Chapter 12

12. Environmental Study

There is a requirement of environmental study and management as per prudent practices,
Environmental Policies and Acts of Nepal. Project can be materialized only if it is technically
feasible, financially viable and environmentally acceptable. The concerns about the project
impact and mitigation measure should be well defined and corresponding budget allocation is
needed for addressing the environmental issues for the successful implementation of the
project. As per Environmental Protection Act, 1997 and Environmental Protection Rules,
1997 (with amendments), the company has carried out IEE based on the approved ToR and
submitted to the Ministry of Water Resources (MoWR) through Department of Electricity
Development (DoED) and has been approved on 22nd Baisakh 2066.
This chapter presents the findings of environmental study, and outlines the cost and budget
provisions as per approved IEE report. One should refer to the full volume of IEE report for
more details. The IEE content is presented here, so that the environmental management
budget is best planned.

12.1 Environment Impacts

Environmental impacts of hydropower project occurs primarily within or adjacent to the
project site. Landuse change, soil erosion, safety hazards, construction disturbances, and
vegetation loss are some of the impacts likely to be occurred during construction of the
project. Similarly, some of the beneficial impacts potential in the areas are increase in
revenue, local employment opportunity, extension of rural electrification and infrastructure
development, etc. All these environmental impacts are studied carefully during the IEE and;
based on IEE report the impacts can be categorized into the following beneficial and adverse
impacts:
Beneficial Impacts:
 Local Employment;
 Increase in Trade and Infrastructure;
 Improvement in the Quality of Rural Life;
 Enhancement of Skills;
 Royalty.

Adverse Impacts:
 Slope Stability and Change in Landuse patterns;
 Reduction in River flow and Sedimentation;
 Pressure on Forest Resources of Surrounding Area;
 Disturbances from Construction Activities;
 Impact of Aquatic Life of Siuri Khola;
 Flushing of Desander;
 Loss of Land;
 Local Infrastructure and Communal Resources;
 Occupational Health and Safety;
  Local Economy due to Increased Economic Activities;
 Gender and Vulnerable Group;
 Standing Crops;
 Existing Foot Trails, Road and Movement of People;
 Withdrawal of Economic Opportunity;
 Water Use Right.

12.2 Legislations and Policy

A number of policies, acts and regulations have been enacted to promote hydropower sector
through local and foreign private investments, following the promulgation of the Constitution
of Nepal 1990. A summary and functions of the prudent legislative provisions that guide and
regulate the hydropower sector are presented below. Inherent conflicts and shortcoming in
these legislations, present political crisis, and marginal benefit from sales has resulted in the
lack of enthusiasm in investment in the hydropower sector to solve the present electricity
crisis prevailing in Nepal. This clearly indicates rooms for improvement by all the
stakeholders so that the hydropower sector investment can be encouraged and revived.
Table Environmental Study-1: List of Project Related Policies, Acts and Regulations.

Legislations Functions
Company Act 2053 (1996) Registration and operation
Hydropower Development Policy 2058 (2001) Guidelines for hydropower development
Income Tax Acts and Budgets Taxation and other provisions
Electricity Act 2049 (1992) Regulations of survey, generation, transmission
and distribution of hydroelectric power
Water Resources Act 2049 (1992)/ Regulations of rational utilization, conservation,
Water Resources Regulations 2050 (1993) Management and development of water resources.
Industrial Enterprises Act (with amendments) Regulation of hydropower projects as industries
2049 (1992)
Electricity Regulations 2050 (1993) Guidelines for obtaining license and managing
hydropower projects by private sector
NEA’s policy regarding small hydropower Regulation regarding buy back rates and
2055 (1998) Power purchase agreement of small
hydropower projects by private sectors
Environment Protection Act 2053 (1997) Regulations regarding environment protection
Environment Protection Regulations (as and hydropower development
amended) 2055(1999)
Environment Provision Recent Developments, Budget Proclamation
VAT and TAX Provision
12.3 Physical Environment

12.3.1 Siuri Khola Catchment

Siuri Khola is one of the major tributary of Nyadi Khola and originates from Bara Pokhari
in the North and merges with Nyadi Khola at Siuri Khola Dovan. The highest elevation of
the basin is 4478 m amsl. The catchment area of the Siuri Basin at headworks site is
21.1 km2. The basin is mainly covered by fairly dense mixed forest with some cultivated
land in Pasgaun, Charagau, Bhoje, and Gilung of Lamjung district and Mijure danda of
Lamjung District.

