Distribution System Upgrade & Expansion Project: Environment and Social Management Framework (ESMF)

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Environment and Social

Management Framework (ESMF)
Distribution System
Upgrade & Expansion
Project (DSUEP)
Nepal Electricity
Authority
Kathmandu, Nepal
Date: 28 November 2019
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TABLE OF CONTENTS
Abbreviations & Acronyms ................................................................................................. 4
Executive Summary ........................................................................................................... 7
1. Project background ....................................................................................................17
2. Baseline information ..................................................................................................22
3. Policy & framework for E&S issues ............................................................................75
4. E&S Safeguard Approach ........................................................................................139
5. Operationalization of ESMF .....................................................................................154
6. Consultation & Information Disclosure .....................................................................162
7. E&S Safeguard Monitoring.......................................................................................169
8. Budget for Implementation of ESMF ........................................................................172
Annexures
Annexure 1: Environment and Social Screening Checklist
Annexure 2: Environment and Social Management Plan Format
Annexure 3: Entitlement Matrix
Annexure 4: Environmental and Social Monitoring Checklist
Annexure 5: Outline of a Resettlement Action Plan
Annexure 6: Outline of Indigenous People Development Plan
Annexure 7: IPs & Vulnerable Groups Impact Screening & Categorization Form
Annexure 8: Socio – Economic Household Survey Questionnaire
Annexure 9: Discussion and meaningful consultation with indigenous people for FPIC
proposed
Annexure 10: Environmental and Social Trimester Monitoring Report Template
Annexure 11: Labour camp guidelines
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Distribution System Upgrade & Expansion Project

Environment & Social Management Framework
List of Tables
Table 1 - Key Stakeholders and their role and responsibilities ........................................................................... 9
Table 2 - Districts selected for DSUEP.............................................................................................................. 18
Table 3 -Details regarding 33 / 11 kV substation locations shared by NEA ...................................................... 18
Table 4 - Major castes in project areas ............................................................................................................. 22
Table 5 - Power distribution in household under project districts ...................................................................... 23
Table 6 - HH wise Occupational status in subproject areas .............................................................................. 25
Table 7 - Demography data with caste and ethnicity (Beneficiaries) ................................................................ 27
Table 8 - Land-use pattern for substations ........................................................................................................ 29
Table 9 - Minimum Land Required for Sub-Station ........................................................................................... 34
Table 10 - List of water bodies lying along and near project area ..................................................................... 37
Table 11 - – List of affected forest for substation ................................................ Error! Bookmark not defined.
Table 12 - – List of affected forest for distribution lines .................................................................................... 38
Table 13 - Baseline of Environmental and Social Management Plan ............................................................... 42
Table 14 - Components of DSUEP .................................................................................................................... 55
Table 15 - Minimum distance which ought to be from the wire to the house and tree ...................................... 66
Table 16 - Minimum distance which ought to be from wire to the ground ......................................................... 66
Table 17 - Minimum Clearance between the wires for HT ................................................................................ 70
Table 18 - Minimum Clearance between the wires for LT ................................................................................. 70
Table 19 - Summary of Mitigation Measures ..................................................................................................... 71
Table 20 - Policies Gap Between Government and Co-financer ...................................................................... 96
Table 21 - Land Acquisition Process as per Land Acquisition Act 2034 (1977) ............................................. 113
Table 22 - Major castes in project areas ......................................................................................................... 125
Table 23 - Categorization of Project on the Basis of IPs ................................................................................. 132
Table 24 - Possible strategies and activities for the development of vulnerable communities ....................... 137
Table 25 - Criteria of EIA and IEE study ......................................................................................................... 143
Table 26 - E&S Safeguard stages involved in Project Cycle........................................................................... 148
Table 27 - Monitoring Plan .............................................................................................................................. 152
Table 28 - Roles and responsibility matrix....................................................................................................... 154
Table 29 - Implementation Schedule ............................................................................................................... 160
Table 30 - Monitoring indicators methods and responsibility .......................................................................... 169
Table 31 - E&S tentative Budget Breakdown sheet ........................................................................................ 172
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ABBREVIATIONS & ACRONYMS
Acronym Full form
AIIB Asia Infrastructure Investment Bank
ARAP Abbreviated / Resettlement Action Plan
CDC Compensation Declaration Committee
CDO Chief District Officer
CFUG Community Forest User Group
CITES Convention on International Trade in Endangered Species
COI Corridor of Impact
DBH Diameter at Breast Height
DCC District Coordination Committee
DFO District Forest Office
DoA Department of Agriculture
DSUEP Distribution System Upgrade and Expansion Project
DT Distribution Transformer
E&S Environmental and Social
EHS Environmental, Health, and Safety
EHV Extra High Voltage
EIA Environmental Impact Assessment
EMF Electromotive Force
EMP Environment Management Plan
ESMP Environment and Social Management Plan
EPA Environment Protection Act
EPR Environment Protection Rules
ESIA Environmental and Social Impact Assessment
ESMF Environmental and Social Management Framework
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Acronym Full form
ESMU Environmental and Social Management Unit
ESP Environmental and Social Policy
ESS Environmental and Social standards
ESSD Environmental and Social Studies Department
FI Financial Intermediary
FY Financial Year
GAP Gender Action Plan
GIIP Good International Industry Practice
GoN Government of Nepal
GRC Grievance Redress Committee
GRM Grievance Redress Mechanism
HCI Health Care Institution
HT High Tension
HV High Voltage
IEE Initial Environmental Examination
ILO International Labour Organization
IP Indigenous People
IPDP Indigenous Peoples Development Plan
IUCN International Union for Conservation of Nature
LA Land Acquisition
LAA Land Acquisition Act
LARC Land Acquisition Resettlement and Compensation
LCF Local Consultative Forum
LT Low Tension
LV Low Voltage
MDG Millennium Development Goals
MoEWI Ministry of Energy, Water Resources and Irrigation
MoPE Ministry of Population and Environment
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Acronym Full form
MVA Mega Volt Ampere
MW Mega Watt
NEA Nepal Electricity Authority
NEFIN Nepal Federation of Indigenous Nationalities
NGO Non-Government Organization
NHRC Nepal Health Research Council
NRS Nepali Rupees
PAP Project Affected People
PIC Project Information Center
PIU Project Implementation Unit
PMU Project Management Unit
PPTA Project Preparation Technical Assistance
PSF Project Preparation Special Fund
RAP Resettlement Action Plan
RMS Rural Municipalities
SA Social Assessment
ToR Terms of Reference
UN United Nations
VCDP Vulnerable Community Development Plan
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EXECUTIVE SUMMARY
This Environmental and Social Management Framework (hereinafter referred as “the Framework or
“ESMF”) is prepared for addressing environmental and social safeguard issues in “Distribution System
Upgradation and Expansion Project (DSUEP) of NEA. The ESMF sets out the principal, rules,
guidance, steps, responsibility and procedures for assessing and addressing environmental and
social risks and impacts as part of the process of preparation of the sub-projects (33/11kV)
substations and distribution line) to be implemented under DSUEP through the support of international
financing institutions (IFIs). Likewise, the ESMF aligns with environmental and social provisions of the
Government of Nepal (GON) and constitutes a common framework for environmental and social
(E&S) safeguard provisions of the Asian Infrastructure Investment Bank (AIIB) and the European
Investment Bank (EIB), collectively called the “Financiers.”
This ESMF guides the NEA / PIU and stakeholders in the process of selection, screening and
categorization of environmental and social risks that require further assessment and preparation of
specific instruments such as an Environmental and Social Management Plan(ESMP), Initial
Environmental Examination (IEE), Environmental and Social Impact Assessment (ESIA),
Resettlement Action Plan (RAP), and/or Indigenous Peoples Development Plan (IPDP) as per the
safeguard requirements of the Financiers and GoN.
This ESMF (i) provides an overview of DSUEP and its components; (ii) explains the generally
anticipated E&S impacts and mitigation measures for the DSUEP sub-projects; (iii) specifies the
requirements that will be followed in relation to E&S screening, categorization, E&S assessment,
institutional arrangements for implementation of the ESMF, monitoring, meaningful consultation with
project affected people and relevant stakeholders, and information disclosure requirements; (iv)
specifies the safeguard criteria that determine the required E&S instruments to be prepared for each
sub-project; (v) assesses the adequacy of the borrower’s capacity to implement national legal
requirements and the safeguard standards of the Financiers and identifies the need for capacity
building; (vi) specifies ESMF implementation procedures, including required resources and capacity
development support; and (vii) describes the responsibilities of the borrower/executing agency (EA)
in relation to the preparation, implementation, compliance monitoring and reporting of overall
safeguards implementation.
Through its contractual relationship with the Financiers, NEA will ensure E&S provisions are included
in agreements with contractors, consultant firms and individual experts. If involuntary resettlement
and land acquisition are required within sub-project areas, a Resettlement Action Plan (RAP) will be
prepared. Through implementation of the ESMF, emphasis will also be placed on identifying potential
presence of affected indigenous people and vulnerable communities in subproject areas. In such a
case, an Indigenous Peoples Development Plan (IPDP) shall be prepared for the specific sub-project.
The ESMF includes a process of assessing sub-projects in accordance with the Financiers’ safeguard
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standards1and Nepal government's environmental regulations. Documents, such as EIA/IEE, ESMP,

RAP and IPDP, will be prepared for each sub-project as per the Financier and guidelines of GoN. It
is required to have a public consultation process to encourage participation of stakeholders in
identification of impacts and mitigation measures. In order to maintain transparency, information
disclosure of project activities with stakeholder shall be encouraged. Grievance redress mechanism
shall be established by NEA/PIU to resolve project related issues affecting the beneficiaries. Potential
environmental and social impacts may arise from construction of new substations and associated
facilities. The potential environmental and social impacts are predicted to be temporary and reversible
and easily mitigated through adherence to national and international standards, design criteria, and
the Environmental and Social Management Plan (ESMP).
The environmental and social management plans will include mitigation costs to ensure proper
implementation of mitigation measures and compliance monitoring during the sub-project construction
stage. NEA / PIU will be responsible for ESMP implementation. The PIU shall prepare quarterly
reports on environmental and social monitoring including RAP and IPDP implementation as
applicable, which shall be reviewed by NEA management at quarterly intervals. These reports shall
also be shared with the Financiers during the construction stage. The implementation status will be
followed up during the Financiers’ review missions. Contractors will be required to comply with the
ESMP during pre-construction and construction stages under close monitoring of project supervision
consultants, NEA/PIU. The ESMP shall be updated as necessary if unanticipated impacts are
identified during implementation.
Potential risks and impact

The preliminary E&S survey carried out by the project has identified the anticipated E&S impacts
related with DSUEP sub-projects (33 / 11 kV substations, 33 kV lines, 11 kV lines and LT lines). The
identified location and associated risks and impact of sub-projects will be further assessed following
E&S screening. The project components are as follows –
Component 1 - Construction of 33kV supply lines and 33/11kV substations (including upgrade of
existing facilities where needed)
Component 2 –Construction of 11kV lines, distribution transformers, low-voltage (LV) supply lines
including consumer connections
Component 3 - Capacity building, project implementation support and technical assistance
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AIIB’s Environmental and Social Policy (ESP) and Environmental and Social Standards (ESS); EIB’s Environmental and
Social Safeguard
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There is a possibility that most of the new sub-projects may be located on private land and community
forests. E&S risks associated with sub-projects may also involve labour and working conditions during
the construction, community health and safety issues, potential impact on physical and cultural
resources, indigenous people and effects on livelihood. In sub-projects which involve these aspects,
an Environment and Social Impact Assessment (ESIA) will be conducted to mitigate / offset the
potential risks.
Responsibility of key stakeholders for E&S risk

management
There shall be adequate systems, procedures and capacity for identifying, managing and monitoring
risks and impacts corresponding with the type, scope and nature of sub-projects financed. ESMF
outlines key steps in the Environmental and Social Due Diligence process for the project to ensure
adequate environmental and social consideration.
Table 1 - Key Stakeholders and their role and responsibilities
Individual E&S experts,

Functions NEA / PIU (DSUEP) Financiers
Consulting firm
Support to collect necessary

Initial Screening Review, provide advice and
information, prepare reports, initial
Review the initial screening approve sub-projects and
(identification of screening and submit report to
reports and make decisions their respective
E&S risks and NEA/PIU on potential E&S issues
on eligibility of sub-projects categorization (with regard to
impacts) and recommend for the next
E&S aspects)
action
Prepare E&S assessment reports

in line with the requirements of Review E&S instruments
Review, support and advise
GoN and Financiers. For (ESIA/IEE, ESMP, RAP,
E&S assessment NEA/PIU in managing the
example: ESIA/ IEE, ESMP, RAP, IPDP etc.) for all DSUEP
process
and IPDP, or equivalent sub-projects
management plans..
Provide clearance of E&S

instruments prepared by
Review and Provide clearance for E&S
consulting firm for all sub-
clearance of E&S Ensure clearance is obtained from instruments prepared by
projects. Ensure adequate
instruments for NEA/PIU for all sub-projects consultant for all sub-
legal covenants are
each sub-project projects.
included in all agreements
between NEA and bank.
Observe the E&S

monitoring process and
Prepare site specific E&S guide contractor to
Sub-project safeguard compliance monitoring implement E&S safeguard
supervision & reports, identify non-compliances mitigation measures, Conduct supervision support
performance of contractors, monitoring ESMPs, ESIA / IEE ESMP, activities
monitoring implementation of E&S safeguard RAP, IPDP or equivalent
mitigation measures management plan, and
share copy of E&S
compliance monitoring
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Individual E&S experts,

Functions NEA / PIU (DSUEP) Financiers
Consulting firm
report with the Bank,

issuing non-compliances
against contractors,
ensuring monitoring of the
implementation of these
measures by the E&S
experts
E&S Risk Management Process

Environment and social screening and categorization of sub-project
The DSUEP project will support construction of 33/11kV substations and distribution line activities
which may incur minimal level of impacts. However, construction of new sub-stations and distribution
lines may require Environmental Assessment like IEE as per National Requirements EPR, 1997.
All the proposed sub-projects/activities will undergo screening as one of the foremost and important
steps to identify the environmental and social issues. The screening will also ascertain the instrument
required for the management of the environmental and social issues. Environmental and social
screening checklist (Annexure 1) will be used for assessment and categorization of the risks. The
screening shall take into consideration both the National requirements and the safeguard policies of
the Financers – this can be done by using different checklists / or different sections for GoN
requirements and financiers’ requirements.
Environmental Screening criteria
Project screening is done to identify the impacts of project and its severity. On the basis of impacts
and severity the level of environment and social study such as EIA, IEE, ESMP etc. requirement will
be identified. Once the project is screened, the sub-projects will be categorized as per the following –
Category I (Exclusion List): Sub-projects under this category will not be funded and must be
excluded from the project.
a) Sub-projects with any measurable adverse impacts on critical habitat or environmentally sensitive
areas. This includes national parks, wildlife reserves, conservation areas, world heritage sites,
and known religious and archaeological sites as defined by GoN and the requirements of the
Financiers.
b) Sub-projects under this category are likely to have potentially significant environmental impacts
on ecosystem, natural habitat, cultural area such as National Parks, Conservation Area, World
Heritage Area, Recognized Cultural and Archaeological Area etc.
c) Sub-projects requiring EIA as per GoN and those classified as Category “A” under the Financiers’
safeguard standards.
d) The Bank requires the Client to conduct an environmental and social impact assessment (ESIA)
or equivalent environmental and social assessment, for each Category A Project and to prepare
an ESMP or ESMPF, which is included in the ESIA report for the Project.
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Category II (IEE/ESIA with ESMP): Sub-projects under this category are likely to have less
significant and site-specific impacts, which may include impacts to forest area, wetlands, or other
natural habitat. As per GoN (EPR, 1997) the project which passes through national and community
forest and construction of distribution lines with capacity more than 132 kV is categories as B. These
sub-projects are typically classified as Category “B” under the Financiers’ safeguard standards and
will require either an Initial Environmental Examination (IEE) with ESMP under GoN regulations, or a
limited Environmental and Social Impact Assessment (ESIA) with ESMP in accordance with the
Financiers’ safeguard standards.
Category III (DDR with ESMP): Sub-projects under this category are likely to have environmental
risks and impacts that are easily addressed through an ESMP, such as increased air emissions or
noise pollution near village areas. These sub-projects are typically classified as Category “B” or “C”
under the Financiers’ safeguard standards and require only preparation of a Due Diligence Report
(DDR) with ESMP.
Category IV (FI):
A Subproject is categorized FI if the financing structure involves the provision of funds to or through
a financial intermediary (FI) for the Project, whereby the Bank delegates to the FI the decision-making
on the use of the Bank funds, including the selection, appraisal, approval and monitoring of Bank-
financed subprojects. These subprojects are classified as Category FI as per AIIB and EIB E&S
framework. The Bank requires FI Client to screen and categorize subprojects as Category A, B or C,
review, conduct due diligence on, and monitor the environmental and social risks and impacts
associated with the Bank-financed subprojects, all in a manner consistent with this ESP. This can be
achieved through implementation of appropriate environmental and social policies and procedures.
Projects categorized as FI are also subject to: (a) the Environmental and Social Exclusion List and
applicable host country national laws for all the Bank-financed subprojects; and (b) the applicable
ESSs for the Bank-financed. Some or all of the Bank-financed subprojects that are classified as
Category B subprojects).
Social Screening Criteria

Category I (Exclusion List): sub-projects under this category are likely to have potentially significant
social impacts and displace 50 or more families in the mountain region, 75 or more families in the
hills, and 100 or more families in the terai plains due to involuntary land acquisition. This includes
both physical and economic displacement. All project activities causing physical displacement shall
be excluded from the project. Additionally, any sub-project that needs an EIA according to GoN
regulations shall be classified as Category I and excluded from the project.
Category II (IEE/ESIA with ESMP): Sub-projects under this category have less significant and site-
specific impacts and economically displace less than 50 families in the mountain region, less than 75
families in the hills, and less than 100 families in the terai plains due to involuntary land acquisition
(unless such impacts, in the judgment of NEA / PIU, are exacerbated by other contributing factors).
In these cases, sub-projects are required to conduct an ESIA (including social baseline)
commensurate with the impacts, and prepare an RAP and/or Indigenous Peoples Development Plan
(IPDP) ), or equivalent management plan, if needed. A sub-project may also be required to prepare
an IEE as per GoN regulations, which can be supplemented with a social assessment as required by
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the Financiers safeguards. As per AIIB policy, ARAP is only applicable if affected persons are fewer
than 200 people, not physically displaced and / or less than 10% assets are lost.
Category III (DDR with ESMP): Sub-projects are likely to have minimal or no adverse environmental
and social impact; does not physically displace any family; and does not result in economic
displacement of more than 10% of productive assets for any family. A brief Environmental and Social
Management Plan (ESMP), including a RAP and/or IPDP if needed, shall be prepared.
Assessment and risk management instruments for sub-projects
NEA/PIU will be responsible for reviewing and approving the screening report in consultation with
Financiers. On the basis of findings of screening and the criteria mentioned EPR, 1997 of GoN,
required environmental assessment such as EIA, IEE etc. will be recommended. According to the
Financiers’ safeguard standards, all sub-projects are required to prepare either an ESIA (including an
ESMP) or prepare an ESMP (ESMP, RAP, VCDP / IPDP) only.
Preparation of ESMP involves establishing and maintaining a process for identifying the E&S risks
and impacts of each sub-project. The type, scale, and location of the sub-project guides the scope
and level of effort devoted to the risk and impact identification process. Assessment of E&S risks and
impacts will be carried out in E&S assessment studies and ESMP, RAP, VCDP, IPDP preparation of
sub-projects will be carried out by consulting firm with support from NEA/PIU.
Environmental and Social Assessment are an integral part of the project cycle beginning with project
identification to operation stage. All subprojects shall undergo screening, identification of impacts,
preparation of action plans for mitigation of adverse impacts, implementation of action plans,
monitoring, evaluation, and auditing of the project. The main aim of planning is to address the
environment and social impacts properly. However, planning includes activities from the beginning of
identification and pre-feasibility study to post construction phase. A short summary of project planning
including stages, steps in the assessment process and responsibility is presented in the table below
–
Table 2 - Planning and Implementation Mechanism
Stage in Project E&S activities Responsibility
Selection of subproject: Brief outline of

Project Identification environment and social issues/problem DSUEP PIU/NEA
with initial consultation of stakeholders.
Operate Environmental and Social

Screening together categories and
recommendation of appropriate
Project Screening interments (EIA via ESIA, IEE via ESIA, Consulting firm
EMP, RAP, IPDP) require
Submission of Screening Report to

PIU/NEA
Appraisal and Approval Review of environmental and social PIU/NEA and Financiers
screening
Site Specific EIA, IEE, EMP, RAP,

Project Design PIU/NEA, Consulting firm
IPDP/VCDP etc
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Stage in Project E&S activities Responsibility
Implementation the Site Specific) EIA, PIU/NEA Individual consultant and

Implementation phase
IEE, EMP, RAP, IPDP/VCDP etc NGOs Contractor
Monitoring Implementation of EIA, IEE, Financiers PIU/NEA, Individual

Monitoring Phase
EMP, RAP, IPDP/VCDP etc consultant
Operation Period Environmental and Social Audit Third party anchors
Resettlement Plan Framework
Each proposed subproject site will be screened for social impacts before it is selected for inclusion in
the Project. If the social screening findings show involuntary resettlement impacts, a social impact
assessment will be conducted, and a resettlement action plan prepared.
The RAP will include a statement of involuntary resettlement objective and strategy, scope of land
acquisition and resettlement, socio-economic condition, information disclose public consultation,
grievance redressal mechanism, legal framework, and other relevant information.
The RAP shall be accompanied by an entitlement matrix addressing impacts identified during the
social impact assessment such as loss of land, loss of residential and commercial structures, loss of
income generating sources and assets, additional support to vulnerable groups, loss of common
property resources, and other unanticipated impacts.
Indigenous Peoples Development Framework
If the social screening process undertaken for each subproject determines that Indigenous Peoples
are present in, or have collective attachment to, the subproject area, and are likely to be affected by
the Project, an Indigenous Peoples Development Plan will be prepared.
A social impact assessment shall be carried out for the subproject and shall include: a baseline
demographic, socioeconomic, cultural, and political profile of the affected indigenous groups in the
project area and project impact zone; assessment of land and territories that Indigenous Peoples
have traditionally owned or occupied; assessment of natural resources (including biodiversity and
eco-system services) on which Indigenous Peoples depend; assessment on their access to and
opportunities they can avail of the basic and socio-economic services; assessment of the short and
long term, direct and indirect, positive and negative impacts of the project on each group’s social,
cultural and economic status; assessing/validating which indigenous groups will trigger the
Indigenous Peoples policy principles; assessing the subsequent approaches and resource
requirements for addressing their concerns and issues in relation to the projects that affect them.
An Indigenous Peoples Development Plan will be prepared based on findings from the social impact
assessment to address the concerns and issues of indigenous peoples. The Indigenous Peoples
Development Plan shall include: discussion on aspirations, needs, and preferred options of the
affected Indigenous Peoples; local social organization, cultural beliefs, ancestral territory, and
resource use patterns among the affected Indigenous Peoples; potential positive and negative project
impacts; measures to avoid, mitigate, or compensate for the adverse project effects; measures to
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ensure project benefits will accrue to them; measures to strengthen executing agency capacity to
address their issues; the possibility of involving local organizations and NGOs with expertise in
Indigenous Peoples issues; their budget allocation; Indigenous Peoples’ monitoring with a timeframe.
Review and Clearance of Environmental and Social Instruments

Following preparation of E&S assessment and management instruments, and in accordance with sub-
projects’ E&S categorization described above, the process will be as follows:
• NEA/PIU will be responsible for review of all E&S assessment and management instruments
(ESIAs, ESMPs, RAPs, IPDPs, etc.) for quality and completeness
• NEA / PIU will also provide formal clearance in case of DSUEP sub-projects categorized as
Category III and IV (Environmental Screening). In case of Category II, NEA/PIU will be
responsible for obtaining clearance from Government of Nepal and share copy of clearance
to the Financiers. However, ESMPs will be shared to the Financiers for review.
Environmental and Social Monitoring

To ensure effective implementation of environmental and social (E&S) safeguards, compliance
monitoring will be conducted internally by NEA / PIU based on the compliance monitoring indicators.
The Financiers and NEA / PIU shall be responsible for carrying out monitoring during different stages
of the project cycle i.e., construction and operational phases of sub-projects. At sub-project level,
individual consultants / Experts shall be hired who would be responsible for implementing and
monitoring E&S safeguard documents, preparing monthly reports of each sub-project and submitting
to NEA / PIU. Central level individual experts shall be responsible for monitoring of activities of sub-
project consultant and reviewing each subprojects’ monthly reports and prepare quarterly monitoring
report to submit to financiers. The Financiers shall conduct periodic review missions, which shall
include a review of safeguard implementation.
Public consultation and engagement strategy

Key objectives of stakeholder engagement are two-fold –
a) Keep all stakeholders informed of the project activities, benefits, and potential adverse impacts
b) Ensure that the stakeholders actively participate in all levels of the project cycle and come up
with mitigation plans to minimize potential negative impacts of the project
These will ultimately contribute towards narrowing down the gaps between project and its
beneficiaries and help to create a conducive environment to mitigate adverse E&S impact through
cooperation.
Public outlines engagement through project development phase and recommends a set of
stakeholder engagement activities to be carried out throughout the project implementation phase
through -
• Public meetings in the project influence areas
• Information/awareness campaigns by locally formed clubs, groups, and NGOs
• Interviews /surveys in project affected households
• Focused group discussions
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• Formulation of committees and/or groups including stakeholders at various stages of the

project
• Development of grievance redress mechanism
• Disclosure/dissemination of project information including decision making process and how
the grievances of PAPs will be addressed
Stakeholder mapping and analysis

It is important to engage stakeholders in meaningful and productive ways and boost willingness and
ability to work with them. Firstly, stakeholder mapping has to be carried out so that different type of
stakeholder may be identified in terms of one or several of the following categories –
• Affected household, individuals and communities
• All project beneficiaries in the target areas of DSUEP
• Government agencies at various levels of responsibilities (Centre, District and Local),
concerned ministry or department
• Elected representative of local district, province and federal level
• Concerned NGOs, CBOs, and user committee
• Political party representatives
• Local influence from the affected areas like, community head, school teachers, healers,
social and religious leaders
• Civil society, marginal groups and workers
• Project proponents themselves
Stakeholder Engagement Plan

Report will reflect the findings of the mapping and analysis exercise, and describing all planned future
communication between the project and its stakeholders. Stakeholder Engagement Plan includes
below elements:
Primary and secondary stakeholders:
• Differentiate on the basis of primary (communities - IP and non-IP, project affected people,
vulnerable groups and construction workforce) and secondary (civil society organizations,
media, government, local businesses, etc.) stakeholders
• Description of respective communication strategies
Information Disclosure, consultation and participation

Consultation and discussion with the project affected people and communities is a continuous activity
throughout the project cycle. It will be applied in the ongoing pre-construction phase, will be followed
in construction phase and can continue in the operation phase as per project need. The project will
own and disseminate relevant project information to and from stakeholders in the various stages of
project cycle. Project Information Center (PIC) will be established at each site office for disseminating
information, recording local-level grievance, activation and functioning of LCF (Local Consultative
Forum). Project related information material shall be distributed prior to construction work in the
proposed sub-project to all project related stakeholders. Such information shall include entitlement
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matrix frameworks, various periodic information sheets, project time frames etc. Meetings and
workshops shall be conducted to disseminate critical and useful information. Local media like FM
radio, newsletters and TV etc. shall be used for disseminating information regarding DSUEP – cost
of the same shall be allocated in ESMP. All project documents will be uploaded on the NEA/PIU
(www.nea.org) and the Financiers’ websites.
Disclosure of information
• One-way communication, with the objective of informing the public on project milestones,
expected nuisances and mitigation measures
• Mainly on construction related nuisances
• During operation if and when necessary
Public consultation & participation

• Two-way communication with the objective of achieving a social license to operate
FPIC
• Deep and culturally appropriate communication, with the objective of achieving consent
Process of meaningful consultation

Consultation is a two-way dialogue process between project execution agency and stakeholders. The
mechanism of meaningful consultation shall be ensured with involvement of women, indigenous
people, minorities etc. at pre-construction and construction of sub-project cycle. This shall include –
• Well targeted and inclusive consultation process
• Prior intimation shall be ensured about venue, time and subject for consultation
• Use of understandable language suited to the sub-project area
• Engagement with the stakeholder early in the development process
• Consultation shall be continued throughout the project cycle
Grievance Redress Mechanism

Local Consultative Forum (LCF) shall be formed at affected wards as the first level Grievance Redress
Mechanism (GRM). These shall focus on grievances related to any aspect of land acquisition,
compensation, resettlement requirements and other project-related issues. Many grievances can be
resolved by providing correct and complete information early in the sub-project development process
at village level and municipality/rural municipality ward level. If not resolved, it can be referred to E&S
team of NEA/PIU. If it still remains unsolved, the grievance can be registered at CDO office. In case
complainants are not satisfied with the solution, legal redress may be sought through Nepal’s judicial
system or appropriate administrative system.
P a g e | 16
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1.0 PROJECT BACKGROUND
1.1 Background
Nepal has a population of around 29 million of which about 78% have access to electricity. The
installed generating capacity including IPPs is around 1074 MW and the transmission network at 220
and 132 kV is concentrated mainly across an east-west corridor. The power supply situation was
plagued with a lack of generation capacity, but a number of generation projects carried out recently
have resulted in considerably improved power availability. While the provinces have varying degrees
of electrification with some having better coverage than others, provinces 5, Karnali (6) and Sudur
Pashchim (7) have the least coverage. To redress this situation, the government of Nepal is planning
a project to extend supply lines to the western and far western areas as a part of its program “to
achieve affordable electricity for all by 2022”. The government and the Nepal Electricity Authority
(NEA) have applied for financing from the Asian Infrastructure Investment Bank (AIIB) and European
Investment Bank toward the cost of financing the proposed project.
The electricity supply has been growing significantly, with large investments in new generation
capacities and increasing electricity imports from India. However, upgrading and expansion of
electrical transmission and distribution networks have not kept pace with the supply growth. As a
result, Nepal experiences high system losses over 15 percent and excessive voltage drops, due to
the overloading and extended feeder lengths of the existing networks. Sizeable investments are
needed to relieve the T&D bottlenecks in Nepal so as to ensure efficient and reliable delivery of
electricity to consumers.
NEA has identified 21 districts of the Provinces 5, Karnali (6) and Sudur Pashchim (7) and anticipates
the establishment of 37 new 33/11 substations. The project consists of construction of around 770 km
of 33kV distribution line and 4089 km of 11 kV distribution line. This will also include installation of
distribution transformers; placement of LV capacitor banks, regulators where needed; and connecting
new consumers to the grid.
Accordingly, under DSUEP, it is intended to carry out a network planning study, followed by a detailed
engineering design and feasibility study analysis together with environmental and social impact
assessment to identify appropriate development options that will be suitable for the intended
electrification program.
The objective of the sub-project is to carry out a planning exercise and detailed engineering design,
including electric distribution system development program and economic analysis with a view to the
socio-economic upliftment of the rural people living in the areas selected for the electrification services
leading to a feasibility level identification of the proposed project.
Project objective - The objective of the project is to increase electricity access and improve supply
quality and efficiency in western Nepal.
The following districts covering province 5, 6 and 7 have been selected for the project –
Report Date 17
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Table 3 - Districts selected for DSUEP
Province Districts selected
Province: 5 Parasi, Rupandehi, Palpa, ,Rolpa, Dang, Banke, Bardiya, Rukum East
Province: Karnali (6) Surkhet, Salyan, Jajarkot, Kalikot, Dolpa, Jumla, Mugu, Rukum West, Humla
Province: Sudur
Bajhang, Bajura, Baitadi
Pashchim (7)
1.2 Description of the project

DSUEP proposes construction of 35 33 / 11 kV substations, 33 kV lines, 11 kV lines, LT lines and
facilities in 20 districts viz -Parasi, Rupandehi, Palpa, Rukum East, Dang, Rolpa, Banke and Bardiya
in province No. 5, Salyan, Jajarkok, Surket, Rukum west, Jumla, Humla, Kalikot, Mugu and Dolpa lies
in Karnali Province and, Bajura, Bajhang and Baitadi in in Sudur Pashchim Province.
The total fund under the project is around $200 million (from AIIB and EIB). Work to be carried out
under proposed sub-projects has been summarized in below –
Table 4 -Details regarding 33 / 11 kV substation locations capacity and Length NEA
33/11KV Substations 33/11KV Substations Capacity & Length

Sl.
No. 33 kV 11 kV LT line No. of
Name District (MVA)
(km) (km) (km) DTs
1 Khajura Banke 24 0.5 28 33.5 20
2 Machhagadh Bardiya 24 27 56 61.5 30
3 Mukundadanda Dang 8 4 23 36 20
4 Hapur Dang 8 5 47.6 52 26
5 Jamnibas Dang 8 12 38 51 32
6 Bhaluwang Dang 8 0.8 26 43 26
7 Murkute Dang 8 27 82 84 30
8 Dhikichour Palpa 8 7 32.5 60 24
9 Hakui Parasi 24 15 19.5 26 15
10 Ghartigoun Rolpa 8 3 147.8 235.7 80
11 Thabang Rolpa 8 7 122 176.3 59
12 Kankri Rukum East 3 20 156.3 187.5 64
13 Rukumkot Rukum East 3 40 183.9 160.8 70
14 Marchawar Rupandehi 24 18 30 32 25
15 Mangalapur Rupandehi 24 1.5 21.5 35 20
16 Badaban Jajarkot 3 20 210 230 81
17 Sermaila Jajarkot 3 30 104 124.5 42
18 Mangri Mugu 3 20 85 51 26
19 Khayad Mugu 3 30 111.5 137.5 50
Report Date 18
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33/11KV Substations 33/11KV Substations Capacity & Length

Sl.
No. 33 kV 11 kV LT line No. of
Name District (MVA)
(km) (km) (km) DTs
20 Badki Jumla 3 1.5 203 230.5 106
21 Raskot Kalikot 3 30 81.6 132.2 48
22 Nagma Kalikot 3 2 81.8 105.7 39
23 Piple Lekhgaun Salyan 3 20 155.2 178 73
24 Tharmare Salyan 3 2.5 127 197.5 66
25 Budhe Bapar Surkhet 3 22 151 135 64
26 Badichour Surkhet 3 1 138 125.6 64
27 Vampuchaur Rukum West 3 13 102 129.5 51
28 Dunai Dolpa 3 18 51.5 45 20
29 Simikot Humla 3 85 64.5 85 31
30 Sillegada Baitadi 3 2.5 240.5 81.5 32
31 Musya Baitadi 3 8 571 144.5 98
32 Kalinga Bajhang 3 20 140 152.5 64
33 Budhiganga Bajura 3 5 203.5 156.5 64
34 Kolti Bajura 3 35 188.5 182.4 78
Total 247 553.3 4,023.7 3,898.7 1,638
Source: Technical design of DUSEP project document
1.3 Objectives of ESMF

The overall propose of ESMF is to guide DSUEP sub-projects in the area of E&S management using
appropriate instruments, methodologies, procedure and responsibilities during the project cycle. NEA
and the project partners shall apply during design and development of the sub-projects in order to
comply with the Government of Nepal E&S regulations and the Financiers’ standards on E&S
assessment and management, Involuntary Resettlement, Indigenous People, Gender, etc.).
The main objectives of ESMF are as follows:
• Analysis and summarization of potential E&S impact assessment process that would be
associated with sub-project activities
• Analysis the GoN policies and the Financiers’ safeguard standards and identify the gaps
• Present the legal and institutional framework related to E&S context in the energy sector that
will be supported by DSUEP
• Introduce the E&S due diligence process to present methodologies, instruments and
responsibilities for E&S management
• Define E&S management principles and guidelines for implementation of the project
• Establish the roles and responsibilities of all parties involved in project E&S management
Report Date 19
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• Describe mitigation measures that shall be implemented to avoid or mitigate adverse

environmental impact
• Specify approach to risk mitigation measures under various circumstances
1.4 Rational for ESMF

This ESMF has been prepared with the aim to provide a guideline and clear vision to the
implementation team regarding legal requirement of E&S study, likely impacts and their mitigation
measure. The ESMF will guide the DSUEP implementation team to identify potential environmental
and social impacts before their occurrence. The ESMF will also provide effective and efficient
mitigation measures to counter the potential impacts. The rational of this study are:
• Review existing laws, regulations, policies and institutional arrangement to address and
mitigate the environmental impacts of project.
• To provide a reference document to designer, engineer, decision maker and supervision team
to identify and mitigate the issues.
• It provides an overview of national, regional and international policy requirements for

environmental and social management that a proponent needs to address during project
preparation and implementation.
• It presents a screening and assessment methodology for potential projects to allow for
environmental and social risk and impact identification and classification and specifies the
appropriate roles and responsibilities of stakeholders. To guide the team in impact
identification and take appropriate mitigation measure.
• Subprojects construction activities may bear the risks on potential environmental impacts likely
to occur in the physical, biological, social, cultural, and sometime archeological shapes. Loses
of private / public land and structures, natural resources and other common public facilities
are among the major impacts resulting from construction subprojects that need to address in
project design and construction phase, incorporating E&S proven mitigation measures that
will bring adverse effect down to acceptable level.
1.5 Scope of DSUEP and safeguards

1.5.1 Scope of DSUEP
Scope of DSUEP shall comprise of the following components –
• Component 1: Construction of 33kV supply lines and 33/11kV substations (including upgrade
of existing facilities where needed). This component comprises activities relating to the
construction of new primary substations, facilitating the enhancement of the distribution
network. It consists of extension to the 33kV network providing supply to the new 33/11 kV
substations and the construction of these substations and related facilities. In some instances,
Report Date 20
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where needed, the existing 33kV lines would be augmented by the increase of conductor size
or number of circuits.
• Component 2: Construction of 11kV lines, distribution transformers, low-voltage (LV) supply

lines including consumer connections. This component comprises activities related to the new
power distribution facilities required to bring the power supply to the ultimate consumers. It
consists of new 11kV feeders, installation of distribution transformers, development of the LV
network and service connections to consumers.
• Component 3: Capacity Building, Project Implementation Support, and Technical Assistance.

