TIMELINE

August 2009

Nepal Electricity Authority submitted the Environmental Impact Assessment (EIA) report for the construction of Tanahu Hydropower Project (THP) (then known as the Upper Seti Storage Hydroelectric Project) to the Government of Nepal. The Project – located 150 km west of Kathmandu on the Seti River near the town of Damauli, the district headquarter of Tanahu district – is planned as one of the biggest storage type hydropower projects in Nepal to date with installed capacity of 127 MW. It will build a 140 m high dam to create a reservoir with a total surface area of 7.26 sq. km. The reservoir will extend about 18 km along the Seti River inundating the low-lying lands along the river up to the elevation of 415m above sea level at the full supply. An underground powerhouse will be built approximately 6 km (along the river course) downstream of the dam site.

The Project will directly affect Vyas municipality near Damauli, which is a major urban settlement and eight Village Development Committees (VDCs) – Bhimad, Chhang, Jamune (Bhanjyang), Kahu Shivapur, Kotdarbar, Majhkot, Pokhari Bhanjyang and Rishing Ranipokhari. The reservoir area of the Project now falls within Vyas and Bhimad municipalities and Rishing and Myagde rural municipalities after the recent restructuring of local governments.

According to the EIA, the lower reservoir, approximately 15 km Seti River stretch from the dam site to Geruwatar, has limited habitation with forested, narrow gorges and steep cliffs. The upper reservoir, approximately 12 km Seti River stretch from Geruwatar to Bhimad Bazaar, is relatively flat and spread out with fertile stream alluvial areas, scattered settlements and the semi-urban Bhimad Bazaar community at its far end.

The EIA identified 838 households as Project Affected Families, whose land or property is acquired temporarily or permanently due to the project structures, facilities and reservoir inundation. Among them, 86 households were from the inundation and risk zone of the reservoir area and considered as relocatees.

2010

Nepal Electricity Authority completed an Initial Environmental Examination (IEE) for the associated (Damauli – Bharatpur 200 kV) Transmission Line component of the Project, which was approved by the Government in April.

September 2010

Asian Development Bank (ADB) provided a grant[1] to the Government of Nepal to conduct the detailed engineering study of the Project and to undertake a technical assistance to complete the required due diligence of the Project to meet the requirements of ADB Safeguards Policy Statement 2009. The due diligence reports for the Project included the Government approved EIA (2009) and the Government approved IEE of the associated transmission line (2010), the IEE for a rural electrification component as well as the updated 2012 Environmental Addendum to the EIA 2009 and IEE 2010.

The previous generation capacity of the Project quoted in EIA 2009 was 127 MW and it was upgraded to 140 MW in 2012 during the detailed engineering study. The capacity increase did not change fundamental design features but it enhanced operational efficiency of the plant and resultant maximization of power supply. Therefore, overall environmental impacts pertaining to reservoir area, length, water level, gross storage capacity, dam height, tail water level were unchanged.

2012

Tanahu Hydropower Limited was established as a subsidiary company of Nepal Electricity Authority (NEA) for constructing the Tanahu Hydropower Project.

December 2012

Nepal Electricity Authority (NEA)/Tanahu Hydropower Limited (THL) provided an updated Environmental Addendum for the Project. Besides the hydropower plant, the Project combines construction of the associated new 220 kV double circuit 37 km long transmission line to evacuate the generated power to the new Bharatpur substation. Additionally, the Project includes two other components to electrify 18 VDCs through its Rural Electrification Program and a reform and restructuring plan for the NEA, the national utility.

The THL is the executing agency for the hydropower component while the NEA will be the executing agency for the transmission and rural electrification components.

A draft Resettlement and Indigenous Peoples Plan (RIPP) was also prepared, in which the total number of affected households was decreased to 758 from 838 as identified in the EIA. As per the draft RIPP, “indigenous populations in the project areas were directly consulted by the NEA/THL and consultants to confirm that they do not claim any project-affected land or their own land or the land they cultivate without title as their ancestral domain…the Project will have no impact on their cultural identity, survival and cultural resources. The surveys further found that sources of livelihood, family types and educational attainment among Janajati and non-Janajati households are similar, and the former do not display any significant social or economic trait that would distinguish them from the latter, except in their cultural identity and national identification as Janajatis. The Janajati households that will have to physically relocate because of the Project, have opted for receiving cash compensation at replacement cost through negotiated settlement. No physically displaced household (including affected Janajati households) wanted land-for-land that they lose to the Project.” [2]

2013

ADB approved the loan agreement for the Project for an amount of USD 150 million (30% of the total Project cost) on 21 February.

The loan agreement for the Project for an amount of USD 184 million (36% of the total Project cost) was signed with Japan International Cooperation Agency (JICA) on 13 March.