12.3.2 Climate
Climatically the project area lies in the warm temperate zone (1000 m to 1200 m)
whereas the river extends up to cool temperate zone (2000 m to 3000 m) and alpine
(above 3000 m) zone. The project area is therefore, under the influence of monsoon
rainfall and physiography of the region. The difference between the warm and humid
summer and cold dry winter becomes more remarkable with the change in altitude. The
annual average rainfall around the catchment is estimated to be 3950 mm.

12.3.3 Hydrology
The lowest flow occurs in the month of April, while the highest flow occurs in August. The
predicted flow shows that more than two third of flow occurs during the three monsoon
months (July, August and September), while the remaining nine non-monsoon months
have only less than one third of annual flow.
Table Environmental Study-2: Average monthly flow of Siuri Khola at intake site.

Month Discharge (m3/s) available

Baishak 0.68
Jestha 1.62
Asad 3.87
Sharwan 7.46
Bhadra 7.83
Ashwin 4.62
Kartik 2.28
Manshir 1.36
Poush 1.04
Magh 0.79
Falgun 0.58
Chaitra 0.43
Yearly 2.71
12.3.4 Geology
Geologically Siuri Khola project lies in the Lesser Himalayan Zone and to the north of the
Main Central Thrust (MCT). Apart from the MCT, two other significant faults were found
to cross the project area.
The topography is disturbed and rough; and the topographic features are probably
caused by the MCT. Gneiss and quartzite form the steep slopes and cliffs which are
unstable. Large volumes of the alluvium deposits have created huge landslides along
the left riverbank especially between headworks and powerhouse. However, the right
bank of the river in the project area is composed of hard rock thereby making the site
safe for construction of the project.

12.3.5 Sedimentation
Sediment yield is not a serious matter for this project since its catchment is covered with
natural forest and pasture land. Larger part of the catchment is occupied by middle
mountain zone and the water is free of sediment even in the months of monsoon.
Farming activities in the catchment is almost nil and the landslide activities as well.
Therefore sediment concentration is very nominal and does not pose any threat to the
project.

12.3.6 Air Quality

Existing air quality of the project area is found to be normal. There are no air pollution
sources near the project area and there is not any anthropogenic activities contributing
to air pollution.

12.3.7 Water Quality

The water of Siuri Khola is free from anthropogenic source of pollution. The water is
clean and drinkable. However the local people use spring as a source of drinking water.

12.4 Biological Environment

12.4.1 Flora and Fauna

The recorded plant species found in and around the project area are Chilaune (Schima
wallichi), Katus (Castanopsis indica), Uttis (Alnus nepalensis), Phalat (Quercus lineate),
etc. Among 30 recorded plant species, none of them are identified as endangered.
Distribution of fauna in the project area is not uniform and depends on habitat type,
topographic factors and human interferences. Altogether 14 species of mammals were
recorded of which Red Fox (Velpes velpes), Leopard (Felis bengalelensis), Common
Langur (Presbytis entellus) and House Rat (Rattus rattus) are most common species.
Bird species recorded in the project area include Cuckoss (Cuculus spp.), Jungle Crow
(Crovus macrorhychos), Green Wookpecker (Picus aquamatus) and Kaliz (Lophura
leucomelanol).
12.4.2 Reptiles and Amphibians
Six species of reptiles and amphibians were recorded in the project area are Rat Snake
(Ptyas Mucosus), Mountain Pit Viper (Trimeresu Monicola), Green Pit Viper (T.
Albolahs), Garden Lizard (Calotesversicolor), Common Frog (Rana Cyanophlycts) and
Toad (Bufo Melanostictus).

12.4.3 Aquatic Life

Study visit revealed that aquatic creatures such as Stone Leach (Noemachenius
Rupicula) and Cat Fish (Schizothorax plagiostomus) were recorded. According to local
fishermen, Cat Fish is also found throughout the year while Copper Mahseer appears
only during monsoon floods. However none of the fish species belong to the list of
endangered species.

12.4.4 Rare, Endangered, Endemic and Threatened Species

There are no rare endangered and endemic species near the proposed project area.
The protected plants such as Shorea robusta (sal) and Bombax ceiba (Simal) are
recorded within the project area. The endemic and endangered fauna species are not
recorded in the project area.

12.5 Socio-Economic and Cultural Environment

Two VDCs namely Bhulbhule and Bahundanda are under the influence of the project
area. Major parts of the project components are situated in Bhulbhule VDC. The
diversion weir is located in the Siuri Khola itself and the powerhouse as well is located in
Bhulbhule VDC, with tailrace water falling into the Nyadi Khola which is a common
border of the two VDCs.