This component focuses on improving the capacity of NEA’s distribution planning and
analyzes the network performance of the proposed project components. This component will
also independently supervise and monitor the PIU needed for project implementation.
1.5.2 Scope of Safeguards

At the initial stage of the project, a screening exercise based on the location and context of each sub-
project shall be carried out. The area where 33 / 11 kV substations are likely to be located, 33 kV
lines, 11 kV lines, LT lines and facilities etc. shall be screened and classified. The E&S screening
exercise is only meant to pre-identify the likelihood and nature of E&S impacts associated with the
planned sub-project activities at each project phase. The E&S screening process at this stage is best
performed by categorizing the risks first. Thereafter, an assessment shall be conducted in the sub-
project area of influence to identify direct, indirect, cumulative and induced risks and impacts related
to physical, biological, socio-economic and cultural resources. This will also include environmental
health, natural resources, land, water and ecosystems, livelihoods, , Indigenous Peoples and other
vulnerable groups, gender, employment or labour works, community health and safety. Mitigations
measures of risks& impacts, due diligence, monitoring and supervision shall be devised to meet the
following parameters –
1.Involuntary resettlement and mitigation
2. Indigenous peoples
3. Stakeholder engagement &gender-inclusive participation
4. Disclosure of information and grievance redress
5. Monitoring & supervision
6. Reporting
Report Date 21
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2.0 BASELINE INFORMATION
DSUEP concentrates on increasing coverage of electricity access in the western and far western
regions of Nepal. Most of the project districts are in hilly and mountain regions, whereas Parsi,
Rupandehi, Dang, Banke, Bardiya and Surkhet are situated in terai (plains) and inner terai belt.
The living standards are different between terai, hilly and mountain areas. The socio-economic
condition and accessibility to services are poor in hilly and mountain districts compared to terai
and inner terai areas. Accessibility to quality healthcare, roads, quality education, gender
empowerment, and overall poverty indexes are lower in the project districts compared to rest of
Nepal.
An E&S safeguard baseline survey has been conducted for each sub-project location. This survey
covers physical verification of the substation locations and distribution line corridors.
Major castes found in the project sites are as follows –
Table 5 - Major castes in project areas
Group Major castes
Dalits Damai, Kami, Sarki, Lohar, etc.
Indigenous Tharu, Yadab, Raute, Majhi, Bote, Tamang, Bhujel, Kumal, Bhote, Darai, Magar Gurung,
people Limbu, Sherpa, Thakali, Bansi, Thami, Newar, Rai etc.
Others Brihnin, Kshtri, Thakuri, Dasnami, etc.
As per the Census 2011, the total HH in project districts is 1078670 covering HH is 570,889. The
total population is 5725415 is in project districts and includes 30,09,468 females (53%) and
27,15,947 males (47%). On average, currently the rural electrification connects only 53% HH to
national grid in project districts. The coverage from national grid of electricity supply is very low in
mountain and far western districts comparing with Terai areas and some hilly districts.
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Table 6 - Power distribution in household under project districts
Power & fuel usually used for lighting

S.N Districts Total HH Electricity Kerosene Bio gas Solar Others Not Stated
HH % HH % HH % HH % HH % HH %
1 Palpa 59,260 43,249 73 9,065 15 120 0.0 4,537 8 2,112 4 177 0
2 Parasi 128,760 104,202 81 15,297 12 247 0.0 5,411 4 2,844 2 759 1
3 Rupandehi 163,835 132,073 81 29,451 18 349 0.0 388 0 322 0 1252 1
4 Rolpa 43,735 9,395 21 2,180 5 107 0.0 20,747 47 11,127 25 179 0
5 Rukum 41,837 6,181 15 2,349 6 118 0.0 19,291 46 13,782 33 116 0
6 Salyan 46,524 6,760 15 8,697 19 32 0.0 16,075 35 14,595 31 365 1
7 Dang 116,347 75,181 65 26,023 22 313 0.0 4,867 4 9,394 8 569 0
8 Banke 94,693 65,099 69 21,030 22 257 0.0 3,167 3 4,594 5 546 1
9 Bardiya 83,147 52,035 63 18,869 23 213 0.0 2,424 3 9,427 11 179 0
10 Surkhet 72,830 31,716 44 2,955 4 222 0.0 9,952 14 27,526 38 459 1
11 Jajarkot 30,468 1,225 4 713 2 41 0.0 12,545 41 15,827 52 117 0
12 Dolpa 7,466 1,720 23 94 1 1 0.0 3,770 50 1,861 25 20 0
13 Jumla 19,291 5,656 29 62 0 4 0.0 8,548 44 4,899 25 122 1
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Power & fuel usually used for lighting

S.N Districts Total HH Electricity Kerosene Bio gas Solar Others Not Stated
HH % HH % HH % HH % HH % HH %
14 Kalikot 23,008 2,674 12 328 1 9 0.0 8,545 37 11,314 49 138 1
15 Mugu 9,600 1,332 14 74 1 3 0.0 5,353 56 2,730 28 108 1
16 Humla 9,437 2,959 31 10 0 0 0.0 2,138 23 4,320 46 10 0
17 Bajura 24,888 5,667 23 273 1 0 0.0 5,582 22 13,170 53 196 1
18 Bajhang 33,773 5,902 17 4,281 13 284 0.1 13,345 40 9,647 29 314 1
19 Baitadi 45,167 11,232 25 17,981 40 64 0.0 8,080 18 7,615 17 195 0
Total 1,054,066 564,258 54 159,732 15 2,384 0.23 154,765 15 167,109 16 5,821 1
Source Census 2011, Note: Rukum East and West districts are counted together
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The above table shows that the existing condition of grid power supply. In project districts, only
53 % HH are covered, remaining HH use other alternative power like kerosene 16%, Biogas
0.2%, Solar 15%, others and unspecified 16 % and 1% respectively. The quality and reliability of
power supply is poor the distribution system is suffering from issues of voltage fluctuation, low
voltage and erratic load schedule. Thus, construction of new 33 / 11 kV substations, 33 kV lines,
11 kV lines and LT lines are the need of the hour.
2.1 Socio-Economic Profile

The DSUEP project mainly focus on for un-electrified areas and reinforcement the existing power
supply where the people are facing and suffering from the problem of low voltage, voltage
fluctuation and interrupted load schedule etc. The problem can be solved by construction of new
substation as per technical requirement. The 33 / 11 kV substations, 33 kV lines, 11 kV lines and
LT lines are mostly proposed to be constructed in rural areas. The main occupation is agriculture.
73% population depends on it. Hardly 3% are involve in government private service,7% are involve
in business and nominal 2% involve self-employment in vegetable farming, livestock poultry firm,
beekeeping etc. Rest 15% are dependent upon foreign employment - 60% youth are interested
for expatriate jobs.
Table 7 - HH wise Occupational status in subproject areas
S. N. = Serials Numbers, HH= Household, Agr= Agriculture, Self EMP = Self employment, F. Emp Forgien
Employment
S. Substation, Settlements Occupation diision HH

N distribution lines Nos HH Agr Service Business Self EmP F. Emp
1 Khajura 20 2625 1512 262 300 250 301
2 Machhagadh 30 4625 3468 250 231 45 631
3 Mukundadanda 20 4090 2657 54 205 41 1133
4 Hapur 26 3703 2577 82 169 34 841
5 Jamnibas 32 1807 1098 84 90 20 515
6 Bhaluwang 26 3155 1528 215 450 250 712
7 Murkute 30 3070 1839 52 126 25 1028
8 Dhikichour 24 2137 1056 84 177 35 785
9 Hakui 15 1619 700 250 300 50 319
10 Ghartigaun 80 4637 3458 215 450 50 464
11 Thabang 59 3781 2553 55 304 23 846
12 Kankri 70 2652 1865 47 273 34 433
13 Rukumkot 64 3299 2296 60 154 30 759
14 Marchawari 25 2590 980 125 900 200 385
15 Manglapur 20 2687 975 254 700 150 608
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S. Substation, Settlements Occupation diision HH

N distribution lines Nos HH Agr Service Business Self EmP F. Emp
16 Badaban 81 5867 5280 25 54 84 424
17 Sermaila 42 3922 3015 31 115 43 718
18 Mangri 26 1694 977 84 515 12 106
19 Khatyad 50 3729 3000 70 85 37 537
20 Badki 106 10589 8941 120 720 454 354
21 Raskot 48 2807 1498 69 435 40 765
22 Nagma 39 2198 1225 94 425 42 412
23 Piple Lekhgaun 73 3028 1586 291 245 29 877
24 Tharmare 66 4304 2922 65 572 24 721
25 Budhe Bapar 64 3201 1525 68 125 25 1458
26 Badichour 64 2779 1746 85 109 21 818
27 Vampuchaur 51 3428 2256 73 175 25 899
28 Dunai 20 1870 1530 80 82 12 166
29 Simikot 31 1521 730 250 150 165 226
30 Silegada 32 4075 2826 78 225 27 919
31 Musya 98 19130 16894 82 913 180 1061
32 Kalinga 64 10110 8250 120 580 225 935
33 Budiganga 64 10185 8957 95 125 122 886
34 Kolti 78 8020 6566 25 422 85 922
Nos 148934 108286 3894 10901 2889 22964
Total
% 100 73 3 7 2 15
Note, HH = Household, Agri = Agriculture, Service = Government & Private Job, Self Emp = Self Employment, F. Emp
= Foreign Employment, If the distribution lines and substation change cause by IEE and technical design the base line
data will change. in that situation ESMF may be needed to Update S. N. = Serials Numbers,
2.2 Population, Caste and Ethnicity

The subproject coverage of HHs are 130,427, Total population are 704,648 and percent of female
and male are 51% and 49% respectively. The major caste is Brahmin, Chhetri, Magar, Gurung,
Tharu, Madesi, Muslim and Dalit, 26% population are Janjati in overall subproject districts and
56% are Brahmin, Thakuri, Dasnami and Chhetri, 14 % Dalit population and 4% Madhesi and
Musilim are found in Terai region.
26
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Table 8 - Demography data with caste and ethnicity (Beneficiaries)
Settlements Houshold
Substation,
Sr.
distribution Caste Other Madesi
N Nos HH Pop Fe M Janajati Dalit
lines s Muslim
1 Hakui 15 1619 7455 3818 3637 Madesi, Tharu, Gurung, Magar, Dalit, Muslim and others, as 540 110 131 838
2 Manglapur 20 2687 14348 7294 7054 Madesi, Tharu, Gurung, Magar, Dalit, Muslim and others, 1180 105 400 1002
3 Marchawar 25 2590 21953 11162 10791 Madesi, Tharu, Gurung, Magar, Dalit, Muslim and others, 53 73 137 2327
4 Dhikichour 24 2137 10685 5556 5129 Gurung, Magar, Dalit, and others, 1527 215 395
5 Kankri 64 3299 16495 8353 8142 Brahmi, Chhetri, Thakuri, Magar and Dalit 780 273 2246 0
6 Rukumkot 70 2652 13260 6877 6383 Brahmi, Chhetri, Thakuri, Magar and Dalit 765 299 1588 0
7 Hapur 26 3703 17598 9131 8467 Tharu Gurung, Magar, Dalit, and others, Madesi Muslim 2800 373 453 77
8 Dhikpur 20 4090 19223 10057 9166 Tharu Gurung, Magar, Dalit, and others, Madesi Muslim 3200 613 77 200
9 Jamnibas 32 1807 8660 4303 4357 Tharu Gurung, Magar, Dalit, and others, Madesi Muslim 900 107 600 200
10 Bhaluwang 26 3155 13705 7195 6510 Tharu Gurung, Magar, Dalit, and others, Madesi Muslim 1880 140 1067 68
11 Murkute 30 3070 13912 7237 6675 Tharu Gurung, Magar, Dalit, and others, Madesi Muslim 2000 178 892 0
12 Thabang 59 3781 18905 10220 8685 Kham Magar Dalit 3351 105 325 0
12700. 10484.
13 Ghartigoun 80 4637 23185 Magar, Gurung, Brahmin, Chetri, Gharti and Dalit 3206 356 1075 0
3 8
14 Khajura 20 2625 13387 6596 6791 Madhesi, Muslim Tharu Gurung, Magar, Dalit, and others, 994 193 1106 332
15 Machhagadh 30 4625 23763 12115 11648 Muslim Tharu Gurung, Magar, Dalit, and others, 3000 200 1125 300
16 Odaltal 64 2779 13337 6556 6781 Gurung, Magar, Kumal, Darai, Ghatri, Dalit, Badi and others, 857 268 1654 0
17 Bijaura 64 3201 15360 7513 7847 Gurung, Magar, Kumal, Darai, Dalit, Badi, Ghatri and others, 948 275 1978 0
18 Nagma 39 2198 11430 5454 5975.6 Brahnin, Kshetri,Thakuri, Magar and Dalit 70 649 1479 0
19 Raskot 48 2807 15363 7303 8060 Brahnin, Kshetri,Thakuri and Dalit 1570 873 364 0
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Settlements Houshold
Substation,
Sr.
distribution Caste Other Madesi
N Nos HH Pop Fe M Janajati Dalit
lines s Muslim
20 Samaila 42 3922 21964 11404 10560 Brihmin, Chhetri, Magar, Gurung, Bhujel, Kumal and Dalit 1568 785 1569 0
16532. 16211.
21 Badaban 81 5867 32744 Brihmin, Chhetri, Magar, Gurung, Bhujel, Kumal and Dalit 1801 276 3790 0
5 5
22 Pipal Lekhgaun 73 3028 15740 8029 7710.6 Brhamin, Chhetri, Magar, Newar, Dalit and Thakuri 1648 467 913
23 Tharmare 66 4304 22376 11379 10997 Brhamin, Chhetri, Magar, Dalit and Thakuri 1300 635 2369
24 Vampuchaur 51 3428 17371 8704 8667 Brahnin, Kshetri,Thakuri , Magar nd Dalit 1018 340 2070
25 Badki 106 10589 57932 27860 30072 Brihmin, Chhetri, Thakuri, Dalit and Few are Bhote 45 2129 8415 0
26 Dunai 20 1870 8976 4398 4578 Brahnin, Kshetri,Thakuri , Magar, Bhote and Dalit 559 374 937 0
27 Tribeni 0
28 Khatyad 50 3729 18645 9486.6 9158.4 Brahnin, Kshetri,Thakuri and Dalit 0 749 2980 0
29 Mangri 26 1694 8470 4404 4167 Bhote Chhetri and Dalit 1484 40 170 0
30 Simokot 31 1521 7605 3650 3955 Brahnin, Kshetri,Thakuri, Bhote and Dalit 110 450 961
31 Budiganga 64 10185 55207 27020 28187 Chehetri, Bhrihmin, Thakuri, and Dalit 0 1476 8709 0
32 Kolti 78 8020 43238 20747 22491 Brihmin, Chhetri, Takuri, Bhote and Dalit 0 1590 6430 0
33 Kalinga 64 10110 54391 28278 26113 Brhamin, Chehtri, Dalit and Thakuri 0 1531 8579 0
10601
34 Musya 98 19130 54299 51711 Brhamin, Chehtri, Dalit and Thakuri 0 3418 15712 0
0
12198. 10391.
35 Silegada 32 4075 22590 Brhamin, Chehtri, Dalit and Thakuri 0 1161 2914 0
6 4
78528 2082
163 14893 397830 387553 Total 39154 83610 5344
Total 2 6
8 4
100 50.7 49.4 % 26 14 56 4
28
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2.3 Land Use pattern for the substations

Most of the substation sites are in private land some are in forest land and some are public land. Public land mostly barren land not private
ownership and local level government can be use freely. On an average minimum land is require for a distribution line, Pole and substation is
2000 Sq.m/Km, 0.56 Sq.m/Pole and 4000 Sq.m/substation. respectively as per the technical design.
Table 9 - Land-use pattern for substations
Name & Location of proposed of Substation

Address 33/11kV
Province
Municipality & Ward Line KM & Feeder Nos. Remarks

Land
District S.N Substations Place 11
Name Category No Capacity 33 kV Nos. Substation
kV
Parasi 1 Hakui Ramgram Municipality 15 24 MVA 15 19.5 4 Private
Tilottama Municipality
2 Manglapur Tilottama Municipality 7 24 MVA 1.5 21.5 4 Government Ward Provided Land to
NEA
Rupendehi
Rural Irrigation Tree clearance for
3 Marchawar Kotaimai 7 24 MVA 18 30 4
Municipality Department substation of public land
Rural Community Ribdikot Community

5 Palpa 4 Dhikichour Ribdikot 7 8 MVA 7 32.5 3
Municipality Forest Forest
Rural
5 Kankri Bhume 2 3 MVA 20 156.3 2 Private
Municipality
Rukum East
Rural
6 Rukumkot Sisne 6 3 MVA 40 183.9 2 Private
Municipality
Land Donated by Ghorahi

Sub
Dang 7 Hapur Ghorahi 12 8 MVA 5 47.6 3 Government sub Metropoliten City,
Metropolitian
Ward no:12
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Address 33/11kV
Province

Land
kV
Sub Land is public donate by

8 Mukundanda Ghorahi 9 8 MVA 4 23 3 Government
Metropolitian Ghorahi Sub Metropolitian
Rural Community Sarbodaya Community

9 Jamnibas Gadahawa 7 8 MVA 12 38 3
Municipality Forest forest
Rural
10 Bhaluwang Rapti 1 8 MVA 0.8 26 3 Private
Municipality
Tree clearance for 33 kV
Rural
11 Murkute Banglachuli 4 8 MVA 27 82 3 Private distribution lines on public
Municipality
land
Rural
12 Thabang Thabang 1 8 MVA 7 122 2 Private
Municipality
Rolpa
Rural Community Shanti samrakshana
13 Ghartigoun Madi 2 8 MVA 3 147.8 2
Municipality Forest community Forest Land
Rural
Banke 14 Khajura Khajura 4 24 MVA 0.5 28 4 Government
Municipality
Rural
Machhagadh 15 Machhagadh Bara Bardiya 9 24 MVA 27 56 4 Private
Municipality
Samjhana CFUG
Rural Community
16 Badichour Barahatal 10 3 MVA 1 138 2 Commited to provide land
Karnali (6)
Municipality Forest
to NEA
Surkhet
Rural Community Kula Karnali CFUG
17 Bhude Bapar Chaukubne 4 3 MVA 22 151 2
Municipality Forest committed to provide land
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Address 33/11kV
Province

Land
kV
Rural
18 Nagma Tila 1 3 MVA 2 81.8 2 Private
Municipality
Kalikot
Rural
19 Raskot Raskot 6 3 MVA 30 81.6 2 Private
Municipality
Rural
20 Sermaila Kuse 7 3 MVA 30 104 2 Private
Municipality
Jajarkot
Rural
21 Badaban Chhedaghat 6 3 MVA 20 210 2 Private
Municipality
Rural
22 Piple Lekhagaun Kalimati 4 3 MVA 20 155.2 2 Private
Municipality
Salyan
Rural
23 Tharmare Tharmare 2 3 MVA 2.5 127 2 Public
Municipality
Rural
West Rukum 24 Vampuchaur Baffikot 6 3 MVA 13 102 2 Private
Municipality
Rural
Jumla 25 Badki Hema 3 3 MVA 1.5 203 2 Private
Municipality
Dolpa 26 Dunai Thulo Bheri Municipality 9 3 MVA 18 51.5 2 Private
Rural
28 Khatyad Khatyad 7 3 MVA 30 111.5 2 Private
Municipality
Mugu
Rural
29 Mangri Mugukyamarung 8 3 MVA 20 85 2 Private
Municipality
Humla 30 Simikot Simikot Municipality 9 3 MVA 85 64.5 2 NEA
Rural Community Maure Community Forest

Bajura 31 Budhiganga Badimalika 5 3 MVA 5 203.5 2
Municipality Forest (SS Location not fixed)
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Address 33/11kV
Province

Land
kV
Rural
32 Kolti Budinanda 1 3 MVA 35 188.5 2 Private
Municipality
Bajhang 33 Kalinga Bungol Municipality 4 3 MVA 20 140 2 Private
Rural Sova Community forest
34 Musya Surnaiya 6 3 MVA 8 571 2 Private
Municipality 33kV TL
Baitadi
Rural
35 Sillegadha Dagdakedar 7 3 MVA 2.5 240.5 2 Private
Municipality
Total 569.3 4039 86
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2.4 Baseline conditions

2.4.1 Environmental baseline
Baseline (or existing) conditions
The ‘baseline’ essentially comprises of factual understanding and interpretation of existing
environmental, social and health conditions of where the business activity is proposed. The consultant
has conducted a baseline survey and collected of information on the existing physical, biological,
socio-economic and cultural environment of the proposed sub-project areas. As the entire DSUEP
project was divided into two stages, stage 1 baseline survey has already been conducted while stage
2 is in progress.
Physical Environment
Land use
The existing land uses in the project shall be recorded during E&S base line before implementation
of project so that the change in land use pattern after implementation of project can be evaluated.
Land use types include agriculture, horticulture, domestic settlement, and industries. For example,
the land before construction may be used for agriculture, forest, settlement or could be barren land
but after construction the area will be converted in to built-up area substations. Similarly, forest land
along distribution line route shall be cleared.
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Table 10 - Minimum Land Required for Sub-Station
Address 33/11 kV SS & distribution lines Land Required

Distribution line
Municipality & Ward length in KM Row Temporary Permanent Sqm
in m.
Province District S.N Substations Place
Distribution
Name Category No Length Row lines Area Pole Area SS Areas
Sqm
Parasi 1 Hakui Ramgram Municipality 15 15 2 60000 174.375 4000
2 Manglapur Tilottama Municipality 7 1.5 2 6000 28.125 4000
Rural 7 18 2 72000 4000
Rupendehi 3 Marchawar Kotaimai Municipality 208.125
Rural 7 7 2 28000 4000
Palpa 4 Dhikichour Ribdikot Municipality 84.375
Rural
2 20 2 80000 4000
5 Kankri Bhume Municipality 230.625
Rural
6 40 2 160000 4000
Rukum East 6 Rukumkot Sisne Municipality 455.625
Sub
12 5 2 20000 4000
7 Hapur Ghorahi Metropolitian 140.625
Sub
9 4 2 16000 4000
8 Makaundanda Ghorahi Metropolitian 163.125
Rural
7 12 2 48000 4000
9 Jamnibas Gadahawa Municipality 208.125
Rural
1 0.8 2 3200 4000
10 Bhaluwang Rapti Municipality 13.5
Rural
4 27 2 108000 4000
Dang 11 Murkute Banglachuli Municipality 320.625
Rural
1 7 2 28000 4000
12 Thabang Thabang Municipality 455.625
Rural 2 3 2 12000 4000
5 Rolpa 13 Ghartigaun Madi Municipality 39.375
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Distribution line
in m.
Distribution
Sqm
Rural 4 0.5 2 2000 4000
Banke 14 Khajura Khajura Municipality 11.25
Rural
9 27 2 108000 4000
Machhagadh 15 Machhagad Bara Bardiya Municipality 309.375
Rural
10 1 2 4000 4000
16 Badichour Barahatal Municipality 11.25
Rural 4 22 2 88000 4000
Surkhet 17 Budhe Bapar Chaukubne Municipality 253.125
Rural
1 2 2 8000 4000
18 Nagma Tila Municipality 28.125
Rural
6 30 2 120000 4000
Kalikot 19 Raskot Raskot Municipality 343.125
Rural
7 30 2 120000 4000
20 Sermaila Kuse Municipality 455.625
Karnali (6)
Rural
6 20 2 80000 4000
Jajarkot 21 Badaban Chhedaghat Municipality 253.125
Rural
4 20 2 80000 4000
22 Piple Lekhgaun Kalimati Municipality 230.625
Rural
2.5 2 10000 4000
Salyan 23 Tharmare Tharmare Municipality 28.125
Rural 13 2 52000 4000
West Rukum 24 Vampuchaur Bafukot Municipality 230.625
Rural
3 1.5 2 6000 4000
Jumla 25 Badki Hema Municipality 22.5
Rural
2 18 2 72000 4000
Dolpa 26 Dunai Thuli Bheri Municipality 568.125
Rural
7 30 2 120000 4000
Mugu 27 Khatyad Khatyad Municipality 343.125
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Distribution line
in m.
Distribution
Sqm
Rural 8 20 2 80000 4000
28 Mangri Mugukyamarung Municipality 230.625
Humla 29 Simikot Simikot Municipality 9 85 2 340000 793.125 4000
Rural
5 5 2 20000 4000
30 Budhiganga Badimalika Municipality 455.625
Rural
1 35 2 140000 4000
Bajura 31 Kolti Budinanda Municipality 455.625
Bajhang 32 Kalinga Bungol Municipality 4 20 2 80000 230.625 4000
Rural
6 8 2 32000 4000
33 Musya Surnaiya Municipality 39.375
Rural
7 2.5 2 10000 4000
Baitadi 34 Sillegadha Dagdakedar Municipality 151.875
Total Land Required 553.3 1,530,400 8,153 148,000
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Water Quality
The information on the quality of water near the project shall be collected and analyzed. During
construction stage, disposal of soil, waste for camp site and also washing of machinery and equipment
will pollute the water quality. The collected baseline data shall provide the level of pollution due to
project and immediate mitigation needed.
The list of water resources which lies along and near the subproject area are listed below:
Table 11 - List of water bodies lying along and near project area
S.N Substation Tapping Point River/Stream Remarks
The distribution lines

1 Hakui Suryabasti
cross Jharai River
The distribution lines
2 Marchawar Mainahiya
cross Tinau River
Location near Hapur
3 Makaundanda DubichourDanda
River
route cross Rapti
4 Jamnibas Lamahi
River
5 Bhaluwang Bhaluwang Rapti River
Alignment cross
6 Machhagudh Kohalpur
DundawaKhola
7 Badki Badki Himal River
Gothijuela (Kanaka Mahendra Madi Khola
8 Khatyad
Sundari) Route
180 (Mugu Krnali river
9 Mangri Gamgadi and crosses
ChimatKhola )
KhalangaKhola,
10 Kalinga Baghthala
RaruKhola
11 Budhiganga Badimalika-5 Budiganga
Sibalaya RMP-1, Chhera, Shiva, Rida,
12 Badaban
Chheraghat Salma Khola
Karnali River and
13 Raskot Manma
Sannigad
Thabang bazar, Thaban Tabang River and
14 Thabang
RMP-1 cross PhibhaiKhola
Sharada Khola and
15 Piple Lekhgaun MalaraniGarbakot RMP-3 cross Thule Jhaluke &
Chiuribas Khola
16 Tharmare Sharada Khola
AnaiKhola,
BauliKhola,
JilliKhola,
Badimalika Municipality - RajatolaKhola,
17 Kolti
09, Martadi ChuthiKhola,
SyalkatiaKhola&
BaddiKhola
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Noise Level
Implementation of construction activities utilize construction activities which produces high noise level.
The baseline study should identify the noise sensitive location and define baseline background noise
level in those area. The level of noise by the project should be monitored during construction and
should be controlled to fall within permissible range.
Geology of Area
During baseline survey, existing geological information shall be captured. The level of geology survey
depends on the nature of project. For example, construction of heavy structure like tall poles etc. For
small project, secondary data about soil, rock may be sufficient whereas for larger projects, a detailed
geological survey and mapping may be necessary. The information shall help to screen suitable
location to support the proposed structure.
Ground Water
Percolation of surface water contributes to ground water level. The ground water flows through porous
soil strata to reach the streams or ponds /lakes. The interception of ground water during slope cutting
or foundation excavation shall disturb the ground water movement. Also, water leakages arising out
of such activity shall hamper construction activities. Pre-identification of ground water level shall help
to avoid flooding issues in the activity area.
Emissions and Effluents
The total amount of solid, liquid or gaseous pollutants emitted into the atmosphere from a given source
within a given time, as indicated, shall be monitored. For example, in grams per cubic meter of gas or
by a relative measure, upon discharge from the source.
2.4.2 Biological Environment

Forest land Clearance
Implementation of project may require acquisition of forest land for construction of 33 / 11 kV
substations 33 kV lines, 11 kV lines and LT lines. To make the room for construction activities the
land area needs to be cleared. The list of forest area that will be affected by the sub project are as
follows.
Table 12 - – List of affected forest for 33 / 11 kV substations 33 kV lines, 11 kV lines and LT lines
Sub Project Location

S.N. Substations Municipality/Reural Ward Land Remarks
District
Municipality No. Substation
Irrigation Tree clearance for
1 Marchawar Rupandehi Kotaimani RMP 7
Department substation of public land
Community Ribdikot Community
2 Dhikichour Palpa Ribdikot RMP 7
Forest Forest
Community Sarbodaya Community
3 Jamnibas Dang Gadhawa RMP 7
Forest forest
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District
Tree clearance for 33 kV
4 Murkute Dang Banglachuli RMP 4 Private distribution lines of public
land
Community Shanti samrakshana
5 Ghartigaun Rolpa Madi RMP 2
Forest community Forest Land
Samjhana CFUG
Community
6 Baddichaur Surkhet Barahatal RMP 10 Commited to provide land
Forest
to NEA
Community Kula Karnali CFUG
7 Budhe Bapar Surkhet Chaukune RMP 4
Forest committed to provide land
Distribution lines passes
8 Sermaila Jajarkot Kuse RMP 7 Private
forest ares
Distribution lines passes
9 Badaban Jajarkot Shi Private
forest ares
Distribution lines passess
10 Piple Lekhgaun Salyan Kalimati RMP 4 Private
forest ares
Community forest land of
11 Tharmare Salyan Bagchaur 2 Public
SS
Community Maure Community Forest
12 Budhiganga Bajura Budiganga MP 5
Forest (SS Location not fixed)
Distribution lines passess
13 Kolti Bajura Budinanada MP 1 Private
forest ares
Sova Community forest
14 Musya Baitadi Surnaya RMP 6 Private
33kV distribution lines
15 Simikot Humla Simikot NEA
16 Mangalapur Rupandehi Tillotama MP 7 Government Ward Provided Land to
NEA
Rukum
17 Kankri Bhume RMP 2 Private
East
Rukum
18 Rukumkot Sisne RMP 6 Private
East
Land Donated by Ghorahi
19 Hapur Dang Ghorahi SMPC 12 Government sub Metropoliten City,
Ward no:12
Land is public donate by
20 Makaundanda Dang Ghorahi SMPC 9 Government
Ghorahi Sub Metropolitian
21 Bhaluwang Dang Rapti RMP 1 Private
22 Thabang Rolpa Thabang RMP 1 Private
23 Khajura Banke Khajura RMP 4 Government
24 Machhagadh Bardiya Barbardiya MP 9 Private
25 Nagma Kalikot Tilagupha MP 1 Private
26 Raskot Kalikot Raskot 6 Private
Rukim
27 Vampuchaur Bafikot RMP 6 Private
West
28 Badki Jumla Himal RMP 3 Private
29 Dunai Dolpa Thulobheri RM 9 Private
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District
30 Khatyad Mugu Khatyad RMP 7 Private
Mugum Kamarung
31 Mangri Mugu 8 Private
RMP
32 Kalinga Bajhang Bungal MP 4 Private
Dogadakedar
33 Sillegadha Baitadi 7 Private
RMP
34 Hakui Parasi Ramgram MP 15 Private
Biological diversity
The variety of life forms - different plants, animals and micro-organisms, together with the genes they
contain, their ecosystem, etc. constitute the biological diversity of the project area. It is usually
considered at three levels: genetic diversity, species diversity and ecological diversity.
Ecosystems
A dynamic, complex relationship of plants, animals, fungi and microorganism communities and
associated non-living environment interacting as an ecological unit form the ecosystem.
Endangered species
Species in danger of extinction and whose survival is unlikely if the existing conditions continue to
operate. This also includes species whose numbers have been reduced to a critical level or whose
habitats have been so drastically reduced that they are deemed to suffer from immediate danger of
extinction. Endangered species also includes those listed by IUCN - Vulnerable, Endangered,
Critically Endangered.
Vegetation
The information about the type of vegetation coverage in the project are should be collected. Some
project which passes through forest land may need clearance of trees and vegetation. To assess the
total losses of trees and vegetation and propose mitigation measures, the total losses must be
determined first. The number, size, type and coverage of trees must be determined during baseline
survey.
2.4.3 Social Baseline

Project shall conduct social baseline survey of sub-project areas to collect the primary and secondary
in very beginning. Risks and impacts on land, structures, livelihood, cultural values, rituals, public
place and utilities etc. shall be clearly defined. A socio-economic survey shall be initiated to measure
the excising condition and status, of household or communities as well as risks and impacts. This will
help to solve or mitigate adverse impacts using appropriate methods/tools. Checklist developed for
baseline screening is attached as Annexure 1.
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a. Land use: Types include agriculture, horticulture, settlement and public land barren,
Government land, forest land, etc.
b. Structures: Types include house, boundary and shed, office building, public structure etc.
c. Livelihood: Types includes small business, teashops, traditional occupations, production /
cottage industry, individual or community base, etc.
d. Cultural and archeological importance: The types are - cultural heritage structures,
historical, religious, sentimental or aesthetic value, etc.
e. Community infrastructures: The types are - irrigation cannels, community building, water
supplies, waiting places, traditional mills (Ghatta), play grounds etc. specially run by
community.
f. Socio-economic: Types include castes, households, population, literacy, income,
expenditure, access etc. of the project affected people
g. Public involvement / public consultation: A range of techniques that can be used to inform,
consult or interact with stakeholders such as indigenous people, women, affected / to be
affected by a proposal.
h. Reversible impact: An environmental impact that recovers either through natural process or
with human assistance.
i. Stakeholders: Those who may be potentially affected by a proposal, e.g. local people, the
proponent, government agencies, non-governmental organizations, donors and others, all
parties who may be affected by the project or to take an interest.
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2.4.4 Baseline of Environmental and Social Management Plan

The finding of baseline has been found in initial survey mainly shows the existing condition of 33 / 11 kV substations 33 kV lines, 11 kV lines and
LT lines . The following matrix has been present the baseline risk and impact and mitigations measures.
Table 13 - Baseline of Environmental and Social Management Plan
Address Potential Impacts

Province
Land
Municipality & Ward Mitigation measure
Ownership
District S.N Substations Place Social Environmental
Name Category No
Process follow for

No Significant loss in
land is private, loss acquire private land
physical, biological and
Parasi 1 Hakui Ramgram Municipality 15 of agriculture compensate to land Private
socio - economic
production. owners. EMP, RAP and
environmental.
VCDP will be required
No Significant loss in
will provide public land
5 physical, biological and
for SS. The proposed
socio - economic
Land is public Some Unclears RoW areas
environmental and socio
household are using need to be
Rupendehi 2 Manglapur Tilottama Municipality 7 - economic Government
the land for undergrounding at
environmental. The route
agriculture propose. Keuleni -7 of 33/11 kV
about 500 m. is not clear
line. EMP and VCDP
RoW for 33 kV line at
will be require and
Keulani -7 near SS
implementation
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Province
Land
Ownership
Name Category No
Kotaimai Municipality
No significant physical
and public will provide
and biological
the land for substation,
Land is public. No environmental impact
Rural Row is clear to and Irrigation
3 Marchawar Kotaimai 7 significant social under the proposed 33 /
Municipality from substation for Department
impacts. 11 kV substations 33 kV
33/11 kV line. EMP,
lines, 11 kV lines and LT
lines.
for mitigation measure.
Land is Private loss

of agriculture
Process follow for
production.
No significant impact in acquire private land
Rural Livelihood loss of
Palpa 4 Dhikichour Ribdikot 7 physical and biological compensate to land Private
Municipality land owners, No
environment owners. EMP, RAP and
significant impact in
Livelihood and
community utilities
Land is Private loss Process follow for

of agriculture No significant impact in acquire private land
Rukum Rural production.
5 Kankri Bhume 2 physical and biological compensate to land Private
East Municipality Livelihood loss of environment owners. EMP, RAP and
land owners, No VCDP will be required
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Province
Land
Ownership
Name Category No
Livelihood and
community utilities

of agriculture
Process follow for
production.
No significant impact in acquire private land
6 Rukumkot Sisne 6 physical and biological compensate to land Private
environment owners. EMP, RAP and
Livelihood and
community utilities
Land is public. No No significant impact in

Sub Land owned by
7 Hapur Ghorahi 12 significant social physical and biological Government
Metropolitan Ghorahi Municipality
impacts. environment
Dang
Land is public. No No significant impact in
Sub Land owned by
8 Makaundanda Ghorahi 9 significant social physical and biological Government
Metropolitan Ghorahi Municipality
impacts. environment
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Province
Land
Ownership
Name Category No

of agriculture Require IEE for
production and mitigation potential
Land is forest using by
Rural small structure. physical, biological and Community
9 Jamnibas Gadahawa 7 Sarboday Forest
Municipality Livelihood loss of soci-economic impacts. Forest Land
community forest group.
land owners, No EMP, VCDP is needed
significant impact in to prepare.
Likelihood.

of agriculture Follow the acquisition
production and process of private land,
No significant impact in
Rural small structure. properties provide
10 Bhaluwang Rapti 1 physical biological Private
Municipality Livelihood loss of compensation of loss.
environment.
land owners, No Required EMP, RAP,
significant impact in VCDP and
Likelihood.

Land is Private loss Require IEE for
Lahareni, Sawarikot,
of agriculture mitigation potential
Jalapa Devi, Talu, gadi,
Rural production and physical, biological and
11 Murkute Banglachuli 4 Lwage Bhatkule, Private
Municipality small structure. socio-economic
Lalakundi & Baraha
Livelihood loss of impacts. EMP, VCDP is
Forest community forest
land owners, No needed to prepare.
group.
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Province
Land
Ownership
Name Category No
Likelihood.

12 Thabang Thabang 1 physical biological Private
environment.
Likelihood.
Rolpa
Rural small structure. physical, biological and Community
13 Ghartigoun Madi 2 Shanti janasaramkshana
Municipality Livelihood loss of socio-economic Forest Land
community forest group.
land owners, No impacts. EMP, VCDP is
significant impact in needed to prepare.
Livelihood.
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Province
Land
Ownership
Name Category No
The propose site is

belongs to local
government (Khajura
municipality). Local
Land is public. No Need to clearance
Rural level coordination,
Banke 14 Khajura Khajura 4 significant social Mango Tree in propose Government
Municipality consultation and
impacts. SS site.
approval is required.
EMP VCDP is also
required for mitigation
potential E&S risk.
Follow the acquisition

process private land,
of agriculture
structures provide
production and
compensation of loss.
small structure.
No significant physical Rehabilitation of 500
Bardiya 15 Machhagadh Bara Bardiya 9 and biological meters road and public Private
environmental risks irrigation cannel.
Required EMP, RAP,
Livelihood and no
VCDP and community
relocation of
development plan
irrigation cannel
(CDP)
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Province
Land
Ownership
Name Category No
Require IEE for

mitigation potential
Samjhana, Masina &
Rural No significant social physical, biological and Community
16 Baddichaur Barahatal 10 Deurali community forest
Municipality impact socio-economic Forest Land
group. Loss of tree Sall
impacts. EMP, VCDP is
and Salla
needed to prepare.

Surkhet
Kulla Karnali, Majhigau,
Require IEE for
Birtri, Chulidanda,
mitigation potential
Duliwadanda, Deurali,
Rural No significant social physical, biological and Community
Karnali (6)
17 Budhe Bapar Chaukubne 4 Mahila, Dad Chamidada

Municipality impact soci-economic impacts. Forest Land
Mayaral, Baspani &
EMP, VCDP is needed
Kundalki community
to prepare.
forest group. Loss of tree
Sall.

Kalikot 18 Nagma Tila 1 physical biological Private
environment.
Livelihood.
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Province
Land
Ownership
Name Category No

19 Raskot Raskot 6 physical biological Private
environment.
Livelihood. .

20 Sermaila Kuse 7 physical biological Private
environment.
Jajarkot Livelihood. .
Land is Private loss Follow the acquisition

of agriculture process of private land,
Rural production and properties provide
21 Badaban Chhedaghat 6 physical biological Private
Municipality small structure. compensation of loss.
environment.
Livelihood loss of Required EMP, RAP,
land owners, No VCDP and
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Province
Land
Ownership
Name Category No
Livelihood. .

22 Piple Lekhgaun Kalimati 4 physical biological Private
environment.
Livelihood. .
Salyan
of agriculture
production and
No significant impact in Land owned by
Rural small structure.
23 Tharmare Tharmare physical and biological Tharmare Rural Government
Municipality Livelihood loss of
environment Municipality
land owners, No
Livelihood.
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Province
Land
Ownership
Name Category No

of agriculture
production and
West Rural small structure.
24 Vampuchaur - physical and biological - -
Rukum Municipality Livelihood loss of
environment
land owners, No
Livelihood.

Jumla 25 Badki Hema 3 physical biological Private
environment.
Livelihood.

of agriculture No significant impact in
Dolpa 26 Dunai - production and physical biological - -
small structure. environment.
Livelihood loss of
land owners, No
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Province
Land
Ownership
Name Category No
Livelihood.

27 Khatyad Khatyad 7 physical biological Private
environment.
Livelihood.
Mugu
28 Mangri Mugukamarung 8 physical biological Private
environment.
Livelihood.
Land is NEA, No No significant impact in

Humla 29 Simikot - - significant impact in physical biological - -
Livelihood. environment.
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Province
Land
Ownership
Name Category No

30 Budiganga Badimalika 5 physical biological Private
environment.
Livelihood. .
Bajura
31 Kolti, Pipaldali Budinanda 1 physical biological Private
environment.
Livelihood. .
Land is Private loss Follow the acquisition

of agriculture process of private land,
production and properties provide
Bajhang 32 Kalinga Bungol Municipality 4 physical biological Private
small structure. compensation of loss.
environment.
Livelihood loss of Required EMP, RAP,
land owners, No VCDP and
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Province
Land
Ownership
Name Category No
Livelihood. .

33 Musya Surnaiya 6 physical biological Private
environment.
Livelihood. .
Baitadi
Rural small structure. physical, biological and
34 Sillegadha Dagdakedar 7 Samjhana community Private
Municipality Livelihood loss of socio-economic
forest group.
land owners, No impacts. EMP, VCDP is
significant impact in needed to prepare.
Livelihood. .
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2.4.5 E&S impacts

DSUEP project has the following components:
Table 14 - Components of DSUEP
Sl.
Component Description
No.
Construction of 33kV supply lines and 33/11kV substations (including upgrade of existing
1 Component 1
facilities where needed).
Construction of 11kV lines, distribution transformers, low-voltage (LV) supply lines including
2 Component 2
consumer connections.
3 Component 3 Capacity Building, Project Implementation Support, and Technical Assistance.
Component 1: Construction of 33kV supply lines and 33/11kV substations (including upgrade of
existing facilities where needed).
This component comprises activities relating to the construction of new primary substations,
facilitating the enhancement of the distribution network. It consists of extension to the 33kV
network providing supply to the new 33/11 kV substations and the construction of these
substations and related facilities. In some instances, where needed, the existing 33kV lines
would be augmented by the increase of conductor size or number of circuits.
Component 2: Construction of 11kV lines, distribution transformers, low-voltage (LV) supply lines
including consumer connections.
This component comprises activities related to the new power distribution facilities required to
bring the power supply to the ultimate consumers. It consists of new 11kV feeders, installation
of distribution transformers, development of the LV network and service connections to
consumers.
Component 3: Capacity Building, Project Implementation Support, and Technical Assistance.
This component focuses on improving the capacity of NEA’s distribution planning and
analyzes the network performance of the proposed project components. This component will
also independently supervise and monitor the PIU needed for project implementation.
2.4.5 Environmental safeguard issues

Generally, in development related projects, physical and biological issues/impacts are the most
common ones. However, these are not exhaustive, and many issues are site-specific based on the
existing environment. Before implementing development activities, the likely environmental impacts
must be assessed and mitigated by proper measures.
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The biodiversity sensitivity area such as Banke national park, Bardiya national park, She-Phuksundo
national park, Rara national park, Khaptad national park and Apinappa reservation area lies in sub-
project districts. However, the distribution line and substation does not lie in these sensitive areas and
does not have major impacts in biodiversity. The project area mostly lies in hilly reason which as
susceptible to land slide and erosion due fragile nature of hill.
The E&S risks associated with sub-projects may involve influx of labour for construction activities.
Labour working conditions, therefore, has potential impacts on physical, cultural and social
environment. Moreover, there are risks related to transportation and access roads near sites (although
access roads are not anticipated at this time). This aspect will be taken into account during the
assessment process for each sub-project.
In terms of DSUEP sub-projects, adverse environmental impacts are anticipated to be temporary in
nature, like labour camps and contractor camps. Landslide, soil erosion, safety hazards, construction
disturbance, disposal of debris, worker health and safety and irritation from dust and noise in the sub-
project site are some of the impacts which occur during the construction stage -with short-term
negative impacts. These impacts can be minimized to an acceptable level in accordance with the
Financiers’ safeguards and good environmental practices. The above adverse impacts are separately
listed in environmental and social category.
Environmental & social Issues
The following issues are largely foreseen –
• Terrestrial habitat alteration
• Aquatic habitat alteration
• Hazardous Materials
• Electric and magnetic fields
• Forest and wildlife disturbance
• Landslide
• Erosion
• Impact on community and leasehold forests
• Impact on places of cultural and archeological importance
• Environmental issues related to labour mobilization
• Live power lines
• Working at height
• Exposure to chemicals
• Electrocution
• Electromagnetic interference
• Visual amenity
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• Noise
2.4.6 Environmental & Social Issues/Impacts

Beneficial Impacts
The following are the beneficial impacts caused by the implementation of the proposed project during
construction and operation phases –
Employment Opportunities
One of the major benefits of DSUEP implementation for the local project affected people is the
generation of job opportunities. Construction activities require both skilled and unskilled labour during
project implementation. Priority will be given to the locals during labor selection. This will enhance the
income of local people and enhance living standards in the project areas. Growth in employment can
be tracked through compliance monitoring during implementation stage such as number of local
persons involved in project, Number of new industries established etc.
Enhancement of local skills in rural areas
The development of DSUEP will require advanced equipment and a host of technical expertise that
will be carried out in the project area. As the local people will be involved in the construction activities
as per their qualification and skill, this technical expertise shall be passed on to local people. Over
time, it will boost the quest for technical knowledge and result in overall growth of knowledge quotient.
This experience not only enhances the conventional skills at local level, it also helps the local people
to get engaged in similar projects elsewhere in Nepal.
Increase in trade and infrastructure
Electrification will help to increase trade and business through opening of business centers, new
industries, hotels, shops, etc. Availability of electricity will increase income and production levels,
thereby enhancing the spending capacity and boosting business growth.
Utilization of local commodities
Construction activities increase the disposable income of human resources in the project area thereby
increasing the consumption of local commodities. Further, the construction activities require different
construction materials like aggregate, sand, cement, steel etc. These materials shall be bought from
the locally available market centers.
Enhancement in Rural Electrification
The implementation of DSUEP shall help to supply electricity to remote, rural areas of province 5, 6
and 7. It will also help to meet the government’s target of 100 % electrification.
Formation of forest fire line zone
The construction of distribution line needs clearance of trees lying beneath and within RoW for
sustainable operation. Such clearance of tree underneath the distribution line will create the open
ground forming the fire line zone. Such clear zone prevents spreading of forest fire and protects flora
and fauna within the forest area
Enhancement of Education and Health Sector
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The education and healthcare facilities in rural areas is not as good as in urban areas. This is mainly
due to lack of proper infrastructure and availability of electricity required for the operation of necessary
equipment.
As there is no access to electricity, currently the students in these areas lack the awareness of
technological changes brought about in the last few decades. Computer skills have become
fundamental and basic for students elsewhere. However, students in the project lack these skills
because their villages have been hitherto unconnected to the national grid.
Similarly, in healthcare sector many technological innovations such as X-ray machines, sonograms,
MRI machines, etc. are being used in the urban areas. However, people in rural areas do not have
such access, and in many cases, this results in fatality. This is the unfortunate consequence of lack
of proper health instruments due to lack of access to electricity.
Enhanced Productivity
Nepal is rich in resources such as natural herbs, agricultural products etc. which are the raw materials
for the pharmacy industry. These materials are found in abundance in rural areas. Due to lack of
industries for processing the raw material into finished product which can be sold to urban centers,
the resources are not being utilized.
Adverse Impacts
Physical Impacts
Construction Phase - Land Use Change
The line and substation construction will require NEA to acquire the land and change its use type.
Construction in agricultural land shall change its utilization from agriculture to buildup area. On an
average the distribution line and substation will require 2000 Sq.m/Km and 4000 Sq.m respectively.
• The area below distribution line will be clear and vegetated area will be clear,
• Similarly, construction of substation on agricultural land and access road to substation will
convert the agricultural line into built up area.
Construction Phase - Land Pollution
Land pollution as discussed here, is the consequence of soil erosion, landslide, stockpiling of
construction material on temporary land, waste and spoil disposal. The impacts on the land due to
implementation of sub-projects are:
• The foundation excavation works will disturb the soil and rock condition of limited areas.
• The excavation for poles as well as substation foundation may lead to soil erosion and siltation
issues in the vicinity. Besides the clearance of forest areas might involve erosion and siltation
contaminating the nearby water bodies.
• Haphazard storage of construction material like storage of sand and gravel over fertile land
will reduce the fertility of land
Construction Phase - Losses of standing crops
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The construction of lines and stringing of distribution line will cause disturbance to the agricultural
produce due to reduced productive land. This will affect farmers and their income. Operation of
construction activities during cultivation period will damage the crop and hamper farmer economy.
Construction Phase - Impact due to land stability and soil erosion
Particularly construction of distribution lines and substation require excavation works. Construction of
distribution lines on hilly slope area may destabilize the slope which shall trigger landslides due to
percolation of rain water through loosened excavated earth. Further, the soil will be more prone to
erosion due to rain, wind after excavation activity.
Construction Phase - Earthquake stability of line and substation location
Nepal is one of the most earthquake -prone countries. Earthquake can occur at any time and lack of
proper or timely precaution might cause large scale damage of physical structure and life. Any
structure (line or Substation) construction in hilly slope increases the surcharge load in the land so
any small shaking of land might cause sliding and damage of structure
Construction Phase - Impact due to stockpiling of construction material on temporary land
Unmanaged and haphazard stockpiling of construction material during construction period on
temporary land will cause adverse impact on the land environment since the soil composition may
change in presence of cement etc. Stockpiling of construction material in fertile land will degrade the
fertility value and reduce the agricultural production level. Such as storing of construction material like
sand, gravel, cement etc. on the fertile land will form a layer of deteriorate material will over the
previous fertile land and will affect the root of plant. Further, the store material will be sweep by the
rainwater and deposit on the low land and natural stream. Which block/reduce the flow of natural
stream?
Construction Phase - Impact due to waste disposal
Construction activities will produce the different waste material such as construction debris, solid
waste from camp site. The nature of waste will be different on the basis of source. Construction wastes
are mainly non-biodegradable solid waste and waste from camp sites are mainly decomposable.
• Haphazard disposal of construction waste will degrade the soil value and production level.
• The distribution wires, fittings, metals will cause injury to the local people if thrown
haphazardly on the road and field.
• Unmanaged disposal of solid waste from camp site will cause water pollution, nuisance etc.
Construction Phase - Air Pollution
Dust particles are likely to be emitted during excavation for foundation works and breaking activities.
Furthermore, the movement of vehicles for the hauling of materials and supervision works will also
affect air quality of the project area. Since most of the area of distribution line and substation is
accessible only by rural road and use of equipment is also minimum, the likely impact on air quality is
insignificant.
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Construction Phase - Water Pollution

