotalProject Affected Families 21 130 151Serbusly Project Affected Families 19 - 19

Total 40 130 170Land Take (ha) 47.8 69.1 116.9Land Use (ha)

Cultivated 15.7 46.3 620Shrub 8.B 5.9 14.7Sub-tropical Forest 23.3 16.9 40.2

Land Ownership (ha) Private: 76.7I Public: 40.2

(II) Employment and lncohe

Labour requirements for the hVdropower components are estimated at a minimum of 3700. In general,the skills required mDll be higher than those for access road constrution, and there will therefore be agreater need for skills not availabe locally. Nevertheless, there will be extensive local employmentopportunities over the four and a half year Stage 1 consruction period (1997-2000). This will have asubstantial effect on local average incomes for males. Further income wil be generated by servicingthe workforce. These impacts will be highly significant locally.

pii) Other SocIo-economic and Cultural Impacs

During construction, other socio-economic impacts will be similar to those already listed for the accessroad - price inflation, possible increased food deficits. rew housing, stress on health facilities and othergovernment services, impacts on women and vulnerable groups, stress on community relations, andcultural erosion. These impacts wDll concentrated around Tumlingtar, the powerhe, and the intakesite, and will be highly significant locally.

5.3.3 Hydropower Components: Impacts during Operation

5.331 Impacts of HEP Operation on the Physical Environment

ai Hydrology

During operation a short stetch of the Arun river below the intake site will be dewatered for a shortperiod each dry season (mid-November - mid-May). Flow contributions frorn tributaries begin within100 m of the irtake, and are estimated to total a muinimumn of 16 m3/s at the powerhouse site (abo10 % of the normal dry season flow). Flow reductios will have effects on aquafic life (see 5.3.32below).

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ARN M1 HYDROELECRIC PROJECT: ENVIOMENTAL EXECUTIVE SUMMARYS. POTENTIAL ENVIRONMENTAL IMPACTS

During Xt wet season (June - October) periodic reservoir tishing will cause rapiod rises in water leveldownstream as the sedimert sluices in the dam are opened This is unlikely to cause safety problemsdowntream since there are few nf any river users duinng the monsoon due to naturally high anddangerous flows.

(a) Sedlmts

After the conruction of the dam, during an Initial period d 3-5 years all of the bed load and part ofthe suspended sediment wit be trapped in the reservoir. Thereafter, the reservoir will be flushedperiodically during high flows when sediment lvels are naturally high. Full flushing will take about 30hours. During the wet season there will also be a requirement for about 2 hours flushing of thedesancing basins every day. This is not a sigrificant errvironmental impact.

#IQ Water ualgty

A reservoir of approxdmately 4 km length and 50 ha surface area will be created behind the dam.Water velocity in the reservoir will still be relatively Ngh, and the short reterntion time wil prevent arysignificant changes to water temperature or other water quality parameters. This is not a significantimpact.

5.332 Impacts of HEP Operaton on the Biological Environment

(i) Mammals and Birds

During project operation, there is a remote possibilit that lights could cause disorientation to birds.migrating at right Otherwise impacts on mammals and birds during operation will be minimal.

(I) Fish

The Arun IlIl dam will be a permanent barrier to all ftish movemrent upstream in this section of the river.In the wet season, some fish from upstreamn populations will move downstream, travelling with releasedflows through the spilhway gates. Some fish wnll become entrained in the intake, but designed watervelocities here are less than typical fish swimming capabilities.

As well as some others, two important species of fish, the threatened Kate (Copper Mahseer) and theDore common and econornically important Chuche Asala (Mountain Snow Trout), will be affected by

the project. Kate is a migratory species, utilising spawning grounds in the Arun tributaries as farupstream as the Barun River, and is considered to be under threat throughout its range in theHimalaya The major threats to fish popudations and species diversity in all Himalayan rivers are damsand weirs. It is likely that KaUe will not remain established upstream of the dam. Katle migrateupstream at the beginning and downstream at the end of the monsoon seasonm The survival of Katledownstrm of the dam, and in particular downstream of the powerhouse, is not considered at risk dueto the project because flow between the dam and powerhouse site will not be reduced sigrnlicantlyduring the nonsoon season, and will remain unchanged downseam of the powerhouse.

Asala is a locally resident fish principally inhabiting upper sections of the Arun, with a small part of thepopulation extending downstream of the dam. Upstream populations of Asala will not be significantlyaffected by the dam or reservoir.

Further impacts on aquatic life are expected from &) occasional flushing of sediments, and pi) periodicreduced flows in the Arun behween the intake and the powerhouse during the dry season, a length ofsome 20 km. Flow from tributaries in this section is some 10 % of the total. However, there will beimpacts on nursery habitat and locally significant changes in river biology in this section of the mainriver channel.

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ARUN /i1 HYDROELECTRIC PROJECT- ENVIRONMENTAL EXECUTIVE SUMMARY5. POTENTIAL ENVIRONMENTAL IMPACTS

53.33 Impct of HEP Jperatlon an SodcoEconomic Environment

When operating, the hydropower components wlt need a small pmane skilled staff (to be basedat the permanent camp site at Amrang, rmidway bstween the powerhouse and the Intake), and anoccasonal or ursidlied labour for maintenance actvities. The perrnanent camp is likely to attract someservices, partcularly shops, owihg to the relatively high spending power of the site. There may beIncreased demands on local resources, particularly fuelwood, to meet Increased demands. Theseimpacts are not considered to be of any wide significance, but local forest managemerit will requirestrengthening.

5A TRANSMISSION UNE SYSTEM

5A.1 General

The proposed 220 kV transmission line system to link the Arun Ill developmert with Kathmandu andother load centres is a major project in its own right. The direct impacts could be significant locally ifnot mitigated, but overall impacts of the transmission line system will be low. Matrix tables givingdetails of expected impacts, planned mitigation measures and responsibilities are reproduced atAppendix 5.

Eectric power transmission lines are linear facilities. As such, the impacts of transmission lines occurprimarily within or adjacent to the right-of-way (RoW). The magnitude and significance of the impactsncreases with higher voltages, which require larger strucures and wider RoWs.

Evenrually. the lines will run for some 390-420 km all the way to Kathmandu through a geographically,ecologically and socially diverse landcape (Map 3). Key features and processes are landsliding in thehills; river erosion in the Terai; forests as habitat for endangered wildlife, for watershed protection, andas a subsistence resource in all areas; the interrationally imporant wetand of Koshi Tappu on theSapta Koshi River; and ethnic, social and economic diversity ranging from very poor indebted farmersin the hills through large scale lard owners in the Terai to the urban settlements of the KathmanduValley. However, for Stage 1 power outputs, only the 120 km connection douth from the powerhouseto Duhubi wil be reqjired (Map 3).

5A.2 Potential Transmission Line Impacts During Construction

During constructon the principal impacts will be related to permanent and temporary land take, toclearing vegetation in the RoW, and to the construction of access roads, tower pads and substtions.Potentially significant impacts of the Arun Ill transmission line system during construction include:

Physical- slope stabtliy, erosion and drainage problems from temporary access roads.

Biological- clearance of forest along the RoW, and consequent effects of habitat loss and disturbance on

wildlife, especially (under Stage 2) at Koshi Tappu Wildlife Reserve;

Socio-economic and Cultural- permanent and temnporary land take for access roads, substations, tower pads, and other

facilifies: effects on farmers (Table 5.S);- employment opportunities;- crop and other damage from construion activties;- impacts of the lbour force on food and fuel supply and prices;- impacts of labour force on local social systems and culture.

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ARuN Ill HYDROELECTRIC PROJEcr: ENVIRONMENTAL EXECU77VE SUMARYS. POTENTIAL ENVIRONMENTAL IMPACTS

Table 5.5 LAND TAKE AND LABOUR FORCE FOR FULL TRANSMISSION UNE SYSTEM

Pennanent Land RequiremernRight-of-wwy: 2000 ha apprawTower pads: 20 haSubstations: Duhubl 4.0 ha

Dhalkebar 1.0 haKathmandu 6.0 ha

Temporary Land RequirementAccess roads and labour camps VariableTower erection, line stringing, storage, distribution centres: 20 ha approx. per

30 km line length

Labour Force Arun III - Duhubi 450Duhubi - Dhalkebtr 375Dhalkebar - Kathmandu 450

Families Permanent PAFS 23Affected by Permanent SPAFS 4120 km Stage 1 line Temporaiy PAFS 549

5A.3 Potential Transmission Une Impacts During Operation

n operating, the physicil presence of th line, the current flowing through it, the operation of thesubstaions, and line and RJW maintenance procedures are all souwees of environmental impact.Potentially significant impacts ideried include:

Physical

Biological- iorest degradation adjacent to RoW;- hazards to birds (avian hazards) at valley crossings, and at breeding sites such as Koshi Tappu

Wildlife Reserve.Sociao-economic

- employment on RoW mairtenance- hazards to aircraft (aviation hazards) at valley crossings and possibly in the Tumlirgar area;- safety hazards to public;- property devaluation, especially in the Kathmandu Valley;- encroachment onto RoW by landless squatters;- effects on radio and TV reception;- possibly, health risks from exposure to electromagnetic fields.

Cultural- none.

5.5 CUMULATIVE IMPACTS

5.5.1 Other Projects

The Amn Access Road and Hydropower Project will be the first element in bringing major change tothe Arun Valley. Further projects studied indude the Upper Arun Hydroelectric Project (UAHP) andLower Arun Hydroelectric Project (LAIP). The LAHP, sited between the Arun Ill powerhouse andKharbaji, would be in an area already opened zjpf by th Arun 1.! project. The UAHP is in a regionmore physicaly, ecologically anrd socially sensitive than Arun Ill. No date has been set for thedevelopmrent of these projects.

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ARUN 111 HYDROELEcTRIC PRoECT.r ENVRONMENTAL ExECuTIVE SUMMARY5. POTEu(NnlAL ENVIRONMENTAL IMPACTS

5.5.2 Dams, Dewaterlng and Fisheries

Construction of addtonal darns and wars on the Amn would add significantly to the division of fishpopulations and degradaton of aquatic habitat. The Lower Arun Project would probably be moreImportnt in this respect, since the stretch of river and tributaries between Tumlingtar and Phyaksinda(the Arnm III dam site) is thought to be particularly importent in the life cycle of a number of fish specdes.Dry-season dewatering would add to this impact, which overall could be highly significant for this riversystem, difficult to mitigate, and irreversible.

5.5.3 Roads

Construction of the Arun Access Road for Arun Ill will give opportunities for futher road connectionsto (i) Khandbari; (e Chainpur; (iii) Bhoipur; (iv) other areas in the Valley. The cumulative impact ofthese new roads on the Valley would be very large and irreversible

Construction of the access road for the Upper Arun Project would give an opportunity to continue upto the border with China at Kimethanka. This would atact trade .'rom the north, with consequentimpacts on. the newly established Qomolangma Nature Reserve in the Tibet AutonomouLs Region.

5.5.4 Transmission Unes

Upper Arun

The Upper Arun transmission lines are likely to follow the eventual access road to the Upper Arunproject. Curenly thsis planned for the right (west) bank of the aiver in the Makalu-Barun ConservationArea The lines will cross the river at the Arun Ill intake site (Phyaksinda), and then take a direct routeover the ridge at Num, through the Hurure cloud forest, and then turn west across difficult terrain nearthe Arun Ill powerhouse.

RoW dearance for these bnes could have significant impacts on both the renaining cloud forests onthe Ntxn ridge, and on any remaining butterfly and moth habitat in the Phyaksinda area, a centre ofLepidoptera diversity. There could also be a hazard to birds, particularly migrants, at the valleycrossings.

The export of nearly 800 MW from the Arun Ill powerhouse area would necessitate further 220 kVcircuit south of the Arun Ill powerhouse. This line would be built in the same corridor as the originalcircuits, with consequent increases in impact on biophysical resources, particularly forests. Thispossible cumulative Ir..pact is regarded as moderately significant and long lasting.

Lower Arun

The 308 MW LAHP is expected to require its own power transrnission system. When combined withthe odher two Arun projects, the total power requirirg transmission from the Tumlingtar area would be1045 MW. Again, the added impact would result in a significant cumulative effect, particularly on anyremairnig hill sal ecotypes.

Overall, potential significant impacts of the transmission line systems will be (i) vegetation clearanceand loss of habitat (i) construction of access roads; (ii) possible avian hazards; (iv) possible visualimpacts in relation to the iternational tourist trade and heritage.

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ARUN mI HYDROELECTRIC PRoECr ENIRoNmENTAL ExECLmvE SuMmARY& PROJECr ALTERNATIVES

6 PROJECT ALTERNATIVES

6.1 INTRODUCTION

Internally, Nepal has a major unsatisfied demand for electricty. Externally, the country is in a uniqueposition to supply power to the burgeoning South Asian economy. Nepal has enormous economicallyfeasible hydroelectric power potential, of the order of 25,000 MW. Therefore, the logical choice forsome rual and most urban and industrial uses is hydropower.

The Arun IlIl Hydroelectric Project was identfied as the best major hydropower scheme for early additionto the Nepal Interconnected System under a least cost generation expansion plan (LCGEP) completedby the NEA in 1 967, with the assiance of the Canadian International Development Agency (CIDA) andthe Internationat Development Agency PDA).

The choice of Arun III was reconfirmed by an LCGEP Update Study completed in 1990. again with IDAassistaoe. This study included estimates of resetlement costs in its comparative analysis of thevarious projects, but not the costs of other environmental impacts or economic bernfts. In reconfirmingArun IlIl, the Update also considered the dificult subjects of "crowding our (displacement of otherdevelopment investment by one large project), the recovery of local costs through signrcant electricitytariff increases, the risk of inflation, and the effecs on Nepal's balance of paymerds, and finallyspeculated on future debt servcing requirements to pay for the overall power expansion plan (one thirdof the total annual budget in 199293).

HMGIN as now initiated analytical work tc improve efficiency in financial resource allocation and topioritise the expenditure portfolio, so that investmrent in Arun IlIl will not crowd out other projects,partiularly those in the social and rural infrastruture sectors. At the sane time, HMGCN is taking stepsto open up the electricity supply system to competition by encouraging private sector participation inpower generation.

This chapter discusses alternative technologies and sites considered in selecting and designing theArun Ill ProjecL

62 ALTERNATIVE TECHNOLOGIES

62.1 Energy Supply

Currently fuelwood and other forms of biomass supply 94.7% of Nepal's energy reeds. It is widelyaccepted that harvesting of remaining forests in Nepal's hils is unsustainable, and even so there ismassive unsatisfied demand in both rural and urban areas. Given adequate capital and expertise, solarpomver can substitue for fuehwood for some uses (eg. water heating), and biogas for others (e.g.cooking in the lowIrands). All fossl fuels must be imported, resulting in a drain on fbreign exchange andhigh transport costs. As yet, geothermal electricity generation has not been explored in Nepal, andwind energy has yet to prove a success. Nuclear energy is not a realistic option on cost, seisrmic safetyand institutional capacity grounds. This leaves therman staions and hydropower as the remainingoptions.

Nepal has an installed electrical generation capacity of some 250 MW, but the reliable capacity is onlyabout 200 MW. Demand now exceeds this level, and continues to increase. The cheapest form of rnewsupply is usually demand management - load management, energy conservation, energy-efficiency -

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ARUN If/ HYDROELECTRIC PROJECT: ENVIRONMENTAL EXECUTIVE SUMMARY6. PROJECT ALTERNATIVES

mnd cutting system iss and Illegal connectons. In conjuncon with relevart agencies. NEA Isundertaking these tasks, assisted by the World Bank through Its *Power Sector Efficiency Project.Allwing for these Improvements, projected demand levels stil exceed supply, and rnew generatingsources are needed.

The 1987 and 1990 LCGEP exerdses looked at the optimal mix of thermal (diesel and gas), run-of-riverand storage hydropower projects, and concluded that Arun Ill should be bULit as a priority, followed bythe Upper Anun scheme. Tested for robustss, the LCGEP analysis confirmed that Arun Ill shouldgo ahead whether or not intermediate schmes were implemented. The leading candidate for anirtermediate project was identified as Kali Gandaki A (102 MW run-o-river), which is now entering itsdetailed engineering phase with assistance from the ADB, UNDP and Finland.

62.2 Access

The sites for the Arun ill power lacilities are some 50 km north of the nearest roadhead. Alternativeaccess technologies include air (helicopters, fixed-wing short-take off and landing. dirigibles (poweredballoons), ropeways, inclined railways, river transport, and a new road.

Helicopters are used widely in the Himalaya, but in general air support is expensive and subject todisruption during the four-month monsoon season. Dirigibles are capable of heavy lifts and precisepositioning, but are an untested anrd therefore risky technology in the region. Indined raftways are onlysuitabe for specific steep sections of the access route, and become redundarnt if road access can oeprovided at reasonable economic and environmental cost. The use of jet barges for transport on theArun River south of Turdingtar was investigated seriously, but was abandoned as practical constrairnsbecame apparent relating to variabe flows, obstades in the river chanrnl, and limited carrying capacity.

The design team concluded that it would not be feasible to build and operate the Project without roadaccess.

62.3 Construction Schedules

Currently, the construction period for the 122 km road is projected at 40 months starting in 1994, andfor the hydropower componernts at some 60 months starting in 1996. The speed of construction of aproject can have a considerable effect on its ervironmental impacL Slower construction of the accessroad would allow a less capital-intensive approach with a higher ocal labour d-mand (and thereforelocal berefits), and modified construction techriques with lower physical impact. Slower constructionof the hydropower components of Arun IlIl would reduce the size of the labour force required, reducethe volumes of spoi to be excavated and disposed of annually, and permit more gradual institutionaldevelopmert.

However, the provision of road access is on the critical path for completion of the power cornponents.Delay in opening the road would have unacceptable effects on the comrnmissioning date, and thereforeon the project's (and national economic position. The stringent env;ronmental requirements built intothe design, and related mitigaton measures, should ensure tWat the impacts of building to the planriedconstruction schedule are acceptable.

6.3 ALTERNATIVE SITES

6.3.1 Power Site

The merits of the Arun Ill Project versus other hydropower sites in Nepal were considered in the twoLCGEP exercises o 1987 and 1990. On the Arni itself, Arun ill has to be built before the Lower Arunscheme since the latter is supplied by water from the former. The Upper Arun scheme will takeadvantage of the access road already built for Arun Ill.

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ARUN Il HYDROELECTRC PRojECT: ENVRoNMENTAL EXECuTE SUMMARY6. PROJECr ALTERNATVES

6.3.2 Access Road Alignment

The Route Options The rod's ailgnment and speciications are compromise bevween (i) the needfor minimum disturbame of the fragile landscape, () the benefit of labour intensive metods versusthe speed of constructon of capita intensive methods, (1i) the relative weighting of higher constructioncasts versus a lower Irnial specification and higher maiWrernmce costs, and (hv) connecting existig leftbank settlments versus shorter driving times to the project sites and the benefits of a faster axis forfuture regional deve:opment.

The 1986 Arun IlIl feasibiliky study recommended a route descending from Hile to the river, and thenfolloiang the Valley throughot to the Irtake site. However, in 1987 a detailed feasibility study ofpossible alignmenits for the access road was carried ot for the Department of Roads. The terms ofreference for this study emphasised the objective of maxlmising economic and social benefits to theregion, as weli as providing access for the project. It was also stiputated hat the road provide accessto Khandbari and Chainpur. Within these constraints, all possible routes were considered, and thealignment recommended was the "Hill Route'. This ran from the existing roadhead at Basantapurthrough Manrling to Chainpur, Kharang and Tumlingtar, rising through Khandbari to the Chhyangkutiridge before desc-ending through Num to the Intake site at Phyaksinda. Detailed designs and tenderdocuments were completed in 1988, in articipation of an early start to construction, and further refinedin the following years. The total length of new construction was 188-197 km (depending on accessoptions to Adt No. 2 north of the powerhouse). The final alignment chosen, designs, and constructionrmeods specified were regarded as ernironrentally stateof-thetart for a major road project in Nepal.

In 1992, following a decision to revise Arun IlI's development concept and reduce initial expenditure,and given the sole criterion of providing access to the power sites as quickly as possible, the feasibilityof a 'Valley' route was investigated again. Enginsering and construction planning studies have shownthat although the construction costs would be similar to those of the Hill Route, there would be a limesaving of one year and a total length of new construction of only 122 kmrL Comparative data on the tworoutes are gven in Tables 6.1 and 6.2.

Land Take The direct social impacts of the Valey Route will be of the order of two-thirds of those ofthe Hill Route, affecting mnany fewer famiilies. Project Affected Families (PAFS) are estimated at 1146compared with 1661 known PAFS for the Hill Routae. This is a very significant benefit. Although thenumber of families affected per kilometre of road is more along the river, the reduced overall lengthresults in a lower total of PAFS. Land take of cutfivated land for the Valley Route RoW will beapproximately 169 ha, compared with 286 ha for the Hill Route (Table 6.1).