12.5.1 Population
The total population of project affected VDCs are given in the table below.
Table Environmental Study-3: Total Population of Project affected VDC.

Population Population (%) Household

VDCs
Total Male Female Male Female Nos. Size
Bhulbhule 3849 1972 1877 51.23 48.77 670 5.74
Bahundanda 2155 1145 1010 53.13 46.87 385 5.60
Total 6004 3117 2887 52.18 47.82 1055 5.67
Source: CBS, 2001

From this table it is clear that the male population overweighs female population in the
project area. According to the census 2001, 54.5 % of total population are economically
active
12.5.2 Occupation
Agriculture is the main occupation and the major source of income in and around the
project area. About 80 % of people are engaged in agriculture for their livelihood and the
major crops grown in the area are Paddy, Maize, Wheat, Cereal Crops, etc. Local people
raise livestock as well which comprises of goat, cattle, chicken, etc., and is a
supplementary income for them.

12.5.3 Physical Infrastructure

The project area is accessible by motorable road and has access with electricity,
drinking water, telephone, schools, health post, post office and community based
organisations. Actual project site and adjoining villages are however deprived of such
facilities.

12.5.4 Economy
Agricultural is the main source of income in the project area. Almost all the people are
dependent on agriculture including livestock and employment to foreign countries.

12.5.5 Health and Sanitation

Major health problems recorded in and around the project area are fever, cough,
diarrhoea, dysentery, pneumonia, acute respiratory infection (ARI), abdominal diseases,
skin diseases and ear infection. About 75 % of diseases are waterborne and are based
on insanitary condition. The fact behind this statement is that more than 90 % of people
are not aware of using toilet though there are modern toilets in few households. The
nearest health post is located in Nyadi Bazaar which is not in satisfactory condition
because of unavailability of basic medicines in sufficient quantity.

12.5.6 Literacy
According to the census 2001, the literacy rate considering people of age above 6 years
is about 47 % in the project area. This figure is well below the national literacy rate of
53.7 %.

12.5.7 Ethnicity
The major ethnic group in the project area is Gurung followed by Chettri with population
weightages of 42.1 % and 19.3 % respectively. The other ethnic groups are Tamang,
Brahmin, Kami, Damai, Newar each with 18.6 %, 5.3 %, 5.6 %, 4.5 % and 1.6 %
respectively.

12.5.8 Land Holding

According to IEE report, 16.7 % households in the project area hold less than 2 ropanis
of land. Similarly, 28.09 % HHs have less than 4 ropanis and 21.88 % HHs have 20 – 60
ropanis of land.
12.5.9 Water Use
There are no other water uses above the intake and in between intake and powerhouse
as well and the Siuri SHP is the sole water user from the Siuri Khola in the project area.

12.5.10 Historical Sites

There are no historical, archaeological, religious and cultural important sites in project
influence zone.

12.6 Potential Impact and Mitigation Measures

IEE study of the project area conducted by Bojini Company (P) Ltd. identified the
following list of potential impacts. In order to eliminate and minimize the adverse impact
on the physical, biological and socioeconomic and cultural environment, various
pragmatic mitigation measures have been proposed for construction and operation
stages.
Table Environmental Study-4: Initial Assessment of Major Environmental Impacts and
Mitigation Measures for Siuri Khola SHP.
Physical Environment
Implementing
Phase Impact Mitigation Measure Cost
Agency
Construction

Impact on landuse due to  No practical Proponent N/A

construction/development of mitigation measure. and
different components and  Care shall be Contractor
facilities taken to minimize the
impact.
Impact on Water Quality  Avoid discharge Contractor Will be
of domestic wastes incorporated
and toxic wastes in main civil
such as used oil, contract
burned mobil,
grease, lubricants,
grouting chemicals
and additives on land
and water bodies.
 Provision of
adequate sanitation
facilities (such as
toilets, drinking
water, shower, etc.)
inside the camp site
and construction site.
Impact on air quality  Proper Contractor Will be
maintenance of incorporated
machineries and in main civil
equipments. contract
 Water sprinkling
over dusty roads.
 Impact on noise quality  Proper Contractor Will be
maintenance of incorporated
machineries and in main civil
equipments. contract
 Fitting of muffler
to all equipments.
 Avoid blasting in
the night.
Impact due to muck disposal  Reuse of muck Contractor Will be
and stock piling. in the form of incorporated
aggregate, road in main civil
maintenance and contract
land reclamation.
 Align road along
the penstock so as to
use the excavated
materials for road
construction.
 Haphazard
collection and
stockpiling of the
construction
materials and wastes
dumping will be
avoided.
Soil Erosion and Landslide  Construction of Proponent
retailing and gabion
walls to prevent
scouring of the river
bank especially u/s
and d/s of diversion
weir and tailrace
outlet.
 Stabilization and
appropriate bio-
engineering activities
such as tree and
grass plantation on
along the penstock
alignment.
 Bio-engineering
measures such as
turfing, direct
staking, brush
layering and
plantation to the
excavated earth
surface.