For various construction activities, water will be used from the nearby rivers, rivulets etc. Inappropriate
waste disposal of debris, solid wastes such as cement slurry, other construction material and human
wastes from camp site may deteriorate the river water quality. There is the general trend of disposing
of organic material and washing/cleaning of equipment in water bodies which will pollute the water
resources.
Construction Phase - Noise and Vibration Pollution
Construction of distribution lines and substation will be done by semi-mechanized method such as
manual excavation will be done, manual cable stretching using simple hand tools. Most of the area of
distribution line is accessible only by foot track and use of equipment is also minimum. The workforce
involved and machines used for the construction activities like excavation, concerting etc. will produce
insignificant noise and vibration of low intensity. Therefore, the likely impact on noise and vibration is
considered insignificant.
Operation& Maintenance Phase - Air Pollution
Air pollution during operation is due to emission of harmful gases from distribution line. The impacts
are significant for high voltage distribution line. The efferent of corona are:
• Corona discharges from the distribution lines generate minute quantities of ozone (O3), nitric
oxide (NO) and nitrogen dioxide (NO2).
• In general, the effects of Corona also include the production of ozone gas surrounding the
distribution line conductors.
The proposed distribution lines are of 33 and 11 kV so the impact is not much significant.
Operation& Maintenance Phase - Noise and Vibration Pollution
The noise and vibration produced in the distribution lines may cause impacts near settlement and
wildlife habitat area. The audible level of corona in distribution line is usually measured at the edge of
the RoW i.e. 10 m approximate from the outer conductors.
Operation& Maintenance Phase - Impact due to interference of distribution line with roads,
other lines and infrastructure
The distribution lines will follow the RoW of roads, river-side and boundary of forest area. The likely
impacts are:
• The construction of distribution line near road will reduce available sight and stopping distance
of road.
• Furthermore, any infrastructure lying along the route of distribution line and in substation
needs to be removed to facilitate the construction activities. Therefore, during distribution line
route and substation location selection, information of existing infrastructure shall be collected
and the route with minimum disturbance to facilities shall be selected.
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Biological Environment
Construction Phase - Impact on Vegetation
When distribution lines pass through forest land, trees lying within the RoW need to be clear for
sustainable operation and easy in maintenance. The clearance of RoW will cause loss of vegetation
and trees.
Construction Phase - Possible collection of forest product for firewood and timber
The labour in the construction site and their dependents will increase the demand of fuel such as
wood for their use and timber for making temporary sheds. However, it is assumed that priority will
be given to local labour force which will reduce the fuel wood demand.
Construction Phase - Disturbance to wildlife and wildlife habitat
During construction period movement of labour and transportation of equipment and material at site
will create threat to the wildlife and disturb their movement near work site. Further clearance of trees
will reduce the availability of habitat for mammals and birds. The impact of loss or fragmentation of
habitat varies in different animals.
Construction Phase - Habitat fragmentation
The degree of impact on wild animals depends entirely on the species present, forest type and
abundance of food. Clearance of vegetation within RoW will create the break line and divide the forest
which will disturb their movement across the distribution corridor and break their natural route.
Construction Phase - Rare, endemic, threatened, endangered, protected plants due to site
clearance
No significant impact is expected on rare, endemic, threatened, endangered, protected plants due to
site clearance during construction period of the proposed project. This has been confirmed during
baseline survey.
Construction Phase - Impact on aquatic life
No significant impact is expected on natural habitats and communities due to construction of the
proposed project as there is no water in dry season as well the construction work is not carried out in
the rainy season.
Construction Phase - Forest fire hazard
The project area and the vicinity have a thick and dense forest which are prone to forest fire. Similarly,
the current carrying wire shall be have high chances of lightning. Improper precaution against lightning
shall damage the distribution line and cause fire.
2.4.7 Mitigation Measures
Beneficial impact enhancement measures
With the implementation of DSUEP the local rural people of province 5, 6 and 7 will be benefited. Key
benefits are - rural electrification, employment opportunity, income generation, opening of new small-
and large-scale industry, enhancement of education and health sector, operation of industry etc.
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DSUEP shall give priority to local workforce while selecting labor for the project. This will increase the
employment of local people. The availability of jobs at local level shall garner local support for DSUEP.
This is essential for the sustainability of any project. The job opportunities will increase their income
level and enhance their living standards.
DSUEP will provide the equipment operation training which will be used in project which will further
help to enhance the technical skill. The knowledge of distribution line and substation construction form
DSUEP will help the skill people to get job in for similar other projects.
Adverse Impact Mitigation Measures

Physical Impacts
Construction Phase - Land Use Change
Construct of distribution lines and substation structure will change the land use pattern. The project
might affect agriculture land, forest land, Market Area or dense settlement and change their use
pattern. Key steps to minimize the impact shall be taken while selecting the route for distribution line
alignment. If possible, line alignments shall pass through barren land or RoW of existing road without
hampering traffic movement, etc. Following mitigation measures shall be adopted to minimize the
adverse impacts –
• Selecting line route which required least land acquisition.
• Wherever possible the line route will avoid forest and wet land
• To the extent of possible, barren land will be selected for line route and for construction of
substation
• Wherever possible, the proposed line will be aligned along the existing RoW of road without
hampering traffic movement.
Construction Phase - Land Pollution
Land pollution discussed here is the consequence of soil erosion, landslide, stockpiling of construction
material on the temporary land, waste and spoil disposal.
• The foundation works may disturb the soil and rock condition of limited areas
• The excavation for poles as well as substation foundation may lead to soil erosion and siltation
problems in the vicinity
• Clearance of forest areas might involve erosion and siltation to the nearby water bodies
Construction Phase - Losses of standing crops
The construction of lines and stringing of distribution line will cause disturbance to the agricultural
produce due to reduced productive land. This will affect farmers and their income.
The following measures shall be followed to minimize the impacts –
• Stringing of the line and other construction activities will be done in off-farming season
• the proposed line will be aligned along the existing RoW of road and edges of the fields
• The affected farmers shall be suitably compensated of standing crops and fruits on the basis
district agriculture rate valuation by district agriculture office.
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Construction Phase - Impact due to land stability and soil erosion

Excavation work in the hills will cause further losses the slope. The exposed surface water can
percolate easily reducing the strength and stability of hilly slope. Therefore, proper precaution shall
be taken during excavation.
To minimize the possibility of landslide and soil erosion at working site following mitigation measure
will be adopted:
• The pole location identified for distribution line should be stable and in flat ground if possible.
• Proper geological study shall be conducted to determine the ground conditions if necessary.
• The excavation shall not be done during rainy season in hilly slope.
• Construction of line may over-burden the slope land and may trigger the slide. Therefore, soil
bearing capacity and strength of slope land shall be checked before construction of lines and
substation.
Similarly, Improper dumping of debris will cause soil erosion in rainy season and impacts lower
land in hill area, agriculture land and increase sediment flow in river.
• The debris generated from excavation will be removed from the site immediately or will
be reused at the site. If possible, the debris shall be used for backfilling which reduce the
need of dumping site.
• The debris will not be left at the site under any circumstances. Proper spoil dumping site
will be located before start of the project.
Construction Phase - Earthquake stability of line and substation location
Nepal is one of the most earthquake -prone countries. Earthquake can occur at any time and lack of
proper or timely precaution might cause large scale damage of physical structure and life. Any
structure (line or Substation) construction in hilly slope increases the surcharge load in the land so
any small shaking of land might cause sliding and damage of structure.
• To minimize the possible impacts, structure shall be properly designed to resist earthquake
load and also the stability of land shall be duly checked.
• The pole will not be constructed in fracture and crack rock mass and fault area without proper
design and ensuring stability.
Construction Phase - Impact due to stockpiling of construction material on temporary land
The project will apply high priority to safety and management of construction material. Materials like
cement, aggregate, soil, electric wires, metals etc. shall be used in construction of lines and
substations. Improper management may increase the wastage of construction material and pollution
of land, water and air. Erosion of piled soil, sand and aggregate may damage the road, agriculture
land, silting issues in nearby natural streams. Similarly, the wind causes dust issues in soil and sand
stored in open ground without cover.
Therefore, these hazards can be minimized by adopting following measures to large extent –
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• The construction material stockpiling yard will be identified before start of construction
activities and will be approved by site engineer
• The selected yard site will be barren land as far possible
• The land for storing the construction material shall be far from the agriculture land and water
bodies
• Prior permission from the local stakeholders shall be taken before commencing the stockpiling
of material
• Construction materials shall be covered with tarpaulin during stockpiling to prevent rain water
and dust emission generated from the stockpiling site. It should be encircled with side barriers
and cover so that incidence of mix up with deleterious materials is imminent
• Stockpiles shall be kept wet by sprinkling water or covered so that erosion by wind causing
dust does not occur
• Haphazard disposal of construction materials shall be strictly prohibited
Construction Phase - Impact due to waste and spoil disposal
Careful management of waste produced from construction activities and camp site is very essential.
Chances of erosion of spoil during rainy season is high due to flooding. This may damage the
agriculture land and also deposition of spoil in water sources affects aquatic life. Following mitigation
measures shall be followed to mitigate the likely impacts –
• The Contractor shall prepare a detailed site-specific Environmental Management Plan (EMP)
including suitable disposal locations for spoils/wastes and that shall be approved by the
Supervision Consultant
• Locations for disposal will be selected with the consent of local community, RMS
representatives, and the sites shall be located at least 1 km away from the settlements,
schools, hospitals, religious and cultural sites, water sources including other sensitive areas
from environmental point of view
• The Contractor shall use such spoils/wastes for construction purposes as far as possible
• Proper drainage facility shall be provided around spoil disposal site
• Similarly, waste from camp site will be properly managed and disposal in river and open
ground will be prohibited and shall be monitored
• Pit toilet facility will be provided at camp site and open defecation will be prohibited
• The organic solid waste from camp site will be decomposed in compost bin or by constructing
pit ground and covered by the sufficient thick layer of soil
• The un-decomposed solid waste will be managed by the contractor and will not be allowed to
seep through in water sources, forest land, agriculture land, etc.
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Construction Phase - Air Pollution

Air pollution occurs mainly due to the emission of dust particles during excavation, transportation of
spoil and construction material. Appropriate mitigation measure shall be adopted and will be included
in the EMP to compel contractor to follow mitigation measures as follows –
• The vehicle plying on the road for transportation of construction material and spoil will be
properly checked and proper condition and as per government law shall be ensured
• The construction material and spoil will be covered by tarpaulin during transportation
• Construction materials shall be covered with tarpaulin during stockpiling to prevent rain water
and dust emission generated from the stockpiling site. It should be encircled with side barriers
and cover so that incidence of mix up with deleterious materials as imminent
• At the work site, dust emission will be controlled by regular sprinkling of water
Construction Phase - Water Pollution
The main impacts on the water source is due to disposal of excavated spoil, solid and liquid waste
from camp site. Proper arrangement shall be made at site for proper management of waste –
• The solid waste generated by workforce shall be disposed-safely away from water resources
• Onsite sanitation facility will be provided at the camp site
• Good construction practices and site management will be adopted to avoid impacting soil and
ground water, and pollution of water bodies from accidental spills from fuels and lubricants
etc.
• The construction equipment and vehicles shall not be allowed to wash and clean in the water
bodies near site. Maintenance and cleaning will be carried out in garage.
Construction Phase - Noise and Vibration Pollution
The noise pollution and vibration occur at site during excavation works and civil works for substations.
Therefore, these activities will be properly scheduled for site near settlement. The noise level above
90 dB will cause disturbance for animal and humans. So, noise level at work site shall be regularly
monitored and maintain well below standard.
• The vehicle being used for transportation of construction material and spoil shall be regularly
checked and kept in good condition. Vehicles producing high sound will not be allowed to
move on the road and near working site
• Drilling equipment with low sound emission shell be used and if possible, sound trapping
machine like silencer will be attached
• The drilling and excavation work will be carried out during day time and not allowed in night
time
Operation & Maintenance Phase - Noise and Vibration Pollution
The noise and vibration level produced from 33 kV, 11 kV and LT distribution lines are very low.
According to available information, for line voltages below 345 kV, corona amplitude modulated (AM)
levels are of little or no significance.
• Corona noise levels decrease rapidly with distance from the 33 kV, 11 kV and LT distribution
line and in the presence of trees or buildings
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• Some noise is also expected in the substation area but will be within the permissible limit
• Transformers usually produce some moderate noise in the substation area, though it is
generally less than 85 decibels, the overall magnitude is insignificant.
Operation & Maintenance Phase - Impact due to interference of 33 kV, 11 kV and LT distribution
line with road, other lines and infrastructure
The infrastructure particularly road, building along the 33 kV, 11 kV and LT distribution line is
significant when the structure is constructed near the infrastructure. The following mitigation measures
shall be followed to minimize the impacts –
• 33 / 11 kV substation, 33 kV line, 11 kV line and LT line locations will be kept sufficiently away
from road edge - not to hamper the setback and sight distance.
• 33 / 11 kV substation, 33 kV line, 11 kV line and LT line locations will be away from water
source.
• While installing electric distribution lines of more than 11 kV across the road in a densely
populated area, the double insulator system shall have to be used
• No electric wire shall be carried above the house
Operation & Maintenance Phase - Electromagnetic fields hazards
Electric and magnetic fields known as electromagnetic field (EMF) are created by the presence of
voltage and current near to the power apparatus in a substation. The height of distribution lines will
be made sufficiently high to ensure the proper ground clearance and away from structure to minimize
the chance of EMF hazard.
Table 15 - Minimum distance which ought to be from the wire to the house and tree
Minimum Distance to be from house and tree

S. No. Standard of Voltage of Electricity
(m)
1 Standard 230/400 V to 11 kV 1.25
2 From 11 kV to 33 kV 2.00
Table 16 - Minimum distance which ought to be from wire to the ground
While crossing the On the side of the In other

S. No. Standard of voltage of electricity
road (m) road (m) places (m)
1 Standard 230 / 400 V to 11 kV 5.8 5.5 4.6
2 From 11 kV to 33 kV 6.1 5.8 5.2
Source: Electricity Rules, 1993
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Construction Phase - Impact on Vegetation
During construction of 33 / 11 kV substation and distribution lines, the following measures will be
considered to minimize the impacts on vegetation:
• To the extent of possibility, 33 / 11 kV substation location and the distribution line route will be
selected on barren land to minimize the need for vegetation losses
• Different alternative routes will be studied and the route with minimum requirement of tree losses
will be selected
• The losses of trees and vegetation shall be compensation as per the prevailing rule of 1:10.
• The prior clearance approval from Department of Forest (DoF) in coordination with District
Forest Office (DFO) and Community Forest User Group (CFUG) will be taken as per Forest Act.
• Only the trees lying on the distribution line route and 33 / 11 kV substation location as needed
and approved by DoF will be cleared and the work will be monitored by the DFO, CFUG,
supervision consultant or agencies.
• Unnecessary movement of vehicles in the forest land will be prohibited.
• Wood and other forest products extracted as part of the site clearance from the forest will be
handed over to the concerned forest user groups / DFO office.
Table 17 - Plant Species and Forest products protected under the Forest Regulations, 1995 (amended 2001)
S,N. Botanical Name of Forest resource Vernacular Name IUCN Status CITS Code
Species banned for collection and export
1 Dactylorhiza hatagirea Panch Ounle II
2 Picrorhiza scrophulariiflora Kutki
3 Juglans regia (bark) Okhar
Species banned for export without processing
1 Abies spectalilis Talis patra
2 Cinnamomum glaucescens Sugandhakokila
3 Cordyceps sinensis Yarsa gomba
4 Lichen species Jhyau
5 Nardostachys grandifloral Jatamansi
6 Rauvolfa serpentina Sarpagandha, (harbaruwa) VE II
7 Taxus buccata sub-sp. Wallichiana Loth salla
8 Valerina jatamansii Sugandabala II
Timber tree banned for felling, transportation and export
1 Acacia catechu Khayer
2 Bombax ceiba Simal T
3 Dalbergia latifolia Satisal
4 Juglans regia Okhar
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S,N. Botanical Name of Forest resource Vernacular Name IUCN Status CITS Code
5 Michelia champaca Champ
6 Petrocarpus marsupium Bijaya sal E
7 Shorea robusta Sal, Sakhuwa
* Products processed in the country can be exported with special permission from the MFSC. IUCN Threat
categories: E = endangered, T = threatened, V = vulnerable.
Operation & Maintenance Phase - Possible collection of firewood and timber

Establishment of camp sites near forest will cause collection of forest resources like wood for fire and
cooking, Chances of timber collection for camp site construction cannot be neglected. To minimize
the chances of forest resource collection, following mitigation measures shall be followed –
• Contract documents shall include provisions to restrict workforces with regard to forest
resources and wildlife exploitation and trade
• Contract documents must include provisions to instruct contractor to arrange alternate energy
sources such as kerosene or LPG for labour
• The contractor must prevent illegal cutting of forest wood by labour force. The firm also shall
be liable to penalize violators
• Equally, collection of non-timber forest resources (e.g. bamboo, medicinal plants, mushrooms)
by workforce must be prohibited and enforced
• PIU should instruct the project officials, labour force, contractors, consultants and other
stakeholders not to indulge in such activities and abide by the forest act and its regulations
Operation & Maintenance Phase - Disturbance to wildlife and wildlife habitat
The impacts are very significant when distribution lines pass through dense forest and national parks.
When the distribution line route pass through forest and the trees lying on the route is cleared, the
route previously and naturally followed by the wildlife may get destroyed and movement of wildlife will
be hampered.
To minimize the impacts following mitigation measures shall be followed –
• Distribution line route and 33 / 11 kV substation location shall be chosen in such a manner
during screening that without disturbing their path and habitat will be determined
• The forestland will be avoided as far possible but where required to use forest land barren,
thin forest location will be use.
Operation & Maintenance Phase - Hunting and Poaching
It shall be strictly prohibited for workforce to carry out hunting and poaching practices in the project
area. The workforce/labour will be prevented from entering inside forest by developing a fencing
mechanism and peer information network to identify incidents of non-adherence. To minimize the
impacts following measure will be adopted:
• The labor camp will be established away from forest area.
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• The hunting activities will be done for meat so the required food product will be supply from
market by the contractor on need basis.
• To aware the contractor to prevent labor from hunting and trapping of wildlife appropriate
clause will be mention in tender document (contract document).
Operation & Maintenance Phase - Habitat fragmentation
The impacts will be significant if the area along the line route will be cleared completely and the line
passes through national park and dense forest which are habitats of various wild species.
• Attempt shall be carried out to minimize the clearance of trees and vegetation
• The cables/ wires / conductors can be strung in horizontal and vertical alignment. Poles will
be used instead of towers which required less land coverage
• The cleared space can be planted with small shrubs which will link the forest on both side of
RoW
Operation & Maintenance Phase - Rare, endemic, threatened, endangered, protected plants
and animals due to site clearance
National parks, conservation areas, wetland and dense forests are the habitat of rare and endangered
species. Once disturbed, habitat may not be again used by the wildlife and forces the species to
migrate which affects ecosystem of that particular area. To minimize the impacts following measures
will be adopted:
• The distribution line will not be passes through wildlife sensitive area like national park,
wetland, conservation area etc.
• The habitat of wild animal will be avoided.
Operation & Maintenance Phase - Impact on aquatic life
The impact will be caused due to erosion of excavated spoil by the rain water and deposited in the
river bed. Siltation problems is more significant when distribution line is near water bodies and
management of spoil is not effective.
• The labor force will be prohibited for fishing activities.
• The flow of mud and spoil form construction site shall be properly checked by the construction
of proper sized drain.
• Similarly, the excavated spoil should be immediately removed from site and dumped at
identified location.
Operation & Maintenance Phase - Forest fire hazard
During dry seasons, dry leaves of this vegetation may catch fire from a small fire like match stick or
cigarette butts. This could create immense fire hazard. Therefore, any fire related activities inside
forest shall be prohibited.
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Similarly, the cable carrying electricity may be struck by lightning and cause fire hazard in the forest
area. Therefore, to minimize the impact all kinds of metallic supports under high voltage system will
be permanently and effectively earthed by using perpetual earth wire.
Further, there may be sparkling due to leakage of current and the catching of these spark by the dry
leaves and grass may initiate forest fire. To minimize the effect minimum recommended clear distance
between the phase will be maintained as per NEA standards tabulated as follows –
Table 18 - Minimum Clearance between the wires for HT
Horizontal distance Vertical distance between

S. No. Standard of voltage of electricity between lower two wire center of lower channel and top
(m) phase (m)
1 For 11,000 1.14 0.75
2 For 33,000 1.90 1.00
Table 19 - Minimum Clearance between the wires for LT
S. No. Standard of voltage of electricity Vertical distance between two adjacent phase (m)
1 400 V and 230 V 0.3
2.5 Social safeguard issues

Generally, gender, indigenous people, poverty, land, private structures, livelihoods, community
facilities, healthcare and sanitation, wages related issues are common in development projects. In
spite of these, particular issues in sub-projects shall be mutually exclusive depending on nature of the
project.
2.5.1 Land impact

Every construction work shall occupy some land either private or public. Loss of production and
vegetation are main issues regarding land. The land value under the distribution line alignment usually
shows a decreasing trend. The land owner’s area for agricultural produce will decrease as a result.
2.5.2 Impact on livelihood

Project construction activities may disturb and affect the existing livelihood pattern. However, these
issues are nominal in DSUEP sub-projects. The impact is likely to impact the livelihood permanently
as well as temporarily by the project activities in private and community properties.
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2.5.3 Impact in community infrastructure and utilities

The issues regarding community properties are likely to be disturbed permanently as well as
temporarily. Common impact areas may be the irrigation canals, playgrounds, waiting places, access
trails/roads, community buildings, etc.
2.5.4 Impact on aesthetics, cultural and places of historical importance

These issues shall manifest itself on project sites especially along the alignment site.
2.5.5 Impacts on vulnerable people and communities

Vulnerable people and communities living in remote locations are commonly landless and marginal
farmers. These are impacted due to indigenous people, occupational caste, women headed, elder
and disability person affected by the sub-projects.
2.5.6 Others
The other issues likely to occur in the sub-project areas are - change in demographic profile due to
the contractor employee increase, business by the project activities. The healthcare and safety issues
will be raised mainly in sub projects construction phase All of the above issue shall address by the
preparing Abbreviate/Resettlement Action Plan (A/RAP), Indigenous Peoples Development Plan and
Vulnerable Community Development Plan (VCDP). The other local issue will be address through
Grievance Redress Committee (GRC). Land acquisition process shall be followed. SIA will be carried
out properly. Grievance redress mechanism shall be established as per the recommendation by
ESMF. Information will be disclosed timely. Meaningful consultation will be conducted with concern
stakeholders. Land Acquisition Resettlement and Compensation (LARC) process shall be followed
as per GoN and Financiers’ requirements.
2.5.7 Mitigation measures

The mitigation measures are compiled by the project for unavoidable adverse social impacts. DSUEP
follows the country’s law and regulation, practices conventions agreements and the Financiers’
safeguard standards to mitigate undue harm to people during the development process when
identifying and designing a project, the safeguard policies will help to assess and mitigate the
potential risks and impacts (positive or negative) associated with a development intervention,
Table 20 - Summary of Mitigation Measures
Impleme Monitoring
Standard
Impact/ Issue Mitigation measure Time ntation Authority
Guideline
Agency Agency
• Impacts Assessment LA other

Impact in land, relevant Act, Pre-
• Preparation of SIA report NEA/PIU Third party
livelihood, crops Preparation construction of
• Conduct detailed measurement /ESMU monitors
and trees. and sub-projects
survey
implementatio
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Impleme Monitoring
Standard
Guideline
Agency Agency
• Consultation with concerned n of RAP and

project affected people IPDP
• Declaration of compensation to
make CDC decision
• Compensation to project
affected people (PAPs)
Technical
• Case by case assessment Construction
Impact on assessment,
phase
community • Compensation preparation of NEA/PIU NEA/Consultan
infrastructure report/plan /ESMU t
• Reconstruction and
and utilities and
rehabilitation
implement
Impact on
• Case by Case Study Prepare
aesthetics,
Separate NEA,
places of • Approval from Department of Construction NEA/PIU
technical Department of
cultural and Archeology phase /ESMU
assessment Archeology
historical
• Reconstruction report/ plan
importance
Change in • Contractor shall consult the NEA,

Construction NEA/PIU
demographic local people during ESIA / ESMP Consultant,
phase /ESMU
profile construction Contractors
• The contractor shall recruit

local people to the extent
possible As per ESIA NEA
Construction Contract
Employment provision / Consultant,
• Skill development training phase or
ESMP Contractors
shall be provided to local
people
• Provide adequate health and

safety equipment and kits
• Construction areas shall be

NEA,
Health and fenced off at entry point to Contract During Contract
Consultant,
Safety avoid disturbance & risk Documents construction ors
Contractors
• Adequate personal protection
equipment shall be provided
by the contractor
Gender and • Contractor shall give priority Contract During the NEA,
documents Contract
Vulnerable to gender equity in providing construction Consultants,
ESIA EMP ors
community employment including PAPs and operation Contractors
Child labour
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Impleme Monitoring
Standard
Guideline
Agency Agency
• Most priority will be given to prohibition

vulnerable community family acts 1999 and
including PAPs for rule, VCDP
employment
• Prohibit recruiting child

labour
All of the above issues shall be addressed by preparing Abbreviated/Resettlement Action Plan
(ARAP) and Indigenous People Development plan / Vulnerable Community Development Plan (IPDP
/ VCDP). The other local issues shall be addressed through Grievance Redress Committee (GRC).
Land acquisition process shall be followed. SIA will be carried out properly. Mechanism shall be
established properly. Information will be disclosed timely. Meaningful consultation will be conducted
with concern stakeholders. Land Acquisition Resettlement and Compensation (LARC) process shall
be followed properly.
2.6 Beneficial impacts

Project beneficiaries are mostly rural women, indigenous, disadvantaged groups Dalit, marginalized
people, school children, pregnant women, senior citizens, service provider, organizations GoN
organizations and private service holders, farmers and marginal farmers, small and cottage industries,
smalls firms, businessmen big investors etc. from rural electrification.
DSUEP envisages construction and system reinforcement of 33 / 11 kV substations 33 kV lines, 11
kV lines, LT lines and facilities will enhance access of electricity supply to local people through
33/11kV distribution lines, which shall directly contribute to increased socio-economic wellbeing with
improved access to different types of services and facilities. It ultimately aims to reduce poverty with
and uplift the existing level of livelihood accompanied by increased income, employment and access
to digital services. Considering the nature and scope of the project there can be multitude of
environmental and social impacts –
• To help and achieve the Millennium Development Goal (MDG) targets directly or indirectly
• Helps poverty reduction through rural electrification
• Reduce dependency on natural resources
• Helps to decrease work load of women, marginal people and occupational castes
• Helps school children for in better education
• Provides all servicers providers quality service
• Helps to establish small business firm, other business activities and market economics related
to the access of electricity
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• Helps to strengthen national economy through modernization in agriculture system and to

establish agriculture-based industries
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3.0 POLICY & FRAMEWORK
3.1 National Laws and Regulations

3.1.1 Relevant National Laws and Regulations
The Government of Nepal (GoN) has a well-established legal framework for environmental
assessment of development projects. Assessment of development projects, the most relevant
national policies, acts and guidelines of the GoN concerning environmental safeguards, which are
relevant to the proposed project, are discussed below –
Constitution of Nepal
The Constitution of Nepal is the main document that secures the right of people. It guarantees the
fundamental rights of all citizens of Nepal, including the enjoyment of rights, privileges and immunities
with regard to life, liberty and property. Article 30 of the Constitution of Nepal has provided that –
1) Every citizen shall have the right to live in a clean and healthy environment
2) The victim shall have a right to obtain compensation, in accordance with law, for any injury caused
from environmental pollution or degradation
3) This Article shall not be deemed to prevent the making of necessary legal provisions for a proper
balance between the environment and development, in development works of the nation
Article 18. Right to equality (1) All citizens shall be equal before law. No person shall be denied the
equal protection of law. (2) No discrimination shall be made in the application of general laws on
grounds of origin, religion, race, caste, tribe, sex, physical condition, condition of health, marital status,
pregnancy, economic condition, language or region, ideology or on similar other grounds. (3) The
State shall not discriminate citizens on grounds of origin, religion, race, caste, tribe, sex, economic
condition, language, region, ideology or on similar other grounds. Provided that nothing shall be
deemed to prevent the making of special provisions by law for the protection, empowerment or
development of the citizens including the socially or culturally backward women, Dalit, indigenous
people, indigenous nationalities, Madhesi, Tharu, Muslim, oppressed class, Pichhada class,
minorities, the marginalized, farmers, labour, youths, children, senior citizens, gender and sexual
minorities, persons with disabilities, persons in pregnancy, incapacitated or helpless, backward region
and indigent Khas Arya.
Article 25 Right relating to Property, states that “(1) Every citizen shall, subject to law, have the right
to acquire, own, sell, dispose, acquire business profits from, and otherwise deal with, property.
Provided that the State may levy tax on property of a person, and tax on income of a person in
accordance with the concept of progressive taxation. Explanation: For the purposes of this Article,
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"property" means any form of property including movable and immovable property and includes an
intellectual property right. (2) The State shall not, except for public interest, requisition, acquire, or
otherwise create any encumbrance on, property of a person. Provided that this clause shall not apply
to any property acquired by any person illicitly. (3) The basis of compensation to be provided and
procedures to be followed in the requisition by the State of property of any person for public interest
in accordance with clause (2) shall be as provided for in the Act. (4) The provisions of clauses (2) and
(3) shall not prevent the State from making land reforms, management and regulation in accordance
with law for the purposes of enhancement of product and productivity of lands, modernization and
commercialization of agriculture, environment protection and planned housing and urban
development. (5) Nothing shall prevent the State from using the property of any person, which it has
requisitioned for public interest in accordance with clause (3), for any other public interest instead of
such public interest."
Article 42 Right to social justice (1) The socially backward women, Dalit, indigenous people,
indigenous nationalities, Madhesi, Tharu, minorities, persons with disabilities, marginalized
communities, Muslims, backward classes, gender and sexual minorities, youths, farmers, labour,
oppressed or citizens of backward regions and indigent Khas Arya shall have the right to participate
in the State bodies on the basis of inclusive principle.
Further, Article 51(g) describes policies relating to protection, promotion and use of natural resources,
inter alia, includes proclamation to protect, promote and make environmental friendly and sustainable
use of forests, wildlife, birds, vegetation and biodiversity, by mitigating possible risks to environment
from industrial and physical development, while raising awareness of general public about
environment cleanliness, to maintain the forest area in necessary lands for ecological balance, to
adopt appropriate measures to abolish or mitigate existing or possible adverse environmental impacts
on the nature, environment or biological diversity, to pursue the principles of environmentally
sustainable development such as the principles of polluters pays, of precaution in environmental
protection and of prior informed consent.
Acts and Regulations

Environment Protection Act, 1997
The Environment Protection Act 1997 has provisions to institutionalize the integration of
environmental aspects in development projects including energy sector, and empowers the Ministry
of Population and Environment (MoPE) to approve EIA report. In terms of IEE level study, the line
Ministries, which is the Ministry of Energy (MoEn) for the proposed sub-projects, is authorized to
approve the Final IEE Report.
Realizing the interrelationship between development and the environment, the EPA shows concerns
for minimizing the impacts of environmental degradation and its effect on people, animal, and plant
species and their physical surroundings. The Act obliges the proponent to undertake IEE and EIA of
proposal, plans or projects, which may cause changes in existing environmental condition and
authorizes the MoPE to clear all EIA and line ministries for IEE study. It empowers the ministry to
prohibit the use of any matter, fuel, equipment or plant, which has adverse impacts on the
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environment. The Act has provisions to compensate affected persons influenced from polluting
activities and polluters or liable persons for environmental and private property damage are
responsible to provide compensation. The Act empowers GoN to provide additional incentives to any
industry, occupation, technology or process, which has positive impacts on environmental
conservation. Moreover, it has provision to establish an Environmental Protection Fund to be used for
environmental protection, pollution control and heritage conservation, and provides authority to the
government to declare specific areas as environmentally protected area.
Environment Protection Rule, 1997
The Environment Protection Rule 1997 has been enforced in the process of implementing EPA 1997
effectively. EPR has provisions on the process to be adopted during the preparation and approval of
projects that requires EIA and IEE, which includes preparation of scoping document, Terms of
Reference (ToR), requirement of information dissemination, public consultation and hearing, and
environmental monitoring and auditing. The EPR has provisions to conduct public consultation prior
to the preparation of scoping document and ToR and to carry out public hearing prior to the approval
of EIA Report. The EPR empowers line Ministry to monitor the environmental activities including
mitigation measures and the MoPE for environmental auditing. For IEE, the line Ministry is authorized
to approve the Final IEE Report. The EPR also lists the types of development activities that require
IEE or EIA. Moreover, EPR provides an outline of content of Terms of Reference, IEE and EIA Report.
Schedule 1 and 2 of Rule 3 of EPR 1997 details out proposal requiring IEE and EIA level of studies
respectively. IEE should be carried out for projects involving deforestation, clearing or forest area up
to 5 hectares.
Electricity Act 1992
Any person or corporate body who wants to conduct survey for generation, transmission or distribution
of electricity over 1000 kW is required to obtain a license under Section 3 of the Electricity Act 1992.
Majority of sub-projects will not be larger than 1000 kW, thus applications will not be required for them.
However, certain information must be provided to the prescribed officer for the sub-projects having
capacity from 100-1000 kW before generating, transmitting or distributing hydro-electricity. Under
Section 3 of the Electricity Regulation 1993 the following particulars must be provided –
• Detailed description of the project
• Map of the project (showing main structure/s)
• Source of water and quantity of water to be utilized
• Area where electricity is to be distributed and estimated number of consumers to be benefited
• Whether the water resource to be utilized has already been utilized by another or not, if so,
particulars of the same
• Other necessary particulars
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The Electricity Act of 1992 has provision of land procurement for the development of projects that
involve electricity generation, transmission or distribution. The Act states that the licensee may submit
an application to GoN to purchase the land or house of any person if it is required for the generation,
transmission or distribution of electricity. Upon the receipt of such an application, GoN may make the
land or house, so requisitioned, available to any corporate body under the prevailing laws.
Land Acquisition Act 1977

The Land Acquisition Act 1977 authorizes the Government of Nepal to acquire any land in any place
for any public purpose as long as compensation is provided for. The government may decide to
acquire land for an institution upon its request to construct residential quarters for its staff, to operate
a project or to construct a warehouse for the storage of any commodity. According to the act, public
purposes include functions undertaken in the interest of or, for the benefit or use of, the general public
as well as functions to be undertaken by GoN. With respect to the resettlement policy framework, the
following legal provisions outlined in the Land Acquisition Act is relevant:
• The acquisition and compensation of privately-owned assets are undertaken according to a
formal procedure, consisting of (a) initial procedures, (b) a preliminary investigation process,
(c) acquisition notification, (d) compensation notification, and (e) appeal procedures.
• Compensation Determination Committees (CDC) are established (at district level) to ascertain
compensation rates for land and other assets.
• Compensation must be paid (a) for damages caused as a result of investigations during the
preliminary investigation process, and (b) for land and assets permanently acquired by the
project (including, standing crops, trees and houses).
• Compensation must take depreciation for salvage materials into account.
• Compensation must be in cash (lump sum), although titleholders who have lost all of their
landholdings may be given replacement land, if available.
• Compensation will be made to the person who has the right to claim for the compensation; to
be entitled to compensation for land, a person must submit an official land registration
certificate at the time of compensation.
• Titleholders are required to submit compensation claims or complaints within a specified
period after the land acquisition notice had been issued by the Local Authority (Chief District
Officer). Compensation for land is paid after determination of rates and verification of the list
of entitled applicants by the CDC.
• Two separate rates of compensation can be paid i) to titleholders who lose all their land and
ii) to titleholders who lose only some part of their land.
• In determining the compensation amount, the committee has to consider relevant periodic
guidelines of GoN and the loss suffered by persons due to acquisition of land, shift of residence
or place of business to another place.
• While determining the compensation amount, the CDC has to consider price of the land
prevailing at the time of notification of land acquisition, price of standing crops and structure,
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and damage incurred by persons being compelled to shift their residence or place of business
due to land acquisition.
Land Revenue Act 1977
Land acquisition for the project involves change of ownership of land. Article 8 of this act states that
registration, change in ownership, termination of ownership right, and maintenance of land records is
done by Local Land Revenue office. Similarly, article 16 affirms, if land revenue is not paid by the
concerned owner for long period of time, the revenue can be collected through auction of the parcel
of land for which revenue has been due. In any case, the details of land acquisition and ownership
transfer involved during acquisition and payment of compensation are directly or indirectly guided by
this act.
Labour Act, 2017
The Labor Act 2074 (2017) has set out the duties of employer towards workers which include making
appropriate safety and health arrangement, arrangements ensuring no adverse effect on workers
from use, operation, storage or transport of chemical, physical or biological liquids, disseminating
necessary notice, information and training related to safety and health arrangements. On top of this,
the act has made provisions of medical and accidental insurance, defined the working hours,
enumeration and leave etc. for employee.
Forest Act, 1993
The Forest Act, 1993 recognizes the importance of forests in maintaining a healthy environment. The
Act requires decision makers to take account of all forest values, including environment services and
biodiversity, not just production of timber and other commodities. The basis of Act is resource oriented
rather than use oriented.
The Forest Act, 1993, contains several provisions to ensure the development, conservation,
management and sustainable use of forest resources, based on approved work plan. The work plan
should contain a list of activities that should be implemented in the different forest categories - national
forests, community forests, leasehold forests, private forests, and religious forests. Section 23 of the
Act empowers the government to delineate any part of the national forest, which has ‘special
environmental, scientific or cultural importance’, as a protected forest. Section 49 of the Act prohibits
reclaiming lands, setting fires, grazing cattle, removing and damaging forest products, felling trees of
plants, wildlife hunting and extracting boulders sand and soil from the National forest without the prior
approval. However, the government may enforce Section 68 of the Forest Act to provide parts of any
type of forest for the implementation of a national priority plan with the assurance that it does not
adversely affect the environment significantly. As provisioned under the Act, while clearing the forest
on the RoW of road, the implementing authority will co-ordinate with the District Forest Office. If
necessary, the compensatory re-plantation will also be carried out at the rate of 1:25 under the
provision of the Act.
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Forest Rule, 1995
The Forest Rules 1995 further elaborate legal measures for the conservation of forests and wildlife.
The Rule also stipulates that the entire expenses for cutting and transporting the forest products in a
forest area to be used by the approved project shall be borne by the proponents of the project.
Soil and Watershed Conservation Act, 1982
Soil and Watershed Conservation Act makes provision to control floods landslides (watershed
conservation rules, 1985). The watershed conservation office is authority and district watershed
conservation committee must implement watershed conservation practices and public participation
for soil and land protection.
Plant Protection Act, 2029 BS (1972 AD)
As per the act, ‘Plant’ means all living or dead plants or part thereof and it includes stem, branch,
corm, bulb, tubers, barks, root, leaf, fruits and seed. The act Prohibit the importation of any plant or
plant product from any country, unless found necessary. A person who desires to export or import any
plant or plant product, should submit an application to the plant quarantine officer.
Child Labour (Prohibition and Regulation) Act, 2056 BS (2000 AD)
The Child Labor (Prohibition and Regulation) Act 2000 is the main legal document to prohibit the
engagement of children in laborious activities and to make necessary provisions with regard to their
health, security, services and facilities while engaging them in other activities.
Under the Section 3 of the Act, child having not attained the age of 14 years is strictly prohibited to
be engaged as a laborer. Section 3 of the act prohibits a child from engaging in work, sub clause 1 of
the clause 3 states “Nobody shall engage in work a child who has not completed fourteen years of
age as a labour and sub-clause 2 states “Nobody shall engage a child in a risk full occupation or work
set forth in the Schedule”. The section 4 states “Child not to be engaged in work against his will by
temptation or fear or pressure or by any other means”.
Solid Waste Management Act, 2011
The Act is related for sustainable management of garbage and to minimize the negative impacts of
garbage on environments and public health. Chapter-2 section 3(1) of the act outline the responsibility
to conducts and operate the infrastructure required for the collection, final disposal, and processing
of solid waste, including construction of any transfer station, landfill site, processing plant, compost
plant, and bio-gas plant for the management of solid waste shall rest with the Local Body. Likewise,
section 4(2) define responsibility for the processing and management within the set standard of
harmful waste, health institution related waste, chemical waste or industrial waste shall be of the
individual or body producing such solid waste.
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Ancient Monument Act, 1956
According to the Ancient Monuments Preservation Act 1956 (5th amendment 2052), "Ancient
Monument" means temple, monument, house, abbey, cupola, monastery, stupa, bihar etc. which
have their importance above one hundred year, from the point of view of history, arts, science,
architectonics or art of masonry, and this word shall also mean the site of the monument as well as
the human settlement or place, and remnant of ancient human settlement, relies of ancient
monument, cave etc. having specific value from the national or international point of view irrespective
of the fact that such settlements or places are adjoining with each other or are separate in the same
area..
CITES Act, 2017
Section 1, Rule 3 of the acts prohibit for the treat and business of sample of endanger species.
However, Sub-Rule 2 of the Rule 3 has allowed for the export and import of endanger species for
certain circumstances mention under sub-rule after taking approval. The Section 5 of the acts state
the provision of punishment for the unauthorised import, export and provision mentioned in Section
3.
Local Governance Operation Act, 2017
The Local Self Governance Operation Act 2017 empowers the local levels for the conservation of soil,
forest and other natural resources and implements environmental conservation activities. The Act
provides the local levels (current Municipalities and Rural Municipalities) a legal mandate to formulate
and implement programs related to protection of environment and biodiversity.
National Parks and Wildlife Conservation Act 1973
The National Parks and Wildlife Conservation Act 1973 deals with the conservation and management
of wildlife and habitat. Any sub-project proposed in national parks has to comply with the provision
made in this Act. The Act restricts entry into national parks without prior permission of the concerned
authority. Article 5 of the Act prohibits hunting of animals or birds, building or occupying houses,
shelters or structures, occupying, clearing or planting or growing in any part, cutting, felling, removing
or overshadowing any tree and removing any quarry or any other activities in national parks. Under
the National Parks and Wildlife Conservation Regulation 1974, permission is required for entry into
designated national parks. Section 22 of the Regulation deals with the permission required to prepare
an inventory of plants and animals in national parks and wildlife conservation areas. Under Section 6
of the Wildlife Reserve Regulation, 1977, entry, construction of houses or sheds, clearance of forest
and forest products, quarrying and overnight stay in a reserve area is prohibited unless authorized in
writing by the relevant GoN authority. Section 11 of the Regulation restricts surveys and research
works in these areas without prior written approval. All vehicles and persons passing through reserve
areas are subject to security check.
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National Foundation for Upliftment of Adivasi/Janjati Act 2002
This act is made to provide for the establishment and operation of National Foundation for upliftment
of Adivasi/Janjati for social, economic and cultural development and for their equal participation in the
mainstream of national development. The act has further defined the Adivasi/Janjati in section 2
clause a as “a tribe or community as mentioned in the Schedule having its own mother language and
traditional rites and customs, distinct cultural identity, distinct social structure and written or unwritten
history”. The act also intends to formulate, implement or cause to be implemented the programme
necessary for promotion and preservation of the language, script, literature, history, arts, culture,
traditional skill and technology of the Adivasi/Janjati.
Buffer Zone Management Regulation 1996
The Buffer Zone Management Regulation, 1996 has mandatory requirement to have permission of
Warden to carry out following activities within a buffer zone area:
• Occupying any land without legal ownership or cutting trees, clear forest or cultivate
forestland
• Any activity damaging forest resources or setting fire in the forest
• Excavating stone, earth, sand or mine or removing minerals, earth or other such materials
• Using any harmful poison or explosive substances into the river, stream or source of water
flowing in the buffer zone, and
• Hunting illegally and any act damaging to the wildlife.
Plans and Policies
Fourteenth Plan 2016-2019
The recent three years plan has emphasized on reducing dependence on conventional energy and
emphasizing promotion of renewable energy. While talking about environment protection, the plan
considered environmental management as an integral component of development related projects.
The plan has aim to increase the installed capacity of electricity to 3,301 MW and increase the
electricity coverage to 87%. Hydropower is defined as the main source of energy in the country and
planned for the development of large and medium scale hydropower and distribution lines.
The Plan has given emphasis in implementing different types of income generation supportive
programs targeting the poor and vulnerable people. It is also recognized in the Plan that some Dalits
being occupied as kami (blacksmith), damai (tailor) and sarki (cobbler) have suffered in recent years
from losing traditional markets for their products due to the increasing import of cheaper goods from
urban foreign markets. Towards solving this problem, it seems necessary to design and implement
different types of skill training programs aiming at specified groups.
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Rural Energy Policy, 2006
The main rationale of formulating Rural Energy Policy is to create conducive environment that will
self-motivate and mobilize local institutions, rural energy user groups, non- government organizations,
cooperatives and private sector organization for the development and expansion of rural energy
resources. The government will act as facilitator and promoter for involving private development and
expansion of new technologies. It has also envisioned subsidy provision for promotion of such
renewable energy technologies.
Legal Framework and Policies Focusing on Vulnerable Groups
Nepal does not have a standalone plan and policy on vulnerable and indigenous people. However,
the groups potential to vulnerability such as children, elderly citizens, disabled, landless and small
farmers, women, Dalits and marginalized, aboriginal and ethnic groups etc. are covered under
different headings in the Tenth Plan, which has been reiterated in14th national plan (FY 2073/74 –
2075/76) too.
Some of the other related acts on various vulnerable communities are (i) National Foundation for
Upliftment of Adivasi/Janjati Act, 2058 (2002) (ii) Bonded Labour Abolition Act, 2058, (iii) Children
related Act, 2048 and (iv) Child Labour (abolition and regulation) Act, 2056. However, detailed plan
and policies on vulnerable communities in Nepal is yet to be developed particularly on involuntary
resettlement for the vulnerable communities.
National Environmental Impact Assessment Guideline 1993
National Environmental Impact Assessment Guideline, 1993 is the first formal guideline on
environmental study in Nepal. The Environment Protection Act 1997 and the Environment Protection
Rules 1997 are the legal documents, which have made the environmental protection as the legal
requirement in implementation of the development projects.
In the IEE process, Terms of Reference for the Study will have to be endorsed by the concern ministry.
With respect to 33 / 11 kV substations 33 kV lines, 11 kV lines and LT lines of sub-projects, the
concerned ministry is Ministry of Energy sub-projects, the concern ministry is MoPE. IEE study will
have to be carried out with the active participation of the stakeholders of the sub-projects which are
project affected people and the local institutions. People’s participation has been ensured not only by
15 days public notice in the national daily newspaper but also by making the deed of public appraisal
(muchulka) of the notice in the project area and the collection of recommendations from the local
bodies (RMs / municipalities).
In terms of the sub-projects that requires EIA level of study, the scope of work of the EIA study is
determined with the active participation of the stakeholders, which include the project affected people.
Publication of public notice in the national daily newspaper and collection of issues and suggestions
ensures the participation of the stakeholders in the scoping exercise. Based on the scoping exercise,
Terms of Reference for the EIA study is prepared and endorsed from the Ministry of Population and
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Environment. Endorsement of ToR is done through review committee that comprises number of
reputed environmentalists.
The EIA study will address four major environmental issues - physical, biological, socio-economic and
cultural. It suggests to identify the environmental parameters under these four environments, predict
and evaluate the impacts due to the project implementation at the different phases such as pre-
construction, construction and operation. Each of the identified adverse impact will have to be
mitigated or compensated whereas the possible and practical benefit enhancement measures will
have to be proposed for the beneficial impacts. Environmental Management Plan (EMP) is developed
to ensure the implementation of the proposed mitigation measures, which includes the implementation
mechanism of the proposed mitigation measures and environmental monitoring plan, responsibilities
and cost.
Land Acquisition, Resettlement and Rehabilitation Policy for Infrastructure