On 7 May, the loan agreement with European Investment Bank (EIB) was signed for an amount of USD 70 million which was further increased to USD 85 million (17% of the total Project cost).

The Government of Nepal and/or NEA would bear the remaining 17% of the total Project cost amounting 86 million USD.

The estimated total cost of the Project is US$ 505 million.^[3]

June 2015

Tanahu Hydropower Limited signed contract agreement with M/S Lahmeyer International in association with Manitoba Hydro. International, Canada as the Project Supervision Consultant for the THP for a period twelve years, including assistance in pre-construction activities, six years of project construction and project operation and maintenance.

2016

The Project affected communities came together under two committees, namely the Tanahu Hydropower Directly Affected Area Concerned Committee (Tanahu Jal Widhyut Pratachhya Prabhawit Kshetra Sarokar Samiti) and Directly Concerned Inundation Area Conservation Committee (Pratachhya Sarokar Duban Kshetra Sanrachhyan Samiti) to submit a memorandum with 26-point demands to the THL/NEA, the concerned local and national government authorities and parliamentarians with copies of the memorandum sent to political parties, financiers and media between November and December.[4] The memorandum called for the following, among other demands:

• Sharing of Project information, including the draft RIPP (2012) as well as ADB safeguards and government policies;
• Conduct of meaningful consultations with the affected communities and establishment of local consultation forums;
• Representation of the affected communities in compensation determination committee and determination of compensation at the rate of NPR 5 lakhs per anna for all land, including to those without legal title but lawfully utilizing the land;
• Conduct of re-survey for affected lands that were left out;
• Necessary arrangements for the rest places, cremation sites and other common properties in the affected area; and
• Provision of one house one employment for the affected families and free shares and electricity of the Project.

In response, the District Administration Office had called for a meeting with the two Committees on 23 November regarding determination of compensation of the affected properties but that did not result in any agreement. The Committees nonetheless received some positive responses from Nepal’s Energy Ministry during the submission of the memorandum on 18 December in Kathmandu.

11 January 2017

THL wrote a letter to the Chief District Officer, which included its responses to each of the 26 demands of the Committees.

10 February 2017

The two Committees issued a press release restating their major concerns. They expressed their disagreement with the compensation that they stated had been determined arbitrarily without participation or consent of the affected people despite preliminary discussions on the issue. They also alleged that the determination of compensation has been discriminatory for similar nature of lands affected by the Project.[5]

16 February 2017

THL sent a letter regarding the formation of Local Consultative Forums (LCFs) to disseminate Project related information, to manage grievances at the local level, to make contacts between the affected families and the Project and to properly invest and utilize the amount of compensation and indemnity.

19 February 2017

The Committees registered a complaint against the determination of the compensation at Nepal’s Home Ministry and submitted their memorandum to the National Human Rights Commission urging protection and protection of their rights in the context of the Project.

22 February 2017

The Committees staged a protest rally and assembly participated by at least 300-350 people at the district administration against the decision of compensation and other impacts of the Project and demanded land-for-land and house-for-house compensation, annulment of discriminatory compensation determination, respect for ADB safeguards and conduct of meaningful consultations for the implementation of the Project, among others.

12 March 2017

THL sent a status update and comments on the 26-point demands directly to both Committees with a request to provide more details and continued close discussions with the two Committees.

14 March 2017

The Committees’ representatives met with the Minister of Home Affairs and the Minister of Energy separately. At the meeting, the Secretary of the Home Ministry had said provisions in the ADB and EIB Safeguard policies will be implemented and asked the THL to facilitate revision of the compensation rates. The Minister of Energy also gave assurances to provide compensation to those who do not have legal land ownership but had been living there since generations.

15 March 2017

The Committee representatives also met with Nepali Congress leader from Tanahu, Ram Chandra Paudel, who discussed with them the need to implement the Project properly to prevent further delay as the Project had already been postponed repeatedly in the past.

The representatives also had a meeting with the THL Managing Director, Pradip Kumar Thike and other personnel, who responded positively to the demands of implementation of the ADB and EIB Safeguards in the Project and of meaningful consultations with and representation of the affected communities.

27 March 2017

The Committees’ representatives met again with the THL Managing Director and ADB representatives at the THL’s office in Kathmandu. At the meeting, the THL verbally proposed additional allowances, the Committees’ representatives stressed on having their 26-points demands addressed.

April 2017

A community-led research conducted among the Project affected families in April found that 75% of them were not consulted during the planning of the Project and 84% had not received any compensation for home, land or other resources, among other findings.

June 2017

The Committees, on 4 June, wrote to the THL expressing concerns on the formation of Local Consultative Forums (LCFs) as local grievance mechanism for the Project. While they welcomed the Project’s plans to form such mechanism, which was one of their demands, they criticized the forum for lack of adequate mandate, including on determination of compensation, and effective representation of the communities.