Operation

Impact on noise quality Periodic Proponent

maintenance of
electro-mechanical
equipments
Impact on river morphology  Bank protection Proponent
works along the river,
if required.
 Topography  No severe Proponent
impact expected.
Micro-climate in Reduced  No Practical NT
Flow Zone Mitigation Measure
Impact on Water Quality  No practical
measures

Biological Environment
Implementing
Phase Impact Mitigation Measure Cost
Agency

Construction

Impact on Vegetation due Minimize Proponent

to site clearance clearance of trees
and controlled
blasting to avoid
triggering of
landslides and
maintain rock
stability.
 Cash
Compensation to
forest users’ group.
 Compensatory
plantation.
 Bio-engineering
of degraded lands.
Impact on Wildlife due to  Proper Contractor Will be
construction activities maintenance of incorporated
machineries and in main civil
equipments. contract
 Manual works
to avoid blasting.
 Operation of
noisy equipments
limited during the
day time.
Impact on nearby forest  Accommodatio Contractor Will be
due to possible n to all migrant incorporated
encroachment by workers. in main civil
workhouse  Provision of contract
using kerosene or
LPG for cooking in
workers camp.
 Impose code of
conduct.
Impact on wildlife due to  Bio-diversity Contractor Will be
illegal hunting and conservation incorporated
poaching trainings to local in main civil
people and contract
construction crew.
 Impose code of
conduct.
 Impact on Aquatic Lives  Proper Contractor Will be
and their Habitat collection and incorporated
disposal of waste in main civil
materials. contract
 Controlled
fishing activities.
 High priority to
local people for
employment
opportunity during
construction.
Impact on nearby Forest  The project will Contractor Will be
due to Possible Forest fire develop and incorporated
implement the code in main civil
of conduct to all contract
concerned. It will
also include
provisions on
careful handling of
fire/ electricity in the
camps and work
place.
 All the workers
camps will be
constructed at the
safe distance from
the forest.

Operation

Impact on wildlife due to No practical NA NA

habitat fragmentation mitigation
measures.
Impact on wildlife due to  No significant NA NA
noise and vibration impact
Impact on aquatic life due  Release of 10 Proponent No extra cost
to reduction of flow in the % of water as required
dewatered zone environmental flow

Socio-Economic Environment
Implementing
Phase Impact Mitigation Measure Cost
Agency
Impact on existing  The project will Contractor Will be
Construction

infrastructures run its own Health incorporated

Care Center (HCC) in main civil
for the entire contract
construction period.
Impact on occupational  Warning Contractor 50000.00
health and safety system for blasting
works.
 Fencing high
risk construction
sites and provision
of signboards to
prevent accident
 Prohibition of
entrance without
permission into
hazardous areas.
 Provision of
first aid kits at each
of the working sites.
 Provision of
protection gears
such as boots,
gloves, helmets,
earplugs, muffs,
etc.
 Provision of
fire fighting gear at
vulnerable areas
and training to the
involved workers.
 Compensation
on loss of life or
impairment to
working abilities
due to accidents as
per GoN rules and
regulations.
Impact on social and  Priority to local Proponent
cultural values due to people for
presence of outside employment.
workforce.  Conduct
orientation program
Impact on law and order  Formulation Contractor Will be
situation due to presence of and imposition of incorporated
outside workforce strict code of into main civil
conduct. contract
Impact on women, children  Ensure equal Contractor Will be
and other disadvantage job/wage incorporated
groups  Prohibition of into main civil
child labor contract
Conflict between local and  Priority to local
immigrant workers labor for
construction works.
 Introduce
programs to
integrate migrant
workers to local
norms and values.
 Operation
Impact on local economy  Conduct Proponent Will be born
due to withdrawal of cash counseling program through
flow project
administration
coast
Impact on local inhabitants  Provide Proponent
due to release of water in schedule of
Rivers opening and
closure of the plant
to the local
inhabitants.
 Installation of
warning system.
 Notification by
different means
Source: IEE report