Development Project, 2015
This policy intends to improve social and economic status of project affected families by providing fair
and adequate compensation, appropriate resettlement and rehabilitation assistances/allowances
while acquiring land for infrastructure development projects and projects of public interests. It has also
categorized the project as High Risk, Medium Risk and Low Risk based on magnitude of development
project impact. Similarly, it also envisaged about land acquisition process such as Voluntary Land
Donation, Direct Negotiation, Land development Programme and Expropriation, if land couldn’t be
acquired through any of these approaches, the required land will be acquired by providing
compensation and other benefits as per the provisions of the prevailing land acquisition act.
Guidelines and Manuals

National Environmental Impact Assessment Guidelines, 1993
The main Guidelines are the National Guidelines (1993) developed by the National Planning
Commission in conjunction with IUCN which set out the process for environment review and
management of infrastructure projects in all sectors and the respective roles of GoN agencies and
project proponents. Schedules attached to the Guidelines include:
• Schedule 1: Projects Requiring an Initial Environment Examination Report (IEE)
• Schedule 2: Projects Requiring an Environment Impact Assessment Report (EIA)
• Schedule 3: Environment Impact Assessment Based on Projects Sites
• Schedule 4: Format of Terms of Reference
• Schedule 5: Environment Impact Report Format
• Schedule 6: Format for EIA Appendices
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Forestry Sector EIA Guidelines-1995
The Forestry sector EIA Guideline is based on National EIA Guidelines and according to this guideline
IEE study is sufficient for the distribution line project which affects less than 5 ha area of National
forest or Community forest.
Forest Products, Collection, Sale/Distribution Guidelines-2003
The guideline clauses 3 to 10 have specified various procedure and formats for getting approvals for
vegetation clearance, delineation of lands for vegetation clearance, evaluation of wood volume etc.,
and government offices and officials responsible for the approval. These provisions have a direct
relevance to the development of the projects and need compliance to these provisions.
Community forest inventory guidelines-2005
The guidelines for inventory of community forests advise to classify the forests into timber trees; pole
sizes trees and regeneration on the basis of diameter. It has recommended using 20X25 m2 size of
quadrant for timber trees, 10X10 m2 for shrubs and 5X5 m2 for regeneration plots in the community
forests. Plants having DBH (diameter at breast height, i.e. 1.3 m above ground) greater than 30 cm
is considered as trees. Trees having DBH between 10 cm to 29.9 cm are categorized as poles and
plants having less than 10 cm DBH belong to regeneration species. Furthermore, an area with 50%
or more crown cover of timber species is classified as timber stratum.
Community forest guidelines-2001
This guideline has been prepared by including amendments of acts, rules by officials of government
of Nepal and related experts. Through these guidelines, persons involved in the development of
community forest like facilitators, user groups and others will get help to understand about the process
and stages of development of community forest.
Working procedures of forest related with the use of forest land for other purposes -
2007
This guideline has been prepared by including amendments of acts, rules by officials of government
of Nepal and related experts. Through these guidelines, persons involved in the development of
community forest like facilitators, user groups and others will get help to understand about the process
and stages of development of community forest.
National Health Care and Waste Management Guidelines-2002
The guidelines were prepared by Nepal Health Research Council (NHRC) for the sound management
of Health Care Institutional (HCI) Waste. This focuses on strategic issues –
• Waste management, committees, plans and waste audits
• Waste minimization, avoidance, segregation, recycling and reuse
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• Waste labeling and containment
• Proper waste handling
• Storage and transport
• Proper waste treatment and safe disposal
Guideline with the Criteria for using Land of National Forest for National Priority
Project (Rastrya Prathamikta Prapta Youjanako Lagi Rastrya Van Chhetra Prayog
Garne Sambandhi Mapdanda Sahitko Karyabidhi) 2076 B.S
As per rule 3 sub-rule 1 the concern ministry should select the project excluding the national forest as
far possible during feasibility study. As per rule 3 sub-rule 2, if the use of forest land cannot be
excluded then the project with minimum forest land acquisition or minimum vegetation clearance shall
be selected and the concerned ministry shall prepare EIA / IEE as per EPA and EPR. The concerned
ministry should take the approval from Ministry of Forest before approval of EIA. As per the rule 8, if
the project has to acquire the forest land permanently the project has to compensate the land not less
than acquired land near to the project area and in similar topography. However as per rule 9, if the
project is unable to compensate the land than the project can request the ministry with application
mentioning the reason and can compensate the equivalent amount.
As per rule 17 sub-rule 1, on receive of approval for clearance vegetation/tress the project has to clear
all the vegetation/trees on own cost and handover the vegetation/trees to the forest office. As per
sub-rule 3, the project has to planted tree sapling not less than 1:10 of clear the trees number.
Criteria Regarding Clearance of Government trees, 2071 B.S
The criteria were approved on 2069/12/02 for easing the government trees clearance procedure for
the development project, social beneficial etc. As per the clause 5, the trees on the government office
land can be cleared as per the recommendation by the committee, form as per the clause 10, and
approval of District Forest Office (DFO).
As per the clause 6, if the trees are found to be cleared for the protection of public life and property
from the land having no land ownership certificate and owned by the government offices,
Organization, Committee, Public the concern office can request the DFO for approval of clearance
and can clear on getting approval from DFO on their own cost. The tree product obtain form clearance
shall be transport and handover to DFO.
Similarly, as per the clause 7, if trees from the land owned by the Municipality, except forest land, the
project need to request the concern present RMP/Municipality for clearance and as per clause 10 a
committee will be formed to examine and evaluate the clearance. The committee after examination if
found necessary recommend DFO for clearance and the project can clear the trees on getting trees
clearance approval from DFO with complementary tree plantation at the ratio not less than 1:10 on
the land specify by the present RMP/Municipality.
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International Conventions
International Convention on Biodiversity 1992
The Parliament of Nepal ratified the International Convention on Biodiversity in 1993 to become its
party. The convention was enforced in Nepal on 21 February 1994. Article 14 of the Convention urges
Parties to introduce appropriate procedures requiring IEE of the proposed project that are likely to
have significant adverse effects on biological diversity with a view to avoiding or minimizing such
effects and, where appropriate, allow for public participation in such procedures. The convention also
focuses on reducing trans-boundary impacts on biodiversity.
Ramsar Conservation, 1971
The convention on wetlands of International importance especially as waterfowl habit, adopted in

1971, entered into force in 1975 and currently has 170 parties. The convention provides a framework
for international cooperation for the conservation and wise use of wetlands of international
importance, to formulate and implement their planning so as to promote the conservation of wetlands
includes in the list and the wise use of wetlands in their territory. As of May 2018, 2,331 wetlands of
international importance have been designated covering 2.1 million sqkm. As of 2016 there are 18
transboundary Ramsar sites, and 15 Ramsar regional initiatives covering regions of the
Mediterranean, Asia, Africa and South America. For a comprehensive approach to the national
implementation of the conventions, Nepal has developed national wetlands policies. At present, an
integration of EIA/IEE in developed projects has become legally binding through the enforcement of
the Environment Protection Act, 1997 and Environment Protection Rules, 1997.
Convention on International Trade in Endangered Species of Wild Fauna and Flora,

1975
Nepal became party to Convention on International Trade in Endangered Species of Wild Fauna and
Flora (CITES) in 1975 to control the trade of endangered wild flora and fauna to further endangering
of their survival. The Convention urges Parties not to allow trade in specimen of species included in
the CITES Appendices I, II, and III except in accordance with the provisions of the Convention.
Pursuant to Section 10 of the National Park and Wildlife Conservation Act 1973, the hunting of animal
protected under Schedule 1 is prohibited throughout Nepal. Most of these species are also listed in
CITES appendices. Under this Act, it is illegal to collect, obtain or keep any part of a dead animal
protected under Schedule1 without a certificate, and such goods are prohibited for sale, purchase or
disposal. Pursuant to Section 26, any person illegally killing, wounding, purchasing, selling or
transferring a protected animal, or keeping as a trophy, selling or purchasing any part thereof, will
incur a fine or imprisonment or both.
ILO convention on indigenous and tribal peoples, 1989 (No.169)
Nepal is signatory of ILO Convention on Indigenous and Tribal Peoples, 1989 (No.169) which deals
with the safeguard of indigenous people and their social interest. Similarly, United Nations Declaration
on the Rights of Indigenous Peoples was adopted by the United Nations General Assembly during its
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61st session on 13 September 2007. The non-binding declaration outlines the individual and collective
rights of indigenous peoples, as well as their rights to identity, culture, language, employment, health,
education and other issues. The UN describes it as setting an important standard for the treatment of
indigenous peoples that will undoubtedly be a significant tool towards eliminating human right violation
against the indigenous people and assisting them in combating discrimination and marginalization.
General environmental health and safety guidelines
The General Environmental Health and Safety Guidelines2 contain information on cross- cutting
environmental, health, and safety issues potentially applicable to all industry sectors. The
Environmental, Health, and Safety (EHS) Guidelines are technical reference documents with general
and industry-specific examples of Good International Industry Practice (GIIP). When one or more
members of the World Bank Group are involved in a project, these EHS Guidelines are applied as
required by their respective policies and standards. These General EHS Guidelines are designed to
be used together with the relevant Industry Sector EHS Guidelines, which provide guidance to users
on EHS issues in specific industry sectors. The general EHS guidelines covers four different concerns;
Environment, Occupational Health and Safety, Community Health and Safety, and Construction and
Decommissioning.
3.2 Financiers’ safeguard policies and standards

3.2.1 Policies and standards of Asian Infrastructure Investment Bank (AIIB)
The Asian Infrastructure Investment Bank is an international organization that provides a multilateral
regional financing and investment platform for infrastructure development and enhanced
interconnectivity in Asia.
Environmental and Social Policy (ESP)
This comprises mandatory E&S requirements for each project, such as –
• Screening and categorization
• Environment and social due diligence
2
http://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/sustainability-at-ifc/policies-standards/ehs-
guidelines
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• Environmental and social assessment
• Assessment, documentation and instruments
• Environmental and social management plan
• Environmental and social management framework
• Use of country & corporate system
• Special circumstances
• Information disclosure
• Consultation
• Monitoring and reporting
Environmental and Social standards
Three associated mandatory environmental and social standards (ESSs) set out more detailed
environmental and social requirements relating to the following -
• Environment and Social Assessment and management
• Involuntary Resettlement
• Indigenous people
The detailed AIIB Bank’s policy and standards(ES & ESS1) can be found at
https://www.aiib.org/en/policiesstrategies/download/environmentframework/20160226043633542.pd
f
3.2.2 EIB Standards and Principles

The EIB’s social standards are based on a human right approach. Social standards are intended to
promote outcomes to the benefit of individual well-being, social inclusion and sustainable
communities.
The Bank’s key principle require, that adverse impacts on livelihoods should be mitigated at an
improved level, or at minimum restored at the pre-project level for any loss incurred. To address
physical or economic displacements the preparation of an acceptable Resettlement Action Plan is
required, which should apply a due process of meaningful and culturally appropriate consultation and
participation, including that of host communities.
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Active consultation and participation are regarded as crucial and requires significant local ownership
and support through informed involvement. It also supports AHs in their rights particular concerning
entitlement rights in combination with GRMs. Therefore, public consultation is a basic requirement.
The objectives of this Standard are to:
• Avoid or, at least minimize, project-induced resettlement whenever feasible by exploring

alternative project designs.
• Avoid and/or prevent forced evictions and provide effective remedy to minimize their negative
impacts should prevention fail.
• Ensure that any eviction which may be exceptionally required is carried out lawfully, respects
the rights to life, dignity, liberty and security of those affected who must have access to an
effective remedy against arbitrary evictions.
• Respect individuals’, groups’ and communities’ right to adequate housing and to an adequate
standard of living, as well as other rights that may be impacted by resettlement.
• Respect right to property of all project affected people and communities and mitigate any
adverse impacts arising from their loss of assets, or access to assets and/or restrictions of
land use whether temporary or permanent, direct or indirect, partial or in their totality. Assist
all displaced persons to improve, or at least restore, their former livelihoods and living
standards and adequately compensate for incurred losses, regardless of the character of
existing land tenure arrangements (including title holders and those without the title) or
income-earning and subsistence strategies.
• Uphold the right to adequate housing, promoting security of tenure at resettlement sites.
• Ensure that resettlement measures are designed and implemented through the informed and
meaningful consultation and participation of the project affected people throughout the
resettlement process.
• Give particular attention to vulnerable groups, including women and minorities, who may
require special assistance and whose participation should be vigilantly promoted.
Special attention should be paid to the rights of vulnerable groups which can include indigenous
people, ethnic minorities, women, migrants, the very young and the very old. In particular for
vulnerable groups the livelihoods are especially sensitive to socio-economic changes and their
dependency on access to essential services and participation in decision making.
Rights and interest of vulnerable groups have the following objectives:
• Affirm, respect, and protect the rights and interests of vulnerable individuals and groups within
the designated operational scope, throughout the project lifecycle. Such rights include the right
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to non-discrimination, the right to equal treatment between women and men and the rights of
indigenous peoples.
• Adopt a gender-sensitive approach to the management of environmental and social impacts,

that takes into account the rights and interests of women and girls, men and boys, including
specific attention to the differentiated burden of impacts that women and girls might face.
• Identify and avoid adverse impacts of EIB operations on the lives and livelihoods of vulnerable
individuals and groups, including women and girls, minorities and indigenous peoples. Where
avoidance is not feasible, to reduce, minimize, mitigate or effectively remedy impacts.
• Ensure that vulnerable individuals and groups are duly and early on identified in EIB
operations and that engagement is meaningful, taking into account individuals’ and
communities’ specificities, and delivered in an appropriate form, manner and language.
• Enable vulnerable groups, including women and girls, minorities and indigenous
• Peoples to benefit from EIB-financed operation
EIB requires that projects in Nepal be consistent with the classification provided by EU legislation, as
well as the national environmental and social legislation and applicable international best practice.
ANNEX I
Construction of overhead electrical power lines with a voltage of 220 kV or more and a length of more
than 15 km. These projects require an EIA in accordance to the EIA Directive (Directive 2014/52/EU
amending the EIA Directive 2011/92/EU https://ec.europa.eu/environment/eia/eia-legalcontext.htm)
ANNEX II
The following projects require information to be supplied to determine if an EIA is required or not:
• Industrial installations for carrying gas, steam and hot water; distribution of electrical energy
by overhead cables (projects not included in Annex I)
• Any change or extension of projects listed in Annex I or this Annex, already authorised,
executed or in the process of being executed, which may have significant adverse effects on
the environment (change or extension not included in Annex I)
Usually, all component I, II and III projects fall under the scope of Annex II. Extensions / and
rehabilitation of substations transforming the electric voltage does not fall under this project category,
unless the extension fits into the framework of the construction of overhead cables for distribution of
electrical energy.
For those projects that require information to be supplied to determine if an EIA is required or not, the
information should include:
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1. A description of the project, including in particular –

a. a description of the physical characteristics of the whole project and, where relevant,
of demolition works;
b. a description of the location of the project, with particular regard to the environmental
sensitivity of geographical areas likely to be affected
2. A description of the aspects of the environment likely to be significantly affected by the project.
3. A description of any likely significant effects, to the extent of the information available on such
effects, of the project on the environment resulting from:
a. the expected residues and emissions and the production of waste, where relevant
b. use of natural resources, in particular soil, land, water and biodiversity
ANNEX III
Characteristics of projects
The characteristics of projects must be considered, with particular regard to -
(a) the size and design of the whole project
(b) the cumulation with other existing and/or approved projects
(c) the use of natural resources, in particular land, soil, water and biodiversity
(d) the production of waste
(e) pollution and nuisances
(f) the risk of major and/ or disasters which are relevant to the project concerned, including those
caused by climate change, in accordance with scientific knowledge
(g) risks to human health (for example due to water contamination or air pollution)
Location of projects
The environmental sensitivity of geographical areas likely to be affected by projects must be

considered, with particular regard to –
a) the existing and approved land use
b) the relative abundance, availability, quality and regenerative capacity of natural resources
(including soil, land, water and biodiversity) in the area and its underground
c) Absorption capacity of the natural environment, paying particular attention to the following
areas:
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a. wetlands, riparian areas, river mouths
b. coastal zones and the marine environment
c. mountain and forest areas
d. nature reserves and parks
e. areas classified or protected under national legislation
f. densely populated areas
g. landscapes and sites of historical, cultural or archaeological significance
Type and characteristics of the potential impact
The potential likely significant effects of projects on the environment must be considered in relation to
criteria set out in points 1 and 2 of this Annex, and having with regard in particular to the impact of the
project on the factors specified in Article 3(1), taking into account:
a) Magnitude and spatial extent of the impact (for example geographical area and size of the
population likely to be affected)
b) nature of the impact
c) Trans-frontier transboundary nature of the impact
d) Magnitude, intensity and complexity of the impact
e) Probability of the impact
f) Expected onset, duration, frequency and reversibility of the impact
g) Accumulation of the impact with the impact of other existing and/or approved project
h) possibility of effectively reducing the impact
Based on the above the EIB would require each applicable component to have information supplied
to the EIB to screen if an EIA is required in accordance to the Bank’s Standards.
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Policy gaps between GoN and Financiers
A comparative analysis of the national laws, AIIB and EIB policies on involuntary resettlement/land
acquisition with identified gaps and limitations of the national legal and policy framework have been
analyzed. The main gaps and limitations of the national legal and policy framework are –
National law makes provision for compensation to the titled landholder only and, by default, omits all
other PAPs, including non-registered tenant farmers, landless farmers, squatters, agricultural
laborers, shopkeepers, artisan groups and Dalits.
National law does not make any provision for landless, encroachers or squatters regarding to the
entitlement for compensation. There is no provision for rehabilitation assistance for such vulnerable
groups.
When GoN requires assets, national law does not specify about the provision of mandatory
replacement cost.
The Land Acquisition Act, 1977 does not emphasize transparency and stakeholders' participation for
various decisions (Participation of PAPs especially in LA Act has no provision to participate in CDC
(Compensation Declaration Committee) that directly affect the long-term wellbeing of PAPs.
Lack of consideration of the apparent time gap between notification of acquisition and the payment of
compensation is another limitation of the existing legal framework.
Lack of consideration to acquired land of right of way (RoW) of 33/11 kV lines. The NEA has not been
practices to provide compensation in 33/11kV lines of RoW and pole/ location
Following are the policy recommendations to fill up the identified gaps and limitations –
A project affected person needs to be defined as a person or household whose livelihood or living
standard is adversely affected through loss of land, housing and other assets, income, or access to
services as a consequence of the implementation of the project, causing a change in land use.
Entitlements should be established for each category of loss covering both physical loss and
economic loss.
Special attention should be given to protect the interest of vulnerable groups. With a census date as
cut-off date, no fraudulent encroachments after this date should be considered eligible for entitlements
of compensation. Non-land assets should be compensated at replacement value. Support for
vulnerable groups should be provided to improve their livelihood.
Practical provisions must be made for the compensation of all the lost assets to be made at
replacement cost without depreciation or reductions for salvage materials. Efforts must be made to
assess the real replacement costs of land to the extent possible.
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There must be legal provision of PAPs and local representatives of Rural municipalities/Municipalities
for participation in settling the resettlement issues related to compensation and livelihood restoration.
First avoid RoW and pole impacts. Distribution line will follow existing right of way.
Livelihood restoration programs require becoming viable and sustainable. Thus, the Project will
implement for restoring PAPs’ incomes. The Program shall focus on immediate assistance and will
include the following (as provided in the Entitlement Matrix).
a) Compensation for land and structures paid in before acquisition.
b) Financial and life skills training.
c) Subsidized inputs for meter installation.
d) Temporary employment in construction activities.
e) Special assistance to the vulnerable PAPs.
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Table 21 - Policies Gap Between Government and Financiers
Category GON Policy Financiers’ Policy The GAP Recommendations to Bridge Gaps
A. Development Project falling Environmental Assessment has to be carried out Activities listed in EPR Schedule In order to fill the gap between JFPs and
Environment under EPR criteria should be for identifying potential risks and adverse I, particularly cross sectoral GON requirements/approach,
subjected to IEE/EIA. According impacts, mitigation measures and environmental provisions related forest and environmental screening is must for each
(Natural
to EPR sectoral provision management plan. When natural habitat and investment limits is likely to subproject, and consider potential
Habitat, distribution line projects with forest policies are triggered Environmental requires an IEE, and those listed environmental risk: project Environmental
capacity less than 132 kV does assessment and environmental management in Schedule II requires EIA. The Screening Format includes this. An
& Forest
not required IEE/EIA. But cross plan (EMP) will adequately address the relevant Schedule I and II is based on Environmental Management Plan (EMP)
including sector provision: Forest sector issues. activity type, Potential risk is not shall be prepared for each contract during
and investment limits may attract formally considered for detail engineering design phase.
terrestrial and
IEE/EIA assessment, particularly screening.
The plan aims to address adverse
aquatic for above 132 kV new distribution
environmental impacts arising due to
line of Component 1. In case the
project intervention. The project will strictly
forest areas affected by 11 kV
follow re-plantation as per the ratio of
distribution line, which is very
plantation in the forest guideline 2006.
unlikely for the component 1,
Forest regulation requires
permission from related
authorities (DFO, CFUG etc.) for
any intervention in forested area.
Compensatory re-plantation 1:25
ratio is defined for projects.
National Park and Wildlife
Conservation Act, demands
permission from Ministry of
Forest and Environment. The
DSUEP is not affecting
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the national parks and

conservation areas
B. Physical- Clause 28 of EPR states that Environmental assessment has to be carried out Chance find is not covered by the ESMP shall address such issues
physical and cultural resources in case such resources are found to be affected EPR requirements but is following GoN and WB policy.
Cultural
shall not be disturbed or by the subproject. stipulated in Ancient Monument
Resources damaged without the prior Protection Act.
approval of concerned authority.
C. Land and Clause 3 of this Land Acquisition Replacement cost for lost assets shall be The Land Acquisition Act of . Though chances are minimal, in some
Act states that any asset that is provided according to asset types and location. Nepal only provides for cash cases areas access to the project site
Structures
required for public purposes shall compensation based on degree may entail land acquisition for component
Resettlement and Rehabilitation assistance to
be acquired by providing of loss. It does not take into 1. Similarly, for 11 kV distribution s line
project affected people to enable them to
compensation. Compensation account vulnerability of the land may also have to be passed through
improve their living standard. As per JFPs
Fixation Committee will establish affected person. private property. roads right of way will be
community
the Compensation rates. used for distribution line.
assets need to be replaced in consultation with
Guthi Corporation Act, 2033
the community all those who are
(1976). Section 42 of this Act
states that Guthi (religious trust affected needs to be assisted including, tenants
land) acquired for a development and sharecroppers. Squatters and encroachers
must be replaced with other land, will be provided compensation at replacement
rather than value for their structures as well as other
assistances.
Land Reform Act (LRA) 2021
(1964). This Act establishes the
tiller's right on the land, which he
is tilling. The LRA additionally
specifies the compensation
entitlements of registered tenants
on land sold by the owner or
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acquired for the development

purposes
D. Indigenous The Interim plan encourages Ensures free, prior, and informed consultation Though GoN’s interim plan Project will carry out free prior informed
each development program to (FPIC) with the affected indigenous people to encourages development consultations with the indigenous
Community
incorporate infrastructure and obtain broad community support to the project. programs to incorporate income community and other vulnerable
income generation program Social Assessment will be carried out to identity generation schemes for IPs, communities to obtain broad consent for
targeted to indigenous potential effect and prepare plan to ensure that there is no mention of broad the project. Project will prepare
community. indigenous peoples receive social and economic consent from the IPs. At the Vulnerable Community Development Plan
benefits that are culturally appropriate. same time GoN has also ratified (VCDP) based on community needs of
ILO 169 and United Nations indigenous as well as other vulnerable
Nepal does not have a standalone policy on
Declaration of Rights of communities.
Indigenous Peoples and other vulnerable
Indigenous People (UNDRIP),
communities. These acts have been placed
and is in the process of
significant emphasis on delivering basic services
to the disadvantaged and indigenous people, preparing National Action Plan for
Dalits, women, disabled and other vulnerable implementation of these
groups international commitments
These acts and plans include policies for the
development of Adivasi/Janjati and other
disadvantaged groups:
creating an environment for social inclusion;
participation of disadvantaged groups in policy

and decision making;
developing special programs for disadvantaged
groups;
positive discrimination or reservation in
education, employment, etc.;
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protection of their culture, language and

knowledge;
proportional representation in development
process; and
making the country’s entire economic framework

socially
E. Loss of Compensation shall be provided Full compensation shall be provided Livelihood assistance shall be provided
for loss of crop damage/income for business losses (if any, land or access
Crops and
source. required during implementation shall be
Income
fully compensated.
Source
F. Screening Screening of the project is done Screening is done considering the nature, Screening of project shall be Detailed screening shall be conducted to
Guideline as per the Schedule I and II of location, sensitivity and scale of the project easily done using the GoN determine the level of risk
EPR 1997 based on the type, guideline;
nature and scale of the project.
whereas level of risk, impact and
nature need to identify to screen
the project as per Bank guideline.
G. As per the EPR 1997, project Category A and B project required ESIA to be GoN guideline clearly define the The ESIA study for Category A project
Environment falling in Schedule I required IEE prepared, but ESIA for category B project will be level of study required as per the shall be considered as equivalent to EIA
and Social to be prepared and approved by narrower than category A project. Similarly, screening. of GoN guideline. Similarly, ESIA study
Assessment concerned ministry. And project category C project does not require environment for Category B project shall be
falling in Schedule II required EIA and social assessment. considered as equivalent to IEE of GoN
to be prepared and approved by guideline
Ministry of Forest and
Environment
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3.3 E&S assessment and management

An administration structure, NEA has established Project Implementation Unit (PIU), to manage
DSUEP project management of technical, environmental and social aspects under NEA umbrella
organization. It is responsible in every activity of planning, implementation and monitoring financed
by AIIB. E&S framework suggests to manage identified E&S risks and impact assessment and
management for project sustainability.
Project screening is done to identify the impacts of project and its severity. On the basis of impacts
and severity the level of environment and social study such as EIA, IEE, ESMP etc. requirement
will be identified. Once the project is screened, the sub-projects will be categorized as per the
following:
3.3.1 Environmental Screening Criteria

Category I (Exclusion List)
Sub-projects under this category will not be funded and must be excluded from the project.
a) Sub-projects with any measurable adverse impacts on critical habitat or environmentally

sensitive areas. This includes national parks, wildlife reserves, conservation areas, world
heritage sites, and known religious and archeological sites as defined by GoN and the
requirements of the Financiers.
b) Sub-projects under this category are likely to have potentially significant environmental
impacts on ecosystem, natural habitat, cultural area such as National Parks, Conservation
Area, World Heritage Area, Recognized Cultural and Archaeological Area etc.
c) Sub-projects requiring EIA as per GoN and those classified as Category “A” under the
Financiers’ safeguard standards.
d) The Bank requires the Client to conduct an environmental and social impact assessment
(ESIA) or equivalent environmental and social assessment, for each Category A Project and
to prepare an ESMP or ESMPF, which is included in the ESIA report for the Project.
Category II (IEE/ESIA with ESMP)
Sub-projects under this category are likely to have less significant and site-specific impacts, which
may include impacts to forest area, wetlands, or other natural habitat. As per GoN (EPR, 1997) the
project which passes through national and community forest and construction of distribution lines
with capacity more than 132 kV is categories as B. These sub-projects are typically classified as
Category “B” under the Financiers’ safeguard standards and will require either an Initial
Environmental Examination (IEE) with ESMP under GoN regulations, or a limited Environmental
and Social Impact Assessment (ESIA) with ESMP in accordance with the Financiers’ safeguard
standards.
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Category III (DDR with ESMP)
Sub-projects under this category are likely to have environmental risks and impacts that are easily
addressed through an ESMP, such as increased air emissions or noise pollution near village areas.
These sub-projects are typically classified as Category “B” or “C” under the Financiers’ safeguard
standards and require only preparation of a Due Diligence Report (DDR) with ESMP.
3.3.2 Social Screening Criteria

Category I (Exclusion List)
Sub-projects under this category are likely to have potentially significant social impacts and displace
50 or more families in the mountain region, 75 or more families in the hills, and 100 or more families
in the terai plains due to involuntary land acquisition. This includes both physical and economic
displacement. All project activities causing physical displacement shall be excluded from the
project. Additionally, any sub-project that needs an EIA according to GoN regulations shall be
classified as Category I and excluded from the project.
Category II (IEE/ESIA with ESMP)
Sub-projects under this category have less significant and site-specific impacts and economically
displace less than 50 families in the mountain region, less than 75 families in the hills, and less than
100 families in the terai plains due to involuntary land acquisition (unless such impacts, in the
judgment of NEA / PIU, are exacerbated by other contributing factors). In these cases, sub-projects
are required to conduct a limited ESIA (including social baseline) and prepare an abbreviated RAP
and/or Indigenous Peoples Development Plan (IPDP) if needed. A sub-project may also be required
to prepare an IEE as per GoN regulations, which can be supplemented with a social assessment
as required by the Financiers’ safeguards. As per AIIB policy explicitly states that ARAP is only
applicable if affected persons are fewer than 200 people not physically and severally affect (loss
above 10% assets) are lost.
Category III (DDR with ESMP)
Sub-projects are likely to have minimal or no adverse environmental and social impact; does not
physically displace any family; and does not result in economic displacement of more than 10% of
productive assets for any family. A brief Environmental and Social Management Plan (ESMP),
including a RAP and/or IPDP if needed, shall be prepared. The Bank requirements for paragraph
12 of Category B, project is likely to have minimal or no adverse E&S impacts and E&S assessment
is mandatory project conduct the review of the E&S implements of projects.
Category IV
A Subproject is categorized FI if the financing structure involves the provision of funds to or through
a financial intermediary (FI) for the Project, whereby the Bank delegates to the FI the decision-
making on the use of the Bank funds, including the selection, appraisal, approval and monitoring of
Bank-financed subprojects. These subprojects are classifies as Category FI as per AIIB E&S
framework. Bank requires the FI Client, through the implementation of appropriate environmental
and social policies and procedures, to screen and categorize subprojects as Category A, B or C,
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review, conduct due diligence on, and monitor the environmental and social risks and impacts
associated with the Bank-financed subprojects, all in a manner consistent with this ESP.
As per the GoN rule, when the project does not fall under the projects mention in Schedule 1 and 2
of EPR, 1997 the project is categories as per financial structure. If the total project cost is between
NRs. 50 to 250 million, IEE is required for the project. Similarly, tf the total project cost is more than
NRs. 250 million, EIA is required for the project.
3.3.3 Required instruments for E&S assessment and management

After identifying the category, another assessment shall be conducted for management of
instruments. Following document shall be prepared base on categorization of sub-projects -
Environmental Impact Assessment (EIA)
Environmental Impact Assessment (EIA) is a process of evaluating the likely environmental impacts
of a proposed project or development, taking into account inter-related socio-economic, cultural and
human-health impacts, both beneficial and adverse. As per GoN, EIA is mandatory for all project
falling within Schedule-II. As per the JFP’s policies, category A project require preparation of ESIA
which is equivalent to EIA. The impacts of the project have wider range outside project area also.
The impacts of the project will be irreversible, cumulative, diverse or unprecedented. ESIA shall be
carried out as per EIB’s Environmental and Social Standards. Whereve a comprehensive
environmental and social impact assessment is required, the promoter shall prepare an
environmental and social study that will, at a minimum, include:
• Current knowledge and methods of assessment, as well as the applicable laws and
regulations of the jurisdictions within which the project operates and that relate to
environmental and social matters. Gap analysis between the relevant national legislation
and standards and the applicable international framework
• Description of the methodologies applied in the assessment
• The characteristics, technical capacity and location of the project, alternatives to the
proposed project and the extent to which certain matters (including the evaluation of
alternatives) are more appropriately assessed at different levels (including planning level -
using the outcomes of the SEA, if applicable), or on the basis of other assessment
requirements (e.g. biodiversity assessment, human rights impact assessment, etc.)
• The description of the baseline scenario – adequate and appropriate quantitative and
qualitative, primary and secondary data on the relevant aspects of the existing state of the
environment and social context and the likely evolution thereof without implementation of
the project, paying attention to any area of particular environmental and social importance
and the use of natural resources
• The description of the environmental and social aspects likely to be affected by the proposed
project11 and the assessment of the significance of the identified impacts based on clear
and predetermined criteria articulated in the assessment methodology
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• Assessment of the likely significant effects of the proposed project on environmental and
social aspects, including human rights, resulting from inter alia the existence of the project,
the use of natural resources12, the risks to human well-being, cultural heritage or the
environment, and the cumulation of effects with other projects and/or activities. The
description should cover the direct effects and any direct, secondary, cumulative,
transboundary, short-, medium- and long-term, permanent and temporary, positive and
negative effects of the project
• Description and justification of the measures foreseen to prevent, reduce and where
possible, compensate/remedy any significant adverse effects on the environment and
human well-being, and where appropriate any proposed monitoring arrangement or post-
project analysis as part of the overall promoter's environmental and social management plan
• Arrangements for monitoring and evaluation of the effectiveness of impact management

measured as part of the overall promoter’s environmental and social management plan and
system, which shall include appropriate qualitative and quantitative indicators and draw on
feedback from both internal and external sources, including affected stakeholders
• Comprehensive and context-specific stakeholder identification and analysis, including

identification of individuals and communities actually and potentially impacted by the project,
in particular vulnerable individuals or groups, as well as other relevant stakeholders.
Description of the precise engagement and consultation activities undertaken with different
groups of impacted individuals, communities and other relevant stakeholders as part of the
impact assessment process, including details on information sharing, timing and formats of
engagement, numbers and types of stakeholders consulted, feedback received and details
on how feedback was taken into consideration in the identification and assessment of
impacts, design of project alternatives, impact mitigation and monitoring (see Standard 10
for further guidance)
• Arrangements for grievance mechanisms and for steps that will be taken to ensure effective
access to remedy for affected stakeholders
• Description of information sharing, reporting and disclosure undertaken as part of the impact
assessment
• Assessment of the natural, man-made disaster and accidental risks to which the project
could be vulnerable and, where appropriate, descriptions of the measures foreseen to
prevent such risks, as well as measures regarding preparedness for and response to
emergencies (see Standard 9), to be included as part of the overall promoter's
environmental and social management plan
• A non-technical summary of the information provided under the above-mentioned headings
Projects involving involuntary resettlement, impacts on vulnerable groups, Indigenous Peoples,

minorities and/or cultural heritage will require an assessment in line with Standards 5-7 respectively,
in addition to any other environmental or social assessment studies that may be required.
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Initial Environmental Examination (IEE)
IEE is environment assessment tools use to study the consequences of the project implementation
in the environment and its surrounding. As per GoN, IEE is mandatory for all project falling within
Schedule-I. For category B project, ESMP will be included in ESIA report. For category B only ESMP
(may also include IEE) is required. This shall contain all the required mitigation and monitoring
measures (including indicators to measure performance) to be implemented during construction,
operation and maintenance phases. The ESMP will specify the institutional responsibilities for
carrying out each measure or action as well as management arrangements, timelines, budget, and
required capacity building measures for their implementation. The ESMP will contain sub-plans as
appropriate to cover specific issues.
Environment Management Plan (EMP)
For minor level project which have minimal or no major environmental and social impacts, EMP will
be prepared as E&S study to predict and mitigate minor impacts. Project which does not lies in the
Schedule I and II of EPR, 1997 and Category C project as per JFP requires EMP to be prepared by
the consultant and approved by the client. The EMP includes mitigation measures, implementation
cost and organization responsible for implementation and supervision.
Resettlement Action Plan (RAP)
Resettlement Acton Plan (RAP) shall be prepared whether the DSUEP subprojects affected private
land and properties. All impacts will be identified and mitigate through land acquisition and
resettlement, of complying with GoN, EIB and AIIB requirements Laws and policies. The RAP shall
contain an inventory survey of physical and economically impacts, 100% census survey will be
conducted in affected household and populations, questionnaire is attached in Annexure 8. Review
of relevant legal policies, entitlement plans for livelihood restoration and resettlement, follow the
grievance redress mechanism established proper institutional arrangement and monitoring
mechanism. If impacts on the entire affected population are minor or less than 200 people are
affected (category B) an abbreviated resettlement action plan will be prepared. An outline of
Resettlement Action plan is given in Annexure 5. AIIB and EIB will review the RAPs for all
subprojects.
Indigenous Peoples Development Plan (IPDP)
It is anticipated that sub-project areas will be inhabited by several indigenous communities classified
and officially recognized by the GoN, A social assessment will be carried out and based on which
an IPDP shall be prepared. It will contain measures to avoid or minimize adverse impacts and
maximize positive impacts on these communities. Vulnerable Community Development Plan
(VCDP) shall be prepared in the absence of IPDP.
Community Development Plan
The outline and concept of a Community Development Strategy will serve as basis for the
preparation of the Community Development Plan (CDP) for the 5 community development program
areas. The CDP will not be limited to the DSUEP affected households only, but also include non-
affected households, aiming at rehabilitation and complementary/new livelihood support measures.
The five areas are not limited to the RAP defined mitigation measures for PAHs, but extend its
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support for local socio-economic development to all villages in wards located in the DSUEP
subproject areas, so that all residents would have the opportunity to actively participate in the CDP
defined interventions for:
• Education.
• Health (and water supply, sanitation, hygiene).
• Gender.
• Social inclusion (ethnic and vulnerable groups).
• Local economic development (Livelihood promotion through Agriculture and forest related
activities).
3.4 Involuntary Resettlement (Rationale / Policy

principles / RPF)
It is the physical and/or economic displacement of people, not of their own will, from their property
which impacts assets, source of income and livelihood in the project corridor of impact (COI),
Involuntary resettlement may result in any or combination of the following - loss of land and other
fixed assets, loss of income and/or employment, relocation, separation of family members,
communities etc. Unless appropriate and adequate mitigation measures are carried out, involuntary
resettlement will result into further hardship and impoverishment among the PAPs, specially the
marginal sector of society. These adverse social impacts of development projects are often borne
by PAPs not of their own desire but involuntarily.
3.4.1 Rationale
The rationale for this involuntary settlement policy originates from the fact that specific sub-project
sites and activities are yet to be identified to understand the exact nature and scale of their impacts.
Thus, this Resettlement Plan Framework (RPF) has been developed to guide detailed resettlement
planning to address land acquisition and resettlement impacts. This framework establishes the
involuntary resettlement and compensation principles, organizational arrangements and design
criteria to be applied to meet the needs of the people who may be affected by the DSUEP subproject
activities resulting due to land acquisition, assets or livelihoods, and/or loss of access to economic
resources.
3.4.2 Objective
• To avoid involuntary resettlement wherever possible
• To minimize involuntary resettlement by exploring alternatives
• Wherever avoidance of involuntary resettlement is not feasible, to enhance, or at least

restore, the livelihoods of all displaced persons in real terms relative to pre-project levels
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• To improve the overall socio-economic status of the displaced poor and other vulnerable
groups
• To conceive and implement resettlement activities as sustainable development programs to

enable the persons displaced by the Project to share in Project benefits.
• Providing sufficient resources to enable the persons displaced by the project to share in
project benefits
• As per AIIB Environmental and Social Standard 2 paragraph 1: Involuntary Resettlement

Objectives is to avoid Involuntary Resettlement wherever possible; to minimize Involuntary
Resettlement by exploring Project alternatives; where avoidance of Involuntary
Resettlement is not feasible, to enhance, or at least restore, the livelihoods of all displaced
persons in real terms relative to pre-Project levels; to improve the overall socioeconomic
status of the displaced poor and other vulnerable groups; and to conceive and implement
resettlement activities as sustainable development programs, providing sufficient resources
3.4.3 Scope and Application