In response to the letter, in a meeting with the Committees’ representatives on 29 June, the THL clarified that the compensation distribution was under the purview of the Government authorities and hence not within the decisions of the company. Meanwhile, the meeting decided that the company and the affected communities would work together to use the social benefits funds of the project.

28 October 2017

Following continued negotiations between the THL and the two Committees, the Committees signed a 21-point agreement covering 26-point demands, whereby the THL agreed to provide cultivation disruption allowances considering 5-year potential disturbances to the affected families.

7 May 2018

A group of people affected by project, who were not satisfied with the 21-point agreement, including the compensation and other allowances, formed a new committee called “Directly Inundation Affected Peoples Collective Rights Protection Committee” (Pratachhya Duban Pidit Samuhik Punaradhikar Sanrachhyan Samiti) (hereinafter “the Committee”). The Committee, comprised of 31 directly inundation affected families of Paltyang and Rishing Patan areas and six joint owners of a land plot, submitted their 12-point demands in a memorandum to the district authorities and local and provincial governments as well as the THL office in Tanahu. While there was an immediate meeting between the THL representatives and the Committee but that did not bear any fruit.

July 2018

On 17 July, the Committee filed a complaint with the ADB’s Accountability Mechanism, which was forwarded to the Office of the Special Project Facilitator (OSPF) on 23 August. The OSPF held a fact-finding mission from 1 to 5 October to better understand the concerns of the complainants and the THL and their willingness to resolve the issue. During the discussions, the OSPF found that both the complainants and THL were willing to attempt to work and resolve the issues amongst themselves. Thus, the ADB project team and the OSPF jointly prepared a draft course of actions to address the issues of the complaint. As a result, on 17 October, the OSPF declared the complaint ineligible and informed the complainants that they could reengage the OSPF if their issues remain unresolved.[6] The Committee expressed their dismay at the determination of ineligibility of the complaint by the OSPF. They stated that they signed on to the agreement on the course of actions without fully understanding them and had disagreements on the proposed actions, particularly the individual household survey by the THL.

October 2018

More than two and a half years after initiating the procurement process, the THL appointed Co-operativa Muratori e Cementisti (CMC) di Ravenna of Italy and Sinohydro Corporation of China for two packages of construction of the THP. By then, the THL had reportedly completed pre-construction works, including an access road to the project site, also made compensation payments to around 95 percent of the landowners, whose lands were acquired for the project.[7]

November 2018

An updated Resettlement and Indigenous Peoples Plan (UpRIPP) was published, and the total number of affected households was again decreased to 547. The number of Project affected households consistently decreasing since the first EIA raises questions on the reliability of the studies undertaken for their identification while the UpRIPP attributed the decrease to the review of the Project design that led to a significant reduction of the affected area by about 23 ha in reservoir area as well as to the demographic changes in the affected areas over the years.

As per the UpRIPP, the reservoir of the Project stretches some 25 km along the Seti River and majority – 73% of the Project affected people are indigenous Janajatis (79% of them Magars while Gurungs and Newars made up 11% and 10% respectively). 3% of the affected households are Dalits.

Similar to the draft RIPP, the UpRIPP states that

1. The Project will have no impacts on the indigenous cultural identity, survival and cultural resources, livelihood systems; nor on their cultural territories or ancestral domains.
2. The family types and the educational attainment among the affected indigenous households and non-indigenous affected households are similar. The affected indigenous households have no significant social or economic trait that would distinguish them from other affected households, except in their ethnic identity and national identification.
3. Affected indigenous households will experience the same adverse and favorable impacts, have opted for the same compensation and mitigation measures, have actively participated in the same way in the Project’s surveys, consultation, grievances and other activities and have access to same entitled mitigation and other measures as other affected households.[8]

The affected indigenous households have continuously disputed above findings of the Project, including that the Project will not have any impact on their culture and ancestral domain or that they opted for financial compensation. They say that they were never provided the option for land-for-land resettlement.[9]

25 December 2018

THL signed a contract agreement with KEC International Limited, India for Damauli – Bharatpur 220 kV Transmission Line component (Package 3) of the Project and the construction works progressed accordingly.

2019

In meetings of the THL and the ADB representatives with the Committee in the first quarter of 2019, they informed the Complainants about the Local Consultative Forum and provided them with copies of the summary of the UpRIPP in Nepali[10] and Magar languages – however, the Magar translation was not in the local dialect. On 31 March 2019, the Committee wrote to the THL and the ADB management stating that the consultations were not adequate and meaningful, they did not agree with the determination of compensation, they would like the full RIPP in understandable form, and they did not consent to further household survey process and demanded collective consultation.

In March, THL cancelled the construction agreement with the Italian contractor after the company did not start the work as per the agreement. A new tender was called for the first package of the THP, including construction of its dams, head works and two temporary diversion tunnels to divert the river.