12.7 Cost of Mitigation Measures

Mitigation cost is estimated assuming two years of construction period of the proposed
project and also include some mitigation measure during operation phase. The
estimated cost for mitigation measures including compensation to land acquisition during
construction phase is NRs. 1135000.00 excluding land lease and land purchase.
Table Environmental Study-5: Preliminary estimate of Environmental Mitigation cost.
S. No. Title Amount (Rs)
1. Compensation to loss of tree (wood volume) 20,000
2. Land slide Protection 250,000
3. Solid waste Management 50,000
4. Site Clearance 25,000
5. Training on Biodiversity Conservation 1,00,000
6. Compensatory Plantation 40,000
7. Management on Compensatory Plantation 40,000
8. Toilet Construction 50,000
9. Drinking water Connection 100,000
10. Maintenance of low and order 50,000
11. Health and care 50,000
12. Agricultural Training 80,000
13. Business skill development training 40,000
14. Cottage Industries Development training 40,000
15. Miscellaneous 2,00,000
Total 11,35,000
12.8 Environmental Monitoring Plan

Nyadi Group (P) Ltd will have the prime responsibility for implementing environmental
monitoring plan. As the company is planning to start project construction immediately,
baseline monitoring will not be required. However compliance and impact monitoring will
be conducted in detail.

EMU will take the responsibility of monitoring of the mitigation and enhancement
measures implemented by contractor. Whereas the ES of the company will monitor the
mitigation and enhancement activities implemented by EMU. ES will coordinate with
stakeholders at central level whereas EMU will be responsible for coordination at the
project level.

ES will prepare quarterly and yearly monitoring reports during construction and operation
phases respectively and submit/distribute to the stakeholders for feedback. The
establishment and operation cost of ES and EMU will be borne by administrative cost of
the company.

12.9 Monitoring Mechanism

The Environmental Monitoring Plan (EMP) has been prepared for construction and
operation phase of the proposed project. The proponent will set out environmental
management requirements to develop procedures that ensure all mitigation measures
and monitoring requirements specified in this report. The EMP will actually be carried out
in subsequent stages of project implementation and operation.

Table Environmental Study-6: Total Monitoring Cost.

S.N Items Total cost

A Manpower Salary 22,20,000.00

B Office operation cost

1. Electricity cost 80,000.00

2. Water supply cost 50,000.00

3. Telephone/ Fax 50,000.00

4. Refreshment cost 50,000.00

5. Stationary cost 1,00,000.00

6. Transportation cost 1,00,000.00

7. Miscellaneous 50,000.00

Total 27,00,000.00
Note: This cost shall come under project management and supervision cost.
12.10 Conclusion & Discussions
Although there are some minor impacts in the project area, there is no adverse impact
which destroys the project environment. Rather the construction of the project shall make
the life of local people more prosperous in the future. The local people shall get benefits
from project besides reliable power supply. There will be road network developed and
maintained by the project. The nation can get reliable energy at the capital city itself. All
the impact can be managed with minimal cost implication to the developer.
 The Project has no significant socio-economic adverse impacts. Local people have
positive attitude towards the project implementation.
 On the basis of the Impacts as identified in this report and considering effective
implementation of mitigation and enhancement measures, it can be concluded that
the proposed Siuri Khola small hydropower project is environmentally sound with
minimal adverse impacts.
 The study has found that there would be very minimum adverse impact to the
existing environment due to implementation of the project. The study area does not
fall in any restricted areas, National Park, Conservation Area, Buffer Zone, historical
monuments, places of cultural importance.
 The duration of the impacts are short term mainly at the time of construction, and
those impacts could easily be minimized by protection measures as outlined above.
This IEE study is sufficient for the implementation of the proposal and further EIA in
not necessary as per EPR, 1997. Therefore, it is concluded that the project is
environmentally sound.
 The cleared land should be properly vegetated and afforested with indigenous trees
and shrubs.
 Spoils to be generated should be managed at the designated site. Majority of spoils
to be generated during excavation works should be used for access road gravelling
and compactions
 Support the local forest user group to establish nursery for required seedlings to
afforest the project area. This will also enhance to maintain the harmonious
relationship with the local people. Collection of forest products and hunting, trapping
and fishing by constructing worker should be controlled.
 Employment opportunity should be given priority to the local people on the basis of
their skill and interest.