Scope
The scope of involuntary resettlements is to address impacts to PAPs by 33 / 11 kV substations 33

kV lines, 11 kV lines and LT lines. AS per AIIB ESS 2 applies if the Project’s screening process
reveals that the Project would involve Involuntary Resettlement (including Involuntary Resettlement
of the recent past or foreseeable future that is directly linked to the Project). Involuntary
Resettlement covers physical displacement (relocation, loss of residential land or loss of shelter)
and economic displacement (loss of land or access to land and natural resources; loss of assets or
access to assets, income sources or means of livelihood) as a result of: (a) involuntary acquisition
of land; or (b) involuntary restrictions on land use or on access to legally designated parks and
protected areas. It covers such displacement whether these losses and involuntary restrictions are
full or partial, permanent or temporary.
Application
The sub-projects are not expected to have major impact on involuntary resettlement under any
components (33 / 11 kV substations 33 kV lines, 11 kV lines and LT lines) of the DSUEP sub-
project. However, the sub-project (33 / 11 kV substations 33 kV lines, 11 kV lines and LT lines) may
involve involuntary resettlement/land acquisition compensation process. Involuntary resettlement
will be limited to economic displacement which includes loss of land tree, crops, secondary
structures or access to land and natural resources; loss of income sources or means of livelihood
If adverse (l) impacts from subproject activities involving loss of land access to assets or resources,
such impacts are avoided first, or when avoidance is not feasible, they are at least minimized,
mitigated, or compensated for, through involuntary resettlement under DSUEP sub-projects. If
these impacts are found to be adverse at any stage of the project, the NEA/PIU is required to
develop resettlement action plan and implement to restore the livelihoods of affected persons to at
least pre-project level or better.
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Principles
The following key principle will be followed –
• Involuntary land acquisition and resettlement impacts will be avoided or minimized carefully
in planning & designing stage of the sub-project
• In case it is not possible to avoid and minimize the involuntary land acquisition and
resettlement impacts, project will be accorded compensations and assistance/replacement
cost to PAPs for their resettlement, so that they shall be as well-off as without the sub-
project.
• Project team will fully inform and consult with PAPs during the design and implementation,
particularly land acquisition and compensation options.
• An absence of formal legal title to land will not be bar to compensation for house structures
and fruit/fodder/bamboo/crops etc. and attention will be paid to vulnerable groups and
appropriated assistance will be paid to them to improve their status.
• Land acquisition, compensation and assistance distribution will be completed before award
of civil work contract of sub-projects. The rehabilitation activities will continue in during
construction phase.
• Land acquisition and rehabilitation will be considered a part of sub-project and cost related
to resettlement will be included in the project cost.
Legal and policy framework related to involuntary resettlement and land acquisition
The resettlement principles adopted in this DSUEP Subprojects reflect the national Land Acquisition
(LA) Act (1977), Land Reform Act, the entitlement benefits as listed in the Draft National Policy on
Land Acquisition, Compensation and Resettlement in Development Projects in Nepal, AIIB, EIB
Safeguards Policy Standards. This Chapter outlines the GoN and the co-financiers’ policies, legal
requirements, and guiding principles under which this DSUEP subprojects will be prepared.
Constitutional Guarantees
Article 25 of the Constitution of Nepal, Right relating to Property, states that “(1) Every citizen shall,
subject to law, have the right to acquire, own, sell, dispose, acquire business profits from, and
otherwise deal with, property. Provided that the State may levy tax on property of a person, and tax
on income of a person in accordance with the concept of progressive taxation. Explanation: For the
purposes of this Article, "property" means any form of property including movable and immovable
property and includes an intellectual property right. (2) The State shall not, except for public interest,
requisition, acquire, or otherwise create any encumbrance on, property of a person. Provided that
this clause shall not apply to any property acquired by any person illicitly. (3) The basis of
compensation to be provided and procedures to be followed in the requisition by the State of
property of any person for public interest in accordance with clause (2) shall be as provided for in
the Act. (4) The provisions of clauses (2) and (3) shall not prevent the State from making land
reforms, management and regulation in accordance with law for the purposes of enhancement of
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product and productivity of lands, modernization and commercialization of agriculture, environment

protection and planned housing and urban development. (5) Nothing shall prevent the State from
using the property of any person, which it has requisitioned for public interest in accordance with
clause (3), for any other public interest instead of such public interest."
Land Acquisition Act 2034 (1977)
It is the act to acquire land for the public purposes. Government can acquire land at any place in
any quantity by giving the compensation pursuant to the act for the land required for any public
purpose or for the operation of any development project initiated by government (Clause 3 and 4).
To decide the amount of compensation, there shall be a CDC chaired by CDO. CDC includes Land
Administrator or Chief of the Land Revenue Office, a representative of the Concern Municipally or
Rural Municipalities and Project Chief. CDC is the main responsible body to determine the
compensation of land. It has full authority to determine the amount of compensation payable to
landowners. Any person who is not satisfied with the amount of compensation may file a complaint
with the Ministry of Home Affairs, the Government of Nepal within fifteen days from the date of the
issue of the notice of fixation of compensation, and, in such cases, the decision of the Ministry of
Home Affairs, the Government of Nepal shall be final determine the amount of compensation
payable (Clause 25 sub-clause 7). CDO is the original jurisdiction in respect to offenses punishable
under this act. CDO decision can be appealed in High Court.
The Land Acquisition Act, 2034 (1977) is the core legal document to guide the process related to
land acquisition and relocation in Nepal. The clause 03 of the Act states that land could be acquired
for a public purpose, subject to the award of compensation. According to clause 04 of the Act,
institutions seeking land acquisition may also request the Government to acquire land subject to
the payment of compensation by such institutions. Clause 27 of the Act provides for land acquisition
through mutual agreement between a plot owner and a government department or agency, where
the process of involuntary land acquisition outlined in the Act does not apply. The Act grants the
project proponent the right to choose between a mutual agreement process and the formal process
for land acquisition (as described below). Where clause 27 is applied and the plot owner is not
satisfied with the compensation offered by the state, under the agreement, the owner could file a
complaint with the Ministry of Home (clause 18 (sub clause 2) for a redress. As per the regulatory
provision, before acquiring private land for a public purpose, the Government forms a Compensation
Determination (Fixation) Committee (CDC) under the chairmanship of the Chief District Officer
(CDO). The chief of the land revenue office (LRO) and a representative from the concern
Municipality / Rural Municipality representatives and the Project Manager are the other members.
A representative of affected persons is also usually invited to participate in the Committee
discussions. The project manager functions as the member secretary of the Committee. The CDC
determines the amount of compensation considering the following factors: current price of land
value, value of standing crops, houses, walls, sheds or other structures, loss incurred as a result of
shifting residence or place of business. The CDC takes also into consideration the relevant Acts
and Guidelines of the government in this exercise. According to clause 06, if the land has to be
acquired for institutions other than the local government bodies and government institutions, the
Committee considers the following in determining compensation: (i) price of land prevailing at the
time of notification of land acquisition; (ii) price of standing crops and structures; and (iii) loss
incurred by the PAP by being compelled to shift his or her residence or place of business as a
consequence of the acquisition of land.
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As stated in clause 09, subsection 03 of the Act, the duration of compensation payment days will
be determined by CDC. Clause 37 of the Act illustrates that the Committee may extend the period
by additional 3 months, if compensation is not collected by those entitled. After the extended 3-
month period, the amount will be deposited in a government’s account. The compensation for
acquired land is generally paid in cash as per current market value. However, there is also a
provision under clause 14 to compensate land-for-land, provided Government land is available. The
Act also provides for the possibility of paying two separate rates of compensation, distinguishing
between households who lose all their land and those who lose only some part of their land. As
stipulated in clause 10, affected households could take the crops, trees, and plants from acquired
land, and salvageable materials. Clause 39 states that affected households could take all
salvageable assets and the value of such assets will not be deducted from compensation.
Any grievance and objection regarding the above will be referred to the grievance redress
committee (GRC) as per clause 11 of the Land Acquisition Act, 2034 (1977).
The Act assigns the CDO the sole responsibility of overseeing land acquisition process and
activities and to deal with the grievances related to land acquisition and compensation.
Clause 20 of the Act entitles the legal tenant to 100% compensation for the structures built by him
on the land with the permission of the landowner.
CDO chairs CDC, which consists of representatives from district administration, land revenue
department, the project office and the representatives from the Municipality / Rural Municipality and
affected HHs are normally invited to participate in the CDC meeting as invitees. At the request of
the EA, the Government makes a decision to have the land acquired (for the specified purpose),
and an officer from the EA is appointed by the government to undertake the preliminary actions
which include, among others, undertaking the survey of land to be acquired, and preparing the
documentation to be submitted to the CDC. EA issues the first notice of intent for land acquisition.
The survey information (i.e., draft resettlement/indigenous peoples plan) is then submitted to CDC
providing relevant details such as the number of land parcels to be acquired, land use pattern,
affected land owners, uses/land types, quantity of land to be acquired. The CDC reviews this
information and based on the same issues the final notice for acquisition with details of land parcels
to be acquired. Simultaneously, CDC/EA starts contacting the affected landowners/users and
initiates the process of negotiation on land value (for acquisition). Once the negotiation process is
complete, the CDC finalizes the value for acquisition of various properties and discloses the same
to the affected persons. The district administration office (DAO) then invites the affected households
to collect forms, duly fill and submit the same to DAO for collection of their compensation. The EA
deposits the requisite amounts of cash for compensation with DAO. All compensation, either in cash
or check, is disbursed through DAO to the project affected people.
Land Reform Act, 2021 (1964)
Another key legislation in Nepal related to land acquisition is the Land Reform Act (LRA) 2021
(1964). This act establishes the tiller's right to the land, which he/she is tilling. The LRA additionally
specifies the compensation entitlements of registered tenants on land sold by the owner or acquired
for development purposes. The most recent Act Amendment (2001) established a rule that in case
the state acquires land under tenancy, the tenant and the landlord will each be entitled to 50% of
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the total compensation amount. Tenants are verified through a record of tenancy at the land revenue
office.
Land Revenue Act 2034 (1977)
Acquisition of land for development projects (i.e., public interest) involves transfer of land titles for
which directly or indirectly the Land Revenue Act 2034 (1977) comes into force. Article 8 of this Act
states that registration, change of ownership, termination of ownership right and maintenance of
land records are done by local Land Revenue (Malpot) Office. Likewise, according to article 16 if
the concerned owner did not pay land revenue for long period of time the government can collect
revenue through auction of the concerned parcel. Land registration, transfer of titles and record
keeping in the kingdom are governed by this Act
Land Acquisition, Resettlement and Rehabilitation Policy for Infrastructure

Development 2015
The GoN approved a Policy on Land Acquisition, Resettlement and Rehabilitation for Infrastructure
Development in March 2015, however its implementation is not mandatory.
The policy outlines the need to conduct an economic and social impact assessment (SIA) of the
development project, which was not a requirement under the LAA 1977. Based on this assessment,
projects are categorized as high, medium, and low-risk. The act also provisioned for the project
affected families to be entitled to compensation if works like installation of distribution infrastructure,
telephone and underground drinking water pipe lines affect livelihood. And in case the projects
affect yields of registered commercial crop, fruit or flower producers, compensation equivalent to
five years of revenue must be given in cash.
The policy adds that all expenses related to land acquisition, compensation and the implementation
of resettlement and rehabilitation plans should be considered as project cost and interest should be
paid on compensation amount depending on the days it took to release funds to those affected by
the project. The interest calculation begins from the day a formal decision was taken to operate the
project, says the policy.
The compensation amount for those affected by the project will be fixed by a five-member
compensation committee formed under the chief district officer. The committee can form a technical
team to determine the compensation amount. This team should derive the compensation amount
as close as possible to the minimum market rate by working closely with members of families that
are likely to be displaced.
Those not satisfied with land acquisition, resettlement and rehabilitation processes can lodge
complaints at a body formed at the project office and complaint hearing offices at district and
regional levels. If verdict issued by the regional level complaint hearing office is also deemed
unsatisfactory, the person makes an appeal to the appellate court.
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Asian Infrastructure Investment Bank
The Asian Infrastructure Investment Bank (Bank) is an international organization that provides a
multilateral regional financing and investment platform for infrastructure development and enhanced
interconnectivity in Asia.
Environmental and Social Policy (ESP)
• Screening and categorization
• Environmental and social assessment
• Assessment, documentation and instruments
• Environmental and social management plan
• Environmental and social management framework
• Special circumstances
• Information discloser
• Consultation
• Monitoring and reporting

• Involuntary Resettlement
The detailed AIIB Bank’s policy and standards (ESS2) can be found at
https://www.aiib.org/en/policies-strategies/_download/environment-framework/Final-ESF-Mar-14-
2019-Final-P.pdf
EIB Standards and Principles
The EIB’s social standards are based on a human right approach. Social standards are intended to
promote outcomes to the benefit of individual well-being, social inclusion and sustainable
communities
The Bank’s key principle require, that adverse impacts on livelihoods should be mitigated at an
improved level, or at minimum restored at the pre-project level for any loss incurred. To address
displacements the preparation of an acceptable Resettlement Action Plan is required, which should
apply a due process of meaningful and culturally appropriate consultation and participation,
including that of host communities.
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Active consultation and participation are regarded as crucial and requires significant local ownership
and support through informed involvement. It also supports AHs in their rights particular concerning
entitlement rights in combination with GRMs. Therefore, public consultation is a basic requirement
The objectives of this Standard are to:
• Avoid or, at least minimize, project-induced resettlement whenever feasible by exploring

alternative project designs.
• Avoid and/or prevent forced evictions and provide effective remedy to minimize their
negative impacts should prevention fail.
• Ensure that any eviction which may be exceptionally required is carried out lawfully, respects
the rights to life, dignity, liberty and security of those affected who must have access to an
effective remedy against arbitrary evictions.
• Respect individuals’, groups’ and communities’ right to adequate housing and to an

adequate standard of living, as well as other rights that may be impacted by resettlement.
• Respect right to property of all project affected people and communities and mitigate any
adverse impacts arising from their loss of assets, or access to assets and/or restrictions of
land use whether temporary or permanent, direct or indirect, partial or in their totality. Assist
all displaced persons to improve, or at least restore, their former livelihoods and living
standards and adequately compensate for incurred losses, regardless of the character of
existing land tenure arrangements (including title holders and those without the title) or
income-earning and subsistence strategies.
• Uphold the right to adequate housing, promoting security of tenure at resettlement sites.
• Ensure that resettlement measures are designed and implemented through the informed
and meaningful consultation and participation of the project affected people throughout the
resettlement process.
• Give particular attention to vulnerable groups, including women and minorities, who may
require special assistance and whose participation should be vigilantly promoted.
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Process for Measurement and Valuation of assets
The following methods / approaches will be followed for the valuation of assets - i) method adopted
by the Government, ii) community consensus valuation, and iii) direct negotiation. For the purpose
of this project, the community consensus valuation method for land and asset valuation will be
adopted, which includes determining the valuation of assets in consultation with the community. As
part of this method, meetings with the local community members and representatives of the project
affected households on the valuation of land and assets are held. Based on the same, a consensus
is arrived at for valuation of assets, making it a more transparent process. This process works
through CDC for which the Project Manager or his/her designate (Senior Officer) or its environment
and social development or management section in charge takes all the initiatives with consent from
the CDC. In the final negotiations, CDC approves the proposal.
Table 22 - Land Acquisition Process as per Land Acquisition Act 2034 (1977)
Agency /Person
Steps Detailed Action
Responsible
• Sectoral agency decides to execute a development project of public

interest at a particular location
• The Agency requests the Government to acquire land specifying

Sectoral agency
Step I: The objectives and committing payment of compensation and other
Beginning expenses (for DSUEP who is
sectoral agency……)
• The Government approves and orders to initiate acquisition process
specifying the Officer in Charge to initiate the process
• Compensation Fixation Committee activated as per LAA 2034
• Public notification is issued at public places in the proposed project

area, respective Municipality or Rural Municipality Office, and to the
affected households
• Necessary basic surveys / investigations including boundary

demarcations are done after 3 days of the issuance of notification
• Any damage / losses of crop, structures, trees incurred during Chief District Officer
preliminary investigations, are compensated by the officer (CDO) /
Step II: Initial designated. PAPs can file complaint, if not satisfied with the
Compensation
Process compensation paid by officer designated, within 15 days of the
Fixation Committee.
fixation of compensation, to Chief District Officer (CDO)
• CDO addresses the grievances and its decision is final
• The officer designated (Project Chief, in this case) submits report to

CDO (Local government Officer) on total area required. This report
contains the loss details and the compensation amount determined
for payment. The task of preliminary investigation should be
completed within 15 days of the initiation of surveys
• CDO issues notice of land (and asset) acquisition including details

like location, plots with area, owner, boundary, etc. together with the Chief District Officer
purpose of acquisition. The timeframe to transport salvage material or (CDO) /
Step III: Notice Compensation
other assets are also specified in the notification
of Acquisition Fixation Committee
• All land transactions within the notified area are banned
• Legally, this is the cutoff date
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Agency /Person
Steps Detailed Action
Responsible
Sectoral agency /
Step IV: • Land and asset valuation and negotiation process takes final shape
Compensation, Chief District Officer
• Asset owner fills-up forms to claim entitlement with documents within
eligibility and (CDO) /
15 days of notification (as of 9 above). Compensation payment takes
procedure Compensation
place
Fixation Committee
• The PAPs can file complaint within 7 days of notification excluding

travel days to Government of Nepal through CDO
Step V: Chief District Officer
• The government i.e., Ministry of Home Affairs, will address the
(CDO) / Government
Grievance grievances within 15 days of the receipt of complaint. The Home
of Nepal (Ministry of
Redress ministry is endowed with legal power as of District Court
Home Affairs)
• The appeals if any, are addressed by the government or after lapse
of such
Note - In case of leasing of land for project activities and temporary purposes like contractor camps, storage
of materials etc., the annual rates to be paid will be determined through negotiations with the land owners,
and the lease agreements signed between the EA and affected persons. For the first years, the lease will be
upfront before acquiring the land.
Screening Exercise
Every proposed site will be subjected to social screening process before it is selected for inclusion
in the project. The social screening process will be undertaken in the sub-project area to determine
the magnitude of adverse impact and prospective losses, identify vulnerable groups, and ascertain
losses other than land acquisition. It shall also suggest the level of social assessment required.
Social Impact Assessment (SIA)
If the social screening findings show adverse social impacts, the sub-project will undertake a fresh
SIA incorporating 100% socio-economic survey will be conducted of affected persons and their
families for RAP proposes. Relevant information about PAPs (Project Affected Persons) shall
include – (i) demographic characteristics (ii) an inventory affected assets, facilities and resources,
(iii) landownership, usage and productivity (iv) socio-economic status of PAPs and assessment of
their risks including income (v) social and gender issues including prevalence of indigenous people
(vi) stakeholders and their activities (vii) people’s interest and expectations including their attitude
towards the project, and (viii) impact minimization/ mitigation measures based on community
consultation. The Social impacts Assessments (SIA) helps in determining magnitude of
displacement, prospective losses, better targeting of vulnerable groups, ascertaining magnitude of
the resettlement and costs, preparing and implementing resettlement and other plans as required.
The SIA will identify measures to avoid, minimize or mitigate involuntary resettlement risks.
Vulnerability assessment of PAPs will be part of SIA and a list of vulnerable PAPs will be prepared
and finalized in consultation with local community. The SIA will also assess, opportunities for income
restoration/economic rehabilitation, and any need of special assistance for vulnerable groups.
Based on this information, the eligibility criteria and entitlement for compensation / assistance will
be established and appropriate Resettlement Action Plans (RAP) will be prepared.
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Resettlement Action Plan (RAP)
Resettlement Action Plan (RAP), a sample outline of which is attached in Annexure 5 is a major
planning document, which is based on their information gathered from census survey of project
affected people and inventory of lost assets. The contents of RAP should include a statement of
involuntary resettlement objective and strategy with scope of land acquisition and resettlement,
socio-economic condition, information disclose public consultation, grievance redress mechanism,
legal framework, and other relevant information The RAP should establish an eligibility cut-off date3.
If the impacts are minor4 and fewer than 200 people and are not physically and severally affect (loss
above 10% assets) are lost an Abbreviated RAP5 (ARAP) will be prepared. ARAP covers the
following minimum elements
• A census survey of all affected household and valuation of assets
• Description of compensation and other resettlement assistance to be provided
• Consultation with displaced people about acceptable alternatives
• Institutional responsibility for implementation and procedures for grievance redress
• Arrangements for monitoring and implementation
• A timetable and budget
Broad principles of Involuntary Resettlement policy
The policy aims to resettle and rehabilitate the affected persons on account of its sub-projects in a
manner that they do not suffer from adverse impacts and shall improve or at the minimum retain
3
Cut-off Date for Eligibility criteria, This refers to the date prior to which the occupation or use of the area makes
residents/users/occupants of the same eligible to be categorized as AP In this project, the cut-off date coincides with the final day
of the census of PAPs and Inventory of Losses (IOL) and which is preceded by a public consultation (conducted by CDC) or
announcement. Persons not covered in said census are not eligible for compensation and other entitlements, unless they can show
proof that:
1. They have been inadvertently missed out during the census and the IOL; or
2. They have lawfully acquired the affected assets following completion of the census and the IOL and prior to the conduct of the
detailed measurement survey (DMS). In view thereof, the final list of PAPs is determined during the DMS. The establishment of cut-
off date for eligibility is intended to prevent the influx of ineligible non-residents who might take advantage of project entitlements
and speculate on land values and to prevent speculation by eligible PAPs.
3. Impacts are considered ‘minor’ if the project affected people are not physically displaced and less than 10 percent of their
productive assets are lost.
5Project may, prior approval of bank for ARAP.
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their previous standard of living, earning capacity and production levels. The resettlement shall
minimize dependency and be sustainable socially, economically and institutionally. Special
attention shall be given to the improvement of living standards of marginalized and vulnerable
groups.
The following key principles will be followed in RAP preparation and implementation –
• Acquisition of land will be minimized attempting to avoid any direct impact on homestead
land, residential structures that may lead to temporary and / or permanent physical
displacement
• Minimize the use of productive land with a preference to purchase lower productive land
• When possible, resettlement plans should be conceived as development opportunities, so

that those affected benefit from project activities.
• Lack of legal rights does not bar displaced persons in peaceful possession from
compensation or alternative forms of assistance. Compensation rate refers to amount to be
paid in full to the individual or collective owner of the lost asset, without deduction for any
purpose.
• Compensation of the affected homestead and associated structures will be provided at

current market price.
When cultivated land is acquired, it is often preferable to arrange for land-for-land replacement. In
some cases, as when only small proportions of income are earned through agriculture, alternative
measures such as payment of cash or provision of employment are acceptable if preferred by the
persons losing agricultural land.
Replacement of house plots, sites for relocating businesses, or redistributed agricultural land should
be of equivalent use value to the land that was lost.
Transition periods should be minimized. Compensation should be paid prior to the time of impact,
so that new houses can be constructed, fixed assets can be removed or replaced, and other
necessary measures can be undertaken before displacement begins.
Displaced persons shall be consulted during the planning process, so their preferences regarding
resettlement arrangements are considered and resettlement plans are disclosed in a publicly
accessible manner. The previous level of community infrastructure and services and access to
resources shall be maintained or improved after resettlement.
Physical works will not commence on any portion of land before compensation and assistance to
the affected population have been provided in accordance with the policy framework.
The borrower is responsible for meeting costs associated with land acquisition and resettlement,
including contingencies.
Resettlement plan includes adequate institutional arrangement to ensure effective implementation

of resettlement measures.
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Compensation and other assistance are to be paid as per the compensation declaration committee
(CDC) and follow the entitlement matrix which attach in Annexure 3. If additional resettlement
impacts are identified, provisions of compensation and assistance will be updated to include them
based on the above-mentioned principles and policies of entitlement. The description of entitlement
are as follows-
Compensation
Compensation shall be provided to the PAPs for all types of losses incurred as a result of the
Project. It should be noted that the entitlements and valuation procedures concerning acquisition of
assets described in the following sections are based on the provisions of the Land Acquisition Act
2034 (1977). The Act also allows acquisition of assets to take place through direct negotiations and
agreement between the Project and the owner. However, in cases where in a large number of plots
must be acquired by the Project and/or if no agreements can be reached during direct negotiations,
acquisition will take place following standard procedures of the Land Acquisition Act.
Loss of Land (agricultural, residential, commercial and forestry)
Land in Nepal is grouped into different types and classes, which in turn, form the basis for the
calculation of land taxes. The main land types are khet, bari and ghaderi. Khet is irrigated land,
generally situated in valleys and mainly used for paddy rice and wheat production. Bari is non-
irrigated land mostly situated on hill slopes and is used mainly for rain-fed production of crops such
as millet and maize. Gharderi is homestead (including kitchen gardening) land. Khet, barim and
ghaderi are in turn subdivided into the following land classes: Abal (class 1 land); Doyam (class 2
land); Sim (class 3 land); and Chahar (class 4 land) mainly in Hillside. Biga Kathha Dur in Tarai,
and somewhere measure land in Sq.m.
Those who lose privately owned land due to project activities are entitled to compensation. Such
entitled persons include titleholders (owner cum cultivator), absentee landlords, registered tenants
and non-registered tenants (legalizable). The type of compensation entitlement for them are
enumerated in the Entitlement Matrix of Annexure 3.
Non-registered tenant farmers will be assisted to become registered tenants wherever possible.
This requires a formal agreement to be signed between the tenant and the titleholder. If the
agreement is formalized, the tenant will be entitled to compensation as a registered tenant.
Those who remain non-registered tenants (i.e. those with non-legalizable claims to the land) and
who have cultivated the affected land for at least 3 years prior to the cut-off date (to be validated by
Rural/Municipalities) and do not have title to any other land, will be entitled to allocation of land if
ailani or other government land is available, as determined by the concerned authority in the district.
This group will also be entitled to rehabilitation assistance. Wherever possible, the spouse of PAPs
(households) should be present during the compensation payment. In addition to compensation for
their lost assets, the PAPs incurring significant impacts will also be entitled to rehabilitation
measures and other assistance.
The Project will assist vulnerable HHs for reinvestment of their compensation in other productive
assets, specifically with the identification and purchase of suitable privately-owned cultivation land
in the vicinity. The Project will follow the objective to improve the standard of living of vulnerable
peoples at least to the national minimal
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In order to restore the loss of farmland, if any PAPs purchase farmland in another place within 1
year from the date of receiving compensation, the land registration fee for the purchased
replacement land of equal amount or price, shall be paid by the Project. This option will be equally
applicable in urban areas as well.
For temporarily acquired land for the construction works of the Project, the Project will consider a
temporary occupation contract with PAPs, according to their capability and qualifications. The
contract will specify the details of the occupancy period, conditions for use and returning of the land,
and the amounts of compensation to be paid. Compensation and restoration of land, if already
temporarily acquired for some works, will be made retroactively. The temporary occupation of any
land will be compensated at the replacement cost for the losses incurred due to temporary
occupation. On completion of occupation, the land will be restored at least to its initial condition or
better prior to handing it over to the owner.
Owners of Guthi (trust) land will be compensated according to the Guthi Corporation Act 2033.
Replacement land will be provided if ailani (unclaimed arable land) or other government land is
available. Otherwise monetary compensation (cash or cheque) at full replacement cost will be
provided. Marginal losses will be compensated by means of cash compensation.
Entitlements for Leaseholders at Disposal Sites
DSUEP will sign a formal lease agreement with each titleholder whose land is being leased. An
annual leasing arrangement for an annual fix payment will be negotiated with each of these
landowners. A format of the lease agreement will be prepared by the help of legal advisers.
In case, the titleholders do not agree to lease their land, the DSUEP shall acquire the land on
negotiated market replacement rate of the land. DSUEP will fully restore the leased land to its
original condition and return it to the leaseholder at the end of leasing period.
DSUEP will ensure that persons (other than the landowners) affected as a result of leasing of land
for the Project are also compensated for the loss of income incurred due to the leasing of land.
Mutually agreed leasing rates will be paid by DSUEP to the titleholder annually. The first payment
will be done before the land is taken over by the DSUEP. All costs related to land leasing and
restoration will be borne by DSUEP.
Loss of Residential and Commercial Structures (houses) and Other Structures
Owners of affected houses and other structures such as goth (sheds), separate kitchen, walls and
other structures shall be compensated in cash, for full or partial losses, at replacement cost as
determined by the CDC. This will include titleholders and tenants on private land, and encroachers
and landless squatters occupying public land at the time of the eligibility cut-off date for each project
component and sub-component. In case there are structures that could be reinstalled at a new site,
the transport and re-installation cost shall be provided by the project. Furthermore, structures that
are only partially affected shall be entitled to the cost of structure repair along with compensation
for affected materials at replacement cost.
Compensation for land and structures would be paid in one lump sum. It would be paid on the spot
so that PAPs do not have to travel to the district office for the same. The affected asset owners will
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have the right to salvage materials from the affected buildings. The value of salvaged materials will
not be deducted from the final compensation amount.
Loss of Crop and Other Natural Resources
Construction works would as far as possible be planned to allow for the harvesting of non-perennial
and perennial crops before land is acquired. Where crops cannot be harvested, or the destruction
of crops is unavoidable, compensation will be paid, based on market value of crop at the time of
compensation, as determined by the CDC. All other resources from privately owned trees (e.g.
timber/fuel wood) would remain the property of the concerned owner. For land under registered
tenancy, the amount of compensation for standing crops and permanent crops such as bamboo,
timber and fruit trees shall be divided equally between the landowner and the tenant.
For land occupied by non-registered tenants, the amount of compensation for standing crops shall
be divided according to lease or sharecropping agreement between tenant and landowner.
However, compensation for loss of permanent crops such as bamboo, timber and fruit trees shall
be provided only to the owner.
The Departments of Agriculture & Cooperatives and Forest & Soil Conservation shall be consulted
for assisting affected owners with the restoration of new trees/perennial crops. Where necessary,
the support to such programs will be funded by the Project.
Loss of Community Facilities and Resources
Affected community buildings and facilities shall be restored to their previous condition or replaced
in areas identified in consultation with affected communities and the relevant authorities. The
community facilities include schools, temples, health posts, waiting sheds (thanti), water points,
irrigation canals, trails/footpaths and bridges, graves and/or ghats.
Where communal grazing lands are affected, under the current government regulations, the
Department of Agriculture (Pasture Development Section) shall be requested to assist communities
for adequately mitigating the impacts on grazing area. Likewise, where community owned trees are
acquired, the Department of Forestry will be consulted to advice forest user groups regarding future
production losses and compensation modalities. User groups shall be assisted with the re-
establishment of new trees/perennial crops and the establishment or improvement of community
forestry programs. The aim of these support programmes shall be the improvement of remaining
communal areas and resources to ensure that pre-project levels of supplied resources are
maintained or improved upon. Where required, these support programs shall be funded by the
Project. In addition, advance notice shall be given to harvest resources from the affected areas.
Any loss of trees in the area of influence shall be mitigated by means of afforestation exercises to
be undertaken by the Project in consultation with local communities and the Department of Forestry.
Other Individual and Group Losses
Vulnerable social categories and others such as porters and other providers of non-vehicular
transport along the direct project affected area who lose income indirectly as a result of the project
shall be identified, based on monitoring results, in consultation with local government and
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representatives. The rehabilitation assistance based on the extent of loss shall be provided as
determined by the CDC.
The loss of water for irrigation or for water mills due to diversion for electricity generation would be
mitigated before it can affect farmers and concerned property owners. The mitigation measures
shall be based on findings of baseline information in the Environmental Management Plan. The
affected group shall be entitled to be paid for the cost of construction of any necessary mitigation
measures. If such measures are also required in subsequent years, the affected owners would be
entitled to funds from a revolving fund to restore access to water for the affected systems. Similar
provisions shall be made if other indirect impacts (e.g. on fisheries) prove to cause severe impacts
to certain groups of PAPs.
Damages caused during Construction
Extreme care would be taken by contractors to avoid damaging public and private property during
construction. In case of damages to public or private property as a result of construction works, the
contractor shall be required to pay compensation immediately to PAPs, vulnerable groups,
communities, or government agencies for damages to crops and trees. Damaged land, structures
and infrastructure shall be restored immediately to their former condition.
Government Property
Government infrastructure and facilities including utilities affected by the Project shall be repaired
and/or replaced in consultation with the relevant departmental authorities. The Government forested
areas, if required, shall be acquired in consultation with the Department of Forestry and any loss of
trees therein shall be mitigated by means of afforestation exercises undertaken by the project as
far as possible.
Displacement Assistances/ Allowances
In addition to compensation for lost assets,
Households whose landholdings are no longer economically viable as a result of land losses e.g.,
less than 0.5 ropani in rural areas, or 2.5 ana in urban area, as defined in this resettlement plan,
shall receive a cultivation disruption allowance equal to one season’s production on the area lost.
The amount payable shall be based on published district production Figures, land type (i.e. irrigated
and non-irrigated) and market prices for crops for the year in which the land is acquired. The
allowance will be paid at the time of compensation payment.
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Additional Support to Vulnerable Persons
Apart from the provision of displacement allowances, the rehabilitation of PAPs from vulnerable
groups6 in the vicinity of the Project area shall also be supported through the following measure:
a) Assessment of current economic activities and potential for improvement of these activities.
b) Assessment of alternative income-earning opportunities.
PAPs from vulnerable groups will need special assistance in addition to compensation and
resettlement assistance so as to at least restore but preferably improve their lives and livelihoods.
Such special assistance will include the following:
a) Preferential access to project construction employment opportunities.
b) Skill training: Among PAPs who are not qualified for employment at project sites; the Project
shall encourage construction contractors to provide on-the-job training to select PAPs in turn
enabling them to earn a living from the Project. The need to train local people in required
skills to work at project sites will be included in bidding documents and contracts.
c) Training/Counselling on financial literacy and/or cash management / saving schemes.
d) Counselling regarding project impacts, compensation alternatives and risks and

resettlement options (where required).
The Project shall undertake consultations with contractors and local communities to establish
mutually agreeable conditions for employment of the local population, especially the ones who
belong to vulnerable groups. Person from vulnerable affected HH will be given preference to attend
project sponsored vocation training program that would help them in obtaining employment and/or
earning livelihood as far as possible. Efforts shall be made to link trainings with definite employment
opportunities.
PAPs that undergo training as rehabilitation assistance shall be supported by the Project. The
project will facilitate the assessment and, where feasible, establishment of small-scale income-
generating schemes for PAPs from households incurring significant impact in the Project. Similarly,
the Project would investigate the potential for co-ordination with existing to national poverty
alleviation and credit programs in order to provide access to the same.
PAPs from vulnerable groups shall have access to agricultural extension services to increase
production on their remaining agricultural and other land. The Department of Agriculture and Forest
6
Vulnerable groups are those groups who are physically or economically affected from the project and being indigenous
people, above 70 aged people below poverty line HH, women headed HH severally affected HH and Dalits
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and Soil Conservation shall be requested to assist PAPs of the Project. Any costs incurred in the
same shall be borne by the project.
Specific measures to be followed while dealing with Vulnerable Groups
Specific measures for vulnerable groups including indigenous peoples, Dalits, minor ethnic
communities, women, and powerless communities are outlined below:
a) Ensure awareness raising, active participation and capacity building of the vulnerable
communities
b) Ensure participation in awareness campaigns, project implementation and monitoring of

vulnerable groups
c) Ensure equal wages for similar work during implementation
d) Launch project information campaign to inform the target groups about the key features of
the project and the DSUEP investments interventions implemented.
e) Asses and analyze the presence of indigenous and Dalits in the areas where DSUEP
components investments are implemented
f) Treat and support indigenous people, Dalits and other vulnerable communities preferentially
g) Involve IPs and Dalits in beneficiary groups as needed to increase their participation.
h) Ensure the identified needs and priorities of vulnerable people are taken into account in the
DSUEP investments interventions
i) Conduct project related meetings in indigenous and vulnerable community areas to

encourage their participation. Ensure a quorum which includes representation from IP
groups.
j) Encourage interventions providing targeted assistance/training aimed at vulnerable groups

to enhance livelihoods and participation
k) Build capacity of indigenous peoples, Dalits and other vulnerable communities to enhance
their knowledge and skills to participate in the project activities
l) Encourage capacity development through trainings on skill enhancement (agriculture,

veterinary, vocational training in different fields) of local people as part of the DSUEP
interventions
General Information Dissemination and Counselling
General information and counselling will be provided to all PAPs within the project areas to inform
them regarding project impacts, construction schedules and acquisition dates, cut-off dates,
valuation, compensation and grievance resolution mechanisms, construction employment
procedures and local development initiatives.
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Other Unanticipated Impacts
Unforeseen impacts will be documented and mitigated based on the principles agreed upon in the
resettlement framework. The EA will deal with any unanticipated adverse impacts arising from
Project intervention or associated activity during or after project implementation. The affected
individual or households will be entitled for receiving compensation and/or assistance for such
unforeseen adverse impacts.
Cut-off Date
The cut-off dates are related to the period of conducting the DMS. Those who encroached into the
subproject area after the cut-off date will not be entitled to compensation or any other assistance.
All project-affected persons will be notified of cut-off date.
The Entitlement Matrix attach annexure 3 and summarizes the main types of losses and
corresponding entitlements, which reflect the Nepal laws and regulations safeguard policies of AIIB
and EIB. The standard entitlements listed in the entitlement matrix have been maintained as per
Resettlement Framework approved earlier. However, entitlements for leased land were not included
in the Resettlement Framework. As a result, attempt has been made to enhance and further detail
out the entitlements in this ESMF.
A comparative analysis of the national laws EIB and AIIB policies on involuntary resettlement/land
acquisition with identified gaps and limitations of the national legal and policy framework have been
analyzed. The main gaps and limitations of the national legal and policy framework are –
• National law makes provision for compensation to the titled landholder only and, by default,
omits all other PAPs, including non-registered tenant farmers, landless farmers, squatters,
agricultural laborers, shopkeepers, artisan groups and Dalits.
• National law does not make any provision for landless, encroachers or squatters regarding
to the entitlement for compensation. There is no provision for rehabilitation assistance for
such vulnerable groups.
• When GoN requires assets, national law does not specify about the provision of mandatory
replacement cost.
• The Land Acquisition Act, 1977 does not emphasize transparency and stakeholders'
participation for various decisions (Participation of PAPs especially in LA Act has no
provision to participate in CDC (Compensation Declaration Committee) that directly affect
the long-term wellbeing of PAPs.
• Lack of consideration of the apparent time gap between notification of acquisition and the
payment of compensation is another limitation of the existing legal framework.
• Lack of consideration to be acquire land of right of way (RoW) of 33/11 kV lines. The NEA
has not been practices to provide compensation in 33/11kV lines of RoW and pole/ location
Following are the policy recommendations to fill up the identified gaps and limitations –
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A project affected person needs to be defined as a person or household whose livelihood or living
standard is adversely affected through loss of land, housing and other assets, income, or access to
services as a consequence of the implementation of the project, causing a change in land use.
Entitlements should be established for each category of loss covering both physical loss and
economic loss.
Special attention should be given to protect the interest of vulnerable groups. With a census date
as cut-off date, no fraudulent encroachments after this date should be considered eligible for
entitlements of compensation. Non-land assets should be compensated at replacement value.
Support for vulnerable groups should be provided to improve their livelihood.
Practical provisions must be made for the compensation of all the lost assets to be made at
replacement cost without depreciation or reductions for salvage materials. Efforts must be made to
assess the real replacement costs of land to the extent possible.
There must be legal provision of PAPs and local representatives of Rural

municipalities/Municipalities for participation in settling the resettlement issues related to
compensation and livelihood restoration,.
First avoid RoW and pole/ impacts.. Distribution line will follow existing right of way
Livelihood restoration programs require becoming viable and sustainable. Thus, the Project will
implement for restoring PAPs’ incomes. The Program shall focus on immediate assistance and will
include the following (as provided in the Entitlement Matrix).
• Compensation for land paid in before acquistion.
• Financial and life skills training.
• Subsidized inputs for meter installation.
• Temporary employment in construction activities.
• Special assistance to the vulnerable PAPs.
Specific measures to be followed while dealing with Vulnerable Groups
Specific measures for vulnerable groups including indigenous peoples, Dalits, minor ethnic
communities, women, and powerless communities are outlined below:
• Ensure awareness raising, active participation and capacity building of the vulnerable
communities
• Ensure participation in awareness campaigns, project implementation and monitoring of

vulnerable groups
• Ensure equal wages for similar work during implementation
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• Launch project information campaign to inform the target groups about the key features of
the project and the DSUEP investments interventions implemented.
• Asses and analyze the presence of indigenous and Dalits in the areas where DSUEP
components investments are implemented
• Treat and support indigenous people, Dalits and other vulnerable communities preferentially
• Involve IPs and Dalits in beneficiary groups as needed to increase their participation.
• Ensure the identified needs and priorities of vulnerable people are taken into account in the
DSUEP investments interventions
• Conduct project related meetings in indigenous and vulnerable community areas to

encourage their participation. Ensure a quorum which includes representation from IP
groups.
• Encourage interventions providing targeted assistance/training aimed at vulnerable groups

to enhance livelihoods and participation
• Build capacity of indigenous peoples, Dalits and other vulnerable communities to enhance
their knowledge and skills to participate in the project activities
• Encourage capacity development through trainings on skill enhancement (agriculture,

veterinary, vocational training in different fields) of local people as part of the DSUEP
interventions
3.5 Indigenous Peoples

Nepal is a culturally and ethnically diverse country, populated by numerous castes and ethnic
groups. The original inhabitants of the country are migrants of various ethnic groups and the
migration process can be traced back to 2000 years. Major castes found in the DSUEP sub-project
areas are as follows -
Table 23 - Major castes in project areas (Source – E&S screening survey)
Group Major castes/ethnicity
Dalits Damai, Kami, Sarki, Lohar, etc.
Indigenous Tharu, Yadab, Raute, Majhi, Bote, Tamang, Bhujel, Kumal, Bhote, Darai, Magar, Gurung,
people Limbu, Sherpa, Thakali, Bansi, Thami, Newar, Rai etc.
Others Brihnin, Kshtri, Thakuri, Dasnami, etc.
The indigenous people are classified into five different categories as follows –
• Endangered - Raute
• Highly marginalized – Majhi, Bote, Thami
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• Marginalized – Tharu, Tamang, Bhujel, Kumal, Bhote, Darai
• Disadvantaged - Magar, Gurung, Limbu, Sherpa, Bansi, Rai, Yadab
• Advantaged groups – Thakali, Newar
3.5.1 Indigenous people screening exercise

If the social screening process undertaken for each project determines that Indigenous Peoples are
present in, or have collective attachment to, the subproject area, and are likely to be affected by the
Project, an Indigenous Peoples Development Plan is required to be prepared. EIB Standard 7
requires a process of Free, prior and Informed Consent (FPIC) in case IP communities are affected
by the project.
Social screening shall include whether activities under the project would: (i) have impacts on land
and natural resources subject to traditional ownership or under customary occupation or use; (ii)
cause relocation of Indigenous Peoples from land and limitations on access to natural resources
subject to traditional ownership or under customary occupation or use; or (iii) have significant
impacts on Indigenous Peoples cultural heritage. In such cases the process for FPIC will be
prepared and approved by the Financiers. 7
Securing consent of Indigenous Peoples is a requirement prior to any subproject activities.

subprojects that are unable to obtain consent from affected indigenous groups will be excluded from
financing.
3.5.2 Indigenous Peoples and Vulnerable Communities Development

Framework (IP-VCDF)
This Indigenous Peoples and Vulnerable Community Development Framework (IP-VCDF) is
developed to guide the preparation of DSUEP investments to ensure better distribution of the
benefits of the project activities with a focus on the Adivasi /Janjati and other disadvantaged social
groups located in areas in which DSUEP civil works take place. The IP-VCDF is developed based
on the national policies/strategies as well as the Co-financers’ Indigenous Peoples Policies. The
principal objectives of the IP-VCDF are to:
7
An updated IP Framework incorporating FPIC process shall be prepared and considered as one of the conditions for
loan effectiveness.
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Ensure that the project pursues free, prior, and informed Consent (FPIC) approach with adversely
affected Indigenous Peoples communities, to the extent possible leading to broad community
support for the project, with particular attention to vulnerable groups
Ensure that project benefits are accessible to the vulnerable communities living in the project area
Avoid any kind of adverse impact on vulnerable communities to the extent possible and if
unavoidable ensure that adverse impacts are minimized and mitigated
Ensure vulnerable peoples’ participation in the entire process of preparation; implementation and
monitoring of the sub-project activities as embodied in IPDP or VCDP
Minimize further social and economic imbalances within communities
Develop appropriate training / income generation activities in accordance to their own defined needs
and priorities
3.6 Relevant Policies on Indigenous Peoples and

other Vulnerable Communities
3.6.1 Constitution of Nepal
Article 18 Right to equality
(1) All citizens shall be equal before law. No person shall be denied the equal protection of law. (2)
No discrimination shall be made in the application of general laws on grounds of origin, religion,
race, caste, tribe, sex, physical condition, condition of health, marital status, pregnancy, economic
condition, language or region, ideology or on similar other grounds. (3) The State shall not
discriminate citizens on grounds of origin, religion, race, caste, tribe, sex, economic condition,
language, region, ideology or on similar other grounds. Provided that nothing shall be deemed to
prevent the making of special provisions by law for the protection, empowerment or development
of the citizens including the socially or culturally backward women, Dalit, indigenous people,
indigenous nationalities, Madhesi, Tharu, Muslim, oppressed class, Pichhada class, minorities, the
marginalized, farmers, labour, youths, children, senior citizens, gender and sexual minorities,
persons with disabilities, persons in pregnancy, incapacitated or helpless, backward region and
indigent Khas Arya.
Article 42 Right to social justice
(1) The socially backward women, Dalit, indigenous people, indigenous nationalities, Madhesi,
Tharu, minorities, persons with disabilities, marginalized communities, Muslims, backward classes,
gender and sexual minorities, youths, farmers, labour, oppressed or citizens of backward regions
and indigent Khas Arya shall have the right to participate in the State bodies on the basis of inclusive
principle.
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National Foundation for Development of Indigenous Nationalities (NFDIN) Act of