In addition. selection of the Valley Route has also permitted rationalisation of NEA's oerrmanent campfacilities: a single site is now feasible, with consequert reductions in land take and overall impact.

Compensation Compensabon paymrents have already been made for much of the Hill Route.However, the total compensation payable for the Valley Route will be approximately half that payablefor the Hill Route. The Hill ROUlte RoW will be retained in government ownership for future roadcosruction purposes. Detailed engneering for a Chainpur-TumOnglar link road is under way.

Spoil Disposal The disposal of spoil arising from excess cut and from slope failures will be muchsimpler and less environmentally damaging for the Valley Route, owing to the proximity of the river.

Constuction Damage Duririg construction the Valley RWe is likely to result in less damage toproperty and fewer injuries of-site than the HIn Route, owing to its procxiity to the river (not lar forrocks to roll), and lower settlement density (ess to damage).

Cor.trucbon Materials Consuction naterials are more easity available along the Valley Route.Consequently there will be less landscape disturbance specifically for consruction materials in tiieValey.

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ARUN il HYDROELECTRIC PROJECT: ENRONMENTAL EXECUTIVE SUMMARY6. PROJECT ALTERNATIVES

Table 6.1 ARUN ACCESS ROAD - COMPARATIVE CHART:DISTANCES, LAND USE, LAND TAKE AND FAMIUES AFFECTED

ROUTE OPTIONS

(Including power cavern loll

Dence (km) New constructon 121.9- 197.2

Travel (Hte-In4ake) 116.8w 171.4

Foret 27 28.5

Shnrb and GazIng 30 16

CultIaon: Khot 27 41Lafd Is CultiIon: Bal 16 15

Total cultivation 43 56Abandoned/Other 0.5

Total 100 100

Forget 106 145Shnrb and Grazing 119 81Cultivation: ls l 106 209

Land Take Cultivation: Borl 63 77

Total cultvation 169 286Abandoned/Othr - 3

Total Land Take 394 510

Average Lend Take hWAkmm 3.2 2.59Aveage Househddsakm 9.4 8.6

Totd Famirt Affected 146 1661

Thae column from dmft ACRP Report April 1993Rocommended alignment fbr aeit acee. along dgght bank of Arun river

-- This figure Is based on preliminwy engineenng and couLd lncreaa by 1% to 2% during detailed engineering375 ha puianent plus 19 ha temporaryMl Yl Rout RoW changes frm 30 m to 20 m d Chhyengkuti. alo powshouee spur

n.d. No date (avafable date not deggrgated)

Geomorphological Hazards The Valley Route is more exposed to flooding and debris torrent hazards,including the possibility of GLOFS and landslide dam failure floods. Scour of vulnerable slopes duingan extreme flood event could cause failures over some 7 km of the road. Topographical constraintsalso force the valley alignment to traverse areas at risk from potential deep-seated slope failues.These are lkely to give rise to pericdic loss of the road over a minimun of some 2.3 km. Thecoresponding figure for the Hill Route is 0.8 km (the hairpin stacks which are a mapor feature of theHill Route are al located on the most stable terrain available and are not liable to severe landslidedamage). This 0.8 km distance is mnade up of two sections of road, at the powerhouse and Adit No.2, which are common to both routes. From the point of view of geomorphological hazards the ValleyRoLte is feasible, but will requre a higher maintenance input over some stretches.

Ecological Impacts Both routes will directy affect areas of high ecological value. The hill sal andlower temperate forests around Tumlingtar and the subtropical forests on the descent to the Intake skewill be affected equally by both routes. Therefore the comparison has to be made between impactson rivenrine habitats and wildirfe and impacts on the three cloud forests on the Chichla Ridge.

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ARUN /i1 HYDROELECTRIC PRWECT- ENWRONMENTAL EXECUTIVE SUMMARY6. PROJECT ALTERNATVES

Few quantatdve date are vaivabe to assist ttis evaluaion. Even without the Project, the doud tarnsare under severe threat due to urwistalnable use. However, there are reasonable prospects for user-group mnagement end conservation, partally owing to tr spiritual sigrificance. Although the HillRoute would attract settlneerts, aln the Cchila-Num ridge their size would be constrained by verylimted water supplies. The rverine forests north of Tumlingtar are being degraded slowly, butcorsructlon of the Valley road and enstAng impacts will accelerate their decline. Prospets for user-group management of these foress could be lower thn far the cloud forests owing to lower setlementdensiies and a greater tendency for open access.

On balance, the significance of lorg term impacts on ecological values in the Arun Basin w0i probablybe higher on the Valley Route, due to the better regional access provided along the river, and thereforehigher levels of future economic activity and demrand for forest products.

Indirect Impacts The indirect imrpacts of both routes will be similar in nature, scale and interisiy.Although the Hill Route would directly connet more people and settlements, construction of the roadalong the Valley woudd create a relatively short. last access for future regional developnernt The ValleyRoute would also improve access opportunities to Bhqipur as well as to parts of the Makalu BarunConservation Area. The Tumlingtar stretch is common to both road options.

Conclusion Apart from giving earlier access and being shorter, the principal advantages of the valleyRoute are socio-economic: the Valley Route will directly affect an estimated 500 fewer families than theHill Route, and it will also form a better long-termn regional growth axis. The disadvartaged Kumhalsof Tumlrigtar will be affected equally by both routes. Ahough a relatively high level of maintenanceis likely to be required to clear occasional landslides, the lower direct social impacts and long term,strategic benfts of the Valley Route weig!i heavily in its favour. This conclusion is supported by theopinion of the Panel of Experts.

The higher direct ecological impacts of the Valley Route should be partially offset by improvedmanagement of remaining habitat areas on the right bank by the Makalu-Barun Conservation Project,and indirect impacts minirnised by improved user-group management of other areas

Table 6.2 ARUN ACCESS ROAD: HILL VERSUS VALLEY - A QUALITATIE ASSESSMENTI

Topic Valley Rout.e Hill RoutfeLength: Shorter Longer

Physica Impacts: High Moderatesoils, slopes, natural hazards

Biokogical Impacts: Direct: Moderate Direct: Moderate/Lowforests, habitat, wildlife Indirect: High Indirect: Moderatelltigh

Social Impacts: Moderate .iIland take, families affected (approx two thirds Hill Route) High

Construction:fi) time Shorter Longer(ii) costs Equal Equal{lii) construction difficulty High ModerateOiv risk of eff-site damage/injury Moderame/Low Moderate/High

Economic Benefits(i) immediate connectivity Moderate High00 long-tern regional access High Modere

Condluson: Valley Roule is preferable, assuming sound management of impacts and risk

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ARuN IX HYDROELECTRIC PROJECT: ENVIRONMENTAL EXECUTIVE SUMPA4RY6. PROJECT ALTERNA9VES

6.3.3 Transmisslon Une Routes

Direct ConnectIon to Kmthtnu Kathmandu Is a mapor oad centre. From the Arun IIl powerhousethe most direct route to Kathmandu Is due west, a distance of some 200 km. However, the terrain ismountainous, gomorphologlcally active, and largely without road access. The construcbon of atransmission line across this landscape would be slow, difficult and expersive. Consequently onlyconnections to the existing power transmission system to the south In the Terai have been considered.

Powerhouse to HUe Initial plans were to run two separate single circuit 220 kV lines south from thepowerhouse roughly parallel to the access road, along the Hill Route. Shifting the road alignment tothe Valley has resuLted in a re-alignmerit of the transmission line over the Tumlingtar-Hile sector, witha saving of 20 km length. Further minor refinements to the alignment can be expected when the designand build contract for the power transmission system Is let

Stage 2 Unes: the Sapta Koshli Crossing Between Duhubi and Dhalkebar the lines pass tIwoughthe level terrain of the Terai, in general following the line of the East-West Highway. There is onemajor obstacle, the Sapta Koshi River. Where the Highway crosses the river on top of a long floodcontrol structure, the Koshi Barrage, the riverbed is about 9 km wide. The Indian border is immediatelydownstream of this structure, so that locating the line futher south is not possible. Upstream of thebarrage an 18 km length of the river has been set aside as the Koshi Tappu Wildlife Reserve, the mostecologically valuable wetland in Nepal. Between the Barrage and the point at which the river emergesfrom the Siwalik hills, a distance of about 30 km, the river is heavily braided, and during the monsoonis tast runring and unstable. It is confined between two man-made embankments somne 12 km apart.

Two crossings are possible, north and south. The southern option runs parallel to the existing 132 kVtransmission line from Dhalkebar to Duhubi, which was erected in 1986. It is routed inside the wildifereserve. The crossing secfion is approximately 10 km long and comprises 12 spans each of 800 m.This has been in service for 5 years and no structural problems have been recorded. Vegetationclearance here would tDe limited, but construction of the deep tower foundaions needed for this routewoudd involve extensive works over a number or mornths. The associated disturbance could besignificant for wildlife, especially during key breeding and migration seasons. For wildfowl the peakseason is February - March, when very large rumbers of birds congregate here en route for theirsummrering grounds in the north. In addition, there are resident endangered species, e.g. Black-neckedStork and Swamp Partridge. The direct impacts of the construction process would be short-term, butcould have medium term effects on susceptible wildlife populations. During operation, there would bea risk of bird collision damage. There are no data on frequencies of bird collision with the existing 132k%Y lines, which are lower than the proposed 220 kV lines

The northern opton runs approximately north-west from Duhubi to intersect with the river where itemerges from the Siwaliks. At this location, the Chatra Gorge, it would be possible to cross the riverin a single span of 500-600 m. From the west bank of the river, the line would run south-west unil itagain intersects the East-West highway, roughly paralleling the embankmenl This route (northernalternative) would be approximately 30 km longer than the southern alternative.

Although longer, the northern crossing might be at less risk from hydrological hazards and would avoiddisturbance to Koshi Tappu. However, the lines across the entrance to the gorge night pose a hazardto migrating birds, especially in fog and at night (when wildfodwl fly). A decision on which crossing tobuild will include inputs from ornithological surveys to be carried out at both Koshi Tappu and in theChatra Gorge (see Chapter 9).

Stage 2 Lines: Hetauda versus Sindhuli Between Dhalkebar and Kathmandu (Map 3) two routeoptions were considered. Firstly, following the line of the proposed Sindhuli - Banepa road (130 km).Secondly, following the existing highway and 132 kV line via Hetauda and Kulekhani (215 km). Thefirst route offers substail cost advantages if the proposed Sindhuli highway is built before thetransmission line. However, if the road is not built first, difficult access may make this option lessatractive. Constuction of the Banepa - Sindhuli highway was approved by HMG,N in February 1993.

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ARUN 1ll HYDROELECTRIC PROJECT>: ENARONMENTAL EXECUT7VE SUMMARY7. IMPACT MIlIGATION

7 IMPACT MITIGATION

7.1 INTRODUCTION

The Arun Valley is remote, diverse, and poor. Current trends indicate Increasingly unsustairiable useof natural resources, particularly forests, and Increasing poverty. The Arun IlIl Project, particularly theroad, will bring major changes. Without effectve irtervention, the impacts of the project could besevere, particularlyonthepoorestfarnUies,theforests, andthewildlife. However, if handled sensitively,the project could result in a sustained economic improvemrent in the lives of mrany of the people of theValley, athough some negative impacts an the forests, wildlife and fisheries will be irreversible.

Negative impacts idenrified by the Projecrs environmental assessment procedures have been dealt withusing the following principles: prevent where possible; mtgate where unpreventable; and for residualeffects which cannot be entirely elirrinated or mitigated, compensate. In mrany cases, positive impactscan be enhanced.

Direct Impacts Direct impacts are best mitigated by refinements to project design and controls andduties laid on the contractors. Direct impacts can be mitigated at three stages of an infrastructureproject during design, by incorporating specific measures in the designs and specificaffons; duringcaontcon, by placing controls an the Contractor; and during operation, by adjusting operatingproceoures. All three approaches have been used for the Arun lIl project.

Indirect Impacts Indirect effects of the project largely stem from market forces to be unleasMed byproject constuction and the creation of road access. These indirect impacts are both more important,more far-reaching, and much more difficult to deal with.

Organisationally, the Arun IlIl Project has developed a dual approach to coping with impacts: firstly, anEnvronmental Mgation Plan (BMP) which is an inter part of the project, and deals with directimpacts including land acquisition and compensaffon; secondly, a RegionalAcion Prngramme (RAP)which addresses indirect impacts and induced effects. Together, these consitUe the ErnvironmentalManagement Plan" required by donor appraisal procedures.

An index to errvironmentally-related clauses of the tender documerts is attached at Appendix 6.

72 ENVIRONMENTAL MMGATION PLAN

Note: NEA will be fully responsible for implemrenting the Environmental Mitigation Plan, as an integralpart of the constction process. The Regional Action Programme will be implemented independentlybut in coordination with the EMP.

72.1 Selection of Competent Contractors

With their tender, each Bidder must submit an Environmental Protection Statement and Healfth andSafety Staement The quality of these statements wil affect the final choice of Contractors. Thesuccessful Bidders will then develop their statemerts into a Full Enirmnental Protection Plan and aFull Heal and Safety Plan covenring all relevant aspects of their proposed acbvities, to be submittedto and approved by the Employer as an enforceable cordion of contract

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ARUN 111 HYDROELECTRIC PROJECT7 ENVRONMENTAL EXECUnVE SUMMARY7. IMPACr MMGATlON

722 MitdgatIon Measures for the Access Road

7.211 Consucon Pelod

lbe design of the road draws heavily on lesns learned from the environmertally-sensltiveLamosangu-Jlri road buit during the late 1970s and early 1980s wfth Swiss assistance, and onexperice from the Dharan-Dhanlcuta and Dhankuta-Hlle roads. Many aspects of the design detailswere inftuenced by this experince. end environmental Impact mitigation measures were built in bothat Fe design stage and l the Conditions of Contract (Appendbc 6). SpecIfic mitigation measures arenoted below.

(I Physical Environment

AMr Quality The road will be sealed, which will prevent dust nuisance as wel as reducing maintenancecosts and imfpacts.

Water Quality The Contractor is required to undertake good 'housekeeping which includes a dutyto prevent fuel and oil leakage and dispose of used materials properly. The Contractor will also berequired to compensate for and reinstate off-site sedirent damage to property such as irrigationsupplies, and so wil have an incentive to avoid this type of impact.

Slopes and Solls The road has been designed to minirmise both land take and slope disturbance, bylimiting width to a single track wfth passing places and by careful choice of alignment to avoid unstableslopes wherever possible. Particular attention has been paid to the Ilcation of the centre line, with fullcut, half cut and full fill secfions bteing spedfied according to detailed geomorphological investigations.In senskive sections, strict cortrols wnll be placed on the earhworks sequence to minimise off-sitedrage during excavation of the formation. Eanhworks will be minimised by balancing cut and fill asfar as possible and by providirg economic incertives for the Coraractor to use cut material as fill.There are also strict controls on the location and design of pilot tracks, and on the location andmethods of spoil disposal.

Surace erosion will be minimised by the use of state-of-the-art bioengineering techniques, principallyusing indigenous planting stock. The Bill of Quantities includes provision for exensive slopestablisation measures, including agricultural terracing, special vegetation measures, walling, slopedrainage, planting or sowing of seedings and grass, fencing, and plant nurseries.

The road and headrace tunnel are in one Lot (C-3). After completion in 1997, the road will bemaintained by the contractor until completion of the tunnel.

(0) Biological Environment

Vegetation Direct impacts on vegetation will be minimised by rninor adpustmerts to the final alignmeritto avoid specific ecologically-valuable skes, strictly limiting the area of vegetation to be cleared to thatof the permianent works, and care with fire.

Indirect impacts arising from the Works will be minimised by banning the use of wood to heat bitumen,strict controls on the use of wood for any purpose, the provision of subsidised kerosene to theworkforce to minimise demrands for fueIwood, and the provision of labour camps using Right-of-Wayor out-of-area timber, or non-wood materials. for their construction. Separately, the Regional ActionProgramme will work to establish and strengthen local forest management groups along the alignment,particularly around Tumnlingtar, Heluwabensi, the NEA permanent camp site, and thePhyaksindalNum/Hedangna area, under a prioriy Consenation Programme. In addition, the newMakalu-Barun Conservabon Project prormises improved management and protection of remainingecotypes on the Arun's right bank.

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ARUN ID HYDROELECTRIC PROVECT ENVRONENTAL EXECUTIV SUMMARY7. IMPACT MITIGATION

Wildlife The Conrctor Is required to Instuct and control his workforce in rebtion to environmentallysourid behavbur, includng not huting or harassing wildife. The Regional Acion Programme wil becaryirng out a blodlvWery research programne to which may assist in conservation of remaining wildlifepopLuatIons, and wUl also lmplemert consenvatio awareness acfivifles.

FIhdrbs Explosives on site will be under the control of the Royal Nepal Army, and therefore shouldnot become available to the workforce for dynamite-fishing.

IQl Socdo-Economic Environment

Land Take Although the width of the road has been minimised, and settlements and buildings avoidedwhere possible, there will still be a need for compensaion. Extensive compensation measures havebeen developed specifically for this project, and are described In Section 7.3 below. Land requiredtemporarily will be leased subject to minimum payment criteria specified In the tender documents. Aswell as controls on ocations for and workirg methods in borrow pits and quarries, the Contractor willbe required to fully reinstate all land used temporarily to a stable and productive use, and paycmpeaion for and reinstate any damage caused to land and property.

Employment and Income The tender documnents contain a detailed statement on the preferentialtiring of local iabour (Clause 16.4 of the Conditions of Particular Application). Each contractor isexpected to hire locally, where appropriate skills are availble. The tender documents also note thatit is illegal to hire chidren below the age of 16 in the Kingdom.

Food Availability, Prices and NutrlUon Price inflation will be minimised by the provision of subsidisedstaple food comrrnodies and kerosene to the workforce.

Setements There are extensive controls on the location, design and operation of Contractor's camps.In addition, RAP will strengthen the administration of setlements such as Tunlingtar to assist them tocope with the rapid expansion caused by the project.

Health The contractors are required !r' prcrAde health facilities for the workforce, including malariaprophylaxis and control.

nsitutions and Services The contractors are required to consult with local communities concerningthe design, location and operation of their facilities This should ensure that both local impacts areminimised, and that the facilities can be handed over to communities later if required.

RAP will implemernt a priority programme on Strengthening Government Instittions.

Women RAP will undertake specific wamens' programmes, including education and training, theestablishment of cooperatives and user groups, support for micro-enterprises, health education, andmale sensitisation.

Vulnerable Groups *Seriously Project Affected Families' (SPAFs)will receive special atterition underthe Land Acquisition Guidelines, including permanent employment for one family member bygvrnment (see Section 7.3). NEAs Environmental Managernent Unit will pay particular attention toSPAFS from vulnerable groups. In addition, RAP will implement specific programmes for vulnerablegroups not directly affected by the project

Social Fabric The contractors are required to hire labour locally as far as possible. RAP willimplement a priority programme to assist communities to service road construction requiremnentsespecialy in relaton to demands for timber and fuelwood.

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ARUN ItI HYDROELECTRIC PROECr: ENVIRONMENTAL EXECUTIVE SUMMARY7. IMPACT MITIGAMON

(lv) Cultural Environment

RAP will implement a programrme speically for the preservation of mnonuments, sacred sites and fdkhartape.

722-2 Operatlonal Period

When the road is opened to the public, the major indirect impacts wit be dealt with by Regionae ActionProgranmes raher than falling under the project's ErMrronmental Mitigation Plan. However. RAPmitgadon measures are noted here to simplify comparison with the impacts identified in Chapter 5.

(i Physical Environment

The road will reqiuire a continuing mraintenance input both for normai preventive care (sealing cracks,claning drains) s well as adequate equipment on hand to clear periodic landslides and rebuild theformation after major movement

piQ Biological Environment

Until demobilisation, the contractor for Lot C3 (access road and headrace tunne) will mairtain checkposts on the road to minimise illegal road export of wood. These posts couLd be continued later irequired.

RAP will undertake conservation programmes ranging from environmental education through theconservation of crop genetic divesity, to support for the establishment of a major new conservationarea along the unprotected Milke Danda, the ridge which forms the eastern boundary of the Arun Basinand which has exceptional biodriversity values. RAP will also undertake ecological research.

Q1Q Socioeconomic Environment

Price Adjustments and Food Availability It is not considered feasible to irruence the priceadjustments that will occur when the road is opened. However, RAP will institute a programme tomonitor nutritional levels and determine whether the provision of subsidised rice to the northern areasof the Basin should be continued.

Poverty and Marginalisation RAP will implement a series of programmes aimed at assisting theinhabitants of the Valley to take advantage of new economic opportunities, particularly by revising theircropping programmes and agricultural coxnmodity marketing mechanisms, and participating in theexpanded ecotourism industry that is likely to follow road opening.

Health Government will be encouraged by RAP to enhance health provision in the area

SetUements RAP will discourage communibies from abandoning their current locations and movingto the roadside by prormoting the construction of access roads to existing settlmems and by supportingthe strengthening of Community Developmrent Committees.

Institutions and Services RAP will support local administratWe agencies and assist in forming anddeveloping Community Development Committees.

Women and Other Disadvantaged Groups RAP will incorporate specific activities for these groupsin all its programmes.

(in) Cultural Environment

RAP will implement a programnme to conserve the built enviromrient, sacred sites, and folk heritage.

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ARUN 11 HYDROELECTRIC PROJECT: ENVRONMENTAL EXECL77VE SUMMARY7. IMPACr Mfl1GA1nON

72.3 MlUgatIon Measures for the Hydropower Components

7231 Construcdon Period

(I Physicl Envlronmne

Air Quality Air pollutin will be mitigated by liters and other pollution control equipmeit on vehiclesand costruon plant, and by dust control an roads and at crushing plants.

Water Ouality Mitigation measures Include:

- convying of all batching plant operation waste water and tnrck washdown runoff to settingbasins for treatmernt prior to discharge;

- burying of all concrete waste in pits located at each batch plant site;- waste water volumes to be treated to remove oil, grease and cemrent;- storage areas to be bunded to minimize the potential for surface water contamination in the

event of a spill accident;- hazardous substances from maintenance of mechanical, electrical and air conditioning

equipment to be collected and disposed of properly off-site;- no direct discharge of any potential pollutants to be allowed.

Slopes and Soils Impacts an slopes end soils will be minimised by:

- designing erosion corrol measures ito housing sites;- contring the design and location of temporary access roads, and ensuring full reinstatement

after use;- salvage of soil pnior to grading;- revegetation of all disturbed slopes with soil stabilising plant species.

Quarries and Borrow Pits Mitigation measures to be implemented include:

- prior approval of the Engineer needec' for the location and working methods of all borrow pitsand quarries, including plans for eventual reclamaton;

- backfillrng borrow pits and quarries with spoil;- saiage of sol for reclamation purposes if appropriate;- if in agricultural land, reclamnation of pits and quarries to include benches wide enough for later

cultivation;- careful attention to surface drainage at the rear of each bench to ensure that excess run-off

is diverted into appropriate structures leading to a natural drainage line;- all disturbed slopes to be stabilised and revegetated.

Spoil Disposal The Contractors wAll be required to use suitable spoil for concrete aggregate, roadmaintenance, coffer-dam construction, and as backfill for quarries and borrow pits. Land disposal ofspoil rernairnig after maximumr use for tiese purposes would cover 18. ha to a depth of 5 m. Themost environmentally acceptable alternative is to dispose of the excess spoil in the Arun River.Disposal to the river will be limited to the monsoon period of April-November, when the rver's transponcapacity is highest, and will be carried ouA to a schedude related to river flows. This will require someintermnediate storage of spoil on temporary disposal areas.

(ii Biological Environmert

Vegetation and Forests Mitigation measures to be implemerted include:

- provision of subsidised kerosene to the workforce to amid use of fuelwood;- promolion of forestry management conservation measures by the Regional Action Programme;

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ARUN 10 HYDROELECTRIC PROJECT: ENVIRONMENTAL EXECUTIVE SUMMARY7. IMPACT MITIGATION

- making the Contractors resposible for the behviour of their staff and workforce, including firrawareness and control.

Wildlife The Contractors will have a duty to ensure the responsible behaWour of teir labour. Inaddition. RAP will implemerit a programme of blological research and conservation awarenesseducatlon.

(I) Socio-economic and Cultural Environments

Land Take Measures to minimise the impacts of permannt and temporary land take include:

- pre-selection of the temporary construction camp sites:- Engineers prior approval required for any altemative anid additional sites proposed by

contractors;- leasing land required short-term;- adit and powerhouse construction caMps coMbined into one;- reduction of area requiremert by specifying two storey buildings wherever possible;- reclamation of sites to previous land use;- compensation for and reinstatement of damnage to land and property.

Employment and Income The employment of local labour where feasible is stipulated in the tenderdocuments.

Health Mitigation measures will includetreatmnent and surveillance by malariatechnicians and provisionof adequate health facilties, water supplies, sanitation systems and waste disposal methods.

Other Socio-economic and Cultural Impacts The Contractors for the hydropower Lots will berequired to undertake the same socially-related measures as the Contractor for the access road. Thesewil include, for example, provision of logistical support for the work force by the contractors, to minimiseprice inflation and consequent oca hardship. In addition, since the camps may be in place for longerFan the more transient road cramps, the Contractors will be required to provide adequate recreationalfacilities and programmes for the workforce to minimise the attraction of off-site actvities.

72.32 Operational Period

(I Physical Environment

Hydrology Mininum instream flows for the survival of fish fry in the main river could be of the orderof 16 - 30 m3Is. It will not be possible to provide this level of flow behveen the intake and powerhouseduring the dry season without affecting power generation.

(ii) Biological Environment

Birds and Insects If the proqect's lights prove damaging to insect populations ancVor appear to affectbirds, the design of the lights will be adapted accordingly.

Fish There are no econornicaly or biologically feasible measures to mitigate the barrier effect of thedan on migratory fish populations.

(mii) Socio-economic and Cultural Environments

NEA Camp NENs permanent camp at Amrang will become a mini-growth centre owing to thespearing power oa the employees stationed there. Impacts on the community and surroundingresources will be mitigated by the strenghening of local intions by RAP

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ARUN fit HYDROELECTRIC PROJECT: ENWVRONMENTAL EXECUTIVE SUMMARY7. IMPACT MlGATION

72A MMtigation Measures for the Transmission Une System

724.1 Constructon Peiod

() Physicl Environment

Slope Stability and Flood Hazards The Tender Documents will include information ongeomorphological hazrds, and will require the Corator to carry out geomorphological mapping alongthe alignment corridor before tower spotting. Special attention will be paid to the Sapta Koshi crossing.

Access Roads The design, location, construction meods and reinstatement of temporary accessroads will be subject to the Engineer's approval.

(al) Biological Environment

Vegation Wherever possible the lines will be routed across agricultural land and not through forests.Spacial attention will be paid to line design and location in the vicinity of key ecological areas such asthe lower Sabhaya Khola forests near Tumlingtar. Right-of-Way clearance will be dosely supervisedto minimise unnecessary cutting. Construction crews wil be trained in minimum damage techniquesfor line stringing, and in fire awareness.

Birds Special attention will be paid to line locaton and design in the vicinity or the Sapta Koshicrossing. The choice of the northern or southern options will take full account of the long-term impactsof the lines nn endangered resident and migratory bird species- Visibility aids will be installed at allvalley crossings.

(iiQ Soclo-economic and Cultural Envirofnent

Land Take A variety of mitigation measures will be used:

* Compensation for land acquired permanentlr will be paid in accordarne with the LandAcquisition Guidelines 2045, and all recommendations of these gL:idelinec will be implemented.Land required temporarily wDll be rented, with certain minimum rental criteria

* Informal tenants and squatters affected by the project will be incluced in the rehabilitationscheme, which should accord with the Land Acquisition Guidelines 2045.

* A Condition Suvey wil be carried out along the ROW before construction commences.* Compensation will be paid for any physical damage caused by the contractor or any sub-

contractor operating on the project, according to an agreed and publicised clims procedure.* Persons affected by the project will be fully informed of their rights in relation to the

cormpensation scheme.

Price hiflation In some areas of the Arun Valley the contractor will supply his labour force with staplefoods and kerosene trough fair-price shops. Supplies for these shops will be purchased in the Terai.

Community Relations and Infrastructure Temporary access roads on public land wil be handedover to communities rather than being reinstated, if this is requested.

(v) Controls on the Contractor

Contractors for the transmission line system will be subject to environmentally-related controls simiarto those imposed on the oher Arun IlIl contractors. These will include tender evaluation in the light ofthe bidders' approach and experience in dher sensitive areas, requirements for the successfulcontractor to submit his proposal well in advance of works to alow thorough vetting by the Engineer,use of pre-existing Arun liI camps where feasible, and careful working methods including detailedatention to erosion and drainage issues, labour force activities, and site dean-up and reinstatemenL

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ARUN N HYDROELECTRIC PRWECr ENVRONMENTAL EXECUTIVE SUMMARY7. IMPACT MITIGATION

(v) Rmvlaons and Additions to the Draft Tnder Document ir i'h1' lrenemlsion LineSystm

Information Before tendering, the exitng draft transmission lne tender documents will be modifiedto include the Informraion secton from the Arun IIl CMI Works Lots, either verbatim with addriions tosuit conditions in the Terai and central hils, or wdtten afresh and including inforration on the followingfour key topics:

* Geotechnical hazards.* Biodiversty features and issues.* Social and cultural leatures and issues.* Ouality-of-life features and issues, particularly viwsua amenity.

Conditions and Specifications The existing draft transmission line documents will also be modifiedto include new or expanded clauses on the following subjects:

- a "Full Environrmental Protection Plan";- a OFLdl Health and Safety Plano;- the type and scope of suLveys required prior to line fixing;- line location in relation to geomorpholiogical and hydrological hazards, forests, and

identified areas of ecological, cultural or visual interest;- alignment, design and working method variations necessitated by nrew information

becoming avaabbe during project implementaton;- incorporation of bird collision hazard mitigation measures, both at the Sapta Koshi

crossing and elsewhere;- the alignment, design and corstruction of access roads;- working methods to minimise damage to vegetation, including tire prevention;- selective ROW dearing, and disposal of timber;- working metnods to minimise disturbance to wildlife during the breeding season;- ROW confition surveys dunrig the constuion period;- temporaiy use of land;- commrnim relations and compensation for damage and crop loss;- borrow areas and spoil disposal;- photographic monitoring of key areas;- tidying of work sites to prevent darnage to livestock;- cdean-up procedures;- ROW reinstatement;- reinstatement of other areas disturbed by the works;- access road reinstatement or handover,- slope treatment techniques;- labour engagement, conditions & etc.- disorderly conduct- provision of fust ad and health care;- provision of Ofair-price food shops (in selected till areas);- transformer oil constituents;- transformer oil retention facilities (expand existing paragraph);- substtion sanitation.

72A.2 Operational Period

Physical* NEA will develop and initiate a regular line inspection programme. including recognition of

incipient slope stability problems.

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ARLtN HIf YDROELECTRIC PROJECr: ENVWRONMENTAL EXECUMVE SUMMARY7. IMPACT MITIGAl1ON

BiologlcalNEA wDI undertake a icoo tive monitoring programme with the Departnlt of Naional Parksand Wldlife Coervation to establish levels d bird collision and identify and Implementapproprate respowes.

* N-NA will dwelop appropriate ROW vegaton management technius to ensure safety whilsttaking Into account sociad and environmental objectives.

SocialAll towers will be flnted wthh anti-climbing devices and warning signs; all substations andswitchyards will be securely fenced and gated.NEA will appoint a Community Relations Officer whose job is to inform th&d public of thehazards of high voltage electricity. The officer will also have duties in relation to ROWmanagement

Rural Electrification NEA will provide step-down transformers to allow the 33 kV construction powersupply line to be used to supply local communities.

7.2.5 Environmental Mitigation Plan Implementation Schedule and Coordination

(i) Prior to Tendering (1985-1993)

Duirig the projects lengthy design phase, exensive miffgation measures have been introduced throughrefinements to design aspects and incorporation of appropri3te dcaues in the tender docurents. Alsoduring this period, NEA established its in-house Environmental Unit and HMGIN began to establish aframework for national-level environmental management and adminisration, centred on the NationalPlanning Commission.

(") Tendering (1993)

During the tender period in 1993, the Bidders will submit their bids which will include EnvironmentalProtection and Health and Safety Statementr. These will be evaluated by the Engineer on behalf ofthe Employer, and corntracts awarded on the basis of performance and price.

Following award of the contract, the Contractor(s) will develop and submit for approval their FullEnvironmental Protection and Health and Safety Plans.

liie Construction (1994-200)

The Anun Project Environmental Management Unit (APEMLU will start operations in 1993, initiallydrawing its staff from NEAs exdsting Environmental Unit, and then building up wit new appointees.The Regional Action Programme will commence in 1994, with establishment of the Board and ArunBasin Environmental Management Unit (ABEMU), and initiation of the core orogramme for dealing withpriority indirect impacts. CoFnpensation payments for land to bW taken will be paid as little in advanceof construction requirements as possible, to ensure fair prices.

72-6 Costs and Funding

In the Conract, some errvironmertally-related works such as slope stablisation are cost items. Otherswill be absorbed in the Cortractors' general estimates. The Bill of Quantities in the tender documentsincludes an item relating to implementation of the agreed Environmental Protection and Health andSafety Plans.

Supevision of the ErNirorne Mitigation Plan is a project cost to be borne by the Employer. Thismnll include staffing, traning, equipping and operating the project's Environmental Management Unit(APEMU) over the construction period, the provision of specialist environmentai staff on the Engineer's

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ARUN fW HYDROELECTRIC PROJEC: ENVRONMENTAL EXECUTIVE SUMMARY7. IMPACT MITIGATION

team, contngencies for specialist consultsa;ces and other inpts. Estabisimnent of APEMU will co61arouid $ 026S M Including start-up specialist training, wih annuai running costs for salaries andtransport of approxdrnaly $ 0.1 Mi/yr. The Engineer's cost can be expected to run at some $ 0.1 MA,rfor the provision of speciaiist environmerkal staff. The total cost of supervision of the EnvironmentalMiation Pian to the Employer over the eight year consrtion pedod will be approach $ 2 M. Thisexpenditure Includes a major bneft to the NEA through professionai staff training and capadtybuilding. Costs will be bome by NEA n donor assstance is not forthcoming.

A mnajor futher mitigation cost Is the land acquisition, compensation arnl rehabilitation programme(ACRP see next section). The estimated total direct cost of this for the three Stage 1 projectcomponnts is $ 1.488 M. made up as follows:

- access road $1.224 M- hydropower components: $ 0.216 M- transmission fine system: $ 0.048 M

The costs of the Regional Action Programme have been tentatively estimated at $ 14.6 M over 10years. HMGIN is seeking donor contributions to assist tiis work.

The overall costs of the Environmental Mitigation Plan, ACRP and RAP are estimated at approximatley3 % of total Stage 1 project costs.

7.3 LAND ACQUISITION, COMPENSATION AND REHABILITATION

7.3.1 Background

The Prqects road, hydropower and transmission line components will directly affect a number offamilies, some of whorn will lrse their houses. To compensate for such losses, the project hasdeveloped and adopted a canprehensmve land Acquisition, Compensation and Rehabilitation Plan(ACRP). The ACRP is based on the officially approved Land Acquisition Guidelines 2045. These weredeveloped wth World, Bank assistance to guide the land acquisition process for the access road, andare being extended to the hydropower and transmission line componmts. The plan's procedures area great advance on any used for previous major infrastructure projects in the Kingdom.

7.3.2 The Acquisition, Compensation and Rehabilitation Plan

Purpose The purpose of the ACRP is stated as:

She principal objective is to ensure that the people affected by the property and landtakings of the road project will be at least as well off in terms of assets and [ivelihoodafter the project as they were before the project A secondary objective is to assist thecommunities in the settieerits ....... to understand the opportunities and hazards arisingfrom the . project and to assist them in the development planning of theirselemernts.-

Compensation Measures for Permanent and Long-Term Lrnd Take Hardship caused by landacquisition is to be mirnimised through the following compensation packages:

A thorough examination of individual household conditions before determinrng cornpensationpackages, which include a land-for-and opbon: households are dMded into Project AffectedFamilies (PAFs) and Seriously Project Affected Families (SPAFs), depending on the proportionof their income to be lost because of the project and whether the principal residence is to beacquired. This is determined through detailed household surveys.

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ARUN m HYDROELECTRIC PROJECT ENVIRONMENTAL EXECUTIVE SUMMARY7. IMPACT MIlTGATION

Compensation for PAFS will be paid In two trances: Armal Companstion and aRehabilittn Grant. Normal compensation is to be paid 2-4 onths ahead of workcommerning, and cmers the value of the land and btildings affected. Lund valuaton Is doneby district Land Valuation oficers and under tMe Guidelines must be based on comparativemarket values The Reohabiltation Grant is not paid urtil the time when the land is actuallyrequired and Is Intended to cover suffering and hardshl caused. It Includes the value ofstading trees and crops, ore year's loss of income from truit and fodder trees, and a smallfoodthardship allowance for 60 days.

O PAFS will receive Normal Compensoation and the Rehabillation Grant.

* SPAFS (families whose house is taken or who are to be let with holdings, assets andprospects insufficient for ragaining their previous living standard) are to be offered () equivalentassets 'o those lost (the iand-for-land opion); (ii) the Rehabilitation Grant (which will includea 4-ronth rent allowance); (iii) employment for at least one Iftnily member (interpreted as ajob on construction or similar for the duxation of the project); and (iv) training (a. appropriateto undertake the errployment offered).

Compensation Measures for Temporary Lund Take Land to be used tenporarily, for one or twoyears (e.g. for access road camps, quarries), will be rented. The Condifions of Contract includestipulations on the frequency and minimumn level of rent to be paid, and the project will developstandard rent agreement forms. The rent will be based on the land's agricultural productivity, ano willbe adiusted annually in line with locak price variations. Liand used tcmporarily will be fully restoredbefore being retumed to its owner.

Procedures Compnation monies are paid to registered landowrers, who are almost invariably men.Grievances must be remedied through the local administration and thereater the courts.

The Project is working urgently to develop mechanisms for dealing with the issues of compensation forformal and informal tenarts, common property, guti kands (religious trusts), and land devalued byfragmentation. The Froject is also taking steps lo ( develop an iaformation package for PAFS andSPAFS in the vernacular so that these families are dear about their rights and the procedures to befollowed; (i) deveiop a programme to provide assistance in money management to help affectedfamilies re-invest in productive assets rather than use cash for nor-productive purposes. NGOs willbe contracted to carry out this work. Finally, the Pfoject is irnestigating reasons for delayed paymentof Rehabilitation Grants for land already taken up for road and engineers' camps.

Responsibillty hr Implementation The land acquisition and compensation process is beingundertaken by the Project under delegated powers from specially constituted district Acquisition andRehabilitation Committees. NEA is recruiting a local Reseteiemert Advisor to assist in implementationof the ACRP and strengthening the Ervironmental Management Unit's social wing.

Costs The costs of compensation measutes for the access road can be calculated based on workcarried out to date and current values. Compensatron costs for the hycdropower facilities can becalculated based on current values inflated appropriately. The nunbers of PAFS for the transmissionline component are harder to estirrmate since the final route of the line will not be fixed until the later partof the decade. Compensaion costs for this component can only be estimates at this time.

As noted above, the estimated direct comnpensation cost for the three project components totals someS 1.5 M.

Noteon Hill Route Normal Compensation has already been peid for msot of the Hill Route.Goveinment will retain title to this land for futiwe link road construction.

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ARUN I11 HYDROELECTRIC PROJECT ENVIRONMENTAL EXECUTIVE SUMMARY7. IMPACT MITIGA1ON

7A REGIONAL ACTION PROGRAMME

7A.1 Background

Measures to minimise the indirect Impacts of the access road and hydropower pro9ect. and to capitaisean the economic opportunities provided by improved access such as tourism, have been idenifWied bythe Mnagemernt of Basinwide Envirormnenta Impacs Study carded out by the Krig Mahendra Trustfor Nature Conservation for HMQIN (Appendbi 3). Together, these measures constituLte the RegionalAction PFogamme. This major programme will complement the Arun IlIl Project's EnvironmentalMitigation Plan, and will continue well after the Project has been cormmissioned.

For the short-medium term, the Basinwide Impacts Study proposed an Interim managemerit structurefor the Valley centred on the National Planning Comrission. HMG/N is now stidying these optionsto determine the most effective implementation system for the Regional Action Programme. It is likelythat an Interim Management Board will be established, with RAP activities promoted and coordinatedby an executive management unit (see Chapter 8).

7A.2 RAP Programme Areas

The Basinwide Impact Study's report lists 21 recommended sectoral programrnes in six majorprogramme areas (see Table at end of Appendix 3). These programmes are designed to address boththe immediate requirements brought about by the construction process, and the longer-term needs forsustainable development within the valley.