2002
In year 2002, NFDIN was registered under the NFDIN Act-2002 by Government of Nepal to work
for the welfare of Indigenous Nationalities for their overall development. According to census 2011,
there are 125 distinct languages spoken and 123 different ethnic groups in Nepal. NFDIN Act 2002
has identified 59 indigenous groups in a country which constitute 35.4% out of the total population
of nearly 26.5 million. In lack of proper information, deprived and marginalized communities and
groups including indigenous nationalities are still not able to benefit from nation’s inclusion policy.
NFDIN’s major goal is to ensure the satisfaction of present and future generations and the
availability of better quality of life for all indigenous people of Nepal without any discrimination.
NFDIN has tried to draw attention on several important issues of indigenous people working along
with Government of Nepal and indigenous people’s organization to preserve, promote and improve
the livelihood as an integral part of their economic and social development.
UN Declaration on the Rights of Indigenous Peoples (UNDRIP) - adopted by Nepal

in 2007
The United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) delineates and
defines the individual and collective rights of Indigenous peoples, including their ownership rights
to cultural and ceremonial expression, identity, language, employment, health, education and other
issues. It emphasizes the rights of Indigenous peoples to maintain and strengthen their own
institutions, cultures and traditions, and to pursue their development in keeping with their own needs
and aspirations. It prohibits discrimination against indigenous peoples, and it promotes their full and
effective participation in all matters that concern them and their right to remain distinct and to pursue
their own visions of economic and social development.
The goal of the Declaration is to encourage countries to work alongside indigenous peoples to solve
global issues, like development, multicultural democracy and decentralization. According to Article
31, there is a major emphasis that the indigenous peoples will be able to protect their cultural
heritage and other aspects of their culture and tradition in order to preserve their heritage from over
controlling nation-states.
ILO Convention 169 on Indigenous and Tribal Peoples - ratified by Nepal in 2006
Nepal is a signatory to ILO convention on Indigenous and Tribal Peoples, 1989 (No.169). Besides
that, Nepal does not have a standalone policy on Indigenous Peoples. However, in the Three-Year
Interim Plan (TYIP) (2007-2010), or the Tenth Plan, significant emphasis has been placed on
delivering basic services to the disadvantaged and Indigenous People (IPs), women, disabled and
vulnerable communities (VCs) such as Dalits and Adivasi / Janjati. One of the main objectives of
the Tenth Plan is the implementation of targeted programs for the uplifting, employment and basic
security of Dalits, indigenous people and disabled peoples. The policy provision also outlines that
the Government should pilot strong and separate packages of programs for the basic security of
the vulnerable sections of society. The Three-Year Interim Plan (TYIP) (2007- 2010) includes the
following policies for inclusive development of Dalits, Adivasi / Janajatis and other vulnerable
groups:
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• Creating an environment for social inclusion
• Participation of disadvantaged groups in policy and decision making
• Developing special programs for disadvantaged groups
• Positive discrimination or reservation in education, employment, etc.
• Protection of their culture, language, and knowledge
• Proportional representation in development
• Making the country’s entire economic framework socially inclusive
3.6.2 AIIB Environmental and Social Policy (ESP)

a) Screening and categorization
b) Environmental and social assessment
c) Assessment, documentation and instruments
d) Environmental and social management plan
e) Environmental and social management framework
f) Special circumstances
g) Information disclosure
h) Consultation
i) Monitoring and reporting
Environmental and Social Standard 3: Indigenous Peoples The detailed AIIB Bank’s policy and
standards (ESS2) can be found at https://www.aiib.org/en/policies-
strategies/_download/environment-framework/Final-ESF-Mar-14-2019-Final-P.pdf
3.6.3 EIB Standards and Principles

Special attention should be paid to the rights of vulnerable groups which can include indigenous
people, ethnic minorities, women, migrants, the very young and the very old. In particular for
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vulnerable groups the livelihoods are especially sensitive to socio-economic changes and their
dependency on access to essential services and participation in decision making.
Rights and interest of vulnerable groups have the following objectives:
• Affirm, respect, and protect the rights and interests of vulnerable individuals and groups
within the designated operational scope, throughout the project lifecycle. Such rights include
the right to non-discrimination, the right to equal treatment between women and men and
the rights of indigenous peoples.
• Adopt a gender-sensitive approach to the management of environmental and social impacts,

that takes into account the rights and interests of women and girls, men and boys, including
specific attention to the differentiated burden of impacts that women and girls might face.
• Identify and avoid adverse impacts of EIB operations on the lives and livelihoods of
vulnerable individuals and groups, including women and girls, minorities and indigenous
peoples. Where avoidance is not feasible, to reduce, minimize, mitigate or effectively
remedy impacts.
• Ensure that vulnerable individuals and groups are duly and early on identified in EIB
operations and that engagement is meaningful, taking into account individuals’ and
communities’ specificities, and delivered in an appropriate form, manner and language.
• Enable vulnerable groups, including women and girls, minorities and indigenous
• Peoples to benefit from EIB-financed operation
The AIIB &EIB Bank policy on indigenous peoples emphasizes the need to design and implement
projects in a way that fosters full respect for indigenous peoples’ dignity, human rights, and cultural
uniqueness. They advocate gap analysis and gap-filling measures such as but not limited to:
a) social impact assessment,
b) preparation of IPDP,
c) avoidance of impacts,
d) consultations - FPIC in particular, and
e) a culturally-appropriate process
3.7 Preparation of IPDP / VCDP

The following steps will be followed to assess impacts on IPs and VCs –
• A Social Impact Assessment (SIA) will be carried out for the entire project at the beginning
of the activities as part of the pro-poor participatory planning process
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• Then a social screening will be carried out, as part of the SIA, to determine whether IPs and
VCs will be affected by the activities as part of the environmental and social screening for
the DSUEP investments carried out at the identification stage
3.7.1 Social Impact Assessment (SIA)

The information to be gathered for the SIA should include –
a) A baseline demographic, socioeconomic, cultural, and political profile of the affected

indigenous groups in the project area and project impact zone
b) Assessment of land and territories that Indigenous Peoples have traditionally owned or
occupied
c) Assessment of natural resources (including biodiversity and eco-system services) on which

Indigenous Peoples depend
d) Assessment on their access to and opportunities they can avail of the basic and socio-
economic services
e) Assessment of the short and long term, direct and indirect, positive and negative impacts of
the project on each group’s social, cultural and economic status
f) Assessing/validating which constitutionally recognized indigenous peoples are present in

the substation districts and to what degree they are affected.
g) Assessing the subsequent approaches and resource requirements for addressing their
concerns and issues in relation to the projects that affect them.
h) Assessing whether or not the three FPIC-requiring circumstances are present in each of the
subproject disctricts.
The information should be gathered through a process of meaningful consultation that is culturally-
appropriate. Involvement of all Indigenous Peoples groups in consultation process should be
ensured by informing, inviting and participating during consultation process in each step of project
cycle - assessment, planning, implementation and monitoring and evaluation. There should be
clear provision for participation of Indigenous Peoples (percentage among the total participants /
beneficiaries) in different stage of project implementation such as but not limited to (labor, general
consultation, representation in different activities, etc.).
The team that conducts the social impact assessment should have a thorough understanding of the
SIA process, as well as a deep knowledge of the local Indigenous Peoples cultures, systems, norms
and values. To the extent possible, Indigenous Peoples should be involved in facilitation of the
consultation process. Communication with Indigenous Peoples will need to take place in their own
language.
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Discussions should focus on potential positive and negative impacts of the subproject activities;
measures to enhance the positive impacts; and strategies/options to minimize and/or mitigate
negative impacts.
Based on the SIA findings, the project or project component can develop appropriate mitigation
measures including socio-economic and livelihood enhancement activities for Indigenous Peoples.
If FPIC process is carried out, the process shall inform the preparation of the IPDP.
Screening will involve identifying IPs belonging to the area where the DSUEP investments
interventions for components activities will be undertaken, their population (number and ratio), and
their characteristics as compared to the main population in the project area through primary and
secondary data collection. Outline of Indigenous People Plan is provided in Annexure 6.
The social screening will provide necessary information to determine impact including: (i) the
beneficiary population living within the impact zone of the DSUEP components investments (ii) the
extent of land required (even temporary) and number of land owners affected (if applicable); (iii)
impacts on IPs including needs and priorities for social and economic betterment; (iv) other social
impacts. The screening report for each subproject will provide adequate information about the
potential losses and damages to the IPs which will be crucial to decide whether further works
regarding impact assessment and mitigation plans. Components will be categorized according to
the level of impacts on IPs. The categorization will be determined by the type, location, scale, nature,
and presumed magnitude of potential impacts on IPs. DSUEP investments will be categorized as
per the following table using the information in the IPs Impact Screening criteria & categorization
form presented in Annexure 7.
Table 24 - Categorization of Project on the Basis of IPs
Category Determination of the type of Social Assessment needed
DSUEP components investments expected to have significant impacts that require an

Category A
Indigenous People (IPDP)
DSUEP investments expected to have limited impacts that require specific action for IPs
Category B
in the form of social action plans (IPDP or VCDP)
DSUEP investments expected to have no impacts on IPs and, therefore, do not require
Category C
special provision for IPs
*Note: Categorization and corresponding instruments will be further reviewed by the Financiers
after the initial subproject screening
The impacts on IPs will be considered ‘significant’ or Category A if the DSUEP affects positively or
negatively:
• Affects their customary rights of use and access to land and natural resources,
• Changes their socio-economic status,
• Affects their cultural and communal integrity,
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• Affects their health, education, livelihood, and social security status, and/or
• Alters or undermines the recognition of indigenous knowledge and cultural heritage.
In case of impacts (falling in categories A and B) on IPs, the PIU by itself or through the appointed
consultant(s) will submit the IPDP to the co-financers for clearance. A sample outline structure of
an IPDP is presented in Annexure 7. Short IPDPs prepared as a part of ‘less impact’ or ‘no impact’
category will be internally evaluated. The Financiers will review these documents.
3.7.2 Free Prior and Informed consents (FPIC)

Consultation and discussion shall be made with Indigenous Peoples from the same territory for free
prior informed consents (FPIC) prior construction of 33 / 11kV substations and distribution lines
when the indigenous people are adversely affected by the DSUEP subprojects under the three
circumstances described in section 3.5.1. The Indigenous People (IP) will be given priorities to their
employment in the projects works on the basic of their skills. The process shall be followed by the
projects. An independent party IPO/ NGOs / consulting firm or civic society will be hired to facilitate
the FPIC process with the Indigenous peoples. A sample format for decision making process is
attached in Annexure 9 and subject to further review by the Financiers.
The process to be followed for conducting FPIC is -
a) Formally inform affected IPs and other concerned stakeholders8 indicating the location,
agenda and time.
b) Discuss with local FPIC villages the proper procedure for determining how consent will be
recognized; formalize this in a “Consent Process Agreement (CPA)” agreed to by the
community.
c) Make them fully aware about their right under Nepal and international law..
d) Ensure that the project has informed them about the project and projects activities
e) Ensure that the project has informed them about the positive and adverse impacts by the
projects
8
Stakeholder are local level Rural/Municipality chief or representative IPs District level committee chairperson or
representative, Project affected IPs locals IPs peoples, local Level NGOs district level IPs federation representatives
local, social worker, local media, etc.
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f) Ensure that the project has informed them about the benefits to mitigate the adverse impact
g) Conduct a series of consultations at the local community level; Formal attendance and
minutes will be noted in a separate register
h) Freely discuss about the about IPs concern and note their grievances, including any legacy
issues regarding the project.
i) Ask about the concerned IPs and note their concerns
j) Following the CPA and multiple consultation rounds, seek a consent decision from the IPs
regarding the project and a package of mitigation and benefit sharing measures.
k) Note all the comments and consent in the register and take joint signature at the end of the
minutes from them
l) Include in the IPP a mechanism for the project to address their concerns and issues
duringthe project phase
m) Preparation of a Consent Statement (CS) which includes: i) the IPDP, ii) other issues that
the affected communities may wish to continue discussing with the Project, and iii) an
implementation plan which details the responsibilities of local communities, the project, and
hopefully local government authorities in carrying out the IPDP
IPDP will be prepared based on the findings from social assessment to address the concerns and
issues of indigenous peoples. The IPDP shall include mitigation measures of potential negative
impacts through modification of sub-project design and development assistance to enhance
distribution of benefits. The sub-project shall ensure that their rights shall not be violated and that
they shall be compensated for the use of any part of their land or property in a manner that is socially
and culturally acceptable to them, if land acquisition or structural losses involve in vulnerable
communities. The sub-projects shall follow the compensation measures prescribed in RPF.
3.7.3 Indigenous Peoples Development Plan (IPDP)

IPDP will be prepared based on the findings from social assessment and through inputs gathered
during the FPIC process (if applicable) to address the concerns and issues of indigenous peoples.
The IPDP shall include mitigation measures of potential negative impacts through modification of
sub-project design and development assistance to enhance distribution of benefits. The sub-project
shall ensure that their rights shall not be violated and that they shall be compensated for the use of
any part of their land or property in a manner that is socially and culturally acceptable to them, if
land acquisition or structural losses involve in vulnerable communities. The sub-projects shall follow
the compensation measures prescribed in RPF.
The main components of an IPDP includes –
a) Discussion on aspirations, needs, and preferred options of the affected Indigenous Peoples,
local social organization, cultural beliefs, ancestral territory, and resource use patterns
among the affected Indigenous Peoples
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b) a summary of the ESIA, including potential risks, and positive and negative project impacts
measures to avoid, mitigate, or compensate for the adverse project effects
c) measures to ensure project benefits will accrue to them
d) measures to strengthen executing agency capacity to address their issues
e) governance structure which builds in local communities’ co-participation and management

of the IPDP implimentationtheir budget allocation, financing and timetable for IPDP
implementation
f) Indigenous Peoples’ participatory monitoring and evaluation with a timeframe
g) Transparency measures including periodic monitoring reports on the IPDP progress
The executing agency will submit the IPDP to the Financiers for review and approval prior to
commencement of any civil works. A sample outline of IPDP is shared in Annexure 6.. In case
impacts to IPs can be covered under a RAP, AIIB and EIB may accept a combined Resettlement
and Indigenous Peoples Development Plan (RIPP) or a corresponding management plan may be
considered.
The IPDP will follow consultation and information disclosure as per Chapter 6 of the ESMF. A formal
and ongoing engagement process with indigenous communities will take place throughout the
project life cycle (i.e. project design and planning, project construction and operation and post-
project review), through consultation and participation to ensure that indigenous communities’
views, concerns and solutions are being heard and addressed. This can be best accomplished if
built into the governance and implementation measures of the IPDP.
In case FPIC is triggered, documentation will be required on the process and outcome of
consultations with affected indigenous communities and any agreement resulting from such
consultations for the project activities and safeguard measures addressing the impacts of such
activities. Information disclosure should be carried out in a culturally sensitive manner, taking into
account the local social and cultural context and diversity.
3.7.4 Grievance Redress Mechanism

In areas where Indigenous Peoples are present and in case these indigenous communities are
impacted by the sub-project, the GRM must have indigenous representation, including at least one
woman to represent women’s interests, leaders of the tribe(s) or a member of the tribal council as
traditional arbitrator(to ensure that traditional grievance redress systems are integrated) and an
NGO working with indigenous people groups.
Participatory monitoring system will also be used with the involvement of Indigenous Peoples,
Indigenous Peoples institutions, Indigenous Peoples leaders and other concerned stakeholders.
Details on E&S safeguard monitoring and reporting are shared in chapter 7 of this document.
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3.8 Community development plan

The Community Development Plan shall be integrated in applicable social management plan (RP,
IPDP, or VCDP) for the project and take into consideration the improvement of living conditions
within the Project Area. It shall specifically target Project Affected Population (PAPs) due to
construction of 33 / 11 kV substations, 33 kV lines, 11 kV lines and LT lines. The Project’s main
objective is to make more benefited by the rural electrification in rural areas people where un-
electrified and improvement of power supply in electrified areas in province 5, 6 and7 project
districts. The following activities will be implemented through the community development plan.
3.8.1 Training on Livelihood and Skills Development

Training needs assessment will be conducted to identify the various training and skills development
needed by the PAP households at the census survey period. The training can focus on educational
type for beneficiaries and skill development training for PAPs as per their choices to subprojects
areas PAPs and vulnerable communities’ peoples.
• livelihood and income generating activities
• gender development and women’s rights
• improved agriculture practices and integrated pest management
• fish culture and hatchery
• cattle, goat fattening and poultry rearing
• business management
• eco-agro-tourism home-stay program, etc.
3.8.2 Awareness generation

It is important that the PAP Households and people within the subproject area are aware of the
various subproject activities in order for them to participate meaningfully in the development
process. Information dissemination will be conducted on relevant topics and issues such as the
Resettlement Plan, Project Resettlement Policies, Grievance Redress Mechanism, Construction
Policies, Employment and Business opportunities, Schedule of Project implementation and other
project concerns. The PAPs will be informed through various means such as the holding of
meetings, through distribution of leaflets and brochures, announcement in radio, newspaper,
television and text messages through mobile phone. Posters and notices can also be posted in
public and strategic places.
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3.8.3 Improvement of Community Infrastructure and Facilities

Proper handling of places with cultural and historical significance will be done by the implementing
Agency. Religious and cultural practices will be given due respect and proper handling such will be
accorded. Indigenous Peoples and marginalized groups will be consulted on cultural and religious
practices that have to be performed.
3.8.4 Employment Generation for PAPs IPs and Vulnerable Groups

Employment in the various areas such as masonry, driving, as labour, security guards, etc. can be
allocated to PAPs, IPs and vulnerable groups. There should be an agreement between the
implementing Agency and Construction Contractors to assign priority to PAPs and local people for
hiring as labour and skilled workers. Women and PAPs from Vulnerable groups such as Dalits, IPs
and those living below poverty line, and severally affected should be given an opportunity for
employment as per interest to work and their skill level.
The community development plan (CDP) focusses on those groups who are affected by sub-project
to indigenous, women headed, marginal family / farmers disabled, voiceless, dalits etc. Main
activities to be carried out by the project are the skill transfer, orientation, educational training,
meaningful participation in decision making process etc.
The project would focus on issues that are directly related to their involvement in activities and
accessing to project benefits. The main objective of the Indigenous people including vulnerable
community would be, therefore, to ensure that the Indigenous and vulnerable people are actively
involved with the project activities and they have access to project benefits at par with the rest of
the community. The strategy also aims at minimizing any negative impacts like creating further
causes of social and economic imbalances between communities.
Table 25 - Possible strategies and activities for the development of vulnerable communities
Issue Strategy Proposed activities
• Including men and women from

disadvantaged ethnic groups and castes
through a social mobilization process
Social inequity • Organize awareness campaigns by involving
within and between Facilitate intra-social group interaction
all Indigenous & Dalit people for public
different groups to lessen the effect of rigid class,
awareness to share development benefits
gender and caste hierarchies
equitably
• Create social space for all to have their say

in the decision-making process, and in
benefit sharing
Lack of inclusion
and equitable • The project shall be designed to ensure the
• Encourage the participation of inclusion and participation
participation in
these groups in community and
planning and • Engage the vulnerable groups in a process
traditional decision-making
implementation of of free, prior, and informed consultation
structures
development throughout the project cycle
projects
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Issue Strategy Proposed activities
• Incorporate a mechanism for • Work with the community groups to adopt a

regular consultation with quota system and ensure adequate
vulnerable groups representation of these groups in the
community groups
• Increase awareness regarding
the negative consequences of • Provide leadership trainings to members of
discriminatory rules the community groups
• Ensure that Dalits, small • Work with community groups and these
landholders and the poor are groups to change discriminatory rules
granted employment
• Reserve certain number or percentage of
opportunities on a preferential
employment opportunities to these groups
basis
during the construction period
• Ensure that there is no
• Offer relevant trainings for semi-skilled jobs
discrimination on employment
opportunities and wages on the • Work with the contractors to ensure wages
basis of gender are equivalent to the amount of work
conducted and not pre-determined by
gender, caste or ethnicity
• When project requires contribution in kind

from members, those from the vulnerable
communities should be provided a certain
percentage of their daily wage, based on
participatory well-being ranking to identify the
poor households in the catchment area so
that they too can contribute their labour
Lack of awareness
on potential Awareness / training on local • Vocational training to the groups based on
livelihood resources and their commercialization traditional indigenous skills, knowledge and
improvement through promoting indigenous skills local resources
measures/skill and knowledge
• Linkage development with market and
training based on financing institutions
local resources
Limited networking Explore market opportunities for

& wider products and services that are • Assist to find and use local resources and
communities/groups produced using skills/trainings products as substitute of imported materials.
and local Provide trainings on marketing, • Create linkage with other line agencies /
development financial literacy financial institutions / micro finance
organizations/servic
Provide employment opportunities to intermediaries / saving credit cooperatives
e providers
locals (IPs, poor, women) where for long term credit support
possible.
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4.0 E&S SAFEGUARD APPROACH
4.1 Environmental and Social Screening

An E&S screening is being carried out to identify potential risk and impact of sub-projects by using
E&S checklist (Annexure 1). Screening helps to categorize sub-projects into 3 categories, I, II and
III as high risk, medium risk and low risk respectively. The environment and social impact
assessment will derive as per the risk and impact volume of sub-project EIA will require in high risk
sub-projects (category I), IEE will be required in medium risk sub-projects (category II) and only
ESMP will be required for Low – risk (category III) sub-project.
E&S screening shall be conducted asper the checklist attached in Annexure 1 by the consulting
firm. The categorization takes into consideration the nature, location, sensitivity and scale of the
sub-project, and is proportional to the significance of its potential environmental and social risks and
impacts.
4.1.1 Categorization of activities (sub-project related)

As an element of the categorization process, the Bank may conduct field-based review of the Project
to provide for a refined understanding of the environmental and social risks and impacts and support
the Client’s preparation of a site-specific approach to assessment of these risks and impacts. The
Bank may adjust the categorization during the life of the Project, if warranted by changes in the
environmental and social risks and impacts.
4.1.2 Environmental and Social due diligence

The main objective of the E&S due diligence process is to review any potential environmental and
social risks associated with the activities related to the sub-projects. E&S due diligence involves the
systematic identification, quantification and assessment of environmental and social risks
associated with the proposed sub-projects. Moreover, the process helps to identify the mitigation
measures that will minimize any E&S risk identified during the assessment. The extent of E&S due
diligence and detail will be based on the E&S risk category. The process is presented in as per AIIB
ESP&ESS.
4.1.3 An Element of Appraisal

The Bank conducts environmental and social due diligence as an integral element of its appraisal
of the Project, and in a manner that is: (a) appropriate to the nature and scale of the Project; and
(b) proportional to the level of the Project’s potential environmental and social risks and impacts.
This element of the appraisal supports decision-making by helping the bank decide whether to
finance the Project and, if so, the manner in which it requires the client to address environmental
and social risks and impacts in the planning and implementation of the Project. The Bank’s due
diligence may involve both field-based and desk review, which may be supplemented by the use of
independent consultants.
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4.1.4 Review Process

As part of its due diligence, the Bank reviews the Client’s environmental and social assessment and
documentation in order to determine the extent to which –
• All key potential environmental and social risks and impacts of the project have been
identified
• Effective measures to avoid, minimize, mitigate, offset or compensate for the adverse
impacts are incorporated into the Project’s design and ESMP
• The Client understands the requirements of the ESP and ESSs and has the commitment
and capacity, or has made arrangements to strengthen its capacity, necessary to manage
the Project’s environmental and social risks and impacts adequately
• The role of third parties is appropriately defined in the ESMF Consultations with project
affected people are conducted in accordance with requirements of the ESP and ESSs. The
Client is responsible for ensuring that all relevant information is provided in a timely manner
to the Bank so that the Bank can fulfill its responsibility to undertake environmental and
social due diligence in accordance with the ESP.
4.1.5 Application of ESP and ESSs

Also, as part of its due diligence, the Financiaer
• assesses whether the Project can be implemented in accordance with the ESP and ESSs
• assesses the Project’s potential reputational risks to the Bank
• considers the costs and responsibilities for mitigation and monitoring measures
• reviews the timing of mitigation and monitoring activities in the schedule for implementation
of the Project. The Bank may retain independent consultants to assist in its due diligence.
4.1.6 Review of Information

The Financiers recognize that projects may have different levels of information regarding the
environmental and social risks and impacts available at the time the Bank carries out its due
diligence. In such circumstances, as part of its due diligence, the Bank assesses the risks and
impacts of the proposed Project based on the information that is available to it, together with an
assessment of –
• The risks and impacts inherent in projects of the type proposed for financing and the specific
context in which the proposed Project will be developed and implemented
• The capacity and commitment of the Client to develop and implement the Project in
accordance with the ESP and ESSs. The Bank assesses the significance of the gaps in
information, and the potential risk this may present to achieving the objectives of the ESP
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and ESSs. The Bank reflects this assessment in the Project documents at the time the
proposed financing is submitted for approval.
4.1.7 Supplemental Measures

The Bank’s due diligence responsibilities include, as appropriate
• Reviewing the information provided by the Client relating to the environmental and social
risks and impacts of the Project,9 and requesting additional and relevant information where
there are gaps that prevent the Bank from completing its due diligence
• Providing guidance to assist the Client in developing appropriate measures to address

environmental and social risks and impacts in accordance with the ESP and ESSs.
If the Bank determines that the assessment and planning processes or the documents require
further work to comply with the requirements of the ESP or ESSs, the Bank requires client to
undertake some or all of the following actions
• Carry out supplemental environmental and social assessments or studies
• Strengthen existing assessments or studies
• Improve the required environmental and social documentation. This process may also
require the Client to undertake supplemental consultations.
4.1.8 Projects under Construction or with Permits

If the Project is under construction, or permits for the Project have been obtained, including approval
of the national environmental and social impact assessment or other relevant documentation, AIIB
conducts, as part of its environmental and social due diligence of the Project, a gap analysis of the
Project’s design and implementation against the ESP and ESSs, to identify whether any additional
studies or mitigation measures are required to meet the requirements of the ESP or the ESSs.
4.1.9 Project Changes

Changes may occur in the nature and scope of the Project following the Bank’s approval and signing
of the legal agreements governing the Project’s financing. Such changes may have material
environmental or social risks and impacts. In such circumstances, the Bank carries out
9 For example, pre-feasibility studies, scoping studies, national environmental and social assessments, licenses and permits.
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environmental and social due diligence of the proposed changes and if it determines, on the basis
of this due diligence, that any additional assessment, stakeholder consultations or environmental
and social risk mitigation measures are required to meet the ESP and ESSs, it requires the Client
to incorporate these measures in the Project. The Bank may also require the Project to be re-
categorized.
4.1.10 Adaptive Management

In the case of Project changes, the Bank may require the Client to use adaptive management
measures. The adaptive management process will be defined in the ESMP. The process specifies
how such changes or circumstances are to be managed and reported. In such case, the Bank
requires the Client to prepare, provide to the Bank for approval, and implement the approved
adaptive management measures to address proposed Project changes or unforeseen
circumstances. If there are material changes to the scope, design, implementation or operation of
the Project that are likely to result in additional environmental or social risks or impacts, the Bank
requires the Client to carry out an additional assessment of such changes and stakeholder
engagement in accordance with the ESP and ESSs, provide to the Bank for approval mitigation
measures, as appropriate, in accordance with the findings of such assessments and consultation,
and then implement the approved mitigation measures. The Client is required to disclose the Project
changes and mitigation measures in the manner required of it under paragraph 57 of this ESP.
4.1.11 Independent experts and advisory panels

In the case of a Project that the Bank deems to be highly risky or contentious because of its potential
environmental or social risks and impacts (or both), the Bank may require the Client to engage one
or more suitably qualified and experienced internationally recognized independent experts, not
affiliated with the Project, to advise the Client during preparation and implementation of the Project.
Such experts may, depending on the Project, form part of an advisory panel or be otherwise
employed by the Client, and provide independent advice and oversight to the Project. The Bank
reviews and, following consultation with the Client, approves the appointment of each expert and
all members of each independent advisory panel before they begin their tasks.
4.2 Environmental and Social Assessment

4.2.1 Introduction
This section provides the overall methodology and procedure involve in the E&S assessment study.
The project involves different stages from proposal identification to implementation. The E&S study
start from the very beginning of the project to make the project environmentally and socially
sustainable.
This framework set up a process dealing with potential effects of physical, biological and socio-
economic environment coursed by project construction works and suggests the methods to avoid,
minimize and mitigate/offset of risk and impact properly not being worst before the project start. The
screening will be carried out to identify potential risk and impact of sub-projects at first by using E&S
checklist. The environment and social impacts shall be assessed based on the risk and impact
volume of sub-project. For example, EIA is required in high risk sub-projects (category I), IEE will
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be required in medium risk sub-projects (category II) and only ESMP will be required for Low – risk
sub-projects (category III).
4.2.2 Criteria and Procedure of EIA and IEE Study

The procedure of environmental study is carried out as per the EPR, 2054 set by the GoN. Different
donor agencies have also set their study criteria. These criteria along with GoN rules are used in
DSUEP project.
Table 26 - Criteria of EIA and IEE study
Environmental Study Environmental Study

Project Required as per Required as per AIIB
EPR, 2054 Guideline
Construction of transmission line with capacity 132 kV or above IEE As per country Rule
Construction of outdoor substation by tapping from existing 220

IEE
kV or higher capacity Transmission line
Construction of Hydropower with installed capacity between 1 to

IEE
50 MW
Construction of Hydropower with installed capacity more than 50

EIA
MW
Project requiring deforestation, clearing or forest area IEE
Any project which has to be constructed within sensitive area like

Historical, Cultural and Archaeological, Ecological and Wetland
EIA
area, National Park, Wildlife Conservation Area, area that are
main source of water supply)
Project with investment cost of NRs 50 million to 250 million IEE
Project with investment cost of more than 250 million EIA
Water resource development project requiring permanent

IEE
resettlement/displacement of between 25 and 100 people
Water resource development project requiring permanent

EIA
resettlement/displacement of more than 100 people
Any project which has to be constructed within sensitive area like

Historical, Cultural and Archaeological, Ecological and Wetland
EIA
area, National Park, Wildlife Conservation Area, area that are
main source of water supply)
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4.2.3 Prepare E & S Assessment Reports in line with the Requirements of

Government of Nepal & Financiers
Environmental and Social Assessment as per Government of Nepal
Project scoping
Scoping is mandatory of all projects requiring EIA as per Rule 4 of EPR 1997. EIA scoping will be
undertaken in accordance with the EPR-1997 and EPA-1997 to inform stakeholders about the
proposed project and to receive their comments on relevant environmental issues and identify
priority issues for environmental assessment. Scoping exercise, besides review of project feasibility
report and other project related literature, included publication of 15 days Public Notice inspections
of project construction site, and discussions with local people, stakeholders and concerned
government officials. The environmental issues of priority concerns in the scoping document were
based on the experiences of the consultants on the similar type of projects incorporating the concern
received during formal and informal deliberations with local people and other concerned
stakeholders.
The issues identified in the scoping document will be incorporate in the ToR. The ToR will be
prepared as per the Schedule-4 of EPR1997 pertaining to Rule-4 and Rule-5. The EIA will be
focused on the detailed analysis of the environmental issues mentioned in the approved ToR.
Terms of Reference (ToR) for EIA study
ToR for IEE also represents the scoping process to some extent and for EIA, ToR carries out after
scoping study. ToR should be presented here for the purpose of reference. The proponent should
develop a ToR to be submitted to DoED and MoWR for approval.
If the proposed project falls within Schedule (1) of EPR, the ToR is required to provide specific
guidelines for IEE study. ToR preparation assists in –
• Systematizing the working procedure
• Delineating the specific activities to be implemented
• Fitting the IEE study into the context of existing polices, rules and administrative procedures
• Accomplishing the work within a specified time frame
• Giving emphasis to the most important elements for study
• Providing technical guidance in delineating the specific environmental aspects for study
ToR shall be approved by the Financiers
Format for ToR (as per Schedule (3) of EPR)
Name and address of the person / institution preparing the report -
General introduction
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*OFFICIAL USE ONLY

relevancy of proposal
1. Procedures to be adopted while preparing the report

2. Policies, acts, rules and manuals to be taken into account
3. Preparation of the report:
• Time
• Estimated budget
4. Delete in first amendment (1999)
5. Specific impacts of implementation of the proposal on the environment
• Physical and chemical
• Biological
• Socio-economic
• Cultural
6. Alternatives for the implementation of the proposal
• Design
• Project site
• Technology, procedures of operation, time schedule, raw materials to be used
• Other matters
7. Prevention of impacts on the implementation of the proposal on the environment
8. Matters to be monitored while implementing the proposal
9. Other necessary matters
Note: The general practice in socioeconomic environment and cultural environment is combined as
“Socioeconomic and Cultural Environment. Also, physical and chemical environment is termed
“Physical Environment”.
After the approval of ToR by the concerned (Line) Ministry 15 days’ notice will be published in
national daily newspaper requesting local stakeholders for the suggestion and recommendation in
the project and any advice.
Site inspection and field visit
After approval of Scoping and ToR team will be mobilize to the identified site. Primary and
secondary data and necessary information will carry on, process following site observation, focus
group discussion, key informant interview, with project affected people, indigenous people, women
civic society and other stakeholders.
The mobilized team conduct the walk-through survey. During the survey the team collect all the
necessary baseline data of physical, socio economical and biological environment and also verify
the secondary collected. The formed checklist will be filled at site and the data will be process at
office. The consultation meeting with local stakeholder and concern government office will be
conducted and recommendation and issues, if any, raise will be incorporate in the study report.
Public hearing
As per EPR 1997 Rule 7 public hearing is mandatory for EIA level study. After preparation of draft
report, the proponent should conduct a public hearing to collect the suggestion on the prepared
draft report and issues if any.
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Report preparation
The final report incorporating all the comments and suggestion for local stakeholder will be
prepared. The final EIA/IEE will be prepared as per the approved ToR and format mention in
schedule 5 for IEE and as schedule 6 for EIA.
After preparation of final report, the prepared report will be submitted to concern ministry MoEWI
for IEE and MoFE for EIA for approval as per Rule 10 of the Regulation.
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*OFFICIAL USE ONLY

Figure 1 - Procedure / steps of EA study
Project Identification (Schedule 1 and 2 of EPR 1997 and amendment)
Project Requiring IEE (Schedule 1, EPR) Project Requiring EIA (Schedule 2, EPR)
Preparation of ToR and submission for Preparation of Scoping and ToR and
approval (Schedule 3, EPR) submission for approval) (Schedule 4, EPR)
Approval of ToR (Rule-5, Sub Rule-1) Approval of Scoping and ToR (Rule-5, Sub
Rule-2)
Preparation of IEE Report (Rule-7,

Schedule-5) Preparation of IEE Report (Rule-7,
Schedule-6)
Submission for Approval to Concern Ministry

(MoEWI) (Rule-10) Submission for Approval to MOFE (Rule-10)
Approval of Report within 21 days of Disclosing Report for public review for 30
submission (Rule 11) days (Rule 11, Sub Rule-2)
Monitoring and Evaluation (Rule-13) Approval of Report within 60 days of

submission (Rule 11 and Sub Rule -5)
Post Activities (Rule-14)
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Post EIA Activities
Two years after the commencement of *Service, distribution and production relating to the
implementation of a proposal requiring an environmental impact assessment, the Ministry, shall
carry out an environmental examination of the environmental impact of the implementation of the
proposal and the measures adopted for reducing such impact etc. and maintain updated records
thereof.
Table 27 - E&S Safeguard stages involved in Project Cycle
Responsibility
Stage in
Step activities Description Duration
project cycle Approval/
Work
Review
Step -1 E&S screening & categorizing
Prepare a document containing

Under taking environmental and social information
Screening and covering potential environmental/social
Identification
Categorizing risk and impacts, mitigation measures, Consulting ESMU
pre- 1 weeks
(Schedule 1 for IEE evidence of public consultation etc. Firm (NEA)
feasibility
and Schedule-2 for
EIA) Recommend to Prepare ESIA (AIIB
requirement)
Step 2: E&S scoping to identify type and scope of E&S assessment
Identify, by using checklists and based

on preliminary field examination the
necessity to conduct an IEE or an EIA,
Feasibility Scoping Issues (Rule as per EPR 1997 Consulting
MoFE 3 Week
Study 4, EPR, 1998) Firm
Produce Environmental/Social related
document to competent authority for
approval
Step 3: Terms of Reference for ESIA Studies
Define the main Environmental/Social

Preparation of ToR concerns and issues related to MoEWI
(Sc-3 for IEE & Sc-4 proposed sub-project, which must be Consulting for IEE
Feasibility Firm
for EIA) Rule 5. addressed by ESIA. Produce and 4 Week
Study
Approval for ToR as Environmental / Social related MoFE for
per Sub Rule-2 document to competent authority for EIA
approval.
Step 4: Baseline Data Collection and identification of E&S impacts
E&S team formation, • Team formation as per ToR

Detailed Primary and • E&S baseline survey
Design/ secondary source of Consulting ESMU 2–4
Assessment information, initiation, • Public consultation and information Firm (NEA) weeks
and Estimate interaction & dissemination
consultation. • Carry out ESIA
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*OFFICIAL USE ONLY

Responsibility
Stage in
Work
Review
• Fine-tune work plan on basis of

desk studies.
Step 5: Field work and Public Consultation
Identification of
• Establish what E&S impacts will
Environmental/Social
occur as a result of interaction of
Impacts
environmental setting, sub-project
Impacts predictions construction and operation
activities.
Data Assessment
Consulting ESMU
Analysis and sufficiency of impact • Establish the extent of E&S impacts 4 weeks
Firm (NEA)
interpretation of the sub-project construction and
E&S management
operation.
Plan
• Prepare ESMP to ensure the
Environmental and
implementation of mitigation
Social Management
measures.
Plan
Step 6: Preparation and Submission of E&S Report
Preparation draft Report will be prepared (IEEschedule-5

MoEWI
report and Public and EIA Schesule-6) incorporating all
for IEE
Design Hearing as per Rule-7 issues and suggestion received. Report Consulting
and 4 weeks
Phase will be submitted to concern ministry of Firm
Submission as per MoFE for
approval of IEE and MoFE for approval
Rule 10 of EPR EIA
of EIA.
Step 7: Prepare / finalize ESIA Report and corresponding risk management instruments (ESMP, RAP, IPDP, as
needed)
Summarize all information obtained, Consulting

Detailed
analyzed and interpreted in a report Firm
Design/
form suggested by the approving
Assessment NEA / PIU
authorities.
Step 8: Review and Approval of the E&S Report
MoEWI IEE- 7
Consultant
Project Decide if project should proceed, or if for IEE week
Review and Approval Firm and
Appraisal/Ap further alternatives must be examined. and
of ESIA Report ESMU EIA- 8
proval Approval of ESIA Report/Rejection MoFE for
(NEA) week
EIA
Step 9: Preparation of Preparedness Report
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*OFFICIAL USE ONLY

Responsibility
Stage in
Work
Review
Preparedness for camp site, spoil and ESMU

Implementati To prepared a waste disposal site, stockpiling yard, Consultant (NEA)/Do
on Phase checklist quarry site identification and crusher Firm nor
plant location approval for the project. Agency
Step 10: Prepare of Updated Environmental Management Action Plan (EMAP) and Resettlement Action Plan
(RAP)
Preparation of The Environmental Management Plan

Updated EMAP and Resettlement Plan prepared during ESMU
Implementati design phase will be updated to Consulting (NEA)/
on Phase incorporate any issues/impacts firm Donor
Preparation of occur/identify during construction Agency
Updated RAP phase.
Step 11: Environmental and Social Monitoring
Determine compliance with ESMAP

and of impacts. Monitoring includes
also impact monitoring (on the bio-
physical and social environment, to be NEA/Don
Implementati Consulting
measured by objectively verifiable or
on Plan firm
indicators as described in the ESMAP). Agency
This section must define schedules and
respective responsibilities for
monitoring and supervision activities.
Step 12: Environmental and Social Audit
Environmental/Social Audit: conducted During

Post- MoFE for
by MoFE after two years of Operation
Construction EIA Study
Auditing construction. Additional independent period
Activities &
audit to be conducted by NEA / PIU
Audit
during implementation.
Note: Please reduce the contents of Text and would like to suggest to present project cycle and activities in
diagram.
Social impact assessment for Resettlement Plan
Social impact assessment includes socio-economic condition survey, census of all project
affected people, and an inventory of land and assets. The following definitions shall be
followed in case of social impact assessment –
Census
The Census shall register and document the status of all affected persons (100%) within the
project’s corridor of impact. It shall quantify the possible social impact in terms of loss of land,
assets, private business and other sources of income. It will provide a demographic and
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geographic overview of the affected household, and include details of affected assets, as well
as impacts of land acquisition.
Inventory of Assets
Based on the detailed design, an inventory of affected assets (land and structure) will be
conducted and will include: (a) total and affected areas of land by type of land assets, (b)
total and affected areas of structures, by type of structure (main or secondary), (c) legal status
of affected land and structure assets and duration of tenure and ownership, (d) quantity and
types of affected crops and trees, quantity of other losses; (e) quantity/ area of affected
common property, community or public assets by type, and (f) quantity/area of affected private
businesses.
The survey will cover the following: (i) boundaries of the site identified for the proposed
subproject elements in case of subprojects involving new interventions, (ii) proposed ROW
boundaries irrespective of titleholders and non-titleholders, (iii) current users of the subproject
site including businesses, vendors, whether titleholders or otherwise and experience
temporary disruptions during construction, and (iv) losses of affected persons.
Environmental and Social Management Plan
Environmental and Social Management Plan (ESMP) is the tool prepared to ensure that all
the adverse impacts as the consequences of project implementation are timely addressed and
mitigated while beneficial impacts of the project are enhanced.
The ESMP is a part of the EA study. ESMP is a site-specific plan develop to ensure that the
project is implemented in a sustainable manner and the environmental parameters does not
get deteriorate. It includes all the site-specific impacts likely to arise during implementation of
proposal and their proper mitigation measure. ESMP provides detail action plan needed to
mitigate the impacts including institution responsibility and cost of implementation and
monitoring. ESMP includes the baseline, impacts, compliance monitoring requirements,
mitigation measures, costs, accountability, reporting and review mechanism.
Baseline monitoring
Helps to compare the deviation of environmental parameter from baseline data due to project
implementation. It indicates the parameters to be monitored, their baseline value, institute
responsible, where and when to be monitor.
Impact monitoring
During the project phase focuses on pre-identified (in the ESMP) indicators of impacts to
assess whether the impacts have been accurately predicted, and whether the mitigation
measures are sufficient and effective. Impact monitoring will be carried out to assess actual
level of impact due to project construction. The impact monitoring includes –
• Monitoring of the impacts of the project on physical, biological and socioeconomic &
cultural environment of the area
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• Monitoring of the accuracy of the predicted impacts
• Identifying the emerging impacts due to project activities or natural process and
develop remedial action
• Monitoring of the effectiveness of mitigation measures
Compliance monitoring
Provides a look on how the ESMP are being implemented in the project. The mitigation
measures proposed in ESMP should be implemented in the project. Compliance monitoring
employs a periodic sampling or continuous recording of specific environmental quality
indicators to ensure that project complies with recommended ESMP.
The compliance monitoring will be conducted to monitor the compliance of the proposed
mitigation measures and monitoring activities. The compliance monitoring will mainly focus on
–
• Compliance of the tender clause
• Compliance of the mitigation measures including payment of cash

assistance/compensation, number of grievances filed and resolved, etc. and
compensatory tree plantation
• Timely and adequately implementation of Environmental Management Plan
Environmental and Social Trimester Monitoring Report Template is shared as Annexure 10.
Table 28 - Monitoring Plan
S.N. Parameter Indicators Method Location Schedule
A Construction Monitoring
Impact Monitoring
Physical Environment
Settlements near to
Dust around the Twice in a
1 Air Quality Observation the distribution line
project area season
and substation
Measurement of
Settlements near to
Decibel (dBA) as per noise using Twice in a
2 Noise Quality the distribution line
GoN Standard sound level season
and substation
meter
Unpleasant aesthetics
of labour camps,
Monthly
Waste unregulated waste Labor camp/
3 Observation during
Management disposal and construction sites
construct
associated visual
impact
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S.N. Parameter Indicators Method Location Schedule
Once during
4 Land use Changes in land use Observation Near poles
construct
Construction Use of water spray and

related placement of hoarding Direct Construct
5 Construction area
transportation and board around the observation period
hauling of materials construction sites
Occupational Impacts on health of