The six major programme areas are:

Conservation* Income Generation* Institutional Strengthening

* Extension and Training* Infrastructure and Energy* Research, Monitoring and Information

In trms of scheduling, five sectoral programmes were regarded as priorities for pre-emptiveimplemertation ahead of road construction. These relate to:

1. Strengthening local forest managemert2. Helping local communities service construction-related demands, particularly for wood3. Strengthening government institutions to cope with impacts4. Training and education for local human resource development5. Environmental monitoring

These activities comprnse a 'Core Programme to be implemented by HMGIN as a prioriY, initiallyttrough existing orga *isations, particudarly the Ministry of Forests and Soil Conseivation. Localconsuttarns and NGOs will be contracted to expedite the work.

7A.3 Costs

The total cost of the RAP programmes has been estimated at $14.6 M over 10 years. Wthin this, thecost of the Core Programme for priority implementation is estimated at $ 2.6 M.

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ARUN 111 HYDROELECTRIC PROJECT: ENVRONMENTAL EXECuTiVE SUMMARYS. EWVMRONMENTAL MANAGEMENT RESPONSIBIUTIES

8 ENVIRONMENTAL MANAGEMENT RESPONSIBILITIES

8.1 INTRODUCTION

HMGCIN has determined that implementation of the Project's overall ernvironmental management strategywill be most effective f separated Inro two parts: firstly, ths construction team comprised of theEmployer. Engineer and Contractor, who between thern implement the Environmental Mitigation Planwhich will cope with direct impacts; secondly, under National Planning Commission leadership, theadministrative mechanism responsible for the Regional Actfon Progmmme which will act as anindependent monitor of the Environmental Mitigation Plan, deal with Indirect impacts during theconstruction phase, and basin-wide change thereafter.

Both components of the strategy require increased Institutional capacity, and therefore will be thesubject of appropriate institutional strengthening programmes associated with the project.

82 PROJECT ENVIRONMENTAL MANAGEMENT:IMPLEMENTING THE ENVIRONMENTAL MITIGATION PLAN

The Projects arrangements for environmertal management during and aftef construction are shownin Figures 8.1 and 82. Adrninistration of the Regional Action Programme is shown schematically inFigure 8.3.

8.2.1 Engineer

On behalf of NEA (the *Employerm), the Engineer is responsible for ensuring that the Contractor buildsthe project on time, to budget and in accordance with the Technical Specilications and Condrrions ofContract. This includes ensuring compliance with all the environmentally-related clauses of thedocumnents (Appendix 6), and with the agreed Full Environmental Protection Plans and Full Health andSafety Plans to be drawn up by the Contractors and apprwved by the Engineer.

The Engineer must also (i) evaluate and approve the Contractors' proposals for, e.g., camp siting anddesign, pilot track roulting, working methods for borrow pits and quarries, etc.; (ii) direct that specifictechniques and measures be implemented, e.g. for slope treatmrent and land reinstatement; (iii) analysemonitoring data and order an1y necessary corrective actions, e.g. for spod disposal sites.

To do this, the Engineer will include on his team at least one full-time professional envirornmentalist forthe duration of the works. This individual will have full authority to issue instructions to the Contractorsto ensure implementaton of the specificafions and Plans, and will report to the Chief Resident Engineer.In addition to his supervisory function, the environmentalist will have a formal training role for nationalenvironmetal staff (see below).

82.2 Nepal Electricity Authority: Arun Project Environmental Management Unit

Because of the scope of the dufies involved and site logistics, the Engineer's ernvironmentalist wil notbe able to work effectively without a supporting team of professionals. These will be supplied by NEA,on secondmeft to the Engineers team (Figure 8.1). The purpose of this arrangement is (i to supplyte professonal staff needed to implemrent the projecrs Environmental Mitigation Plan; (ii todevelopment national capacity through both on-e-job trarung and a more formal series of trainingexercises, to be developed by the Engineer's ernirorunentalist for the NEA environmental staff.

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ARUN III HYDROELECTRIC PROECT ENVIRONMENTAL EXECU77VE SUMMARY8. ENVIRONMENTAL MANAGEMENT RESPONSIBIUITIES

lbe Arun 111 Proed Environmen Managemef Unt (APEMU) will have six principal tasks:

0 Wth the Engineer, supervise the Contractors' operations to ensue compliance with thecontractual prons and approved Environental Proection and Health and Safety Plars.

pi) Work related to land acquisition. Indcuding follow up activities such as training for SPAFS,assisting with temporary iand take arrangements, dealing with disputes, appeals and claims.and monitorng the progress and effectiveness of the rehabilitation measures.

(lii) lUisan(coordiration with concerned District administrations, especially Sanrkhuwasabha, VillageDevelopment Committees, the Regional Action Programme, the Makilu-Barun ConservationProject, NGOs, etc.

(iv) Iwonitoring impacts on disadvarntaged groups, and arranging for needed corrective action.

(v) Undertaking or arranging any further surveys and research. e.g. futher work on aquatic biologyand the Sapta Koshi bird surveys.

(vi) Community and public relations.

In conjunction with the Regional Action Programme, the APEMU will establish a geographic iniormationsystem (GIS) for use in impact monitoring and resource managemert.

The Units sociological staff will be assisted by a locally-recruited professiona Reselement Advisor,and will work closely with local NGOs.

82.3 Contractor

The Contractors have a duty to carry out their work in accordance with the provisions of the contract,including all its environmentally-related cordtions and specifications, and in particudar the approvedErnvironmental Protection and Health and Safety Plans. Their staff will include at least one bioengineeror forester, and one ervironmental monitoring officer. The Cortractors for the road and mainhydropower components will also have to supply some monitoring data (as specified in the contractdocuments) to the Engineer.

8.2.4 Environmental Management during Project Operation

After Commissioning, NEA will maintain a small Field Environmental Unit at the site to carry outnecessary periodic monitoring, and act as a contact point for any bcal issues. The staff of this unit wilbe drawn from NEA's strengthened central Environmental Unit in Kathmandu (Figure 82).

8.3 REGIONAL ACTION PROGRAMME

8.3.1 RAP Implementation During Project Construction

During the progect's construction phase, implementation of the Regional Action Programme will becarded out by an organisation similar to that shown in Figure 8.3. In this, a policy-making board isassisted by a multidisciplinary executive unit. The Board, the Arun Basi Interim Manageefnt Board(ABI MB), would be comprised of representatives of the principal concerned government agencies (NPC,Forests, Water Resources, and Local Development) and funding agencies, and would include electedlocal representation from concerned Districts.

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ARUN HI1 HYDROELECTRIC PROJECT: ENVRONMENTAL EXECUTIVE SUMMARYS. ENVMRONMENTAL MANAGEMENT RESPONSIBIUTIES

The Board's exective arm or Amn Basin Envimental Management Unit (ABEMU) will work closeVwith the District admnistratons. its dutse wiil Include:

Provide technical support and professional adice to the Board.* Coorainate and monitor the impemenaion of the Regional Action Programme.* Act as an Independet check on implementation of the Anun Ill Ervironmental Mitigation Plan.

Advise the Engineer of maners of ernvronmental concern upon which he should act.0 Gather, evauate and act on new information.

Because of the diverse nature of nts respornsbibties. its relationship with ABIMB, and the need to beseen to be Independent of the Arun Ill Project constructon organisation, ABEMU will be attached tothe National Planning Commission's Environment Protection Division. It will maintain offices inKathmandu and at the project site

8.3.2 Confirmation of the Regional Management System

Recognisirg that ongoing processes of change in the Arun Valley will be greatly accelerated as a resultof the project, HMQWN has initiated the process of determining appropriate long-term managementstutures for the area. The NPC has commissioned a Macro-management Study to examine andrefirie the management recommendations of the Basinwide Impacts Study, and results will be presentedin mid-May 1993. Subsequently, further work will be carried out to turn the agreed proposals intoinplemertable programmes, wih a reporting date of April 1994. This timetable will give six mnonths inwhich to establish priority programmes on the ground, in time for the start of road construction after the1994 monsoon.

8.3.3 Priority Programmes

The five sectoral programmes recommended by the Management of Basinwide Impacts Study forinkiation prior to road construction (Table A3.1) will be implemented as follows:

(, pl) Enhancing Community Participation In Forest Management and Conservation andInvolvement of Local Communities In Servicing Road Construction Requirements (forwood). These two programmes will be implaented by the District Forest Office with technicalsupport from the NepaVUK Conmurity Forestry Project, now in preparabon. Activities willcommence at the latest in early 1994. Total estimated costs over ten years (core programmein first six): $ 0.71 M.

(iii) Strengthening Govemment Institutions. This programme which aims to improve locadgovernment capacity to foster community resource management and development will beimplemented by the regional planning office (RPO) of the National Planning Commission withtechnical support from the UNDP-sponsored Strengthening Decentralised Planning Project.Activities will begin in 1994. Costs are estimated at $ 0.47 M over ten years (core activities inte first three).

(iv) Training and Education. Ths important programme will be implemented through a Trainingand Education Section to be established within the Arun Basin Environmental Management Unit(ABEMU). Activites will begin when the uni is established in 1994. Costs are estimated at$ 0.66 M over ten years (core activities concertrated in years 2-5).

(v) Ernironmental Monitoring. ABEMU will establish a Monitoring Section covering keyindicators of the Basin's physical, social, cultural and economic environment, as a managementtool. Actvities will begin in 1994. Costs are estimated at $ 0.75 M over ten years.

The oU cost of these priority programmes is estimated at $ 2.585 M over ten years, or approximately0.4 % of total Stage I project costs.

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ARUN W HYDROELECTRIC PRaJECT. ENVIRONMENTAL EXECUTIVE SUMMARYB. ENWiRONMENTAL MANAGEMENT RESPONSIBILMES

SA INSTITUTIONAL STRENGTHENING

8A.1 NEA's Project Environmental Management Unit

EffectvB implementation of the prolects erwirwnmenal management strategy requires a considerableincrease I institulional capacity. NEA will set up a rnw project erMronmernt unit (APEMU) to assistthe Engineer in implemfentation of the Ernrvironmental Mitgation Plan. At the same time, and in parallelwith strengthening the APEMU, NEA will take steps to improve the capability of its centralErvironrmental Unit to cope wih Its increasing wor-doad and responsibilities.

Establishnern of APEMU will necessitate hiring and training additional staff. APEMU will require a workplan and operating procedures, and new appoiritees will require orientation to their duties and trainingto upgrade their professional skills. Since the Unit will be operating on seconcmrrent to the Engineeras part d his staff, this work will be done joirtly by the Engineer's environmental specialist and theUrit's leader, in a counterpart capacity.

NEA regards it as essential that the organisation benefits as an institution from the project supervisionexercise, with an increased corporate capability left behind when the facility is commissioned. For thisreason, NEA will ensure that its APEMU staff receive the professional development training they needto carr out their duties effectively.

5A.2 NPC: Regional Management Structure

Estaishment and operation of the regional managemrent structure is a major exercise in institutionaldevelopmernL This aspect of the managerment process will be recognisod in the forthcoming feasibilitystdy, and appropriate measures defiined and implemented. Training will be required at a nuraber ofwvels. UNDP is already assisting the National Planning Commission with an institutional strerngteningprogramme, and has expressed an interest in further assistance in relation to the Regional ActionProgramme. At the local level, NGOs will be heavily involved in training and monitoring programmes,as well as participatory evaluation of programme peromance, and will themselves be eligible forassistance through the Regiona Action Programrme.

BA.3 Other Organisabons

The Regional Action Programme incorporates a number of projects for strengthening institutions at thelocal level. These range from line agency programmes to initiate and strengthen user groups inirrigation and forest management, through assistance to Village Development Committees and NGOsto mobilise to cope with local project-related impacts and opportunities.

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ARUN IIIzHYDROELECTRICPRiECT- ENwRONMENTAL EXECUnVE SUMMARY8. ENVIRONMENTAL MANAGEMENT RESPONSIBIUMES

| IIfARUN11HEPProjec Director I

ENGINEER NEA SITE TEAMChief Resident Engineer Depuly Project Director

...... _ ..................... .......... .................................. ................ ................................... .

_ REGIONAL ACTIONENVIRONMENTAL _ _ _ PROGRAMME

MANAGEMENT UNIT L

Environmental ~EnvironmentalfiW ~Speiaalst Management Speclalst - CONSERVATION |

BIologist(s) i

Sociologist(s)GIS Specialist

H . ______ ~~~~~~NGOsAlNGOs

... ...... .. .......... . ...... _._.._.._.__............

[coNTD:iS TRCT ADMINISTRATION,CONTRACTOR I VDCs, PUBUC

Reporting relatlinship-UalsorVadvisory link

FIGURE 8.1 PROJECT ENVIRONMENTAL MANAGEMENT DURING CONSTRUCTION

F I~~~~~~~~~~~~~~~~~~~~~~~~~~~~

|NEA ENVIRQONMENTAL PR*OJECT OPERATIONS TEAM |UNTr (Kthmandu) (Site)

REGIONAL ACTION

FIELD ENVIRONMENTAL UNIT PROGRAMMEI.- ~MBCPNGOs etc

DISTRICT ADMINISTRATION VDCs, PUBUC

Reponing relationshipLaison/advisory link

FIGURE 82 PROJECT ENVIRONMENTAL MANAGEMENT AFTER COMMISSIONING

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ARUN 111 HYDROELECTRIC PROJECT: EAMRONMENfAL EXECUTIE SUMMORY8. ENVRr -NTAL MANAGEMENT RESPONSIBIUTIES

UNDP AGENCIES REPRESENTATIVE FOREST DEPT. RSOURCES DEVELOPMENT

ENVIRONMENTBOARD (ABIMB) PROTECTION

DMSION

ENVIRONMENTALDISTRICT ADMINISTRATION MANAGEMENT UNIT

, _ ~~~~~~~(ABEMU)

L - -- T-----T

-- - ---- ~~~~---------------T r------ --------------- r-- --------- T--r------------______----- - --------------------- ___

VILLAGE 1 NEA/ARUN III MAKALUWBARUNDEVELOPMENT LINE AGENCIES HEP CONSERVATION PUBUC NG0sCOMMITTEES APEMU PROJECT

Formal administrative relationship

Advisory/coordinating role

FIGURE 8.3 MODEL FOR ADMINISTRATION OF THE REGIONAL ACTION PROGRAMME

73

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ARUN ui1 HYDROELECTRIC PowECTn ENVRONMENTAL EXECUTVE SUMMARY9. ENWRONMENTAL MONITORING PLAN

9 ENVIRONMENTAL MONITORING AND EVALUATION

9.1 INTRODUCTION

Monitoring is required during both major phases of the project - construction and operation. Monntoringconsists of measuring changes In one or more parameters with time. A parameter .y be physical -extnt of forests, agicultural production - or less tangible - improved health, changed parceptions. Datathat is collected must be evaluated, and appropriate action taken. *Evaluation' refers to, firstly, theperiodic evaluation of monitoring data by project management to ensure both Contrctor complianceand the effectiveress of mitigafion measures, and secondly, to an eveniual evaluation by concernedagencies of the success ot the envirornmental componerts of the whole project from its Inceptionthrough to the early years of commissioning. Together, monitoring and evaluation are essentialmanagement tools.

The Arun [il Project will operate dual environmental monitoring and evaluation programmes, throughthe Ervirornmental Mitigation Plan for direct impacts, and through the Regional Action Programme forincdirect impacts.

9.2 ENVIRONMENTAL MITIGATION PLAN: MONITORING AND EVALUATION

9.2.1 Environmental Monitoring and Evaluation during Project Construction

() Procedures and InsUtutions

In addition to the usual checks made by the Employer/Engineer on materials, worknanship, andprogress, monitoring, in the form of checks on errvironmertal factors, is required at several stages ofconstruction:

o Firstly, at start-up, to ensure that the designs and working metods proposed by theContrts have taken account of the environmental constraints specified in the tenderdocuments (geotechircal, ecological, social, heritage features, safety).

O Secondly, to ensure that the Contractors' arrangemerts regarding temporary use of land aresabsfactory.

o Thirdly, during construction, to ensure that the agreed working procedures are followed withrespect to, e.g.. earthworks, trafficking, vegetation clearance, wildlife disturbance, and similarfactors. Ths will include evaluation of any monitoring data provided to the Engineer by theContractor under the terms of the contract (e.g. photo-monitoring of sensitive areas).

O Fourthly, during construction, to identify the need for changes to make the mitigationprogramme more effective, and to dispense with redundant measures.

O Fdfty, on compltion, to check that all requirements regarding clean-up and reinstatementhave been met, especially with respect to temporary access roads, borrow pits, quarries, spoiltips, camps, and working areas.

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ARUN In HYDROELECTRIC PRWECr, ENAIRONMENTAL EXECE SUMMARY9. EfWRONMENTAL MONrrORING PLAN

Monitoring and evauaton d the environmenta provisions of the Contract will be Fe responsibility ofthe Ernginer, assisted by the Project's In-house environmental urit APEMU. Some aspects ofmonitoring will Involve local NGOs and user groups, eifther on behalf of the project or as indeperndenchecks on project activties. Major aspects of the montoring programme are noted below.

GIS for Monitoring The physical data collkcted under the TRRL project, as well as otherenvironmental and socio-econormic data onthe Arun catchment area, should be handled and interpretedIn an integrated fashion. This can be done most effectively by usirg a Geographic Information System(GIS). This allows spaidal registration of both environmertal and econormic data, which can then beanalysed and Interpreted for monitoring and plannirg purposes. Much of the data collected under theTRRL study, as well as other data related to the access road, has already been entered into theEngineers GIS database.

Q1) Acquisition, Compenation and Rehabilitaton Plan

APEMU wnill monitor a rarge of topics relating to land take, compensation and rehabilitation. In relationto permanent land take, which falls under the land acquisition guidelines (Section 7.3), APEMUronitoring (and evaluation and necessary correctve action) will include subjects such as:

- the disbursemert of compensation monies and the implementation of related measures suchas training and employment for SPAFS;

- the progress and condtion of disadvantaged groups within the SPAF category (e.g. theKumhals of Tumlingtar and other occupational castes);

- the levti and nature of disputes and claims relating to compensation;- perceptiin of the ACRP process by those affected and other members of the public.

For land used ternporarily, APEMU will carry out annual far-rent surveys to fix reasonable rents. andmonitor payment of the agreed rentals. APEMU will also monitor ACRP disputes and perceptions,relations with affected communities, and the reclamation and return-to-owner process for land usedtemporarily.

However, since APEMU will actually be executing ACRP and related procedures on behalf of NEA,independent monitoring will be necessary. This will be carried out by the Regional Action Programmewhich is likely to contract the field work to appropriate NGOs or local consutarncies.

(fil) Access Road

The Project will monitor a variety of physical, bidogical and social parameters and processes relatingto road construction.

Physica Physical factors will include:

- location, design, operation and restoration of temporary facilities - e.g. camps, work areas;- lcation, design and impacts of pilot tracks;- road-induced erosion and sedimentation. including monsoon drainage;- the implementation and success of slope stabilisation measures, particularly bioengineering;- the locaion, operation, stability and reclamation of spoil disposal areas.

For his, the Project will take advantage of relvant work carried out by the U.K's Transport and RoadResearch Laboratory (rRRLq which Ls involved in road impact studies in the area

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ARUN 111 HYDROELECTRIC PwECr ENVRONMENTAL ExECUnVE SUMMRY9. ENVIRONMENTAL MONITORING PLAN

BIologIcal Biological factors to be monitored by APEMU indude the condition of vegetation along therghtof-way and In the vicinity of major camps, and Intnsiy of flsting. Vegetaion monitoring wil beassitd through the cotractual requirement for photo-monitoring of sensitive sites by te Contractors.APEMU wil also monitor impacts on the habitat pnd populations of any endanereed species directlyaffected by the road, should ftse be idenfied duiring the course of construction.

Social andF Economic Social factors monitored will Include adherence to the requirements forrecruitment of local labour, camp and ather facility *housekeepingu (waste dispoa etc.), health andsafety conditions, operation of controlled-prie shops and local price Inflation, and ro;ect/Contractorrelations with affected communites.

() Hydropower Component

Envircnmental moniloring of the construction of the hydropower components will cover the samefeatures as the Access Road, but with particular emphasis on:

Physical- dust suppression;- proper disposal of used oils, chemicals and other wastes;- location and operation of quarries and borrow pits;- locItion and design of access roads;- location, design and operation of spoil disposal sites.

Biological- vegetation and habitats at the powerhiouse. adit and intake sites;- final design and transmission line adignrment of the Construction Power Supply.

Socio-economic- contractors' camp location and design:- land rental;- levels of local employment by the contractors;- community/contractor relations;- land reciamation, reinstatement and return.

(v) Transmission line System

The Arun Ill transmission line system will be bWiit in stages, reflecting staged instaiition andcommissioning of the tubines at the powerhouse. One or more contractors will be involved at eachstage, with the work being carried out on a *design and buildt basis. Geomorphological, ecological,social, economic, cultural and land condiion swveys will be carried out as inputs to the final design andconsruction of the system.