Inspection of
Health and Safety the workers; No. of Continuous
the construction
issues including accidents; use of Sub-project area during
6 place; Records
labor camp and, personal protective (construction sites) construct
of diseases and
avoid use of child instrument by the period
accidents
labor workers
Discussions
with Users
Group, local
Vegetation During
No of trees felled for people and
7 Clearance and All sub-project sites construction
RoW clearance DFO and
felling of trees period
Observation of
the area and
tree counting.
Observation,
discussion with During
local people, construction
Wildlife habitat and
7 Wildlife keeping records All sub-project sites period
clearance
on wildlife, birds
and reptiles
killed.
Compliance Monitoring
Provision of
clauses related to
environmental and
social safeguard
mitigation
measures in tender
document and Review, inquiry
Preconstruct
1 allocation of Yes/No and Kathmandu Office
ion phase
adequate budget consultation
for implementation
of environmental
mitigation
measures identified
in ESMP and
monitoring works
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5.0 OPERATIONALIZATION OF ESMF
The table below presents the summary of roles and responsibilities of Key stakeholders, in
environmental and social operationalization process during different stages of the sub-project cycle
with description of activities and estimated time.
5.1 Roles and Responsibility of AIIB, EIB and NEA /

PIU
The project Distribution System Upgrade and Expansion (DSUEP) is under Nepal Electricity Authority
(NEA) called Client. NEA has established Project Implementation Unit (PIU). PIU is responsible for
overall management of project. This project has been financed by Asian Infrastructure Investment
Bank (AIIB) and European Investment Bank (EIB). The concerned ministries, AIIB, EIB and NEA
itself involve in different mode of decision making, design, implementation and supervision and
reporting of the sub-project.
5.1.1 Roles and responsibility

The following Role and Responsibility has presented in table -5 of NEA, Bank, and other Key
stakeholders for E&S Risk Management.
Table 29 - Roles and responsibility matrix
Organization Role and Responsibilities
• As NEA’s line ministry, MoEWRI will provide oversight to NEA/ PIU

• Recommend members of steering committee
Ministry of Ministry of Energy,
• Mandated to formulate and implement environmental policies, plans and
Water Resources and
programs at national level. No direct responsibility in the project. It has the
Irrigation (MoEWRI)
role of facilitation as and when needed on environmental and social
safeguards.
Ministry of Finance • Budget approval
In terms of sub-project E&S instruments, AIIB & EIB Bank’s role will be as follows
• Compliance monitoring to ensure effective implementation of E&S risk
management measures for the project
• For Cat III and sub-projects, Bank will review and provide non-
AIIB & EIB Bank objection/concurrence on E&S instruments (ESIAs, ESMPs, RAPs/IPDPs, as
required, of individual sub-projects submitted to prepared by NEA/ PIU
• Bank will also take part and support NEA / PIU in enhancing E&S capacity
PIU
154
• NEA is the project implementing agency and Project Implementing Unit (PIU)
is associated unit within NEA
• PIU team shall constitute key members of steering committee
Nepal Electricity Authority
• Participate in the decision-making process
(NEA)
• Information dissemination, coordination with Bank and Government of Nepal
• Coordinate with concern Ministers of GoN
• Approve the Project Budget other relevant documents
PIU is authorized project implementing unit associated with NEA. The key
responsibilities of PIU are –
• Lead and manage E&S screening and scoping processes for sub-projects
• Determine Sub-project E&S risk category based on screening and scoping
process (to be confirmed after risks and impacts assessment)
• Support and monitor to implement E&S risk management measures
DSUEP Implementation Unit
commensurate with their responsibilities under ESMF and ESMP
(NEA / PIU)
• responsible for an overall supervision, monitoring and evaluation of the
activities and coordination
• responsible to verify that E&S documents are reflected correctly and clear in
all legal documents in the Nepal DSUEP Project structure- such as the
bidding documents
• Coordinate with Bank and NEA authority, MD, Ministry of MoEP and DoEP
• Support to PIU to implement of the EIA/IEE/EMP, RAP and IPDP

• Establish close coordination/relation with NEA / PIU and AIIB / EIB
• Support to PIU preparation semiannual reports
• Support to PIU for advisory service in preparation, implementation and
Center level Individual Expert monitoring the projects
(Environmental Specialist & • Provide the inputs to PIU E&S related issue and support for decision making
Social Specialist) process
• Suggest to PIU for overall implementation of E&S documents
• Support to update the E&S related documents
• Supervision and support implementation of EMP, RAP, IPDP and provide the
feedback to Consulting firm, NEA / PIU
• Determine whether EIA or IEE are required as per GoN regulations; ensure
and conduct proper required studies and obtain EIA or IEE clearances from
GoN, where required
• Ensure and conduct ESIA studies as per AIIB / EIB Bank requirements
• Review ESIA studies, ESMPs, other relevant documents and provide
Consultants or Center level clearance as follows
Individual Experts • For medium and low risk DSUEP sub-projects, clearance will be provided by
(Environmental Specialist & NEA (and no objection is sought from AIIB / EIB)
Social Specialist) • For high risk DSUEP sub-projects, NEA will review and submit the ESIA
studies for clearance by AIIB / EIB
• Take part in public consultations and other activities related to E&S aspect as
conducted in project cycle
• Support to project to implement E&S activities
• Supervision of EMP implementation
155
• Implementation of IPDP
• Coordination with the NEA, PIU, Consulting firm, Expert and other
stakeholders
• Selection of training participants
NGO (or any identified
• Conducted skill development training
specialists by NEA, or NEA
• Consultation with PAPs Indigenous people, women and others stakeholders
may get it done in-house)
• Completion of IPDP implementation of all sub-projects
• Reporting works to project authority and concern stakeholders
• Provide training certificate to participants.
156
5.1.2 Institutional Responsibilities &Arrangement

Figure 2 - Organizational Flow Chart
157
PIU will be staffed with a senior Community Relations Manager (CRM), who will guide NEA on how
to best set up a team of local Community Liaison Officers in all three provinces to carry out general
stakeholder mapping and stakeholder engagement, as well as with a senior Indigenous Peoples
Safeguard Officer (IPSO) who will be overseeing, monitoring and reporting on indigenous peoples’
safeguards.
5.2 Implementation schedule

Project implementation will go through various phases such as design phase, Pre-Construction
Phase, Construction Phase and Operation and Maintenance phase.
5.2.1 Design Phase

During this phase the design of the project will be finalized including preparation of ESMF, and
Environmental and Social documents finalization based in design stage, Preparation of ESMF,
Resettlement Action Plan, Indigenous Peoples Development Plan, Vulnerable Community
Development Plan, Initial Environment Examination are the basic document for management of E&S
Risk and Impacts. Land acquisition, resettlement and compensation works will be completed before
the contact award of civil works. VCDP, IPDP, EMP and CDP will be implemented the during the
construction phase. The ongoing monitoring of project activities will be conducted in venous stage of
project cycle.
5.2.2 Pre-Construction Phase

During this Phase, Review and planning of environmental and social safeguard activities began. The
implementation of land acquisition, rehabilitation and compensation work of assets will be started and
completed for 33/11 kV substations. However, for 33 and 11 kV distribution lines will be consider after
the mobilization of contractor because of distribution line route may change during the construction
phase. Safeguard monitoring will be initiated with focus on pre-construction work. This phase will be
started in Dec 2019 and is expected to extend up to the 4th quarter 2020.
5.2.3 Construction Phase

This includes mainly construction works of the major component on the DSUEP subprojects in 3
province districts This also includes implementation of the environmental and social safeguards
activities and mitigation measures, implementation EMP, VCDP / IPDP and CDP which will be
updated during this phase. The current estimated construction time of the project is 12 months, but
can be subject of change due to technical, design and engineering review of contractor’s designs.
The 4thquarter 2020 is the currently envisaged start of the construction works.
5.2.4 Operation and Maintenance Phase

It covers the operation and maintenance of the DSUEP related project facilities including the training
of DSUEP operating engineers. This also includes environmental and social M&E and implementation
158
of corrective measures as required. O&M Phase will be scheduled and should have some overlapping
with the Construction Phase.
159
Table 30 - Implementation Schedule
Year 2019 of Months Year 2020 of Months Year 2021 of Months Year 2022 of
Activities
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7
1. Project Initiation
Stage
Establishment of PMD
Establishment of PMU
Establishment of PIU
Appointment of
designated staff at PIU
Establishment of PIC
2. Preparation of E&S
Documents
Appointment of consultant
Preparation of ESMP and
Finalize
Finalized the Baseline
survey Report
Preparation of RAP
Preparation of IPDP
Preparation CDC
Preparation IEE TOR
Preparation of EMP
without IEE Subprojects
IEE ToR Approve
Hiring Consultant IEE
IEE Completion
Hiring
Consultant/NGO/Individual
for FPIC
Completion of FPIC
3. Implementation Stage
160
Year 2019 of Months Year 2020 of Months Year 2021 of Months Year 2022 of
Activities
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7
RAP Implementation
IPDP Implementation
Formation of GRC
Issue notice to PAPs
Disbursement of
Compensation and
resettlement assistance
Takeover possession of
acquired property
Handover land to
contractors
Permission to contractor
to begin works through
written confirmation to
ADB from NEA upon
complete payment of
compensation/assistance
to PAPs is in particular
section
Start of the Civil Work
EMP Implementation
4. Intermittent Activity
(Monitoring and GRM)
Monitoring
Grievance Redress
161
6.0 CONSULTATION & INFORMATION

DISCLOSURE
6.1 Mode of Public consultation

Consultation is the method to get and disseminate the information to and from the public and the
project is also called two-way communications. The consultation mainly adopt in development project
are focus group discussion, Key informant interview, Stakeholders consultation or engagement,
survey with questionnaire etc. The projects will apply the adequate public consultation in the different
stage of project cycle. The consultation will help to find the real issue and will help to solve issue and
maintain transparency.
PICs will be established each site office. PIC staff will responsible for all type of consultation, handle
the grievances and information disclose in local level.
The Framework recommends a set of public consultation activities and information dissemination to
affected people. Public consultation will include both local government and civic society where the
PAPs would be regularly provided with information on the project, the resettlement process prior to
and during the preparation for resettlement actions. Mechanism of consultation and participation will
include –
• Public Meeting in sub-project area

• Information awareness campaigns through third party
• Interview/survey in project affected household
• Focus group discussion
• Formation of community group including stakeholders at various stage of project
• Development of grievance redress mechanism in the sub-project premises
In the early stage, project will initiate the consultation in process to collect the relevant primary and
secondary date by using focus group discussion and key informant interviews.
During the process of preparing RAP the public consultation will be made with the directly affected
families, similarly affected institutions, communities’ facilities representative and Rural Municipality or
Municipality or related wards office representative to find their view and share the information.
The public consultation will be made with PAPs as well as other stakeholders including Gender and
indigenous people will be requested to participate during the process of preparing IPDP.
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It is important to engage the concern stakeholders in meaningful and the project’s willingness and
ability to work with them. Through stakeholders mapping, different type of stakeholders will be
identified in terms of one or several of the following categories.
• Project Affected people/household, communities or organization.

• Project beneficiaries
• Government Agencies and their representatives
• Elected representative of District Coordination Committee (DCC), Municipalities and wards
representative and rural municipality and related ward representative.
• Concern Business people and entrepreneurs.
• Concern NGOs and, CBOs and user groups
• Political Parties representatives.
• Informal or traditional head, community head, teachers, local healers (Dhami) social and
religious leaders and other notable women, men and cast and ethnicity who can influence in
sub-project areas.
• Health works
• Social works and marginal groups.
• The project developers/proponents themselves.
6.1.1 Process of Meaningful Consultation

The consultation is two-way communication process between project authority and stakeholders. The
project affected people or communities should be continually consulted by the project management
to identify upcoming needs, constraints, priorities and what kind of social and environmental corrective
measure need to be required during the different phase of projects. The process will follow of
meaningful public consultation.
• Engagement with stakeholder early in the development process.

• Public meeting in sub-project areas
• Appropriate timing and venue of consultation for the different groups
• Use the local language sign language, local facilitators including female.
• Information dissemination in collaboration with community groups
• Focus groups discussion
• Formation of committee and groups including stakeholders prescribe as per project
documents or requirements.
• Consultation will be continued through the project life
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A separate process of consultation shall take place if and when it is determined that FPIC process
needs to take place.
All relevant aspects of project planning and development shall be discussed with both primary and
secondary stakeholders of the project. Different techniques of consultation shall be used with
stakeholders during project preparation, viz., in-depth interviews and focus group discussions etc.
Consultations shall be organized with directly displaced population to understand their concerns and
elicit their suggestions on the types of mitigation measures that need to be considered in the project.
Particular attention shall be paid to the needs of disadvantaged or vulnerable groups, especially those
who are below the poverty line, the landless, the elderly, female-headed households, women, and
those without legal title to land.
6.1.2 Primary Stakeholders

The Project stakeholders can be divided into the primary and secondary stakeholders. The primary
stakeholders of the Project comprise of those directly affected by the various components of the
Project either as affected by the loss of land, house or other livelihood assets or those who are
beneficiaries of the Project. The primary stakeholders in this project include:
• Residents and property owners of project components 33 / 11 kV substations, 33 kV lines, 11

kV lines and LT lines
• Project concerned committees comprised of the project affected people.
• The users of community facilities and forest affected by the project.
• Sub Project affected villages, the Rural/Municipality, Wards Also, Elected representatives,
community leaders, and representatives of community – based organizations.
• Government agencies and departments.
• Affected organizations and indigenous groups/peoples.
.
6.1.3 Secondary stakeholders
Secondary stakeholders are those people and institutions that are not directly affected by the Project
but show their concern in one-way or the other in the Project. The Secondary stakeholders include:
• Ministry of Energy and other Ministries and Departments of Government of Nepal (the
government).
• District Coordination committee Committees of subproject districts
• District offices of various ministries at Subproject areas
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• Local voluntary organizations, NGOs, CBOs.
• Local social and cultural institutions in the Project Rural/Municipality and in the district.
• Donors such as AIIB and EIB.
6.1.4 LARC Consultation and Participation
The consultations and discussions with the project affected people and communities is a continuous
activity throughout the project cycle. It starts during the Project Preparation Technical Assistance
(PPTA) phase, is applied in the ongoing pre-construction phase, will be followed during the
construction phase, and can continue in the operation phase. PAPs and non-PAPs shall be kept
informed about the impacts, compensation and assistances, as well as the mitigation measures
through applicable social management plans.
6.1.5 Pre-Construction Phase

The applied consultation (i) provides timely disclosure of relevant and adequate information that is
understandable and readily accessible to PAPs, (ii) is undertaken in an atmosphere free of
intimidation or coercion, (iii) is gender inclusive, (iv) enables the incorporation of all relevant views of
PAPs and other stakeholders into project design and implementation, and (v) ensures the participation
of AHs in planning, implementation, and monitoring and evaluation. The feedback of people consulted
through different type of meetings has been considered by the preparation and implementation of
LARC activities.
This communication approach is in line with the CDS defined overall participatory approach to be
used to engender community involvement, ownership and empowerment. A participatory approach
will be used in implementing all Project interventions, from planning to execution and monitoring. The
CDS will place special emphasis on ensuring women, girls and socially excluded groups and to
encourage their participation in program interventions. Participation of both genders is expected and
encouraged to ensure that women and men work towards common goals and objectives within their
own communities and that women’s new roles knowledge and status is equally respected and
tolerated. During implementation, synergy will be built with existing government and non-government
initiatives and programs implemented across the project area.
DSUEP will continue the implementation of LARC requirements in close consultation with the Primary
stakeholders. Women’s and other vulnerable group’s participation will continue to be ensured by
involving them in public consultation throughout the Project implementation also through
arrangements, which would enhance their ability to attend consultation meetings and getting them
involved in active participation. DSUEP does ensure that views of PAPs, particularly those vulnerable,
women and IP related to the resettlement process, are looked into and addressed. This will be
ensured through group discussion and multi stakeholders’ meetings to be continued in the project
area. All such meetings and consultation will be documented for future references.
165
6.1.6 Information disclosure

The Constitution of Nepal has ensured to every citizen the right of information. Project is responsible
to provide the information to concern stakeholders. Most often the development project, including
socio-economic and environmental setting, falls due to lack of information or misinformation. The
management team must share all information obtained about the proposed activities and their
excepted result with the affected and interested public for the success of given program. In
Collaboration with different stakeholders like, CBOs, NGOs, local authorities and other groups, the
project need to disclose all the relevant information to PAPs in the various stages of project cycle.
The project relevance information will disclose by using various means like mass media, website,
broachers, leaflet, Local FM, etc. inform by meeting/workshop, distribution of project documents etc.
The project will manage and set up the channel for disseminating information and will establish PIC
center in each project site office. The project center office (PIU) will manage the PIC properly. PIC is
responsible to disseminate information in district sub-projects areas stakeholders. NEA/PIU and other
relevant stakeholders will disclose the documents ESMF, RAP and IPDP/VCDP information through
their website www.nea.org and co-financers’ websites (www.aiib.org and www.eib.org) besides other
information dissemination methods such as pamphlets and radio. RAP and IPDP/VCDP will follow
consultation and information disclosure as per chapter 6 of this document.
6.1.7 Grievance Redress Mechanism

The grievance redress mechanism will be established to hear the voice of voiceless, to address the
deprive community issue and to mitigate project affected people and community properties losses
that would be affected by the project. The ESMF has set up a 4 - stage mechanism to escalate
grievances. The PAPs will have access to all level of grievances redress procedure, especially the
GRM such as on-site provision of compliances hearing allows project affected persons to get fair
treatment on time regarding land acquisition, compensation, resettlements requirements and other
project related issues. PAPs can register or note to the project staff means by written or verbal or
others like phone, SMS etc. The local consultative forum will be established in wards level to handle
the first level grievances. The committee will be formed are as following members and handled by
PIC office.
• Chairperson’s wards or chairpersons’ relative wards of sub-projects
• Women representative members of concerned wards’ nominee
• Member secretary of NEA/PIC E&S person
• Two people from PAPs Representatives (from affected family - one Indigenous & one Women)
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First Step
LCF will be responsible to deal first level process and PIC and supervision consulting firm facilitated
to LCF which will be the first level of intervention to address grievances and complaints. Many
grievances can be resolved by providing contract and complete information. Complaints of PAPs and
communities on any aspect of compensation, relocation or un-address losses of private and
community properties shall in first instance be settle verbally or in written from the field at the PIC
level. The LCF and PIC/Supervision consulting firm will be responsible to listen and provide
information to PAPs and resolve their issue. The LCF may ask for the assistance of the project E&S
safeguard staff to help resolve the issue. The PIC records the details of grievance Name of persons,
address, phone number, date of received complaints, location, complaint resolution (if resolved). PICs
try to resolve the grievances within 10 days. If not resolved province level PIC will forward to DSUEP-
PIU safeguard unit.
Second Step
If the grievance remains unsolved the LCF forward the complaints to the safeguard unit through PIC.
Including E&S expert and safeguard unit of DSUEP-PIU will notify and review further steps. Safeguard
unit endorse with executive agency (EA) of DSUEP. EA will answer quires and find resolution for
grievance regarding the various issue of social and environmental within 7 days. The project E&S
specialists will undertake the corrective measure in such cases.
Third step
If the grievance remains unsolved it will be referred Grievance Redress Committee (GRC).
Compensation Declaration Committee is also Grievance Redress Committee itself. Project Manager
is the secretary of CDC and also secretary of GRM in this step. GRM will give the opportunity to
present her/his concern and GRC will suggest corrective measure within 10 days. The project social
safeguard specialist will be responsible for processing and placing all paper before the GRC
recording, decision, issuing minutes of meeting and taking follow up action to see that formal order
are issued and formal decision are carried out.
Fourth Step
If the all of the resolution methods fail, a legal redress mechanism can be adopted through Nepal
Judicial or appropriate administration system. Every stakeholder is always freedom to appeal court
without process of above step.
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Figure3 - Grievance redress mechanism flowchart
1st Level
PAPs Ward Level: Municipality and Rural
Municipality
2nd Level
NEA Level
3rd Level
CDC level
4th Level
Law of Court
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7.0 E&S SAFEGUARD MONITORING
The different stakeholders join in the different responsibility. NEA, Project itself, Bank, E&S expert or
specialist, line agencies etc. will monitor the project activities directly or indirectly. The monitoring
scopes are land acquisition resettlement and compensation of environmental and social safeguard
components. The documents, EIA/IEE/EMP, RAP, and IPDP/VCDP will be prepared for the project.
These all plan are required to implement by the project in different phase of project Mostly RAP will
implement preconstruction phase. EMP and IPDP will implement in construction phase. Participatory
monitoring approach will also be followed with the involvement of Indigenous Peoples, Indigenous
Peoples institutions, Indigenous Peoples leaders and other concerned stakeholders in external
monitoring.
A Monitoring & Evaluation (M&E) system will be established for the project, and safeguard compliance
will be integral part of the project M&E. Both an internal and periodic external monitoring is proposed
to ensure ESMF implementation. Internal monitoring will be carried out by the candidate site
Management Office regularly and periodically by central DSUEP PIU office, focusing on outcomes,
outputs and implementation progress for each DSUEP candidate sites and components. The
candidate site management office will submit to central PIU office NEA and Co-financers regular
bimonthly (once in two months) reports during implementation.
Similarly, periodic external monitoring will be carried out by independent consultant or agency using
quantitative and qualitative methods and review of information and site visit. The ESMF evaluation
will be mid-term and end term and both have to be third party evaluation.
The table showing indicators, methods, and responsibilities for social and environmental safeguard
Table 31 - Monitoring indicators methods and responsibility
Indicators Methods Responsibility
Number of land and property owners affected by Review report, on the group field Candidate site Management
subprojects verification Office
Adherence to ESMF requirements including number of Review of report, direct Candidate site Management
screening carried out for subproject selection observation Office
Adherence to mitigation measures (social and Review of report, field verification Candidate site Management
environmental) during planning and design (preparation of Office
documents)
ESMF requirements incorporated in tender and bidding Review of tender/contract PIU/ Consultant
documents as needed document
No. of complaints filed and grievances handled/ managed Review periodic reports PIU/ Consultant
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Indicators Methods Responsibility
Mitigation measures deployed to address the adverse Review periodic reports, site visit PIU/ Consultant
impacts and enhance beneficial impacts including and consultations
compensation payment, R&R assistances, skill training and
livelihood restoration of PAPs
Use of internal and external/ independent experts/ agency Review of contract documents PIU/ Consultant
for monitoring and reporting and published/ unpublished
reports
Responsibility of Monitoring: The environmental and social expert of PMU is responsible for central
level periodic internal monitoring of ESMF. The mid-term and end term monitoring shall be done by
external experts.
7.1 Monthly Monitoring (Preparation Phase)

Supervision consultants, E&S specialists, E&S unit, project itself will monitor in appropriate time. The
E&S unit and it under supervision consultants will be responsible monthly monitoring and reporting to
project in this phase.
7.2 Trimester Monitoring (Implementation Phase)

The project center level E&S unite consultants is responsible and will prepare the trimester report for
Bank. Project review and send to the Banks.
7.3 Third Party monitoring

An external monitoring will be carried out by independent consultant or agency using quantitative and
qualitative methods, review of information and site visit. The ESMF shall be evaluated by third party
at mid-term and end-term intervals.
7.4 Capacity Building

NEA has its own Environmental and Social Studies Department (ESSD) and has experience with the
implementation of World Bank-funded projects. However, due to large numbers of sub-projects within
NEA, ESSD often falls short of required human resource capacity to design and implement ESMF.
Therefore, the ESMF has included capacity strengthening measures for the members of PMU and
Manager of candidate sites.
7.5 Training
Training is an important component for developing capacities. Appropriate and timely training to the
officials with regard to various issues can bring a positive change in the functioning of the staff. Apart
170
from training in generic areas such as human resource management, information management,
government functionaries require training in handling certain specialized tasks pertaining to
environmental and social issues. The Project’s consultant will identify the training need assessment
for PIU and staff of Candidate Sites and suggest the training packages including their modality of
operation.
Potential training areas are:
a) General Introduction to EA and adverse social and environmental impacts;
b) Orientations on ESMF and awareness raising about Project and management/ mitigation of
impacts;
c) Orientations on legal requirements including grievance filing by PAPs;
d) Preparing EMPs/Social Action Plans through participatory approach;
e) Hazardous waste management, including handling, storage and disposal, and
f) Construction related hazards in DSUEP and related occupational and safety issues and their
management.
7.6 Training on Preparing Communication

Strategies
A well-developed communication strategy needs to be in place to realize better results and outcomes
with effective implementation of the project activities. The PIU will have to develop and effectively
implement their own consultation and communication strategy. Successful implementation of DSUEP
components would depend, to a large extent, on the ability to maintain close contact with the PAPs,
communities and other stakeholders in the candidate project sites. For this purpose, the PIU central
office and site office needs to develop consultation and communication strategies and materials to
help improve better communication and understanding of social problems, awareness raising about
project impacts and, effective conflict resolution and grievance redressing. Training modules may be
developed to help PIU central and site office draft and implement appropriate consultation strategies.
Project’s Experts will assist the PMU in preparing and imparting training.
7.7 Information Dissemination and ESMF Trainings

Prior the beginning of the work, DSUEP/NEA will develop an ESMF information packages and
disseminated in the stakeholders of project sites. The packages include the ESMF requirements, roles
and responsibilities of implementing agencies, contractors. The ESMF training will be provided to
DSUEP staff and contractors prior the beginning of the construction
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8. ESMF BUDGET
Each RAP, IPDP/VCDP (or RIPP) will have its own budget, taking into account all the activities
associated with the formulation and implementation of the IPDP (or RIPP) and engagement of a
qualified expert in case an FPIC process is triggered. Tentative Budget will be required for the
implementation of ESMF which has been dealt in the following sections.
8.1 Cost for Compliance Level Monitoring

The environmental monitoring of distribution lines and substations during the construction phase shall
concentrate on the major identified potential impacts including slope stability, vegetative cover, water
pollution, drainage. NEA shall undertake a 6-monthly inspection of the distribution lines and
substations related features over the initial year following the completion of construction. Standard
report covering environmental features will be completed by NEA following each inspection. The
estimated cost for environmental monitoring and evaluation during construction and operation phase
will be included in EMP. The social cost covers form the following details.
8.2 Environmental & Social safeguard cost

The BoQ of the project shall include all the cost for essential for environment safeguard like cost for
safety gadget (Helmets, boots, gloves etc.), cost for supplementary plantation, bioengineering,
relocation of public infrastructures etc. This exercise will be undertaken and executed in parallel with
design works by incorporating it in bid document. In instead of BOQ item need for the cost for
implementation of the following plans and activities which is estimated are as table – 20 for the
following E&S safeguard components,
Table 32 - E&S tentative Budget Breakdown sheet
Team and descriptions Cost in NRs Cost in USD
Private owner Private assets Land for substations 600,000,000.00 5,454,545.45
Structure major & minor 10,000,000.00 90,909.09
Tree 5,000,000.00 45,454.55
Crops 5,000,000.00 45,454.55
Assistance
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Team and descriptions Cost in NRs Cost in USD
Vulnerable Encroacher allowance 1,000,000.00 9,090.91
Cash assistance to Vulnerable AHs 50,000,000.00 454,545.45
Business loss allowance 10,000,000.00 90,909.09
Local Community subproject specific local economic 200,000,000.00 1,818,181.82

development development development and livelihood
IPDP Subproject Specific local economic 50,000,000.00 454,545.45

Implementations development and livelihood of IPs
EMP Documents Implementation Plantation, caring, and other mitigation 26,450,000.00 240,454.55
cost
Monitoring Haring Consultant and NGOs 30,000,000.00 272,727.27

cost
Individual Experts and Specialist 20,000,000.00 181,818.18
Consultation GRM Consultation and others consultations 10,000,000.00 90,909.09

and other
Staff Training 20,000,000.00 181,818.18
Total 1,100,000,000.00 10,000,000.00
Note: This budget is based on Nepal Government internal sources.
8.3 Environmental and Social Exclusion List

i. Forced labor or harmful or exploitative forms of child labor
ii. The production of, or trade in, any product or activity deemed illegal under national laws or
regulations of the country in which the Project is located, or international conventions and
agreements, or subject to international phase out or bans, such as:
o Production of, or trade in, products containing polychlorinated biphenyl (PCBs)
o Production of, or trade in, pharmaceuticals, pesticides/herbicides and other hazardous

substances subject to international phase-outs or bans (Rotterdam Convention,
Stockholm Convention)
o Production of, or trade in, ozone depleting substances subject to international phase
out (Montreal Protocol)
iii. Trade in wildlife or production of, or trade in, wildlife products regulated under the Convention
on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
iv. Trans-boundary movements of waste prohibited under international law (Basel Convention)
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v. Production of, or trade in, weapons and munitions, including paramilitary materials.
vi. Production of, or trade in, alcoholic beverages, excluding beer and wine
vii. Production of, or trade in, tobacco
viii. Gambling, casinos and equivalent enterprises
ix. Production of, trade in, or use of unbonded asbestos fibers
x. Activities prohibited by legislation of the country in which the Project is located or by

international conventions relating to the protection of biodiversity resources or cultural
resources, such as, Bonn Convention, Ramsar Convention, World Heritage Convention and
Convention on Biological Diversity
xi. Commercial logging operations or the purchase of logging equipment for use in primary
tropical moist forests or old-growth forests
xii. Production or trade in wood or other forestry products other than from sustainably managed
forests
xiii. Marine and coastal fishing practices, such as large-scale pelagic drift net fishing and fine mesh
net fishing, harmful to vulnerable and protected species in large numbers and damaging to
marine biodiversity and habitats
xiv. Shipment of oil or other hazardous substances in tankers that do not comply with IMO
requirements (IMO, MARPOL, SOLAS and Paris MOU)
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Activities excluded from EIB lending
Types of activites Typical examples Comments / clarifications
1) Ammunition and weapons, military Includes explosives and sporting

/ police equipment or infrastructure weapons
2) Projects which result in limiting The EIB statement of environmental

people's individual Rights and and social principles and Standards,
freedom, or violation of human rights in particular: 6, 46, and 47
3) Projects unacceptable in Projects in protected areas, critical The EIB statement of environmental
environmental and social terms habitats and heritage sites, without and social principles and standards,
adequate compensation / mitigation in particular: 58, 71, and 72
4) Ethically or morally controversial Sex trade and related infrastructure, *) existing EIB practice; activities
projects services and media; animal testing*); involving live animals for
gambling and related equipment, experimental and scientific purposes
hotels with in-house casinos; tobacco are eligible insofar as in compliance
(production, manufacturing, with the "directive 2010/63/eu of the
processing, and distribution) European Parliament and of the
council of 22 September 2010 on the
protection of animals used for
scientific purposes”
5) Activities prohibited by national Genetically modified organisms Applicable national law

legislation (only where such (GMO); abortion clinics; nuclear
legislation exists) energy; etc.
EIB loans under specific mandates outside the EU
All the above types of investments are excluded. Moreover, loans under the mandates may be further
restricted to specific sectors and activities to comply with the EIB lending policies, as agreed by the
board of Directors, as well as priorities attached by the respective EU co-operation objectives or the
lending mandate.
Other exclusions
a. Certain costs, such as recoverable VAT, are excluded
b. The bank does not finance projects with a political or religious content
175
REFERENCES
ADB (2009) Safeguard Policy Statement 2009, Asian Development Bank

AIIB Environmental and Social (ESP&ESS) Policy and Standard
AEPC (2018) Environmental and Social Management Framework (ESMF)
CBS (2012) National Population and Housing Census 2011 (National Report), Central Bureau
of Statistics, Government of Nepal
DOR (2007) Environmental and Social Management Framework (ESMF)
GSEEP (2014) Environmental and Social Management Framework (ESMF)
GoN. (2012) Plants of Nepal: Fact Sheet, Department of Plant Resources, Ministry of Forest
and Soil Conservation, Government of Nepal
GON (2007) Environmental and Social Management Framework: a guide to the environmental
and social issues associated with new road construction and upgrading, Department of Road,
Ministry of Physical Planning and Works, Government of Nepal
GON (2015) Constitution of Nepal, Government of Nepal
GON (2017) Muluki Debhani Sanhita Ain, 2017, Government of Nepal
GON (2016) Fourteenth Plan 2016-2019, National Planning Commission, Government of Nepal
GON (1996) Environment Protection Act 1996, Government of Nepal
GON (1997) Environment Protection Rule 1997, Government of Nepal
GON (1993) National Environmental Impact Assessment Guideline 1993, Government of Nepal
GON (1992) Electricity Act 1992, Government of Nepal
GON (1992) Water Resources Act 1992, Government of Nepal
GON (1997) Land Acquisition Act 1977, Government of Nepal
GON (1997) Land Revenue Act 1977, Government of Nepal
GON (2017) Labour Act, 2017, Government of Nepal
GON (2015) Land Acquisition, Resettlement and Rehabilitation Policy 2015, Government of
Nepal
GON (2017) Local Governance Operation Act 2017, Government of Nepal
GON (1973) National Parks and Wildlife Conservation Act 1973, Government of Nepal
GON (2002) National Foundation for Upliftment of Adivasi/Janjati Act, 2002, Government of
Nepal
GON (1993) Forest Act 1993, Government of Nepal
GON (1995) Forest Rules 1995, Government of Nepal
GON (2000) Child Labor (Prohibition and Regulation) Act 2000, Government of Nepal
GON (1956) Ancient Monuments Preservation Act 1956, Government of Nepal
GON (1996) Buffer Zone Management Regulation 1996, Government of Nepal
GON (2001) Hydropower Development Policy 2001, Government of Nepal
GON (2006) Rural Energy Policy 2006, Government of Nepal
IFC. (2007) Occupational Health and Safety. In Environmental, Health and Safety Guidelines.
International Finance Corporation (IFC), The World Bank Group
WB Environmental and Social Management Operation, The World Bank Group
WECS/NEA (2015) Environmental and Social Management Framework for Power Sector
Reform and Sustainable Hydropower Development Project, Water and Energy Commission
Secretariat, Nepal Electricity Authority, Government of Nepal
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Annexure 1 E&S Checklist

Checklist for Environmental and Social Assessment
(33 / 11 kV substations, 33 kV lines, 11 kV lines and LT lines)
A. Details of Project Location
Name of Sub Project:

Province Number (tick the correct one) 5 6 7 District:
Rural Municipality / Municipality: Ward No:
S.no Item Response
Tapping Point Location:

Proposed 33 kV, Route Name, Road
Name & Distance Km End Point of distribution line:
1 Line Route:
Proposed 11 kV, Route Name, Road Name of Settlement to be served:
Name & Distance Km
B. Environment and Social Setting of Project Area

Physical and Biological Environmental Impacts checklist
Protected Areas and/or Forest (Are there any Protected Areas or Forest on the sub project
B.1 sites? If yes, please provide relevant information such as Name of forest, size, species
found, and ownership type, Problems and causes of problems.
Name of National Park, Conservation

If yes, Tentative area of
Yes No Area, Community Forest, National Forest
forest land required (Ha)
etc.
Substation
11 KV
33 KV
If No in B.1, the land is Public

Please mention the ownership and actual use of public land.
or Private.
177
Informational on Vegetation and Wildlife found in the National Park, Conservation Area,
B.2
Community Forest, National Forest etc.
Remarks (Protected
Trees Medicinal Herbs Wild Animals Species and
Wildlife, if any)
Substation
11 KV
33 KV
Is there any requirement of surface and ground water diversion/drainage system or

B.3
catchment treatment?
Location in
relation to site Description: Present conditions including tentative area to be affected by
construction works, risky areas:
Substation
11 KV
33 KV
B.4 Are there any water sources within or near the Subproject area
Type of Water Source Substation 11 KV 33 KV
Yes No Yes No Yes N

a. Perennial Spring source o
b. Stream
c. Drainage outlet/Irrigation
canal discharge
If yes, explain existing condition: Aquatic life (Name of water source, aquatic species found
in water source)
Substation
11 KV
33 KV
B.5 Are there any built structures within the subproject sites/boundary? (Tick Mark)
If (Yes) Description-of the structures including ownerships and relocation

Yes No
need:
178
Substation
11 KV
33 KV
Does it require relocation or damages public / Community properties (water supply pipe,
B.6 access road, temple, Pati, Pauwa, Chautara irrigation cannel etc.) due to construction
works:
Yes No If yes, Description
Substation
11 KV
33 KV
B.7 Are there any Historical / Religious / Cultural areas on the sub project sites? (Tick Mark)
If yes, please provide following information

Yes No (Name of Historical/Religious/Cultural sites, Past and present conditions
and values)
Substation
11 KV
33 KV
B.8 Is the site located on asthetically Important Viewpoints? (Tick Mark)
Yes No
Substation
11 KV
33 KV
If yes, please provide following information
Location in relation to site Description-present conditions and values
Substation
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11 KV
33 KV
Social Environmental Impacts checklist
B.9 Is the site located on main settlement and agriculture land area or Bazar area? (Tick).
If yes, description (approximate no. of HH and population, nature and

Yes No
special feature /importance / significance)
Substation
11 KV
33 KV
B.10 Is there any requirement of acquisition of private assets (structure/land)?
If yes, Describe the number of structures, type of house, &minor structure

Yes No
kitchen toilet shed and tentative land area etc.)
Substation
11 KV
33 KV
B.11 Is there any need of resettlement of affected family due to implementation of subproject?
Yes No If yes, Provide the tentative number of HH to be relocate.
Substation
11 KV
33 KV
Dose the projects affect any type of livelihoods of the people and community? Please
B.12
mention.
If yes, Type of Livelihood like Business, firm, small shops, tea shops or
Yes No
indigenous occupations etc.
Substation
11 KV
33 KV
B.14 If yes of B.11 and B.12 please provide the following information
180
Full Name of affected HH address & family members

Substation
and if belonging to Indigenous Groups specify
11 KV
33 KV
Would project cause uncontrolled immigration likely to Affect social sustainability of the
B.15 project Overload social infrastructure in the project area (e.g. health facilities, schools,
water supply)
Yes No If Yes, please add the description How and where?
Substation
11 KV
33 KV
Would the proposed project lead to significant increase in population density which could
B.16
affect social sustainability of the project?
Yes No If Yes, please the description How and where?