During construction, APEMU will monitor each Contractor s compliance with the environmerntal clausesof the contract, with special emphasis on implementation of the compensation procedures for land usedfor both permnanent and temporary land take, impacts on sensitive ecological and heritage features, andimplementation of bird collision hazard avoidance measures. This will be good practice for Stage 2,when the line may cross the ecologicaly sensitive Koshi Tappu Wildlife Reserve.

9.272 Environmental Monitoring and Evaluation during Project Operation

(;) Acce Road

Once constec monitoring of the physical condition of the road will be carried out by the responsibleagercy (Department of Roads) in order to plan and inplement a cost-effective maintenanceprogrammnre.

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ARUN IrI HYDROELECTRIC PRoWECT: ENVIWRONMENTAL EXECuTnIVE SUM. 44RY9. ENVIRONMENTAL MONITORING PLAN

(Q) Hydrpower Facility

During project operation NEA's Field Envronmernt Unit will montork

- sediment behaviour In the rhier (reated to desandng aid reservoir rlusNrg);- fish populaffions, fishing Interiky and practices, and the condition of ocal lisherfolk.

(ill Transmision ULir System

During system operation, NEA will require irnormation on a variety of subjects in order to plan andimplement safe, environmertally beneficial and cost-effective working practices. These subjecs willinclude:

- RoW vegetation managemert techniques;- bird collision frequency and location (in very limited locations and for limited (but critical

periods);- social aspects of ROW management. including encroachment by squatters, house construction

within clearances, any accidents, and related matters.

9.2.3 Post-Construction Environmental Impact Audit

The Amn Ill Project is very large infrastructure project. when such large projects have been completedand operated for some Ume, it is helpful for ins0inionai development purposes and to assist futureplanning to carry out a post-construction evaluation or audiL This exercise looks at the whole proiectcycle fron initial identification through the pre-leasibility. feasibility, design, construction and earlyoperational stages. Its purpose is to identify areas where improvements coudd be made, eg. byfmfproved integration of enrvironmental considerations with engineering and economic analysis at earlierstages, so shortering the project cycle and increasing developmental benefits.NEA regards this exercise, which will be carried out in cornunction with concemed agencies around theyears 2002-2004, as an irnportnt input to its corporate strategy for improved effliciency andeffectiveness in proect design and implementaion

9.3 REGIONAL ACTION PROGRAMME: MONITORING AND EVALUATION

9.3.1 Coverage

Coordinated by the Arun Basin Environmenrt Management Unit, the Regional Action Programme willestablish an effective monitoring and evaluation system covering a wide range of issues, reflecting thebroad coverage of the Basirnwide Impacts Study and the varius other errvironrurertally-oriented projectsand activites related to the Arun Ill ProjecL

RAP will undertakce three types of monitoring. Firs0y, independent monitoring of Project activities togive an early warning of under-performance. Subjects covered will irclude the physical, e.g.hydrological conditions in relation to spoil disposal, maintenance of temporary access roads, wastedisposal practices; biological, e.g. vegetation condition, harassment or hunting of wildlife: and socio-economic; and socio-econornic, e.g. camp locations, labour recruitment practices, adequacy anddistribution of compensation payments for all land affected by the project, including construction-relteddamnage.

Secorxny. moritoring of project-related impacts not dealt with by NEXs Environmental ManagementUnit, such as the rate of forest degradation in the vicinity of demand centres such as Tunlingtar andPhyaksinda, as well as elsewhere along the road alignmnent, rates of urbanisation, impacts oncomunity facaities such as water supplies, the success or otherwise of local management systems(goverriiert and communiy) to cope with te impacts, inpacts on vulnerable groups, specifically theKanals of Tumringtar but also other groups identfied in socio-economic suvoys to date, irnpacts on

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ARUN 111 HYDROELECTRIC PRWEC7: ENVRONMENTAL EXECUTE SUMMARY9. ENVARONMENTAL MONITORING PLAN

wxnen and children - within Projw Affected Families, within familes where men have taken upcontuction fobs, and In rr -i nal farrdiies alfacted by price irflaion - community relations.

Thrdiy, monitoring of wider Issues relating to change In the Basil is a whoie. Conditins In the Valleyare not static. There aW3 ofer factors x Nch are causing environmertal stress and change. It will notalway be practicable to defino the boundaly between the changes induced by the developmentprojects and those occurring as a resut of other forces and circumstances. In practice, there Is littlereason to attempt to make this distinction. The key issue is that the physical, social, cultural andeconomic environment of the Arun Basin is aed will increasingly be under stress and pressure forchange. Basin-wide moritoring by the Regional Action Programme will include:

* watershed condtion* ecosystemn conditions* forest use and productivity balance* water quality (including Arun River sediment oad)* acaquatic biology (to complement and extend APEMU's fisheries surveys)* wildlife-people interactions (damage to crops and livestock, and consumptive use)* economic conditions* tourism* social and cultural conditions* smov9ment of traffic and goods* land use change

Land use change during and after road construction will be inevitable, both along the route corridor andin neighbouring areas. The most appropriate methoddogy for evaluating this change would be through:

- a consolidation of the existing Acquisition, Carmpensation and Rehabilitation Programme(ACRP) survey da;

- a second ACRP survey following road construction to identify land use change in the vicinityof the arignment;

- a comnparison of air photography taken before and after construction.

1994 wig see the establishment of ABEMU, inducing a monitoring capability with an information storagend rerieva system, and the identification of issues requsiing pre-ernptive baseline mnonitoring prior to

consruction. Also in 1994, pre-emptve monRtoring will begin, and details of the long-tr-rrn monitoringprogramme developed.

During the main conaruction period (1995-2001) ABEMU will conduct a full monitoring programme ona regular schedule, and will &iso undertake periodic reviews of the conterit and coverage of themonitoring programme.

9A FURTHER SURVEYS

9A.1 Fisheries

The aquatic biology of nost Himalayan rivers, including the Arun, is not well knowrL The river is usedby both resident and migratory fish species, and the aquatic life forms the basis of a food chainincluding reptiles, mammals, birds, and of course man. The increased fish offtake to meet increaseddemand, the physical presence of the dam and annual flow dry-season low reductions between theintake and the tailrace will all affect the aquatic ecosystem. Consequently APEMU will undertakefurther work on fish acology and related parameters in order to measure impacts and identify feasiblemitigation measures. This work will be undertaken cooperatively with ocal fisherfolk and fisheriesspeciaists, and wil commence in 1994 to give last two seasons prior to construction of the coffer darmat the Intake site.

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ARUN il HYmOELECTRIC PRaWECrl ENWRONMENTAL EKECwVE SUMMARY9. ENVIRONMENTAL MONITORING PLAA

9A.2 Omithology

An orihological survey will be carried out as an Input to final trfnsmission] line lcation and design.The Inlformaon Is required to minimise possible negative impacs on the birds migratigr alorg theprobable Intemational tlyway in the Arun Valley. The survey will cover other areas alon thetransmission line route where avian hazards might exist, end Ilentify and deign appropriate mitigationmeasures.

For the survey, observers should be In the field at the beginning of the annuai sprlng bird migration.The first season of observations wil be preliminay, and will allow the design of more detailedprogrammes for the next seasons. The surveys are an excellent opportunity to train Nepali nationalsIn bird identification and oher aspects of avian field biology. Staff may be seconded from theDepartmrent of National Parks and Wildlife Conservation, from NEk's Environmenta Unit, and fromIrterested NGOs such as the Nepal Birdwatchers' Club. Advice on the design and Implementation ofthis work will be obtinedr from Birdlife Irternational (the new name for the International Council for BirdPreservation, ICBP). Final design of the 220 kV line system will not be carried out urtil the latter partof the decade. Consequently there is a long lead time in which to carry out appropriate field research.

These surveys will provide excellent trainirig and experience for the more detailed studies which willbe needed to determine appropriate line routing and design for the Stage 2 transmission line system.These will need to investiga,te the current status and breeding behaviour and season of endangeredresidert bird species in the Koshi Tappu Wildlife Reserve; determine the incidence of bird collisions withthe existing 132 kV line at Koshi Tappu; and determine the likelihood of birdline collisions at the Chatragorge from observations of residerit, locally migrant and internationally migrant species.

BA.3 Other Surveys

As the project is implemented, APEMU and ABEMU will undertake or iniiate any survey work requiredto improve the effectiveness of planned mitigation and enhancement measures. At this stage it is notpossible to idenfy these, but both units will keep a watching brief on developments in he Valley andwill have a mandate to respond appropriately.

An important elemerit of APEMUs fther work will be reviawing the effectveness of the variousmeasures in order to incorporate appiopriate clauses in the tender documerts for subsequent lots,firstly the construction power supply, secondly the hydraulic, steel structure and electrical lots, thirdlythe transmission line system, and fourthly. Stage 2 of the power scheme.

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ARUN 1/ HYDROELECTRIC PRojECr7 ENVIRONMENTAL EXECurlVE SUMMARY10. CONCLUSION

1 0 CONCLUSION

It is clear tW a most unusual and perhaps unique conbination of circumstanes exists in the ArunValley. To summarise same of te main points, the Ani Valley Is:

* The location for a maJor programnme of Wnrastructure development

* The site of natural and biological values d glbal significance.

The home for several hundred thousand people of great sociothnic diversity, most of whomlive in poverty in a rigorous subsistence lifestyle that has changed little ovpr hundreds of years.

* An area where the economy Is in decline, and nalural resources are already under stress andsufferhIg degradation.

* Possibly the deepest valley in the wodd, with a unique scenic character and, as the gatewayto some of the world's highest mnrtains, significmit tourism potential.

As a run-of-river project, the Arun IlIl hydropower scheme will have comparatively limited andmanageable direct environmental impacts. The associated road infrastruchre will create significart

opporturities for the people of the Valley, in addibon to bringing increased pressures on naturalresources, accelerated cultural change, and the risks of inequity.

The various environmental studies noted in this document have revealed poternial envirornentalimpacts that are sufficierdly large to suggest that the project should ordy proceed with geat care andattention to detil. It is essential that effecive management ad mitigation measures are implemented,firStly, to ameiorate the negave impacts of the prqect wnd to ensure that ersting negative trends arenot exacerbated, and secondly, to ensure that Me potential benefits of the project for bcal people aremnaxmised and distributed equitably.

The proposals and programmes described in this Summary will be implemented with skill andcommitment, wh-ch will give an opportunity to arrest environmtertl and econormic degradation in theArun Valley, to protect its unique character and values, and to permanently improve the quality of lifeof all its people through sustainable developmenL

A project as large and complex as the Arun ill project is bound to have impacts. NEA's response isto treat these as an opportuniry, and to begin to develop the rntional instiutional capacity that, in the21st centuy, may be caNed on to implement hydroelectric schemes twenty times as large.

a uwS.af s0

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APPENDICES

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Appendix 1. REFERENCES

The foiwng three lists of references are an introductory bibliography of environmental matters relevartto the Anm Ill Project. NEA should b9 contacted to supply more ecensive reference Usts.

1. General Bibliography2. Report of the Management of Basinwide Environmental Impacts Sxtdy3. Publicaons of the Makalu-Barun Conservation Project

1. GENERAL BIBUOGRAPHY

Joint Venture Arun IlIl Consuling Services (JV). 1990a Arun 1l HydroelectrIc Profeca Environmental and Socio-eownomic Impact Study Report Volume 1 - Main Report. Nepal Electrcity Authorky, HMG, Kathmandu.

Joint Venture Arun Ill Consuling Services (JV). 1990b. Aun Ill Hydroelectric Project Environmental and Socio-economic Impact Study Report - Volume 2 - Figures and Annexes. NEA, HMG, Kathmandu.

Joint Venture Arun liI Consulting Services (JV). 1 992a Addendum to te June 1990 EnvIronmental and Socio-Economic Impact Shady Rtport Volume 1: Environmental Addendum, Final Report Jan. 1992. NepalElectricky Authoriky, HMG, Kathmandu.

Joint Venture Arun liI Consuling Services (JV). 1 992b. Addendum to the June 1990 Envhonmental and Socio-Economic Impact Study Report Volume 2- Aun Access Road - Summary of Environmental lnformaftn.Jan. 1992. Nepal Electricity Authority. HMG. Kathmandu.

Joint Venture Arun IlIl Consulting Servkes (JV). 1 992c. Addendum to the June 1990 Envmonmental and Socio-Ecownmic Impact Study Repoat Volume 3 - EIA of te Transmisson Line System. Jan. 1992. NepalElectricity Authority, HMG, Kathmandu.

Joint VentureArn Ill ConsultingServices (J). 1992d. EnvironmentalimpacrAssessinentforArn Access Road-Valley Route. September 1992 2 volumes. Nepal Eiectdcdty Authority, HMG, KathmanduL

2. MANAGEMENT OF BASINWIDE ENVIRONMENTAL IMPACTS STUDY

The following 13 volumes comprise the full report of the 18-month Managemerd of Basinwide EnvironmentalImpacts Study, completed in Octaobr 1991:

Volume 1. Enwvronmental Management and Sustainable Developmrent in fhe Arun Basin: Sunmary andSyrnthesis KIng Mahendra Trust lor Nature Conservation as Consultant to the World Bank

Volume 2 Action Programs. KMTNC.

Volume 3. Management of Natral Resourc Bhadra, B., S. Sharna, N. Khanal. A Joshl & B. Sharma

Volume 4. Biodiverslty. Gri M.K., P. R. Shakya, H.S. Nepali, & KB. Shah

Volume 5. Susta Vlty and Economic Growlt Banskata, K. M. Upadhya. B. Sharma

Volume 6. Cultural Systems and Resources. Sharma, P.R, D.R. Dahal, & J.M. Gurung.

Volume 7. Soaaland InsituAbnal Factors. Gurung, U.B., I. Neupane, AR. Pandey.

Volume 8. Trade and Traffic Survey. Khanal, N.R

Volume 9. Sefnement Guidelines. Kentro, L

Volume 1 0. Roae of Women. Shrestha, I., A. Shrestha

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Volume 11. AmaNwie Energy Pmposal Rijal, K

Volume 12- Tourism. Fleming, W.B.

Volume 13. Macro Manmement System. Dhungel. D.N., S.N. Mananc_ar.

3. PUBUCATIONS OF THE MAKALU-BARUN CONSERVATION PROJECT

Shretha, T.B.. LN. Sherpa. K Barnskota, & R.N. NepalL 1990. Makalu-Bawu Natonal Park and ConservatonArea: Maasement PAn. DepL of NaL Parks and WMidlife Conservatillonoodlands Mountain Institute

This Managemernt Plan was based on 1he following publications and worldng reports produced during the plannirgand field survey phase (1 988-1 99MM:

Component Plans

1. Scientfic Research Plan, by Dr. rlirha B. Shrestha, Dr. Keshab Raj Rajbhandaril, Mr. Rodney Jackson andMr. Narendra R Khanal

II. Park Management Plano by Mr. Lhakpa Norbu Sherpa, Mr. Ang Rita Sherpa, and Mr. Jayapal Shrestha

Ill. Tourism Maragement Plan, by Dr. Kamal Banskota and Mr. Murari Upadhyay

Iv. CommunkyRosourc ManagementPlan, by Mr. Rohk Kumar Nepali, Mr. Khagendra Sangarn, Dr. ChariesRamble and Mr. Chandi Chapagamn

Woridng Papers

Report 1: Task Force Starup Workshop, by Mr. Robert Davis

Report 2: Brefing Seminar Goas and Current Stanus of Acives, by Mr. Muran Upadhyay

Report 3: Task Force Review Meeting

Repot 4: Rewew of Nabonal Planning Documents: Seventh Five- Year Plan and Fostry Master Plan, byDr. Kamal Banskota

Report 5: Field Tdp Repot and Discussion Paper an Conservaton and Management of te Makalu-BanmArea, by Mr. Lhakpa Norbu Sherpa and Mr. Ang Rita Sherpa

Report 6: Tousm Management and Socio-Economic Survy:Field Rport for Sankhuwasabha DLsIct byMr. Rohit Kumar Nepali and Mr. Khagendra Sangam

Report 7: Stas ofCommun Needs, Resouces andDevelopment Sankhuwasabha Dlstrict by Mr. RohitKumar Nepal and Mr. Khagendra Sangam

Report 8: Scientfic Report on 1989 Field Survey: General and Phyto-Ecology, by Dr. Tirlha BahadurShrestha, Dr. Puspa Ratna Shakya, and Mr. Hari Saran Nepal

Report 9: The Effbcts of Browsing and Other Distubances on the Forest and Shrub Vegetation of thelongu, lnkhu and Dudh Koshi Valleys, by Dr. Chadwick D. Oliver and Lhakpa Norbu Sherpa

Report 10: Preliminary Notes on the Cultural Diinension of Conservation, by Dr. Charles Ramble and Mr.Chandi Capagain

Report 11: Aspects of Widlife Protection and UJtdization in the Makalu-3anun Conservaton Area by Dr.Rodney Jacksn and Mr. Hari Saran Nepali

Report 12: Threatened Wddlfe, Crop and Wildife Depredation and Grzng In the MakaltuBarnConservation Area. by Dr. Rodney Jackson

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ARUN ItI HYDROELECTRIC PROECT. ENVRONMENTAL EXECUTVE SUMMARYAPPENDICES

Appendix 2. RECORD OF CONSULTATION AND MEETINGS

1. NEPAL ELECTRICITY AUTHORITY

Status Reports

NEA distributes Arun III Project status reports on a regular basis to the following government agenciesand Industrial organisations in Nepal, for their commeits and recommendations:

- Ministry of Water Resources- Departments of Roads- Ministry of Finance- Ministry of Industry- National Planfing Commision- Ministry of Law and Justice- Department of Civil Aviation- Nepal Industrial Developmrent Corporation

Similarly, the Arun Ill Project office provides relevant information to the following international agenciesand embass.es

The World Bank- United Nations Development Programme (UNDP)- Asian Development Bank (ADB)- Kredtanstalt fur Wiedeaufbau (M= Swedish Embassy- French Embassy- British Embaswy- Embassy of Federal Republic of Germany- Embassy of Japan- Royal Belgian Embassy- Embassy of Finband- Ermbassy of United States of America

2. THE CONSULTING ENGINEERS:JV ARUN Ill in association with SCOTT WILSON KIRKPATRICK & PARTNERS

During the project design studies a variey of govemment agencies, local and intenational non-government instittes have been consulted. The reports have been reviewed in draft by IDA and ADBand their comments taken into account in the final versions.

2.1 1990 Environmental Impact Assessment Study (Hydroelectric PowerComponents)

Mhe following persons and organisatons were consulted during preparation of this report(FebrM March 1989.

1. Buges Watson, R. 2. Chand, Mr-H.M. Ambassador Deputy Project ManagerBritish Embassy Marsyangdl Project

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3. Crulkshank, E 7. Rosser, C. Dr.Deputy Resident Represenltatve Director, ICIMODWorld Bank, Kathmardu

8. Shrestha, J. Dr.4. Garbut, G. Zoolgy Department, Tribhuvan

Programme Advisr/Director UriversityKoshi Hlls Deveopment Programme

9. Williams, D.5. Maila, U.M. Prof. ErMironmentaist

HMG Plnning Commission World Bank, Washington

6. O'Leary, D.Arun 3 Task ManagerWorld Bank, Washington

2.2 1992 Environmental Impact Assessment Addendum

Organisations consud on aspects of the EIA Addendum study (June-August 1991):

- Departnent of Archaeology, HMG/N- King Mahendra Trust for Nature Conservion: Management of Basinwide Impacts Study team- Makalu Barun Conservation Project- Koshi HDls Developmnent Programme, Dhankuta- Nagar Bikash Samitee (rown Developmern Board)- Natural History Museum, Kathmandu- Support to Special Public Works Programme (Hill Irrigation Project)- Water and Energy Commission- Rural Housing Company (formerly the Nepal Resettlement Company)- Tribhuvan University- Electricit do France (NEA Tvwnnirg Project)- The World Conservation Union llUCN), NCS Support Office, Kathmandu- Overseas Development Administration (Bangkok)- International Coundl for Bird Preservation (U.K)- National Grid Company plc (UJ.K)- Powerwatch (U.K.)- World Conservation Monitoring Centre (U.K)

Tumlingtar 26 local teachers, businessmen, thteliers, farmers, and studentsHile: 4 local businessmen and hoteliersBasantapur 5 local businessmen and traders, a banker and a forest ranger

2.3 Access Road - Valley Route: Environmental Impact Assessment 1992

Persons and organisations contacted during fieldwork for the revised access road and transmission linealignment (Valley Route) (August 1992):

- Koshi Hill Development Programme- Regional Statistics Office- Cadastral Survey Office

Hile: 8 local persons including Village Development Committee members, hoteliers,policement, and shopkeepers

Basartapr: 4 local persons, including businessmen, a banker, and a hotelier

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Betwen Basartpur and Tumlingtar: 8 local persons indudng a teacher, farmers, hotel keepers andhouswwves

List of argarsalon consulted during office work in Kathmankr

- Water and Energy Commission- Makalu Barun Conservation Project- Department of Hydrology and Meteorology- Rural Housing Company- Strengthening Decentralised Planning in Nepal (a UNDP project)- The World Conservation Union QUCN)- Intermaional Centre for Integrated Mountain Development (ICIMOD)- Medical Resource Centre- Malaria Control Division- Koshi Hills Developrent Programme

3. MANAGEMENT OF BASINWIDE ENVIRONMENTAL IMPACTS STUDY1990-1991

This major study involved extensive local consultation for data collection. To assist in definingappropriate mitigation measures, two workshops were held in Dhankuta. Participants includedgoverment officers from the four surrounding districts, and representatives of local NGOs.