Substation
11 KV
33 KV
181
Beneficiaries Household Data of Sub project Areas 33 / 11 kV substations, 33 kV distribution lines,

distribution 11 kV lines and LT distribution lines
Note, HH = household, TP Total Population, Fe = Female, M= Male, J= Janjati, D= Dalit, O = others, MM =
Madhesi Muslim
Household & Population Caste & Household
S.N. Settlements
and the proportion to

ethnicity
indigenous groups
Include number of
HH TP Fe M J D O MM
the population
Total
Economic condition of the Subproject Areas
S. N. = Serials Numbers, HH= Household, Agri= Agriculture, Self EMP = Self-employment, F. Emp
Foreign Employment
Occupation division HH
S. N Name of Settlements Total HH Self F.
Agri Service Business Emp Emp
C. Finding of E&S Study Requirement (To be Filled by Office)

C.1 Check country’s legal requirement (including sensitivity criteria)
As per EPR 1997

As per AIIB’s
Safeguard policy
Screening check list completed by: Checklist reviewed and approved by:
Name: Name:
Designation: Designation:
Date: Date.
182
Annexure 2- Environmental and Social Management Plan Format

Institutional Responsibility
Beneficial/Adverse Environmental Mitigation for augmentation
Environmental Issues Mitigation Cost (NRs.)
Impacts Measures Supervis
Implementation
ion
[B] Adverse Impact Mitigation Measures
1. Socio-Economic and Culture Environment
a. Pre-Construction Phase
• Loss of land • Cash Compensation Provide not less than market NEA/PIU Third
properties and value of land Tentative cost party
i. Land Acquisition production,
Resettlement and will be prescribe in ESMP monitorin
compensation works g by
independ
ently
b. Construction Stage
Preparation of VCDP and • loss of income and • Skill development training
Tentative cost will be NEA/PIU NEA/Con
implementation of livelihood
prescribed in ESMP sultants.
VCDP/IPDP
c. Operation Stage
i. Training • Positive action. Ongoing training of workers
NEA/PIU Audit
regarding safety
condition
and environmental management
Part of operation cost
measures
• (but few staff during operational
phase).
2. Physical Environment
a. Construction Phase
183
Implementation
ion
i. Relocation of Utilities • Disturbance in • Alignment with minimum damage Contractor NEA/PIU
public daily to public utility shall be chosen.
activities. • Public utilities (Tap, Electric and
Telephone Pole, water supply Contract Cost
line) shall be relocated as fast as
possible.
i. Change in land use • Loss in agriculture • Selecting distribution line route
production. which have less land acquisition
requirements
• Wherever possible the
distribution line route will avoid
forest and wet land
• To the extent of possible, barren
land will be selected for
distribution line route and for
construction of substation
• the proposed distribution line will
be aligned along the existing
RoW of road without hampering
traffic movement
ii. Land Pollution • Soil Erosion • Highly vulnerable slope shall be Contractor NEA/PIU
• Loss of fertility of stabilized using retaining walls.
soil • Bio-engineering plan shall be Contract Cost
prepared and schedule before
monsoon
iii. Losses of Standing Crops • Loss on agriculture • Stringing of the distribution line Contractor NEA/PIU
product and other construction activities Contract Cost
will be done in off-farming season
184
Implementation
ion
• Affect the income of • the proposed distribution line will
farmer be aligned along the existing
RoW of road and edges of the
fields
• The affected farmers shall be
suitably compensated of
standing crops and fruits on the
basis district agriculture rate
valuation by district agriculture
office
iv. land stability and soil • Landslide • The pole location identified for Contractor NEA/PIU
erosion • Soil erosion distribution line should be stable
and in flat ground if possible.
• Proper geological study shall be
conducted to determine the Contract Cost
ground conditions if necessary.
• The excavation shall not be done
during rainy season in hilly slope
v. Earthquake stability of line • Damage of • To minimize the possible Design- Consultant NEA/PIU
and substation location Distribution line, impacts, structure shall be
pole and properly designed to resist
Substation earthquake load and also the Construction -
stability of land shall be duly Contractor
checked. Contract Cost
• The polewill not be constructed in
fracture and crack rock mass and
fault area without proper design
and ensuring stability.
185
Implementation
ion
vi. stockpiling of construction • Deposition of• Stockpile should not be located Contractor NEA/PIU
material on temporary land construction on/near water courses, schools,
material in lower hospitals or public standpipes;
agricultural land and should not affect locals and
and nearby natural their properties.
stream • Stockpiles subject to erosion by
• Reduction in fertility wind or water should be covered Contract Cost
of land with tarpaulins. For large
stockpiles, it should be enclosed
with side barriers and also
covered when not in use.
• Clean area properly after
completion.
vii.waste and spoil disposal • Loss of land • Site shall be located far from Contractor NEA/PIU
productivity. settlement.
• Water pollution. • Barren and unfertile land shall be
selected. Contract Cost
• The site shall not be located near
water body.
186
Implementation
ion
viii. Noise and Vibration • Noise Pollution • The vehicle being used for Contractor NEA/PIU
• Lessen the rock transportation of construction
strata material and spoil shall be
regularly checked and kept in
good condition. Vehicles
producing high sound will not be
allowed to move on the road and
near working site
• Drilling equipment with low sound Contract Cost

emission shell be used and if
possible, sound trapping
machine like silencer will be
attached
Drilling equipment with low sound

emission shell be used and if
possible, sound trapping
machine like silencer will be
attached
ix. Establishment and • Solid waste • As far possible, emphasis shall be Contractor NEA/PIU
demolition of construction generation. given to local manpower/ labour.
camp • Encroachment of • Produce waste shall be managed Contract Cost
land on site.
x. Impact due to spoil • Landslide during • Locate disposal sites on stable Contractor NEA/PIU
disposal and location of monsoon. ground without excessive slope;
disposal sites • Block drainage flow Avoids water courses and Contract Cost
wetlands; that will not promote
187
Implementation
ion
instability and result in destruction
of property, vegetation and local
services.
xi. Dust Nuisance • Air Pollution • The construction material and Contractor NEA/PIU
• Health impacts. spoil will be covered by tarpaulin
• Reduce aesthetic during transportation
scenery • Construction materials shall be
covered with tarpaulin during Contract Cost
stockpiling to prevent rain water
and dust emission generated
from the stockpiling site.
d. Operation Phase
i. Noise and Vibration • Health hazard of •
NEA/PIU
Pollution the people living
near distribution
line route and
substation.
• Disturbed wildlife
activities.
ii. interference of distribution • Reduce available • Distribution lines and substation NEA/PIU
line with roads, other lines sight and stopping location will be kept sufficiently
and infrastructure distance of road. away from road edge - not to
• Increase in road hamper the setback and sight
accident distance.
• The distribution lines and
substation location will be away
from water source.
188
Implementation
ion
• While installing electric
distribution lines of more than 11
kV across the road in a densely
populated area, the double
insulator system shall have to be
used.
3. Biological Environment
a. Construction Stage
i. Clearance of shrubs, and • Loss of vegetation. • To the extent of possibility, the
Contractor NEA/PIU
tree • Loss of wildlife distribution line route and
habitat substation location will be select
on barren land to minimize the
need for vegetation losses.
• The losses of trees and vegetation
shall be compensation as per the
prevailing rule of 1:25. Contract Cost
• Only the trees lying on the
distribution line route and
substation location as needed and
approved by DoF will be cleared
and the work will be monitored by
the DFO, CFUG, supervision
consultant or agencies
ii. Collection of forest product • Deforestation. • Contractor shall provide all the fuel Contractor NEA/PIU
for firewood and timber • Loss of vegetation. requires for the construction. Contract Cost
189
Implementation
ion
• Use of forest product as fuel shall
be restricted, if found shall be
compensated.
• Contract documents must include
provisions to instruct contractor to
arrange alternate energy sources
such as kerosene or LPG for
labour
iii. Disturbance of wild and wild • Restrict the animal • Work will be conducted during day
Contractor NEA/PIU
life habitat movement. time only. Contract Cost
• • .
iv. Hunting and Poaching of • Losses of wild • Construction activities will be
Contractor NEA/PIU
wildlife animals. carried out during day time to
prevent disturbance to wildlife. Contract Cost
• The contractor shall prevent illegal
hunting of wildlife for meat.
v. Habitat fragmentation • Disturb the • Attempt shall be carried out to
Contractor NEA/PIU
movement of wild minimize the clearance of trees
animal and vegetation by selecting the Contract Cost
• Break the natural route along barren land.
route
vi. Forest fire hazard • Losses of forest • The proper spacing between the
Contractor NEA/PIU
species. wire and wire and plant shall be Contract Cost
• Deforestation kept as per Electricity Act.
190
Annexure 3 Entitlement Matrices
Responsible for the

Type of Loss Scope Who is entitled Entitlement Delivery of the Comments
Entitlement
A. Loss of Land
A.1. Loss of Agriculture Land
Loss of Land Person(s) with Cash compensation based on The EA and CDC to Payment will be made in full
cultivated acquired for land ownership replacement cost. compensate the owner to the AP before taking
wetland by project- records (preferably in joint possession of the land.
All fees, taxes and other
land owners related account of husband and
charges as applicable under
substation wife, if married and with
relevant laws and regulations
activity the consent of the title
holder)
Loss of Land Person(s) with Cash compensation based on The EA and CDC to Payment will be made in full
cultivated acquired for land ownership replacement cost of the land. compensate the owner to the AP before taking
dry land by project- records (preferably in joint possession of the land
All fees, taxes and other
land owners related account of husband and
charges as applicable under
substation wife, if married and with
the relevant laws and
activity the consent of the title
regulations.
holder)
191
Responsible for the

Entitlement
Loss of Land taken Community or Cash compensation based on The EA and CDC to Payment will be made in full
cultivated Village where replacement cost compensate Rural to the AP before taking
over for a
common the common Municipality/Municipality possession of the asset.
project- All fees, taxes and other
land land is located for the affected
related charges as applicable under
community common
activity the relevant laws, incurred in
land.
the relocation and resource
are to be borne by the project.
Loss of Land for a Renter or 50 percent cash The EA and CDC will Payment will be made in full
tenanted project- Sharecropper of compensation to the share compensate the tenants to the AP before taking
agricultural related the affected cropper/ tenants of the for loss of loss of possession of the land.
land activity land affected plots as per the tenancy.
(cultivated prevailing laws (LA Act Clause
wetland, Dry 20). Other 50 percent to the
land) by landowner
permanent
tenants
192
Responsible for the

Entitlement
Leasing of Land leased Person(s) with NEA will sign a formal lease The EA will Compensate Mutually agreed leasing
land by the for a period of land ownership agreement with each for leasing of land. rates will be paid by the EA
records.
landowners seven years titleholder affected. An annual to the lease annually. The
for project leasing arrangement for an first payment will be done
purposes. annual fix payment will also be before the land is taken over
agreed with each titleholder. by the EA. All cost related to
land leasing and restoration
The EA will fully restore the
will be borne by the EA.
leased land to its original
condition and return it to the
leaseholder at the end of the
leasing period.
The EA will ensure that
persons (other than the
landowners) affected as a
result of leasing of land for the
Project are also compensated
for loss of income incurred
due to the leasing of land.
A.4. Temporary Impacts on Land
193
Responsible for the

Entitlement
Temporary Land Person(s) with Contractor to negotiate a Contractors to Payment will be made in full
impacts acquired land ownership contract agreement on a Compensate for to the AP by the
during temporarily records or those rental rate with the owner or temporary acquisition of contractor/the EA, before
construction by the with other user user of the land that will be land. temporarily taking
such as project rights; subject to temporarily acquired. possession of the land.
damage to contractors verification
Project and the contractor to
adjacent Tenants
ensure that persons other
parcel of Community
than the owner affected as a
land due to
result of temporary
movement of
acquisition are also
machinery
compensated for loss of at
and plant
least 3 months income.
sites for
contractor Land should be returned to
the owner at the end of
temporary acquisition period
after fully restoring it to its
original condition or improved
as agreed with the AP.
C. Loss of Income Generating Sources and Assets

C.1. Loss of Agricultural Crops and Trees
Loss of Land Owner of crops Advance notice of 1 month to Cash compensation for The EA and CDC will ensure
agricultural acquired for a or trees be provided to PAPs to lost crops / trees as per that the payment of
194
Responsible for the

Entitlement
crops, fruits project- (including harvest their crops. rates from Agriculture compensation is made prior
and timber related encroachers, Department to taking physical possession
Cash compensation for loss of
trees activity squatters, of the land.
agricultural crops at current
Sharecroppers,
market value of mature crops
and tenants
(if destroyed) based on
average production in last 2
years. The unit rates for the
same will be determined
based on wholesale market
and in consultation with the
Agriculture Department.
Compensation for loss of fruit
trees for average fruit
production for 5 years to be
computed at the current
market value based on the
whole sale market price. The
final unit price will be
determined based on
wholesale price and in
consultation with the
Horticulture Department.
Compensation for loss of
timber trees at current market
195
Responsible for the

Entitlement
value of wood (timber or
firewood, as the case may
be). The unit price will be
determined based on market
wholesale price and in
consultation with the forest
department.
Impact on Downstream Loss of income Compensation for annual loss Assistance/ The EA, CDC and
commercial impacts, if earned by of income based on average compensation for loss of Supervision Consultant will
fishing any. commercial income for last 3 years. income ensure payment is made.
fishing any
small business
activity which
are even
seasonal
in nature
C.2. Special Assistance for livelihood restoration
196
Responsible for the

Entitlement
Livelihood Significantly Family At least one-person from each Income restoration The EA, CDC and
assistance Affected significant affected household will be assistance. Supervision consultant
and skill Families loosing land or considered for income will ensure assistance is
development source of generating vocational training provided. This will be a long
training to the income affected and skill improvement options term but time bound
family having by the project. as per their choice. activity.
significant
loss of
property and Absentee As far as possible temporary
income landlords will employment will be provided
sources not be eligible to affected households in the
for this project construction work by
provision the project contractor.
Preference will be given to
project affected people living
below poverty line, vulnerable
or lost their employment or
income generation source due
to project impacts.
197
Responsible for the

Entitlement
Loss of Business Owner of One–time lump sum grant: Short-term The EA, CDC and
businesses adversely business minimum three-month’s compensation for loss of Supervision Consultant will
affected by income based on the nature of income ensure payment is made prior
the project business and type of losses to physical displacement.
assessed on a case-to-case
basis.
One-time cash assistance
Removal or relocation The EA, CDC and
equivalent to three months of assistance.
Supervision Consultant will
average income based on the
ensure payment is made prior
nature of businesses for re-
to physical displacement.
establishing the business at
an alternative premise.
Shifting allowance (transport
plus load un loading charges)
will be paid to affected
businessmen at the rate of NR
50,000 per affected HH.
The amount of deposit or
advance payment paid by the
business tenant to the
landlord will be deducted from
the payment of the landlord.
198
Responsible for the

Entitlement
Loss of Business Non-mobile One-time cash assistance: Short-term The EA, CDC and
income of affected Minimum six months income compensation for loss of Supervision Consultant will
small temporarily business based on the nature of income. ensure payment is
vendors during operators on business and type of losses made prior to physical
project footpaths to determined on a case-to-case displacement.
construction project sites basis, by the CDC.
Shifting allowance will be paid
to the affected (if applicable),
on actual cost basis.
Loss of Work Agriculture One-time financial assistance Short-term assistance/ The EA, CDC and
income by opportunities labour indirectly equivalent to 90 days of wage compensation for loss of Supervision Consultant will
agricultural reduced affected by land to be computed on the basis income. ensure payments are made
labour / of district wage rates in the
wage acquisition or district for each category of Immediately after economic
earners displacement of labour. displacement.
identified employer
during
verification
census
survey
Loss of Income Wage earning One-time financial assistance Short-term assistance/ The EA, CDC and
wages by reduced due employees to hired employees compensation for loss of Supervision Consultant will
employees to indirectly equivalent to 90 days wages income. ensure payments are made
dislocation affected by to be computed on the basis prior to displacement.
displacement of of local wage rates as
commercial determined by CDC.
structures
PAPs who are semi-skilled
and unskilled labour will be
considered for a priority in
employment opportunities in
the Project’s implementation
work.
199
Responsible for the

Entitlement
D. ADDITIONAL SUPPORT TO VULNERABLE
Additional Household Households Cash assistance for 90 days Income restoration The EA, CDC and
income Supervision Consultant will
assistance to affected as a categorized at the local district wage rate. assistance. ensure timely payment
vulnerable result of as
Special assistance of Rs The Supervision Consultant
groups project vulnerable would organize this training.
10,000 to an affected
including construction namely
vulnerable household for
Janjati Women-headed
restoring livelihood.
households households:
disable or At least one-person
elderly person: from each affected household
ethnic/ will be considered for income
occupational generating
caste people:
PAPs who live
under
200
Responsible for the

Entitlement
Official poverty Vocational training and skill The Supervision Consultant
shall be responsible for this
line improvement options as per facility.
their choice.
As far as possible temporary
employment will be provided
to affected households in the
project construction work by
the project contractor.
Preference will be given to
project affected people living
below poverty line, vulnerable
or lost their employment or
income generation source due
to project impacts.
E. LOSS OF COMMON PROPERTY RESOURCES

Loss of Common Affected Replacement or restoration of Replacement/ The EA, CDC and
supervision consultant
cultural and property community/ the affected community restoration of
community resources Institution facilities (including temples, structure/facility
structures/ such as responsible for shrines, ghat, public water
facilities Monasteries, the stand posts etc.) in
temples, ghat administration consultation with the affected
(cremation of the property community.
201
Responsible for the

Entitlement
site) and
community
land and/or Or cash compensation for
graveyards restoring the affected
affected by cultural/community structures
the Project. to the recognized institution/
patron/ custodian of the
affected structure. Project
Assistance
to move the structure to a new
location
Loss of Land on Rural Cash compensation at Restoration of the The EA and CDC are
structures or which Municipality/Mu replacement cost. structure responsible to pay prior to
any asset property nicipality or affecting the assets.
which stands Village groups
belongs to purchased or Municipality/Municipality or
Municipality/ reclaimed for village group will be allowed to
Municipality Project take salvaged material from
or village purpose the demolished structure at no
community costs.
Transfer allowance in case of

self- relocation to cover cost of
shifting on actual cost basis or
at the rate of NR 35000 per
202
Responsible for the

Entitlement
village.
F. OTHER UNANTICIPATED IMPACTS

Unanticipate The EA and project implementation authorities will deal with any unanticipated impact of the project, during and after project
d adverse implementation, based on the spirit of the principles agreed upon in RF.
impacts due
to project
intervention
or
associated
activity.
203
Annexure 4- ESMP Monitoring template
Responsible
Types Parameter Indicator Method Schedule Location
Agencies
Baseline Monitoring
Physical Land use Land use change Observation Prior to implementation of Project acquired Consultant, NEA
Environmen the project areas
t Prior to implementation of Construction sites Consultant, NEA
Land pollution due to soil erosion Land Plot Observation
and landslide the project
Air, Noise, Vibration and water Dust, particulate Sampling Prior to implementation of Construction sites Consultant, NEA
pollution matter, CO, NO, and analysis the project
SO2, Noise level
and vibration and
water quality.
Biological Forest/vegetation and Rare, Forest status and Field Prior to implementation of Proposed project Consultant, NEA,
Environmen endangered, endemic and vegetation type observation the project structures and DFO
t threatened of flora and fauna and facilities sites
discussion
Harvesting of non-timber forest Loss of non-timber Observation Prior to implementation of Project sites and Consultant, NEA,
product product the project nearby forest DFO
Socio- Cultural and religious values Change in lifestyle, Observation Prior to implementation of Local people Consultant, NEA
economic/ value and skill and the project
transfer discussion
204
Responsible
Agencies
with local
people
cultural Local infrastructure Stress on local Observation Prior to implementation of Local people and Consultant
Environment infrastructure and the project affected MP/RMP
discussion
with local
people
Impact Monitoring for Construction Phase
Physical Land pollution due to soil erosion Land degradation Inspection Quarterly Construction sites Consultant, NEA
Environmen and landslide
t
Topography and soil Topographical Observation Quarterly Project acquired Consultant, NEA
change areas
Stockpiling of construction Environmental Observation Quarterly Construction sites Consultant, NEA

materials nuisance (Land
pollution)
Solid waste/muck disposal Disposal of Observation Daily whenever there are Disposal sites Consultant, NEA
construction and construction activities.
domestic waste
(Land pollution)
205
Responsible
Agencies
Air Pollution Dust particulate Sampling Quarterly Construction sites Consultant, NEA
matter, CO, NO, and analysis
SO2
Watershed/drainage Depletion of water Inspection Quarterly Project acquired Consultant, NEA
resources, natural areas
drainage system
Noise and vibration Noise level, Observation Quarterly Construction sites Consultant, NEA
vibration and
sampling
Biological Forest/vegetation Number of trees Observation Monthly Project sites and DFO, Consultant,
Environmen removed and facilities NEA
t discussion
Protected flora and fauna Changes in Observation Quarterly Project sites and DFO, Consultant,
protected flora and and facilities NEA
fauna discussion
with local
people
Harvesting of forest product Loss of forest Observation Quarterly Project site and DFO, Consultant,
product nearby forest NEA
Habitat Loss of vegetation Observation Weekly Project site and DFO, Consultant,
nearby forest NEA
206
Responsible
Agencies
Hunting and poaching by Movement of Observation Quarterly Project site and DFO, Consultant,
workforce wildlife and nearby forest NEA
discussion
Socio- Loss of land Compensation and Observation Quarterly Members of affected Consultant, NEA,
economic use of it and families CDC
and cultural discussion
Environmen with local
t people
Community Health and Occurrence of Observation Quarterly Affected MP/RMP Consultant, NEA
sanitation diseases and
discussion
with local
people
Occupational health and safety Use of personal Observation Daily Project construction Consultant, NEA
protective and sites
equipment (PPE), discussion
warning and with local
caution sign people
fencing of
construction area
Existing law and order situation Incidence of impact Observation Weekly Local People Consultant, NEA
on existing law and and
order situation discussion
207
Responsible
Agencies
with local
people
Local economy due to increased Nos. Of local Observation Quarterly Project areas Consultant, NEA
economic activities people employed in and review of
the project and records
involvement in
other economic
activities
Gender and vulnerable group Likely Observation Weekly Local people Consultant, NEA
including child labour discrimination and
discussion
with local
people
Impact Monitoring for Operation Phase
Physical Land use Change in land use Observation Annual In the vicinity of NEA
Environmen pattern and project sites
t discussion
with local
inhabitants
208
Responsible
Agencies
Losses of forest product Losses and cutting Observation Annual Projects sites and NEA
Biological nearby forest
of tress and
Environment
discussion
Economic opportunity Status of local Observation Annual Project areas NEA
economy and
discussion
Socio-
Employment Nos. of local people Observation Annual Project office NEA
economic
and cultural employed in and cross
Environmen operation phase checking the
t list of
employment
Quality of rural life Status of local Observation Annual Project affected NEA
people and areas
discussion
209
Annexure 5
Outline of a resettlement action plan
A. Executive Summary
This section concisely summarizes the critical facts, significant findings, an entitlement matrix, and
recommended actions specifying responsible parties, deadlines and budget. It also states the
resettlement guiding principles and objectives.
B. Subproject Description
This section provides a general description of the project and its direct and indirect area of influence,
discusses project components that result in land acquisition, involuntary resettlement, or both. It also
describes the alternatives considered to avoid or minimize resettlement. Include a table with quantified
data and provide a rationale for the final decision.
C. Scope of Land Acquisition and Resettlement
This section: (i) discusses the project’s potential impacts, and includes maps of the areas or corridor
of impact of project components or activities; (ii) describes the scope of land acquisition (provide
maps) and explains why it is necessary for the main investment project; (iii) summarizes the key
effects in terms of assets acquired and displaced persons, paying special attention to vulnerable
groups; and (iv) provides details of any common property resources that will be acquired.
D. Socioeconomic Information and Profile
This section outlines the results of the social impact assessment, the census survey, and other
studies, with information and/or data disaggregated by gender, vulnerability, and other social
groupings, including: (i) define, identify, and enumerate the people and communities to be affected;
(ii) describe the likely impacts of land and asset acquisition on people, communities and their
livelihoods taking social, cultural, and economic parameters into account; (iii) discuss the project’s
impacts on the poor, indigenous and/or ethnic minorities, and other vulnerable groups; (iv) the discuss
the socioeconomic situation, impacts, needs, and priorities of women; and (v) stipulate the cut-off date
for eligibility claims.
E. Information Disclosure, Consultation, and Participation
This section: (i) identifies project stakeholders, especially primary stakeholders; (ii) describes the
consultation and participation mechanisms to be used during the different stages of the project cycle;
(iii) describes the activities undertaken to disseminate project and resettlement information during
project design and preparation for engaging stakeholders; (iv) summarizes the results of consultations
with project affected people (including host communities), and discusses how concerns raised and
recommendations made were addressed in the resettlement plan; (v) confirms disclosure of the draft
resettlement plan to project affected people and includes arrangements to disclose any subsequent
plans; and, (vi) describes the planned information disclosure measures (including the type of
information to be disseminated and the method of dissemination) and the process for consultation
with project affected people during project implementation.
F. Grievance Redress Mechanisms
210
This section describes mechanisms for the settlement of disputes arising from resettlement related
issues. It explains how the procedures are accessible to all affected persons and how they have been
designed in a manner allowing easy access to women, vulnerable groups and indigenous people.
G. Legal Framework
This section: (i) describes national and local laws and regulations that apply to project related land
and asset acquisition, in particular with regard to valuation/compensation, resolution of conflicts and
appeals procedures; (ii) identify gaps between local laws and ADB's and EIB’s policy requirements
and discuss how any gaps will be addressed; (iii) describes the legal and policy commitments from
the executing agency for all types of displaced persons; (iv) outlines the principles and methodologies
used for valuations and determining compensation rates at replacement cost for assets, incomes, and
livelihoods, but also sets out the compensation and assistance eligibility criteria and how and when
compensation and assistance will be provided. (v) describes the land acquisition process and prepare
a schedule for meeting key procedural requirements.
H. Entitlements, Assistance and Benefits
This section: (i) defines displaced persons’ entitlements and eligibility, and describes all resettlement
assistance measures (includes an entitlement matrix); (ii) specifies all assistance to vulnerable
groups, including women, and other special groups; and (iii) outlines opportunities for project affected
people to derive appropriate development benefits from the project.
I. Income Restoration and Rehabilitation
This section:(i) identifies livelihood risks and prepares disaggregated tables based on demographic
data and livelihood sources;(ii) describes income restoration programs, including multiple sustainable
arrangements for restoring all types of livelihoods (examples include project benefit sharing, revenue
sharing arrangements, joint stock for equity contributions such as land, discuss sustainability and
safety nets);(iii) outlines measures to provide social safety net through social insurance and/or project
special funds;(iv) describes special measures to support vulnerable groups;(v) explains gender
considerations; and(vi) describes training programs.
J. Resettlement Budget and Financing Plan
This section:(i) provides an itemized budget for all resettlement activities, including settlement unit,
staff training, monitoring and evaluation, and preparation of resettlement plans during loan
implementation.(ii) describes the flow of funds (the annual resettlement budget should show the
budget-scheduled expenditure for key items).(iii) includes a justification for all assumptions made in
calculating compensation rates and other cost estimates (taking into account both physical and cost
contingencies), plus replacement costs.(iv) includes information about the source of funding for the
resettlement plan budget.
K. Institutional Arrangements
This section:(i) describes institutional set-up and responsibilities;(ii) includes institutional capacity
building program, including technical assistance, if required;(iii) describes role of NGOs, if involved,
and organizations of project affected people in resettlement planning and management; and(iv)
describes how women, minorities and other vulnerable groupswill be involved in resettlement planning
and management,
211
L. Implementation Schedule
This section includes a detailed, time bound, implementation schedule for all key resettlement
activities, including rehabilitation and livelihood restoration. There settlement implementation
schedule needs to be closely aligned with the schedule for all relevant works throughout the
preparatory and construction phases.
N. Monitoring, Reporting and Evaluation
This section describes the mechanisms and benchmarks for monitoring and reporting, as well as for
evaluation of RAP implementation. It also specifies arrangements for participation of project affected
people in the preparation and validation of monitoring and evaluation reports.
212
Annexure – 6
Outline of indigenous people development plan / Vulnerable Communities Development
PLan
A. Executive Summary
This section concisely summarizes the critical facts, significant findings, and recommended actions
specifying responsible parties, deadlines and budget.
B. Description of the Subproject
This section provides a general description of the project and its direct and indirect area of influence;
discusses project components and activities that may bring impacts on Indigenous
Peoples/Vulnerable Communities; and identify project area.
C. Social Impact Assessment
This section:(i) reviews the legal and institutional framework applicable to Indigenous
Peoples/Vulnerable Communities in the project context; (ii) provides baseline information on the
demographic, social, cultural, and political characteristics of the affected indigenous communities; the
land and territories that they have traditionally owned or customarily used or occupied; and the natural
resources10 on which they depend.(iii) identifies key project stakeholders and elaborates a culturally
appropriate and gender-sensitive process for meaningful consultation with the affected indigenous
communities at each stage of project preparation and implementation, with the objective of achieving
free, prior and informed consent (FPIC).(iv) assesses risks, vulnerability levels and potential project
impacts (both positive and negative), based on free, prior and informed engagement (FPIE) with the
affected indigenous communities11. (v) includes a gender-sensitive assessment of the affected
indigenous communities’ perceptions about the project and its impact on their social, economic, and
cultural status.
D. Information Disclosure, Consultation and Participation
This section:(i) describes the information disclosure, consultation and participation process with the
affected indigenous communities that was carried out during project preparation; (ii) summarizes their
comments on the results of the social impact assessment and identifies concerns raised during
consultation and how these have been addressed in project design;(iii) in case of FPIC being required,
documents the process and outcome of consultations with affected indigenous communities and any
10Including biodiversity and ecosystem services.

11
Critical to the determination of potential adverse impacts is a gender-sensitive analysis of the relative vulnerability of, and risks to, the affected
indigenous communities given their particular circumstances and close ties to land and natural resources, as well as their lack of access to opportunities
relative to those available to other social groups in the communities, regions, or national societies in which they live.
213
agreement resulting from such consultations for the project activities and safeguard measures;(iv)
describes consultation and participation mechanisms to be used during implementation; and(v)
confirms disclosure of the draft and final IPDP to the affected indigenous communities.
E. Beneficial Measures
This section specifies clear and detailed benefit-sharing arrangements to ensure that the affected
indigenous communities receive social and economic benefits that are culturally appropriate, and
gender responsive.
F. Mitigation Measures
This section specifies the measures to primarily avoid adverse impacts on the affected indigenous
communities; and where avoidance is impossible, specifies measures to minimize, mitigate or
effectively remedy adverse impacts. These measures are to be identified and defined through a
process of meaningful consultation.
G. Capacity Building
This section provides measures to strengthen the social, legal, and technical capabilities of (a)
government institutions to address Indigenous Peoples issues in the project area; and (b) Indigenous
Peoples organizations in the project area to enable them to represent the affected Indigenous Peoples
more effectively.
H. Grievance Redress Mechanism
This section describes procedures to address and resolve grievances of affected indigenous
communities. It also describes how these procedures are best made accessible for indigenous
people, as well as culturally appropriate and gender sensitive. It also takes into account the availability
of judicial recourse and customary dispute settlement mechanisms among the indigenous peoples.
I. Monitoring, Reporting and Evaluation
This section describes the mechanisms and benchmarks form on it and reporting, as well as for
evaluation of IPDP implementation. It also specifies arrangements for participation of affected
indigenous communities in the preparation and validation of monitoring and evaluation reports.
214
Annexure 7
Ips & Vulnerable Groups Impact Screening & Categorization Form
A. IPs Checklist
Name of Subprojects:
B. Identification of Impact on IPs/ Vulnerable Group in Sub-project Area
Impact on Indigenous Peoples (IPs)/ Ethnic Not Yes No Remarks or identified

Minority (EM)/ Vulnerable Group known problems, if any
Impact on Indigenous Peoples (IPs)/ Ethnic

Minority (EM)/ Vulnerable Group
Are there Dalits, Janjati, or ethnic minorities

present in project locations?
Do they maintain distinctive customs and

traditions and economic activities in their locality?
Will the project in any way affect their economic

and social activity and make them more
vulnerable?
Will the project affect their socioeconomic and

cultural integrity?
Will the project disrupt their community life?
Will the project positively affect their health,

education, livelihood or social security status?
Will the project negatively affect their health,

education, livelihood or social security status?
Will the project alter or undermine their local

knowledge, customary behaviors or institutions?
Are IP and VC households likely to lose

customary rights over, access to land?
Are IPs and VCs likely to lose shelter/business

and be displaced?
In case no disruption of indigenous community

life as a whole, will there be loss of housing, strip
of land, crops, trees and other fixed assets owned
215
or controlled by individual indigenous

households?
B. Additional Information Required

• Total and affected areas of land, by type of land assets;
• Total and affected areas of structures, by type of structure (main or secondary);
• Legal status of affected land and structure assets, and duration of tenure and ownership;
• Quantity and types of affected crops and trees;
• Quantity of other losses, e.g. business or other income, jobs or other productive assets,
estimated daily net income from informal shops;
• Quantity/area of affected common property, community or public assets, by type;
• Summary data on PAP households, by ethnicity, gender of head of household, household
size, primary and secondary source of household income viz-a-viz whether household is
headed by women, or consists of marginalized ethnic groups (Dalits, Freed Kamaiya),
Muslims/religious minorities, elderly, disabled, indigenous people (highly marginalized,
marginalized, and, disadvantaged IPs), below poverty line of NRs 3000/month), landless or
households losing 50% of total landholdings (particularly those totally dependent on
agriculture for livelihood), as well as remote villages.
• Identify whether affected land or source of income is primary source of income; and
• AP knowledge of the subproject and preferences for compensation and as required, relocation
sites and rehabilitation measures
D. Anticipated project impacts on indigenous peoples

Project activity and output Anticipated positive effect Anticipated negative effect
E. Decision on Categorization
After reviewing the above, it is determined that the sub-project is:
Categorized as an A project, an Indigenous Peoples Development Plan (IPDP) is required
Categorized as a B project, a specific action favorable to indigenous peoples is required and
addressed through a specific provision in related plans such as a Resettlement Plan, or a general
Social Action Plan
Categorized as a ‘C’ project, no IPDP or specific action required
216
Annexure 8
Socio – Economic Household Survey Questionnaire
Distribution System Upgrade and expansion Project (DSUEP)
1. Project Component tick one (Substation, 33kV, 11kV) HH No.
1.1 Name of 33/11kV substation
1.2 Name of road of the Alignment of 33kV distribution lines and 11 kV distribution lines
1.3 33kV lines
………………………………………………………………………………………………………
1.4 11 kV lines ……………………………………………………………………………………………..
2. General Information.
2.1 District……………………………………………………………
2.2 Rural Municipality / Municipality………………………………
2.3 Ward No……………………………………..
2.4 Village/Tole……………………………
3. Household Information
3.1 Name of Household Head ………………………………………….
3.2 Caste a) Dalit, b) Janajati c) Others (Brahmin, Chhetri, Dasnami, Thakuri)
3.3 Religion ……………………..
4. House Facilities. Type Toilet, …………drinking water, ………….. electricity, ……
5. How many months do you have food sufficiency from your own production? Months ………
6. Demography details of a Household
S.N Name Gend Age Occupati Education Disability Interested Remark
er on Training
HH
217
7. Do you have poverty identify card issued by the Nepal Government? Yes/No If yes please write
the Card No ……………….. Name…………
8. Loss of land and market value of Land.
Name Land Loss of Land Sq.m. Market Price NRs

owner
Khet Pakho kharen Ghaderi Khet Pakho kharen Ghaderi
9. Total holding Land

Total Holding Land Sq.m
Name Land owner
Khet Pakho kharen Ghaderi
10. Loss of private Land, tree, fruits etc. (Substation or Distribution Lines) from (only private land)
Name of Sheet Title No Unit Area No of fodder No of fruits
owner No. trees
11. If Structure loss from the Project (Substation or Distribution Lines) (Private & Public Land)
S.N. Type of House No Kitchen Shed Toilet wall others
218
12. Agriculture Production.

Production Kg
Area
Land Type
Sq.m. Paddy Wheat Maize Millet pulses Potato Vegetable Mustard
Irrigate
Un-irrigate
Grass land
13. Domestic animals Name:

Nos. of Cattle and Aves
Livestock
Buffalo Cow Bull Goat Chicken
Nos. Kept Nos
Cells before during the
years Nos.
Total Selling Price NRs
14. Annual Expenditure. Education in NRs

Education Health Food Fee Mahasul Festivals Others
15. What is your main source of income? Mention only one……….

16. Annual Incomes
Agriculture Business Trade Foreign Pension Gov & Pension wages
& a Employment private
Livestock Service
17. What type of disease does you has suffered your family during the year? Please write name of
disease. …………………………………………………………
18. Please the mention the service centers access.
Police
S.N. Health School Ward Municipality Bank office Market Road
Distance
Time
219
19. What type of training will you / your family member want to involve if the project conduct? Age
should be 24 to 45 only please tick following only one and writ the Name of person.
a) House wiring b) welding c) off / season vegetable farming d) livestock - buffalo/goat/pig etc.
keeping, e) Poultry farming etc. f) other specify ……………………
20. What type of compensation do you prefer?

a) Cash for land, b). Land for land, c). Cash for house d). House for house
21. Do you agree construction this project and provide land for project construction propose?
Tick Yes, or No
22. Agriculture Labour Rate
Items Skill Rate NRs Unskilled rate NRs
Mane
Women
220
Annexure 9
Discussion and meaningful consultation with indigenous people for FPIC proposed
1. Call meeting fixing time and place.
a. Date ………………………. Time………………
b. Place…………………. Municipality……………………… ward……………
c.
2 Attendance
i) Focus group Discussion with available indigenous12peoples within the project areas for free prior and
informed consent
S.N Full Name R/Municipality W/ No. Gender Signature
12
A) Endangered Groups :- Bankariya, Kusunda, Kusbadiya, Raute, Surel, Hayu, Raji, Kisan, Lepech, Meche
B) Highly Marginalized Groups :- Santhal, Jhagad, Chepang, Thami, Majhi, Bote, Dhanuk (Rajbansi), Lhomi (Singsawa),
Thudamba, Siyar(chumba), Baramu, Danuwar,
C) Marginalized Groups :- Sunuwar, Tharu, Tamang, Bhujel, Kumal, Rajbansi (Koch), Gangai, Dhimal, Bhote, Darai,
Tajpuriya, Pahari, Dhokpya (Topkegola), Dolpo, Free, Magal, Larke (Nupriba), Lhopa, Dura, Walung,
D) Disadvantaged Groups :- Jirel, Tangbe (Tanbetani), Hyolmo, Limbu, Yakkha, Rai, Chhantyal, Magar, Chhairotan,
TingaunleThakali, Baragaunle, Gurung, Byansi, Marphali, Sherpa.
E) Advanced Groups:- Newar, Thakali.
221
Discussion made about the Free prior and informed consent discussion on Project benefits and need
with indigenous peoples in subproject areas, and free make decision to IPs and write consents and
signature.at bottom after decision.
…………………………………………………………………………………………………………………
……………………………………………………………………………………………………………
222
Annexure 10
Environmental and Social Trimester Monitoring Report Template
10.1 Environmental Trimester Monitoring Report
Table of Content
1. Introduction
2. Description of Project
3. Progress Status
4. Environmental Category of the Project and Status
5. Institutional Arrangement for Safeguard Implementation
6. Environmental Requirement in Contract Agreement
7. Status of Environmental Safeguard
7.1 Recruitment of Safeguard Staffs
7.2 Overall Compliance with EMP
7.3 Environmental Clearance from Authorized Government Agencies
8. Environmental Monitoring
8.1 On-going Environmental Monitoring
9. Public Consultation and Discloser
10 Grievance Redress Mechanism
11. Conclusion
223
10.2 Social Trimester Monitoring Report
Table of Content
1. The Project Details
1.1 Background of the project
1.2 Institutional arrangement
1.3 Physical Progress of the Project
1.4 Safeguard Progress
2. Objective and Scope of Monitoring
2.1. Objectives of Bi-annual monitoring
2.2. Scope and monitoring requirements
3. Methodology of Monitoring
3.1 Methodological approach
3.2. Qualitative and Quantitative monitoring of data
4. Monitoring Indicators and Parameters
4.1 Key aspects considered in the report
4.2. Monitoring indicators and the parameters as per the RAP, VCDP, IPDP, GAP
4.3 Indicators of monitoring
5. Monitoring Results
6. Corrective Actions for noncompliance and Major Gaps
7. Consultation, Participation and Disclosure
7.1 Consultation and participation
7.2 Information disclosure
8. Proposed Major Item of Focus for Next Report
224
Annexure 11
Labour camp guidelines
Establishing labour camp
The main purpose for the preparation of camp standard is to assist in the effective implementation of
Environmental and Social Management Framework (ESMF) and to achieve sustainable development
ensuring no any adverse impacts upon environment and society. An attempt has been made to
prepare this standard for RAIDP funding rural & agricultural roads and bridge referencing other
manuals for environmental and social aspects published by GESU-DOR. The establishment and
operation of a camp is likely to produce adverse impacts upon the bio-physical as well as the social
and economic environments. It is imperative to safeguard the environment and society and to reduce
and mitigate the negative impacts that are likely to be produced for the operation of camps. It is
envisaged that a contractor will follow the following guidelines during the operation of camps in the
project areas and hope that the project will be accomplished and benefited including local community
and labor workers. Similarly, central level monitoring will be executed for the proposed camp sites
under the consideration of following guidelines.
After the selection of the camp site by the project, the contractor shall submit to the project a detailed
layout plan for development of the construction camp, indicating the various structures to be
constructed including the temporary structures to be put up, drainage and other facilities. The plan
will include the redevelopment of sites to pre-construction stage.
The contractor shall provide temporary accommodation to all the workers employed by him for such
a period as the construction work is in progress. The contractor shall not charge any cost to the
resident labour.
Lodging facilities
1. For non-local workers, a contractor shall provide adequate lodging/accommodation. Separate

compartment shall be provided for male and female workers for their accommodation. If couples live
in the camp then they shall be provided with separate compartments
2. The accommodation areas for workers shall be designed, constructed and furnished having regard
to the working conditions and the number and gender of the workers
3. Changing rooms shall be provided for workers who are required to wear working clothes. Provision
shall be made for separate changing rooms for men and women
4. A contractor shall prevent labor workers to sleep on the open floor. Wooden or bamboo beds shall
be provided and elevated at least 12 inches from the floor. If double-deck bunk is used, it shall be
spaced not less than 48 inches laterally. The minimum clear space between the lower and upper bunk
shall be not less than 27 inches. Triple-deck bunks are prohibited
225
Food and energy
5. The availability and proper storage of quality food and potable water is also the responsibility of a
contractor. The quality of food grains and other consumable items and water must be provided. In
case labors wish to prepare their own meals, the contractor shall provide adequate cooking facilities.
In camps where cooking facilities are used in common, legal source of energy shall be provided. Such
kitchen shall be established at least 10m distance from any sort of water sources
6. If a camp is used during cold weather, adequate heating equipment/insulation shall be provided.
Camp members shall be provided with adequate bedding material sufficient to prevent cold
7. Workers shall be provided with facilities enabling them to take their meals and rest in satisfactory
conditions. If meals are not provided for the workers on the site, they shall be provided with facilities
enabling them to preserve the foodstuffs they have brought with them and, if necessary, to heat them
Water and sanitation
8. Adequate water storage facility shall be provided in a proposed camp site
9. Workers working on a construction site shall be provided with drinking water which meets the
standards established for drinking water
10. Lavatories facilities should be adequate for the capacity of a camp. The lavatories to labor ration
should not be less than 1:15
11. The lavatories shall be adequately lighted and shall be maintained in a clean sanitary condition at
all times. Water shall be provided in or near the lavatories by storage in suitable containers (tank,
buckets etc.)
12. If proper sewerage system is not available at the proposed camp site, contractor shall establish
eco-friendly toilets with septic tank for the proper disposal of waste. Bamboos and plastic sheets shall
be used as encircle material for the establishment of temporary toilets. However, contractor shall
ensure that the site is free from open defecation
13. Provision shall be made for separate lavatories for men and women on the camp site and these
rooms shall be distinctly marked "for men" and "for women" by signs printed in native language of the
persons occupying the camp, or marked with easily understood pictures or symbols. If the facilities
for each sex are in the same building, they shall be separated by solid walls or partitions extending
from the floor to the roof or ceiling
14. According to the nature of the work, a sufficient number of suitable washbasins or showers with
running water shall be provided for workers, meaning not less than one washbasin for every 5-10
workers or one shower for every 10-15 workers. Provision shall be made for separate washbasins for
men and women
226
Lighting
15. "Lighting" where electric service is available, each habitable room in a camp shall be provided
with at least one ceiling-type light fixture. Toilet rooms and rooms where people congregate shall
contain at least one ceiling- or wall-type fixture lighting system. Utilization of electricity from a public
supply source should not affect its availability and cost to the local population
Waste disposal
16. Contractor shall provide adequate waste disposal facilities for the storage of garbage and shall
be located within 100 ft. of each shelter on a wooden, metal, or concrete stand. Waste disposal
management, including burning, should not in any way disturb the neighboring population nor
residents of the camp itself
17. Garbage containers shall be kept clean and shall be emptied when full, but not less than twice a
week
18. Incase garbage is disposed, only biodegradable waste and organic kitchen waste shall be dumped
in pit. Non-biodegradable wastes shall be kept in containers and shall be disposed into proper place.
Pit shall be at least 150 ft. away from the camp site, whereas contractor shall ensure that diseases
will not spread into nearby community and any sort of contamination into water bodies and ambient
environment. Contractor shall also ensure that the pit is covered properly after disposal of degradable
waste everyday to reduce spread of fly and rodents. Turn wise maintain of Pit shall be carried out by
workers for maintain properly
19. Liquid waste generated from the camp site shall not be disposed directly into any surface water
bodies. The contractor shall ensure proper management of ground-drainage from camps as a
preventive measure against breeding places of mosquitoes and other pests
Health and first aid
20. Contractor shall provide adequate health services to workers on the site. A permanent health
worker is required in large work camps (100 workers or more).
27 Construction sites shall be equipped with First Aid Kit at every construction campsite with essential
first aid equipment and stretchers.
28 One person should be assigned as in-charge who shall always be readily available during working
hours of the work places.
29 He shall be adequately trained in administering first aid-treatment.
30 The contractor shall ensure that first aid can be provided to workers who have had an accident or
have suddenly been taken ill on the site.
31 First Aid Kit, distinctly marked with Red Cross on white back ground and shall contain minimum of
the following or similar items:
227
• Few Small, medium and large sterilized dressings
• 1 (30 ml.) bottles containing 2% alcoholic solution of iodine
• 1(30 ml) bottle containing salvolatile
• 1 snakebite lancet
• 1 pair sterilized scissors
• 1 copy of first-aid leaflet
• 1-2 leaf of Aspirin, Paracetamol, Diagine, Metronitazol tablet
• Ointment for burns
• A suitable antiseptic solution
• Eyewash, etc.
32 Suitable transport to the nearest approachable hospital should be made available. Formal
arrangement shall be prescribed to make motor transport or ambulance available to carry injured
person or person suddenly taken ill to the nearest hospital
33 If hospital is far away, proper medical clinic facility should be made available at camp where
emergency treatment is available. Thereafter, the injured shall be taken to hospital
34 Effective measures for insect and rodent control shall be taken to prevent infestation by and
harborage of animal or insect vectors or pests. Mosquito net shall be provided to workers during
summer season
Fire safety
35 The construction camps shall be equipped with fire-fighting equipment and facilities.
36 Fire extinguishing equipment shall be provided at readily accessible and adequately marked
locations at Camp
37 Every worker should be trained in use of fire extinguishing equipment
38 At least one fire extinguisher shall be provided, where flammable liquids or combustible materials
are stored, handled or used
39 Proper pictorial posters should be used to indicate to everyone the location of fire-fighting
equipment.
40 Fire extinguishing equipment shall be of a suitable type and size to permit the evacuation of
workers during a fire.
228
41 After a fire extinguisher is used, it shall be refilled or replaced immediately
42 Every fire extinguisher shall be inspected for defects or deterioration at least once a month by a
competent worker who shall record the date of the inspection on a tag attached to it
Other
43 A camp site shall be adequately drained. All temporary camps shall be constructed using tents,
and shall be closed from all side to protect from wind and water, while at the same time ensuring
ventilation
44 The optimum size for the temporary tent camp should be of 10X8X8 ft. in which no more than 5
workers shall be accommodated
45 Simple alarming system and a communication system shall be established in the vicinity of a
proposed camp site for security and to avoid possible dangers
46 The grounds and open areas surrounding the shelters shall be maintained in a clean and sanitary
manner and shall be free from rubbish, debris, waste paper, garbage, or other refuse
47 A contractor shall provide separate store room or compartment for the storage of handy
construction equipment
48 Play grounds and other recreational and refreshing activities shall be provided in a proposed camp
site where a worker could spend his/her leisure
229

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Distribution System Upgrade & Expansion Project

Distribution System Upgrade & Expansion Project

ABBREVIATIONS & ACRONYMS

Acronym Full form

AIIB Asia Infrastructure Investment Bank

ARAP Abbreviated / Resettlement Action Plan

CDC Compensation Declaration Committee

CDO Chief District Officer

CFUG Community Forest User Group

CITES Convention on International Trade in Endangered Species

COI Corridor of Impact

DBH Diameter at Breast Height

DCC District Coordination Committee

DFO District Forest Office

DoA Department of Agriculture

DSUEP Distribution System Upgrade and Expansion Project

E&S Environmental and Social

EHS Environmental, Health, and Safety

EHV Extra High Voltage

EIA Environmental Impact Assessment

EMF Electromotive Force

EMP Environment Management Plan

ESMP Environment and Social Management Plan

EPA Environment Protection Act

EPR Environment Protection Rules

ESIA Environmental and Social Impact Assessment

ESMF Environmental and Social Management Framework

Distribution System Upgrade & Expansion Project

Acronym Full form

ESMU Environmental and Social Management Unit

ESP Environmental and Social Policy

ESS Environmental and Social standards

ESSD Environmental and Social Studies Department

GAP Gender Action Plan

GIIP Good International Industry Practice

GoN Government of Nepal

GRC Grievance Redress Committee

GRM Grievance Redress Mechanism

HCI Health Care Institution

IEE Initial Environmental Examination

ILO International Labour Organization

IPDP Indigenous Peoples Development Plan

IUCN International Union for Conservation of Nature

LAA Land Acquisition Act

LARC Land Acquisition Resettlement and Compensation

LCF Local Consultative Forum

MDG Millennium Development Goals

MoEWI Ministry of Energy, Water Resources and Irrigation

MoPE Ministry of Population and Environment

Distribution System Upgrade & Expansion Project

Acronym Full form

MVA Mega Volt Ampere

NEA Nepal Electricity Authority

NEFIN Nepal Federation of Indigenous Nationalities

NGO Non-Government Organization

NHRC Nepal Health Research Council