In addition, two discussion seminars were held for top officials, one in Kathmandu and one nearby, inDulikhel.

4. PUBLIC CONSULTATION

A public hearing on Arun IlIl was held in Kathmandu on 12 February 1993, organised by the NepalForum oF Environental Journalists and other NGOs. Following presentations on the Arun Valley andits features, NEA officials furnished replies to questions from the 1loor.

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ARLIN IN HYDROELECTRIC PRojEcr: ENWRONMENAL EXECUTIVE SUMMARYAPPL.NDICES

Appendix 3. BASINWIDE IMPACTS STUDY

3.1 Introduction

The Arun IlI Hydioelectric Project is rikely to be a cata for significant changes in the biological, socialard economic erironmeint well byond the immediate enirons of the power facilities and roadaligrmnenL Recognising this, in 1989 the United Naions Development Programme (UNDP) funded amajor, 18-month suy of envirornmental management and sustainable development in the Arun Basin,intended to complement the more conventional environmental impact stuies undertaken by NEAlsdin team.

Stated in simple terms, the goal of the sbtdy was to ensure that negative impacts of Fte Arun IlIl Projectare minimised, and local and regional benefits madmised. The study was not an environmental impactassessmern in the normal serse, but was in effect a regional development stdy which focused onways in which management of the resources, economy and environment of the Arun Basin might bestrespond to the processes of regional charge brought by the hydroelectric developrnent programme.

The exercise. the Manageanent of Basin wide Environmental Impcts Study (MBEIS)P was executed bythe World Bank. which commissioned a national NGO, the King Mahendra Trust for NatureConservation (KMTNC) to undertake the work. The team engaged by the KMTNC to undertake thestudy on its behalf was comprised almost entirely of national experts. The study was completed inOctober 1991. and its findings presented h English in 13 volumnes under the title ErnironmentalManagement and Sustainable Development in the Arun Basin.

The team's recommendations are now being discussed by Government, and steps are being taken totanslate the recommended measures into implementare programmes. The following notes summarisethe approach and main findings of the study, and outline its major recommendations and proposals.

32 Approach

In undertaking the study, the MBEIS team identified four *Key Planning Areas (KPAs) as a basis fororgarusation. These formed the four main themes wittin which work proceeded. They were:

* Natural Resources* Sustainable Economic Growth* Cultural Resources* Social and Institutonal Factors

In addition, importnt supporting studies were undertaken in the following subject areas:

* Regional development framework* Trade and trafic* The role of women* Settlement guidelines* Alterate energy sources* Monitonrig and evaluation* Macro-level instiutonal management

For analytical purposes, the basin was divided into "high impact areas (HIA) and Olow impact areas-(UA), with the HIA defined on the basis of experience elsewhere in Nepal as the area within a halfday's walk of the proposed road alignment. Ot should be noted that at the time of the stuy, theproposed road alignernt was the old Hill route).

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The basin was also divided Into three zones north to soulh, the "Upper Arun, *Middle Arun and 'LowerArun'. A comprehensive household survey provided basic data for many components of the study.

3.3 Objectlves

mhe folaWing olectives were identffied as guiding principles for the development and Implementationof podides and acon programmes.

* Mitgation of negative impacts on natural resources.

* Wise use and management of natural resources.

* Protection of biodiversity.

* Mairntenance of sustainable supplies of natural resources

* Achievement and mairtenance of sustainable economic improvement and avodance ofeconomic mnarginalisation lor all resident groups.

* Equtable distribution of benefits among all socio-economic groups and between men andwomern

* Alleviation of poverty.

* Provision and mairtenance of mears by which the people of the valley can participate in anddetermine decisions affecting their future.

* Mairtenance of valued cultural norms, practices, sites and structures.

3A Regional Development Framework

A Trade and Traffic Survey predicted the probable future traffic and trade patterns. Settlements andmarket centres that will suffer as a result of the new road were identified, and likely future growthcentres pinpointed Building on these predictions, the study defined a 'growth corridor' with nodalgrowth points centred on the new road as a *amework for regional developmert, and for the planningand implementabon of future development programmes.

3.5 Natural Resources: Land Use Changes and Biomass Analysis

This componen of the project analysed land use and land use changes and studied the biornassbalance in the impact area, drawing on existing information, forest inventory surveys, the householdsurvey, aerial photography and other sources.

Comparative analysis of 1978 and 1990 aerial photography of parts of the middle and lower Arun Valleyrevealed that over this period the area of cultivated land grew at a rate of 1.35 % per year, with a totalof 773 ha converted to cultfivated land from forest, shrub and grazing lands. Expansion of cudtivatedland into every class of forest cover was observed.

A computer simulation model was devebped to facilitate analysis of biomass data and to indicate trendsand impacts which wouldd occur as a result of the new hill road. Of great importance is the 'destuctionat the margin' process whereby users deplete the forests at the edges, rather than travelling furtherfrom nome and spreading the harvesting impacL The open access nature of the resource exacerbatesthis process, since users have no incentive to use the forests on a more sustainable basis.

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The simulaton model pointed towards some Imporant conclusions. In summary, these are:

Under current and procted demnnds, the process of biomass deplepion In the Middle andLower Arun HIAs Is such that It is presently not on a sustainabe path, even wihout the ArunIll project and without the destrucion at the margin process.

* With the Arun IlI project, the increased non-domestic demand for biomass wil acceleratebbmass depblion, and therefore the deforestation process.

* If the forest use regime in the low impact regions is changed from open access to regulateduse, the resource use patterns in these regions can be made sustainable.

* The destruction at the margin process must be elirrinated so that the forests can sustain thehill farming system through a steady supply of biomass to the farms.

For some hot spots" high priority pre-emptive programmes prior to the constructionperiod are essential.

Pre-emptive and longer term action programmes are defined to address these issues. The nature ofthe forest management systems, tenure and management is seen as the fundamental issue.Consequently, the programmes are based on a general strategy which is:

So gradually irnvest greater property and use rights to forest and pasture resource usercomnmunities.0

3.6 Biodiverslty

The biodiversity cornponent of the MBE3S sought to identity wildlife and plants of significant intrinsic oreconomic worth, and to develop implemrentable recommendations for their conservation. The Basinwas cofirmed as an area of considerable significance for its biodiversity values, with populations ofa variety of endangered birds, mammals, reptiles, insects and fish, as well as having a high diversityof tradifional crop plants, and high levels of indigenous knowledge of fbrest product use (ethnobotany).Without effecie mitigation, these values are likely to be severely jeopardised by the Arun III ProjecL

Major recommendations were:

* Establishment of a Milke Danda Conservation Area to cover Milke Danda, Ja5ale Himal andLumbasumbha Himal, with the objective of conserving the Arun Basin's last tract of relativelyundisturbed forest east of the Arun River.

* Vegetation and land use mapping of the Arun Valley as a basis for future management,implernentation and monitoring.

* Community management of natural forests, including cloud forestsb at Sukepatal, Hurure andChichila (affected by the hDir road aligrnment), sal and subtropicaVlower temperate forests atSabhaya Khola and sal forest at SatighaL

* Conservation of crop genetic diversity.

* Conservation awareness, education and training.

* Biodlversity research, and the creation of a biodiversity database.

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3.7 SustalnablIty and Economic Growth

The objective of ths component of the MBEIS was to Identify import economic activfies andliO gs, assess the likely economic Impact of Fe access road on relative pries, identify majorproblems, assess the comparative advantage of new economic opportunities. and identify ways andmears of mtgating rngave economic Impacts and promoting positive impacts. The study reviewedprevious experience of new roads in Nepal, and developed a multi-market computer simulation modalfor anals.

Using the simulation model, forecasts of future economic performance and development were made,with end without the new access road. These showed that, without the road, the economy of the valeywould face further problems in the nitue, with a gradual decline in already low real per capita incomes.Mechanisms include, for example, an increasirig food and calorie imbalance due to increasingpopulation and decreasing productivity, rising commodity prices relative to prices in the Terai, and afall in the proportion of utilised availabe labour from the present 44 %.

The Arun IlIl Project is predicted to have major impacts on the Valley's economry: firstly, duting theconstuction period by generating cash income for locally employed labour, with consequent knrock-oneffects on local demand and prices$ secondly, foilowing the opening of the access road and thecessation of construction, by exposing the Valley to the plains economy, greatly lowering the prices ofimpord goods, eliminating most long-haud portering opportunities, and increasing access to hillresources. These impacts wll not rbe spread equally between social and ethnic groups, or between thesexes and ages

The simulation model precdcted that real incomes after completion of the Arun IlIl access road witbecome worse than the baseline scenario (rable A3.1, Figure A3.1). These results confirm experienceelsewhere in Nepal that the potential economic benefts of the new road will not be realised urdesseffective complemeritary investment programmes are implemented.

||Table A3.1 ESTIMATEuDCHANGES IN REAL PER CAPITA INCOME IN SANKHUWASABHA DISTRIzCTTale A3.1 ESliMATED WITH AND VWTHOUT PROJECT AND MmGATIOND

REAL INCOME YEAR 1N 1994 1995 1996 1999 200 2002 2004 2006 2010

Bassauo 2418 2363 2 218 2071 1957 1949 1798 1578

VWith Anm 3 29Z6 2930 1858 1841 1753 1672 1524 1498 1394

With mitIgi 2B96 2822 1995 2197 2576 2631 2650 2710 2783

The odl sumed road corwsruction began In 1991, and finished in 1995Income Generating Programme - see Table A3.1 for details

The study recommended a range of action programmes to enhance economic opportunities andminimise project-rs.;d hardshio and marginalisation. These include employing local persons inconstruction to the maximum extent possible, importing food grains during the construction period toreduce price inflation, and assisling vegetable production to meet increased demand. In the longer-term, irrigation development the supply of agricultural inputs such as fertilisers, seed producfion,promotion of promising crops, srengthening of local cooperatives, vegetable production, and livestockand fn.it development are seen as priorities.

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3.8 Tourism

Tis study idenfd a sigficant potential for increased tourism i the Arun Basin, follWing the openingof the now road. However, It stressed the need for good management to avoid the damage that

wunanaged touism has created in other palts of Nepal. Developmrent of tourism infrastructure,desgnatio of mnagement resporsibilty, and education of local irnabtantsr and tourists are criticalto ensuring a self-sustaining tourism industry.

The study makes a range of recommendations covering issues such as specific sites and actiies fortourist use and developmrent, lodge and hotel developmnent, infrastructure for ron-trekkring activities,faclitiesto minimise environrmertal damage from tourism, support for tourism-related income generatingactivities, and tourism-relted education and training.

3.9 Cultural Resources

This component of the study took an in-depth look at cultural variability, the Basin's cultural heritage,and the particular cultural values of the ancient hilltop town of Chainpur, on the whill' road alignment

The ctural variability investigation compared the various socio-ethnic groups in terms of distribution,ecological adaptations, traditional economies and other cultural traits. This permitted the assessmentof likely differences in individual and group behaviour in response to economic opportunites resutinhgfrom the construction of the new road, and of the abiliy of the different groups to respond positively tothe process of change.

The analysis confirmed that there is a likelihood that the economic benefits brought by the new roadwill be captured by select groups. Some menbers of groups already disadvantaged wit suffer furthertrough loss of land and loss of their current means of liveiihood (e.g. portering).

The shtud recognised that it is difficult and perhaps undesirable to propose direct actions in the cultural1eld, as the culture of any group evolves and responds to changed circumstances, and any pressurefor action must come from the people concered. The study suggests that the thrust of futureprogrammes must lie not in initating actions directly, but in empowering and assisting communities todetermine ard decide the direction they wish to take. It is therefore suggested that the emphasis offuture cultural programmes shoudd be on faclitating the development and operation of effective *UserGroups at village level.

In addition, recommendations were made covering preservation or restoration of specified monumerntsand sacred sites, recording of folk heritage such as crafts, performances, beliefs and rites, preservationof ethnographic cultural itemns through establishment of an ethnographic museum at Chainpur, andheritage education.

3.10 Social and Institutional Factors

This cmporet of the study focused on the adequacy and effectiveness of institutional arrangemeatsfor resource mranagement in the Arun Basin. Information was obtained through case studies of existingresource management systens, interviews with government line agencies and household andcommunity questionnaires.

The analysis revealed serious deficiencies in the ability of government line agencies to handle theircurrent workloads effectively, and throws severe doubt on their ability to cope with the increased andchanged demnands which wil come with the construction process. Case study results indicated thatprojects which work through properly established and functioning user groups have several advantgesover purely government-run projects. The recommendations therefore place strong emphasis oncommuniy participation and the establishmrent of user groups as a means of effective resource

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ARUN 111 HvDROELECTRIC PROJECT: ENVRONMENTAL ExEcuTivE SUMMARYAPPENDICES

management. This approach capises on hstorica land mnanagement systerns (A and the re-emergene of informal c mnagert groups (orest security committeesl.

3.11 The Role of Women

A special study of this subject showed that, in the nrral subsistence lifestyle of the Awun Basin. women'stotal work burden Is high compared to that of men, both In producton activibes and in householdchores. Their totai contribution to household Incomes is higher than males, bt thay usually do notenjoy formal awnership or legal contrd of productive resources. In general, they have a smaller rdein decision making than men, btthis varied considerably arong the dfferent socio-ethic communities.

The study indicated that compensaton money paid for land taken by the project goes to malehousehold heads and is not necessarily available to women who, subsequeniy, have to support theirfamilies on a smaler area of land.

Recommended programmes cover issues such as service sector micro-enterprise initiaives, capacitybuilding of self-help and users' groups, agro-processing through improved techndogy, use of commonproperty land resources, vegetabe products, herbs and spices, livestock producton, environmental andsanitaion education, and male sensiisation to gender issues.

3.12 Settlement Guidelines

This component of the stucdy considered the form and growth of maor setterments affected by the nrowroad. It focused prinarily on Tumfingtar and Chainpur. and to a lesser extent on Basantapur,Khandbar and Nwun. Chainpur received particular attention because of the qualrty and appea of itsarchitecture and village design

Recomn address land use planning, physical infrastructure, environmental concers such astaffic safety, fire safety, pollution and erosion control, the built environment and settlement planningaministratiorL As in other cornponens of the study, considerable stress was placed on communitypaicpation and user group decision making, with a recommendation for the formation of a CommnunityPlanning Committee in each seterement.

3.13 Altemative Energy Proposals

This component of the stdy sought to idertify and quantify the benefits and costs of providing energysouces aher than fuehNood. It was undertaken because of the likely increased pressures on forestsfor firewood, the need for new energy sources for programnmes to improve socio-economic conditions,and the likely resentment and dissatisfaction among local people if the Arun IlIl project proceeds wifoutprovision of electricity to local communities.

The report recommended that the power generation capacity that will be established to meet theconstuction phase requirements for the Arun Ill project is later diverted to provide power for majorgrowth cenrres. Micro-hydro schemes are recommended for more remote centres with smaller powerdemands.

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ARuN mi HYRoELCTIC PRaECT. ERONMENTAL EXECUTVE SUMMMYAPPENDICES

3.14 Policies and Action Programme

Policy Recommendations

The folowing poiicy recommndaIon were made to address matters of particular concern IdentifiedIn the course od the study:

* -liat His Majesty's Government reviews urgently the potential Impact of the constuionprocess on the responsibilities of HMC/N agencies, and takes any necessary steps tostrengn resources and personnel In the valley.

* That HMCj-N give urgerit and serious corsideration to establishmert of suiable interim andlong-term institutional arrangements for environmental implementation and management in theArun Basin, including the early appointment of an Arun Basin Interim Management Board ancdestablishmert of an Arun Basir% Ernironmental Management Unit.

* That resources be allocated to allow the cadastral survey in the valley to [9 expedited, and thatIt be completed as soon as possible. (This is because of evidence that forests are beingdestroyed in anticipation of the cadastral survey).

* That every effort be made to encourage or require the use of the highest possible percentageof local labour in the construction projects.

* That the construction power supply system be located, planned and designed so that it issuitable for use as a permanent power supply to local growth centres when construction iscomplete.

* That effective negotiation and dialogue be encouraged or required among the Contractor,Engineer and affected sefflements about long-term work camp facilities, and what might beagreed to be shared in terms of labour, materials cost, maintenance and inheritance aftercompletion of the project.

Action Programme

The recommendations emanating from various componerts of the MBEIS have been integrated andre-grouped under a thematic structure. They are presented in the form of detailed and largely self-contained action programmes which are set out in a separate volume of the study report These aresummarised in the table overleaf which is reproduced from the study's summary.

The table also identifies fve recommended pre-emptive programmes for priority implementation, andgives an indication of the suggested tming and programme for each proposed programme.

Provisional budgets for the recommended progarmmes are given, totalling US$ 14.6 million. Of this,the pre-emptive measures require $ 2.6 million.

A-12

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ARUN 1l1 HYDROELECTRC PRroJECT: ENwRONMENAL EEct1vE SUMMRYAPPENDICES

Appendix 4. MAKALU BARUN CONSERVATION PROJECT

4.1 IntroductIon

The Makalu-Barun area contains one of the last pristine ecosstems of the eastern Himalaya.Elevaons range from 435 m to 8463 m over a distance of sofe 40 km. The resulting biophysicaldiversity is of global significance.

Recogrising this, and folowing a five-year planning and preparation period. In 1988 HMGIN signed a12 year agreement (1988-2000) with the Woodlands Mountain Institute QMl), an intermational NGObased In the U.SA, to establish and manage a new national park and conservation area as aneastwards extension of Sagarmatha National Park. The project, the Makalu Barun Conservation Project(MBCP), covers an area of 2,330 km2 acqjoining the existing 1,148 km2 Sagarmatha (Mount Everest)Natonai Park to the west and the 35,000km2 Domolongma (Everest) Natuwe Reserve in the TibetAutonomous Region of China to the north.

4.2 Management Planning

As the first staga of the cooperative programme between the Department of National Parks and WildlifeConservation (DNPWC) and WMI, a major study of the area was undertaken by a special task force.Ths was composed of in-country experts supported by WMI specialists.

The study produced a large number of working papers and four management plans. These coveredfour subject areas: - Park Management, Tourism Management, Community Resource Management andSdaentic Research. The analyses and recommendations of these four plans were presented andsurnmarised in the Makalu-Barun Nationat Park and Conservation Area Management Plan, pubishedin November 1990.

The proposals of the Management Plan incorporate the latest thinking in protected area zonation andcomnunity development, including a variety of proposals which seek to integrate conservationobjectives with enhancement of economic and social opportunities for the local population. Assunmarised in the plan itself, they are:

The Management Plan calls for the establishment of a new 1,500 km2 National Parkand adjoining 830 km2 Conservation Area in the northeastern Solukhumbu andnortern Sankhuwasabha districts of eastern Nepal. Management Plan objectives areto protect an area of unusual natural beauty and biological diversity, to improve thesocio-economic conditions of local people, and to develop models for sustainableconservation and development.

wImplementation will be based upon a participatory model of land management andresource utilisation. This model incorporates the experience, traditional rmanagementsystems, and recommendations of local people into project policies, strategies, andactions. Additional income-generating opportunities will be developed, particularly forwomen, through production credit groups. Programmes have been designed to takeadvantage of the new produce and labour markets that will result from the Arun IlIlHydroelectric Project and accompanying road construction. Socio-economicimprovementswvll thus be balanced with environmental protection and natural resourcesustainability.

wFsDDuEnW A-1 6

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shese progrmmes are based on a parficipatory planning process snd have beendeveloped to engae the local people in a muAually supportive learning proces. Thus,while detailed programs and targets have been developed, ftese are ne ailykdicatve. They are subjct to change through on-going partcipatory planning andmoring.

Both the National Park arid the Conservation Area will be arnaged by HMG'sDepartnent of National Parks and Wildlife Conservation (DNPWC). The MBCP issupported through a collaborative agreement betveen the DNPWC and the WoodlandsMountain Institue, with funding from concerned international and private agencies."

4.3 Current Situation

The project completed its iritial planning phase when HMG/N formally gazetted the Park andConservation Area in November 1991 (Map 4). A Park Warden and WMI Co-Manager were appointedin 1992. 1993 saw the project begnning to establish its presence on the ground, commencing with theestblshmeent of temporary offices in Khandbari, the Sankuwasabha District headuters.

The project is being co-managed by DNPWC and WMI project staff, with WMI providing firm fundingof $ 42 million from a variety of sources. National and local cost sharing will be of the order of NRs1.75 million.

Over the next decade the Department of National Parks and Wildlife Conservation is likely to benefitsignicantly by way of in-service and on the job training in state-of-the-art mountain park management

4.4 Relationship of MBCP to the Arun Ill Project

Protection of the upper watersheds of the Arun River by the MBCP was identified as a benefit to theArun lil Project in the MBCP Management Plan.

The Management Plan also states that major development proqects, indcuding hydroelectric schemes,will be prolhibted within the National Park, but does not extend this ban to the Conservation Area Asindicated in Mas 2 and 4. the section of river on which the ArunlIl Project is to be sited forms theeastem boundary of the Conservation Area. However, it is noted that:

the Aun IlIl Hydroelectric Project and possible addifional Anun projects are ofimmediate concern and wil consttute a focus for MBCP monitoring and consultafiveactivities.

The Management Plan outlines some specific proposed activities related to the Arun lIl and Upper Arunprojects, such as review and critique of studies and assessments, development of recormendations,impact morntoring, and assistance to local people in gaining project employment. Since consructionof the Arun Ill access road will not begin in earnest urnil after the 1994 monsoon, the MBCP has a leadtime of some 20 months to establish appropriate mitigation and enhancement programmes.

The World Bank has proposed that MBCP should be a candidate for additional funding of $ 3.8 millionfrom the Global ErnvironmentEl Facility (GEF).

APPENODUAW A-17

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ARUN i11 HYDROELEC7RlC PROJECr: ENVIRONMENTAL EXECUTVE SUMMARYAPPENDICES

Appendix 5. IMPACT MATRICES

Ths Apenix contains five impact ma tabbesk as fdlows:

A5.1 Impacts of Road Construction on Hile A19

A52 Impacts of Temporary and Permanent Facilites on Tuwlingtar Area A2D

A5.3 Impacts of Arun Access Road 423

A5.4 Impacts of Hydropower Componerts A25

A5.5 Impacts d Transmission Line System

A5.1 Stages 1 and 2 Transmission Line Impacts - Construction Period A2B

A5.5.2 Stages 1 and 2 Trarsmission Line Impacts - Operational Perod AM3D

A5.5.3 Substation Impacts 31

APPE W A-18

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ARUN / HYROELECTRIC PRoECTr EVRONMENTAL ExCETivE SUMMARYAPPENDICES

Appendix 6. INDEX TO ENVIRONMENTAL SECTIONSOF TENDER DOCUMENTS

Normal good engineering practice indudes mary measures which qualify as seund ervironrmertalprtice as wetL In adcdibon, In preparing the Tender Documenits for the Arun III Project specialattention has been given to draffing the Clauses where entironmental or socio-ecoriomic factors maybe involved. As the Project prceecds, this consideration is to be extended to all sections of thedocuments and for al Lout. While some Clauses may contain only minor references to environmentalnmaters, they are nevertheless important, and where appropriate have been cross-referenced to a moredetaild dause.

The pinrcipal environmentally-related clauses, taken from CMi Lots Cl and C3 (the first two major lotsto be tendered), are as follows:

A FORMS: C1/C3

The FORMS section provides proformas for the Bidders to complete, and allows rapid comparativeevaluation of bids.

2.18 Description, Location and Drawings of Consruction Facilities and TemporaryCamps

2.19 Health and Safety/Environmental Protection220 Muck Disposal

A INFORMAmON: C1/C3

This section of the docmnerzts provides information about the project to the Bidders.

ai.1 General

32.5 Natural Ernvironment32.5.1 General325.2 Climate3.2.5.3 Hydrology3.25.5 Geology32.5.6 Seisrricity3.25.7 Topography, Soils and Land Use32.5.8 Vegetation and Forests32.5.9 Fish32.5.10 Mammals, Birds and Reptiles32.5.11 Other Prjects

32f6 Popudation, Social and Cultural Aspects3.2.6.1 Introduction3.2.62 Population Statistics32.6.3 Education and Skills32.6.4 Labour Force32.6.5 Cultural and Religious Sites3.2.6.6 Archaeological Sites32.6.7 Health

AI'ewdEW 32

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ARUN 111 HYDROELECTRIC PROECT. ENVIRONMENTAL EXECUTIE SUMARYAPPENDICES

32.7 Rural Economy3.2.7.1 Introduction32.72 Agriculture and Livestock32.7.3 Off-Farm Income32.7.4 Fishing32.7.5 Fuel and Fodder

32.8 Instituions

32.15 Labour Regulations

B GENERAL CONDmONS: C1/C3

Together, the GENERAL CONDMONS and CONDIONS OF PARTICULAR APPUCATION cornutethe CONDMIIONS OF CONTRACT.

FRDIC: Standard Federation Irtermatnale des Ingenieurs Consedis Conditions (4thEdition, reprinted 1988 with editorial amendments)

C CONDMONS OF PARTICULAR APPUCATION: C1/C3

The CONDITIONS OF PARTICULAR APPUCATION qualifythe GENERAL CONDMONS and overrideboth these and the TECHNICAL SPECIFICATIONS.

GENERAL OBUGATIONS

16.4 Employment of Local Personnel16.5 Employmerit of Local Sub-Contractors20.1 Care of Works24.2 Insurance against Accidents to Workmen27.1 Fossils30.8 Mainenarnce of the Access Road

LABOUR

34.1 Engagement of Staff and Labouw342 Health and Safety Plan34.3 Rates of Wages and Conditions of Labour34.6 Housing for lbour34.7 Accident Prevention Officer; Accidents34.8 Health and Safety34.9 Measures against Insect and Pest Nuisance34.10 Epidemics34.11 BurialCremafion of the Dead34.12 Supply of Foodstuff and Fuel34.13 Supply of Water34.14 Sanitation34.15 Alcoholic Uquor or Drugs34.16 Arms and Ammunriion34.17 Festvals and Religious Customs34.18 Disorderly Conduct34.19 Labour Negotiations3420 Infringement3421 Records to be Kept

-W 33

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ARUN n HyDRoELEcTRIC PwEC. ENVIRoNMENTAL ExEcuTV sumAYAPPENDICES

34.22 List of Persornel Employed34.23 Reparation of Labour

MATERIALS, PLANT AND WORKMANSHIP

36.7 Local Materials

ENVIRONMENTAL PROTECTION

79.1 Ernironmental Protection Plan792 Environmental Protection and Care79.3 Permanent Sbuctures and Facilities79.4 Temporary Structures and Facilifies79.5 Site Roads79.6 Mairtenance of Other Services and Structures79.7 Spoil Dumrps79.8 Pollution of Waterways79.9 Wildlife79.10 Prevention of Illegal Felling and Transport of Timber79.11 Land Reirstatement79.12 Archaeological Sites79.13 Control, Docunentation and Monitoring79.14 Aerial Transport79.15 Measurement and Payment79.16 FRre Prevenbon and Firefighting Equipment79.17 Restricted Areas79.18 Waste Collection and Disposal79.19 Relations with Local Communities and Administrations

80. Liabirlty for Maintenance and Remedial Works

D GENERAL TECHNICAL SPECIFICATIONS: CI/C3 (but not C3-2 the Access Road)

The TECHNICAL SPECIFICATIONS are in two parts: the GENERAL TECHNICAL SPECIFICATIONS,and the PARTICULAR TECHNICAL SPECIFICATIONS, which qualify and override themn.

1.1.2 Sites for Site Installaton1.1.3 Removal of Site Instalabion1.3.7 Water Supply and Sewage SysteriVDisposal1.3.8 Frst-Aid Station1.3.13 Environmental and Socio-Economrc Aspects1.3.13.1 General1.3.132 Conractora s Operations1.3.13.3 Cotractors Superintendence1.3.13.4 Temporary Structures and Facilibes1.3.13.5 Rivers and Streams1.3.13.6 Waste Collection and Disposal1.3.1 3.7 Use of Wood as Fuel1.3.13.8 Spoil Dumps and Stockpiles1.3.13.9 Relations with Local Communities and Administrations1.3.13.10 Health Care and Preventive Actions

APEPBNEW 34

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ARuN 11 HYDROELECTRIC PRJwECT ENVIRONMENTAL E(ECUTIVE SUMMARYAPPENDICES

E PARTICULAR TECHNICAL SPECIFICATIONS

The foloawn important Clause covers and cortrds spoil dunping into the Arun River.

Chapter 2 Cl/C2/C3

2.5.34 Dumping

The selection of Clauses below is taken from the Particular Technical Specifications for the ArunAccess Road. Similar or idenfical clauses appear in te Techrmcal Specifications for the oter Lots.

Chapter 3 ARUN ACCESS ROAD C3-2-E-3

100 GENERAL101 Faclities for the Engineer105 Pnvately or Community Owned Servces and Stru es109 Land Required for the Works111 Progress Photographs

200 SITE CLEARANCE201 Clearing202 Existing Vegetation and Roots

300 PLANTS AND PLANTING METHODS301 Plant Materials302 Pl-ating Methods303 Fire Prevention

600 EARTHWORKS601 Definition. Classification and General Use of Earthwrxws Materials602 Explosives and Blasting603 Excavation of Cuttings611 Earthworks to be Kept Free of Water612 Soiling arnd Revegetaion618 Environmental Pratection619 Borrow Pits and Quarries620 Spoil Disposal

900 SURFACE DRESSING901 Materials

2000 MISCELLANEOUS PROTECTION WORKS2003 Slope Treatrent2004 Rip-Rap

2600 MATERIALS2615 Fertirizer2616 Grass Seeds

2800 MAINTENANCE

_ wN 35

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Table A3.1 SUMMARY TABLE OF RECOMMENDED ACTION PROGRAMMES AND PROJECTS,MANAGEMENT OF BASINWIDE ENVIRONMENTAL IMPACTS STUDY

r I i~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Bde mpiementatlon$odor Major Recommended udg$ Shedule (ye ) LeOdeObltve. Action 1000'S 1 2 | 3 | 4 5 5.i 6 I7 0 1 0 9 Patcp

A. Conservation ProgrammeEnhancing Community Sustdlnable use of forests; rnaintaln Estabish & support user groups; supportParticIpation In Forest blodiversity levels; minimise solleroslon: private planding; Introduce community 690 ' DFOMonogement & Conarvatlon better use of highly degraded forest action .or..A...rur..development

'in volvement of Local Mset labor camps' wood needs wilhoutCommunltUea In Servicing Road severe forest damage; mInimize Form local commkitees to lIaise wihh& 20 DFOConstmition Requirements potential soclal problems during road provide wood to road labour camps >

building _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Management of National Forests Provide for Improved, exclusivel HMG/N Link with Institutional strengthening projectand Plantations mngdofselected forestsH U lfor DFO to Improve national forest mgt | 240 > > DFOand Plantatios mngt of selcted forestsestablish forest mgt demonstration sites

Conserve last extensive forests In the E.t.blish a ca. soaq km 'Conservation ConservationMilke Danda Conservatlon Area easl; protet threatened wldlie s Area'; nature conserv.: pasture mgti 1.325 > > - NGO9promote ecotourdsm, conserve tourism development; rural development . DNPWCwatersheds

Promote economic benefits from . Estabilsh short-term crop conserv. plots; NtionalConservation of Crop Genetlc domestic & wild plants for local short-term preservation of material 805 x x x x x x x AgricuflureDiversity communities & the nation abroad; aetablish local conserv. center Rosearch Cetre

Presevatin ofMonuents, Presrve he Aun's ultual &folk Restore/upgrade cultural site.; establish ArcaelogyParedseraites of Folkumeritage hreerietageArnscNalfk permanent folk heritage record; establish 330 x 3 " ' Auchi amsoluSacred dSes &FolkHrag heritageuseum; heriage oducallon program Nalhl msen

LEGEND* Projects In itlics are reoommended for preemptive action prior to the x Plannlngfpreparction periodroad construction phase m Core oivy

> Continuing routine operatlon

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I I I t~~~~~~~~~~~~~~~~~~~~mpletmnfatlonMeaor Recommended Budgut Sehedume ar.) Low8ector Oblotvwos Actlon US$ | | | | * 10 Padp~~.faqubuV6U 1 ______ ~~~~~~~1000's I 2 11 31.3 416 i I i _

B. Income Generation Programme

Agrcu -ural Development Improve possibilities for long-term Irrigation deveopment, promdlon of& DiversHflcatIon economic sustalnabilty In cardamom; vogetable productin; seod 1,277SankhLrwasabha District cadfc;vgtbeproduction sed 1P77AC:N DAW

Minimize degradation of forests, Cow & bufao milk producton; mea; ALivestock Development pastures & other resources; improve production; plggery development; 841 >KHDP

household Incomes Improved breeds

Develop a strategic framework for EsalKHDsrc &VlaePorsEcotourlsm Development cotourlsm development which Is EMtalsh Dind Irt rastrudTureMotsensitive to Onv. & cufture & provides Commitees; Provide Infrastructure, 350 M. .:d..trofxa

local benefits training & othe support

Prormote economically & environmentally Estabilsh business promotion officeiSmall Business Promotion viable small business: provide provide special loan programs. revolving 120 § > Devebpment

assistance to women entrepreneur ftunds, etc.; link wRh market outlets

C. Institutional Strengthening Programme

'Strengthening Government Improve forest management; improve Institutional strengthening of DFO, supportIrenglenstitutions nt ImPlementation Of communiy-based ilaka agencies with physical facilltiesL 470 >.>

development projects manpower

Creation & Strengthening of Improve community-based resource Forn local user groups; form and train .Community Institutions mngt; Inilate L strengthen local Community Development Committees; 530 x x > ABIMB

economic cooperatives Increase & strengthen cooperatives

_. Extension & Tralning Programme

Promole locally-based actlon for Establish Tralnig & Education Sectlon;'Training 4 Educe lion resource conservailon, fund raising; traln local HMt3N resource agencies, 655 x > >BEMU

build a cadre of trained local people local people, women; fund-ralsing _

Forestry Extension Create attitudinal changes among local Support DFO In developing effective 30 > | > |F0People regarding forest conservation forest extnsion programs 3 F

Promote effective Informnation spot&poietann odsrc 0~UIEArts Actlon Groups dissemination on conservatilon, health, Suppolr & provide tralning to dldt|

sanitation & other themes - - .

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ImplementationSector Malay Recommended Budget hdis (yem) Law

Bodor ~~~~Oblactves Aodon US,$ |3|4|S 5|§|S Partdeponb____________ ______________ 1~~~~~~~~~~~~~~~~~1000,6 1 2 34 67910a~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~. _. _ I .

E. Infrastructure & Energy Programme

Dlrect Access Road Related Discourage tendency for communHlus to Provide for access road paving & link &Diet Access ProadRlaed abandon their current locutions & move spur roads to larger communities along 1.925 xNEADevelopmen Project o the roadside the access road

Settleent-Reated Eable uture evelopert ofneces Identify fundlng to support asetlement8ettlement*Related Enable future developmentrof riecessary development plans to be prepared by 1,500 - ABIMBInfrastructure Development Infrautructure whin major settlements Community Development Commitees

Improve social, polHical & economic Develop rural eloctrification In hlgh Impact InsibutfnAlternative Energy Proposals conditlons by tapping loea energy zone; develop micro hydropower 2,500 _ x I rural

resources schemes; study energy subsiHutilon elecriflcation

F. Research, Monitoring & Information Programme

Biodiversity Research & Provide data to guide blodiversity mngt Ethnobotanlcal research, vegetation &wildlife Inventories & transacts: wildlife 250 WIlefF. . ABEMUDatabase & monitoring programs depredation studies

Trfil & Susp.Preparation of Trall Network Encourage & support safe & timely Prepare a trall network map showing Bridg Dlv.;

Map travel In the basin settlements, market centers, etc., action 15 | TopographIalMap travel In the basin ~plan for upgradlng/maintaninng trails ISuiveypDept.W

Identify environmental trends &cendtiy evlnmf r al tefecriensdetion * Monitor & evaluate the physIcal, social,*Environmental Mon horing codlosfrefciecnevto, cuitural & economic enivironment of the 750 EI ABEMUsustainable development of the Arun's Arun Basinresources

Total Estimated Budget over 10 Years US $ 14.6 Million

LEGENDx PlanningVpreparation period* Prolects In Italilc are recommended for prempffvo *ctlon pifor to the

road constiuotlon phar I Core activiy> Continulng rouUne operatlon

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Table A5.1 IMPACTS OF ROAD CONSTRUCTION ON HILE

DIRECT/ SIONIFICANCE DURATIONTOPIC IMPACT INDIRECT H: Hlgh M : MmIATION REtIPONSBI"

0: DIrect M: Medium M: Modium IMOTOI: Indirect L: Low L: Long

Possible poilLtion and fires from spills and Normal cars and good house keeping. HMO/acidns 1 saniutaton and waste droms5polls enda L s Adequaie saniation facIlItles; controlled CMI Aviatkoacctdrnts, sanRatlon and waste disposal disposal of waste ContractorsNATURAL

RE8OURCES Demand for forest products I M S Improve forest management MOFSC

Disturbance of livestock from helicopter D L S Restrtdlons on flight paths; compensdion CMI Avlation, NEAnoise

Concentratlon of approx. 450 DP H 8 Prwvde extra servlces Cordrador, RAPproJect employees and labourers

DEMOGRAPHYInfilux of Job seekers, unconnrolled D M S Provide sevices support lca admInIstration RAPsettlement, social discription

Demand for additlonal food, commoditIes, 0 M M Provlde goods, kerosene & Weetiiy to Contractorfuel, price Inflation workforce

ECONOMYInhial boom: D H M Strengthen VDC & local servicesLater lose of trade D M L None _

Pressure on public health services D M steablIsh health facilikte for workforce, Contrador, RAPstrengthen local faciliftIe

HEALTH Pressura on publia woder ayatem D H ~~~~~~~Construction of water supply system .for CortactorHEALTH Pressure on public water system D H proJect facilities forlracto

Addhitonal waste & sewage D M Waste to be buried or burned, adequate Contractorsanitation

APPENOIXNEW A-1 9

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Table A5.2 IMPACTS OF TEMPORARY AND PERMANENT FACILITES ON TUMUNGTAR AREA

CONSTRUCTION/ DIRECT/ SIGNIFICANCE DURATION =TOPIC IMPACT OPERATION INDIRECT H: Hlgh u: Short MAM ATION RE0PONS101LrTTOPIC IMPACT ~~~~~~~~~~C: Construction D: Oirect M: MedIum M: Medium MIIAINSOSDU

______________ [o0: Operatlon 1: Indiret L: Low L: Long _ -

NATURAL Erowlon from storm dralnage D L M Proper design of outfaids ContractorRESOURCESPossible damago from earthquake 0/0 D H S Proper design of structures, foundation ContractorPossible groundwater contaminallon C/O I L L Bunding around uel storage Contractorfrom fuel spills and sewage

Forest degradedtion and clearance to 0/0 I H L Avold use of wood as fuel by labour Cortractor.meet Increased demand for forest force; supply subuidised kerosene; RAPINEAjNGOproducts; rdsk of fire; clearanoo for promote akernatives to wood forcultivation by Incomers or displaced construocton and heatlraoooking;pemons establish user groups; educationWildlife: loss of habitat; disturbance so C/O I H L Proect/manage forests; education: Cortractor 4reducing breeding success; direct extend and enforce hunting regulatlons; RAP/NEAINGO,hunting for new markets flight path restrictlons CHvii AvitinIncreased flshIng pressure for new C1O I Uncertain L Avoid providing arny bsleting materials to Contractorrmarket; use of destructive methods public. Enoourage flshing by non- RAPINEAINGO.

damaging methods.DEMOGRAPHY/ Displacement of families C/O 0 H L Mlnimize land requirement; for CortradorMNEASETTLEMENT acquistlon of land needed permanently

use ACRP

Concontrallon of approx. 1000 proloct C D H S Fully serviced camps near workplace Cortractorworkforce

Influx of hundreds of lob seekers and C H M Regulation of setloment on publlo and RAPNDC/NGOentrepreneurs, uncontrolled settlements, private land;Training and strongtheningurban growth of VDC

Concentratlon of approx. 170 road 0 D L L None requiredmalntenance workforce

Further growth as key trading centre H L

APPENDIXNSW A-20

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_ CONSTRUCTION/ DIRECT/ SIGNIFICANCE DURATIONTOPIC IMPACT C COPERATION INDIREOT H: High : Short MMATION RESPONSIBIUTTOPIC IMPACT ~~~~~~~~~~~C: Construction 0: DIrect M: Medium IM: Medium MmATo

0: Operaion 1: dirctl L: Low L: Long

ECONOMY Loss cl arable and grazing land, C/O D M L Mln!mlze land requIrement; MlnimIze CortractortNEAdecrease d agrlcuiural production and acquisitlon of swabte land; AcqulsNon dfodder resources land only for permanent use; Rent land

required temporarly eccording torecommendatlons (see.text): ACRP

Requirement of additlonal food, CO D/P H L Encourage production of crops & RAPINGO/commodities, fuel, price Inflation liestock; Provide goods, kerosene, Contractor

esctricity to workforce (ar price shops);Umited use of local uhewood, prohlblunauthorised felling of trees; Forestrydevelopment programmes

Increase of spatlal and economic C/O M L Integrated rural development pro- RAPtNOOdissimilaritlos gramme"

AddHlonal pressure on Infrastructure C/O Dtl M L Improvement d public Infrructure RAPNDC

Increase of land values C/O Dl M L Minimize land req JremotrL Rent land NEAConrsctorrequired tem poraul;y.Minimize delays betwesn properlyevaluation, compensation and acquisbion

Job opportunthIs for local penole C/O D H M Training of local people to fill approprlate NEAAPpositions

HEALTH Additional pressure on public heath care C/O DAl M L improvement of public health services; RAP/Contrador/system Flrst aid facilitis for projct warlkorce. NGOVNDC

Informadion and extension programmes

Additlonal pressure on public water C/O Dl H L Water supply for proJect faciliies to be Contredor/system constructed; Improvement of estng HMC/JV

water system

Additlonal waste & sewage C/o I M L Prject waste to be burled or burned, CorlractoriRAP/adequate sanitazy system; Extension NtOOJVprogrammes for latrines

APPENeX.NEW A-21

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CONSTRUCTION/ DIRECT/ SIGNIFICANCE DURATIONTOPIC IMPACT OPERATION INDIRECT H: High 8: Short MMOATION RESPONSIBIUTTOPIC IMPACT j ~~~~~~~~~C: Constmuctlon D: Direct M: Medium M: Medium UTIATO

0: Opesalon 1: Indirect L: Low L: Long

Disruptilon of stable relationships and C/o I M L Training and strengthening of VDC: RAP/NYOsoCIO1 soclal patterns In famOlies and Training and extenslon progrwnmes,CULTURAL communties espec. female extentlon programmesSYSTEM

Unequal Income opportunltes wHhin C/O D/1 M L Inoome geeradion programmes RAP/N5Ofamilles and communHles M

OTHER Disturbance from hellcopter operations, C D M M Flight paths, hours of wodc, sting of CortatorNEAdloss of livestock nolseaensiWve falfltle, finandal CMlv Avition

compensatlon

APPENDIX-NEW A-22

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Table A5.3 IMPACTS OF ARUN ACCESS ROAD

DIRECT/ SIGNIFICANCE DURATIONTOPIC IMPACT INDIRECT H: High M: Short MMATION RE8PON81BILITYTOPIC IMPACT 0~~~~~~~~~~~: DIrect M: Medium M: MediumMTIAONESOIIUYf

___________ 1: Indireot L: Low L: Long

CONSTRUCTION

Destabillsatlon ot elopes by cut and fill D HL Care In route eligrenent design, constdrucion ErgineDestablllsatlon of slopes by ctit and fill 0 H L sequenice, drainage, slope stablflsatlon meastires Contractor

Damage to slopes, stroam. and felds from spoil D H M lance etworks; locate nd operate dIspoa Engru/disposal DH sites wIth care: avoid sldecasting: use rivers for oar

Cut only thoss trees stfeded by Permanent Works;NATURAL Impacts on forests from land take and demands specify nontimber construction materals: banu EneRESOURCES of workforce and Incomers DAl H L of wood for Iheating blum en; control woridorce and Cnrdrisupply subaldised kerosene; strengthen foret

protection and manegement

Severance of wildlife habhita, habitat destruction, Route road around hey ecological areas; ban Engin.v/disturbance, hunting DPl H M Cortractor use of key a|ea: control woldoce;education

Increase In fishing; use of damaging rriethods I M Supply subidiese food to worldorce; control Contradwexplosives, encourage sustainable fIsNng methods CoraoRA

Land take for road D MMnimise road length end Rlght of Way width: Enginewcompensate and rehabilitate

ECONOMY Employment on road construction, and resultant D - Encourage local recrukment EngIneer/ECONOMY ~cash flo 0 MEnouag lcatcrrmn

Price Inflation, and lowered avallabIlty of food to I H M Provide subsidised food for workforce; assist poor In CoriradoriRWpoor obtaining employment and servke opportunits

APPENDIXNEW A-23

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DIRECT/ SIGNIFICANCE DURATIONTOPIC IMPACT INDIRECT H: Hih M: Medium MMGATION RESPONSIBILUTY

1 I: ndirect L: Low L: Long

Accidenrs at work and on lhe road D/1 M/H Sate working techniques; safety dothing; drver Contractor/training: education

HEALTH Possible spread of marlari and other diseases D L Treat new employee.; provIde prophylactic.; OortractorjRAPamongrst and by workforce maintain clnics; health educatIon

Estres on existing health facilltles I Ml/H M Strengthen health system RAP

OPERATION:WHEN ROAD 18 OPENED TO PUBLIC

Long-term slope stability problems along some M L Provide adequate resources for effectve HMOsections of road maintenance programme

Greatly Increased demand for forest products, Improve forest management, especIaly by userNATURIAL resulting In unsustainable harvesting od all I H L groups; target programmes for poor to minimise MOFSC1ARESOURCES products over wider area than at present and need for llegaVunsustinable harvesting and slCshretreat of forest and bum by poor

Lose of habitat of rare and endangered species I H L Improve forest management; control hunting; MOFSC/DNPWC/of mammals, reptiles, birds and Insects education; encourage eco-tourism RAPVery largo price adlustments when road opens, H L None required or feasiblethen low prices for Imports

Loss of long-haul portering jobs for poor I H L Income generation programmes to create alternative RAPopportunitiesImproved Incomes from livestock products I M L Assist wlth needed Inputs, marketing RAPECONOMYReduced prieas for locaily.produced crops I M L Programmes to intensfty/diverslfy agricultutral Pproducton

Increased tourism I M L Programmes to maximbsa local benefit and minimiseecological and cultural ImpactGrowth of settlements near road I H L Assist with planning and services VDCs/RAP

CULTURE Accelerated cultural change I H L Heritage programmes; education RAP/VDCs

APPENOIXNEW A-24

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TBble A5.4 IMPACTS OF HYDROPOWER COMPONENTS

CONSTRUCTIOWI DIRECT/ SIGNIFICANCE DURATIONTOPIC IMPACT OPERATION INDIRECT H: Hlgh 8;5 hord Mt=TION 1E _IIY

C: Constwfutlon :Direct tM: eim M: Medium isads MfGTO SOSIt0: OporIlon 1: Indiroad L Low L Long

InsWI dust coledors (tilt), watr opryi a_| AIR QUAUY Incre ofakbom dust rom consudncLonffo M embt equtpmha; Dust ou wtih wab Inand pant durng dry season dry on; bbek top hFy use ; hing

I ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~ _____ protecton

Road ondnjcn mtehods to be cwbrlled: ReduceSb road aonabcUon Impacb on draiage to extent posisb spoll dumps nd uaodaed romdr,systms, vOgetaton oru, wun Off, dopeS; bzi of C D M M Combhoe ad and poehoeum canpam Slpe Conburcukivted land protWcon measrs; Relakm an rgstat d

I________ ____________ tempory wedl; Sag sot for u hI roedmobnBacil boruw pb and quaris wkh cpol; Baddol to

Impacts of quarries nd borrow pbs on drainag eabl contours; PMie top ed; Ent. by hWingyotems, vegeaton cover, sIope, and lnd; 0 D M M benches w enough for lter cuUvi; Pmf4 for Conhtr

croaon of deep righwail oedons contold drahage; Rela & reset di edspe"; Make teporuy fade wsbe to apova

TOPOGRAPHY, Epldsoa ra:Io fcliae ad minate epoll dumps by usin osected opal forVEGELATION croation of el We; Construction Co _ _ *ternpoy 0 M M or, w ConracrVEGETATIacessbroadsph,;Pk remainder of ope In rtver Maelsccsn roadstn tmporary ladHes wbjc to apprwl

Priseled Ues, Altemrdho or addon dtproposd by Contractor to be subjed to EIghtserbapproval; Combin adR and perorm cortuctn

Contractorl Camps: temporwy bI of uidvaSed Camps; hnplenit erosin prot n mneass ;land.: effctls on drainag ystsms; bas of H 1 minkmlz dlnce n camp & wok rs;vegetation cover; 'os of producive foret knds; S soHmi s pn eo grndeg; caps R&p6 wor ares;constructn of access wade; waste disposal as culad land; Inl dinage contol ytsme ftor

long term us; Rvegetao d dietrbed -oMa, tmporary fael subjed to approvl Reducespa equrment by speing two doray buldigs

MATRXHEP A-25

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CONSTRUCTION/ DIRECT/ SIGNIFICANCE DURATION ToPIc IIPACT C ztOPERATION INDIRECT H: Hlgh 8: short M TION IE N M

0: OperanIon 1: Indirect L: Low L: Long

Salvage ob tb to gradhg; Minmla hm ht dbendhes; khbl dmlnsp aEl systemc; PAvode

Pernwnt NEA Camp: lose of nuetyd land; slpe; Reduc at" n a by elmhat freedisplacementolal tfdnredents; changes In g itanding ob famN staudirCdrainage systems: Incrase In erosion potential: D L L Devlop t*o do rey buldigswhe po to rdiuescreation of terraces; cuting of elopes buldkig sies

Compensation payment and addiWonal moeurva (seetext). IProgramme of foresby conseston and d6ewlbpmentIndked Impacts, Demand for hualwood and other Provide f f ors eConnrao mertfor"t prouctb CIO IH L proside ardeens for OA; make Contracor CanbtroftERANPresponsbe for behaviour d his worce

Dam ConstrucHon & Operatlon: changes to _ _ i _hydroogkal regime; downstream dewaterlng; C/O D L L Hazard wrning qstemn for down*ream arewh n NEA

HYDROLOGY AND resorWoir aedinentatlon and flushing llushhg rSEDIMENTS Construction Actes: kitroducdon of olk greoans

Irom tunneling & other activlHes hIto water C D M S Coiktion of usd lubrbanb fr tconld disposal Contraclorbodis _

Damn Construction and Operaton: changes to

FISH flow regime & sediment deposition paterns O D H L None yet lown to be feab; fnuwr surv NEA. APEMUchanges to aquatc hblat; Interuptlon of requiredmigratory pattems _

BIRDSI & MAMMALS Cod lnof Project Fachildes: lo of habfta; 0 M Mlnhnlse lr!tedo tal and foet clarace w*n*o on NEAoSlrciorlRAPdisturbano of bredhng sloea worl_; prot __ _res_s _

Prje Conebucdon: conoenbraton of approx M Skte campe nar wotmpace & at a diatance from3500 hydropower workforme; displacement of C 0 H Indigenous seelements: ACfRP; Frml Dewopoment & NEAWapprmx 190 households Training Programme

DEMOGRAPHIC Projoct Operation: permanent NEA saf ofapprox 203; deelopment of larger economlc 0 I L L Strngtrwn belo community orga nhm and VDC PAPcentre resuing in Inereased population

Indirect Impacs: Infux of 2*3000 lob seekers & H M eultHon of men on pubic an prh land; VDC#INGOwRAWentrepreneurs; uncontroled etWement strengen local organsaMtio

MATRXHEP A-26

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CONSTRUCTION) DIRECTI SIGNIFICANCE DURATIONTOPIC IMPACT OPERA7iON INDIRECT H: Hlgh 9: Short MMfATION fE I Y0:Construction D: Direct M: Mledlum M: Medium

_ - _ O Oper tlon :I Indirect L Low L LongLandtalke, o of ablel bnd C 0 M M Intendf produt onf dmehm ngmnd; NEA'RAP/Conbr||80CIO-ECONOMIC Relim amble lnd after constutiontAND CULTURAL.Los of forest resoures: C Dn M L Cobrol defoeon; oresty onmwvatlon & NEASC*ecbjRAP

devloppment progrmme;

Displacement of epprox 144 famlhs; C D H M MlnnIze Proctled requhemb; Comp6rl5ion & NEArehabltalon progmm me

1. Projd Intnpfon of normal famig Ctvlee: C DA M M Intendfy producton on meihhg knd; RAPConeudlon Pvide aiwl hlg fhr mpblymet n _nstudn; NEMWV

Requirement for addtlional food for bcal people C D H M Encourage producdon of crope & Odock pmduct RAPXoSotr& woWorre & Immrunb:; for eal to wottorce and oter outtst; Conactor b

prod bogie fr his woddorc.

Requirement for addllonnl fuml supplbs C D H M Conhb Dto provide Wmu1 & eldky to C eonr/woAforo., Imk ue o local wfuood; Po MOFSCIRP |unuftode felho of hsN uad - of open Ie;Foreety dvwlopment programme.

Disturbanc of radWonal eoclal & cuurl C D M M Tmhnlg sde irsrenh dg \Abge Devlopmsnt RAPpatterns by krge saes Immgridon CommUne; programmes for non4digenous lbour

Some Ob oppodunites for lokl pope ; 01O M Tralngod bcsJpoople; o/ Dl approp ApodBA2. Project Operaton Us* pmposed 33 IY prer Ins to prod bcalPossbb avalblrty of elctrcky In Pmrojwea 0 D M L setlements & smaduudes w.lh power. Dlop NEA

rural ele7

MATFOXHEP A-27

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Table A8.5.1: STAGES 1 AND 2 TRANSMISSION UNE IMPACTS - CONSTRUCTION PERIOD

f T ~~~~~~~~~~~~~~~~~~~EIN IETNIET SIGNIFICANCE DURATION

TOPIC IMPACT | R| DIRECT H|HIHO MfITIOATION RESPONSIELiTYTTRAI Iz INDIRECT MMEIM M EDU

PHYSICAL RESOURCESWater Quality Sediment from earthwo,*s H D L S Careful working methods: revegetallon. Contnactor

Slopes and Sois Erosion from earlhworks, especally H D M/H M Careful deslin and alignment controb NEA'Englneer/access roads on borrow areas and spol disposal ContaictrECOLOGICAL RESOURCES

Forests Vegetatlon clearance, fire rsk H/T D/ H L Route line sway from formsts; minimise NEA/Enginor/ROW width fre precaution. Contractor

Wetlands Vegetaton clearance, disturbance, fire K. T.ppu DA Uncertaln S/M Altemative line loatlon, good working NE&iEnornewr/risk prc0ces Contractor

Wildlife Disturbance, habitat lose H1T D Uncertain S/M Avoid wildlife awea and broeding NEAeginer/sesons; control wor1force Contractor

HUMAN USE VALUES LLand Take Permanent lose of arable iand; decrease H/T D (however,for mSIi L MInimise land requirement NEAnineer/

of aqdcultural productlon farmer: H) MinImlse acquisiton of able land Contraclor

Temporary loam of arable lend grazing H(T D H a AcquIsldon of land only for permanent NEAlContracbr|land; decrease of agriculturil productIon use according to LAO 2045 andand fodder resource. racommendations (comp.text)

Loss of houstes, displacement H/T D L L Rent land required temporarily according NEAlContractor(however, In to recommendatons (mp. text)KathmanduValley: M)

Damage to arable land, crops and H/T D M S Reinstatement, compensaton Contractorfacillties

Employment Concentration of approx. 375.450 prolect H D H a Camps near Workplace Contractor,worikforce T 0 L a Engineer

Influx of lob seekers and entrepreneurs H I H M Control of settloment on pubic and VoCRAP |T I L M private land; Training, strengthing VDCs

MATRIXUN A-28

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REGIN DIIECTNDIFECT SIGNIFICANCE DURATIONTOPIC IMPACT UHILL | DEDIRECT H.HIOH | SEHORT M rITIGATION RESPONSIDIRTY

THTERI lD=NIRECT MftMEDIUM M.MEDIUM

7 Health AddWonal pressure on pubic heasHh care H/T DA M M Improvement of pubic hoalth serwicee; RAP/Contralcorsystem Provido health facMtes for worlfore;

Irnhrmatlon nd *xtenion progrmmes

Add Wonal pressure on publlc water H/T D/I M M Water Supply for prolect to be Contraceor/RAPsystem constructed; Improvement of existing

water systems

Addtlonal wasle sewage Hrr DA M M Prolect waste to be burled or bumed; Conrtor/RAPAdequate sanitary system

Trade/tnrestructure Add' onel pressure on Infrastructure H Dl M M Improvement of public nfrustructure RAPT D/I L M

Requirement of addiwonal food, H D/I M M Provode goods, kerosene, eectrclity to Conbtacor,commodfthe,s ful: Inflation T DA L M workforeo (fair price shops); UmIt use of Enginer

local fusivood, prohlbit unaunhorsedfelling of trees

QUALITY.OF.LIFE VALUESSocib Cultural System Disruption of community relations H Oil M L Not feasible

T D/I L L

Unequal Income opportuni es In families H/T DA M M Not feaaible (except In the Anm Viey: RAPINEAand communWtes Income Geneton Programmes)

Negative atttudes towards govemmentprolecb, Implicatlona for future H/T I H L Planning rural electrtifceation and roads HMOdevelopment

MATRIXUN A-29

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Table A5.5.2: STAGES 1 AND 2 TRANSMISSION UNE IMPACTS - OPERATIONAL PERIOD

REGION DIRECTfINDIRECT BICIGNIFICANCE 1DURATIONTOPIC IMPACT HcHILL I D=DIRECT Ha;HIGH SSHORT Mf|lATIO RESPONSIELNiTaTERAI 2INDIREC MuMEDIUM M:UEOIUMTeTERAI ImINDIRECT Im~~~LLOW [LzLONCI

PHYSICAL RESOURCES

Slopes and Sols Eroslon/Sodlmentaton from accoss H D M L Maintenance or NE. Vlageroads reinstatement Devekpmenl

CommitleeECOLOGICAL RESOURCES

Vegetaon managoment NEAForests ROW vegetation management HIT 0 L L guidelInes

Line location to avoid NEAlContecbrDept ofBlrds Collision hazad H?/T 0 UncertaIn L flyways; design fears Natonal Parks &to mihkmise colsIons WdMh Conservation

Other Wldlfe Utlilsatlon ofibanler effect of RoW HIT D L L None requ"kdHUMAN USE VALUES

Line location & deelgn NEA/DepL of ClvAvIatIon Collision hazad Tumllngtar D H L visIbilty aids Aviadon

Land Values Decreas In land value In the vicinity KAthmandu I H On densely L Compensation payment NEAof the. lIne populated areas)

QUALITY-OPFLIFE VALUESSecurty devices; pubic NEA

Public and Worker Safety Risk of electrocuton KIT D H L educatlon; bakmkng_Spoilng key views and landscapes; Line location lo avoid NEA/EnglneorI

Vlual Amonity and HerItage SItes Allen feature near heritage shes: effect H D M L sensIiv sites, Contracoron tourism camounage

MAThIXUN A-30

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Table A5.5.3: SUBSTATION IMPACTS

- ~~~~DIRECTflNDIRECT j SIGNIFICANCE DURATIONTOPIC IMPACT D DIRECT r 1| s:FID | RESPONSLltY

O.ONIREC1 M=MEDIUM M=MEDIUM MIOTO !PNIL1________________________ I InINDIRECT ~~~~ ~~~ ~~L=LOW LzLONQ _- _ _ _ _ _ _ _ _ _ _ _ _ _

C O N a T R U C T I O N P E R I O DQUALITY-OF-LIFE VALUES

Employment Projecl Workforce of 40-50 D L M None rquhsdHUMAN USE VALUES

Land Taken Permanont and tsmporawy loss of D H L AvoId land acqubllon in NEAarable and grazing land, decrease of (for small fatnerm) densely popudated asagricultural productlon and foddemrresources Acqulaftin of land for NEAronfrnclors

pemianent us according loLoss of houses, displacement ACRPk Rent lnd requIred

twrnporalyO P E R A T I O N A L P E R I O D

PHYSICAL RESOURCES

SoIl and Water Transformer dll splls D M Oil rerntenon lump NEAEnqineer/Contrestor

QUALITY-OF-LIFE VALUES

Heulth EMF exposure to neairy residents L L ApproprIab sting NEAEfnglner/Contracfor

Salety Lightning strikes, transformer SH Appropte design, NEA/EnIrlr/exploslons & elc. mdntenance, traning Contractor

MATFIXUN A-31

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