In a meeting with the Committee at Paltyang on 2 November, the THL representatives repeated their earlier stance regarding the determination of compensation that it is undertaken by the Chief District Officer-chaired Compensation Determination Committee as per Nepal’s Land Acquisition Act, 2034 BS and that it was beyond the authority and scope of the THL to negotiate the rates of compensation. They offered some possible additional assistance for resettlement/compensation, including for loss of trees/plants and development benefits in the village, which was not provided in writing. They also presented the option that if the Complainants collectively purchase land to establish their own community with the compensation, the THL would assist in developing infrastructures such as road, electricity, drinking water, health, post, etc. in the new resettlement area. However, this was not acceptable to the Complainants, who stated that the responsibility for identifying land-for-land or any other solution should be with the THL, and not with the affected people since they do not have the resources needed to do so and the Project should be responsible for addressing its adverse impacts and not the impacted households.[11]

In December, the Committee conveyed their concerns with the Project, particularly the lack of fair and adequate compensation, in their meetings with the representatives of the Ministry of Energy, Water Resources and Irrigation and the Ministry of Home Affairs. They informed the officials of the Ministries of what they view as significant discrepancies in compensation determination and distribution. At the meeting on 25 December, the Minister of Energy, Water Resources and Irrigation immediately called the THL Director and discussed the issues. Considering the particular vulnerability of the affected families associated in the Committee, the Ministry also responded positively about increasing compensation or relief for them but stated that the Ministry of Home Affairs should decide on it while they reiterated the demand for land for land compensation. On the same day, they also registered a complaint on their concerns with the Project with Nepal’s National Human Rights Commission. There has not been any concrete response from the Commission on the complaint till date.

Similarly, on 27 December, they also met the Secretary of the Ministry of Home Affairs, who immediately called the Chief District Officer (CDO) of Tanahu – the main official responsible for determination of compensation. The Secretary followed up on the decision of February 2017, when the then two Committees had submitted complaints about lack of fair and adequate compensation. However, the CDO expressed ignorance about the decision and could not find the relevant communication but has not written to the Ministry informing the same. There has not been any update on this matter since.

February 2020

The Committee again filed a complaint with the ADB’s Accountability Mechanism, which was forwarded to the Office of the Special Project Facilitator (OSPF) on 11 February. The complainants called for land’ and ‘house for house’ compensation; re-survey of land left out during the ‘Detailed Measurement Survey’ of the project, and free, prior and informed consent in the project process, among their ten demands.

The complaint was also submitted to the European Investment Bank- Complaint Mechanism (EIB-CM) on the same day.

On 18 February, the OSPF acknowledged and registered the complaint and declared the complaint eligible for problem-solving process on 20 February.

21 February, the EIB-CM also acknowledged receipt and confirmed the admissibility of the complaint. 

March 2020

A new tender for the first package of the THP, including construction of its dams, head works and two temporary diversion tunnels to divert the river, was reissued for the third time after the ADB disqualified the bids two times for not meeting criteria of their procurement guidelines.

16 April 2020

The EIB-CM concluded its initial assessment of the complaint and issued assessment report both in English and Nepali recommending a collaborative resolution process between the Complainants and the Promoter (the THL) facilitated by EIB-CM and the OSPF.

16 November 2020

After intensive consultations with the Committee, the OSPF also published its Review and Assessment Report in English, Nepali and Magar languages. It proposed to resolve the complaint through the problem-solving process, including conduct of two independent studies on (1) Indigenous Peoples’ socio-cultural-economic study and (2) land valuation study in order to fill information gaps and clarify the facts relating to differences of opinions between the stakeholders – the Complainants and the THL and government agencies, followed by more consultations and joint meetings. The stakeholders agreed to participate in the process and the studies were proceeded.

Indigenous Women’s Legal Awareness Group (INWOLAG), Community Empowerment and Social Justice Network (CEMSOJ), International Accountability Project (IAP) and NGO Forum on ADB are recognized as NGO advisors to the Complainants in both the EIB-CM and the OSPF reports.

In late 2020, extraction of sand/stone aggregate began at large scale in Badarkuna area along the Seti riverbanks where many of the Complainants have their lands that fall in the inundation. The tender for extraction was issued by Bhimad Municipality that claims it only issued tender for extraction in public lands in the riverbank. However, the extractors also destroyed the lands of the Complainants for access roads to the river and dumping the aggregate. The Committee leaders have since consistently opposed the extraction with the contractors and the local authorities but their opposition has been ignored.

28 December 2020

Five additional Magar families and eight Dalit families living on the lands adjoining the inundation area separately sent similar letters to the THL and the local and district government authorities in Tanahu. They raised concerns about the lack of information sharing and meaningful consultations with them about the Project. They called for, among others, dissemination of the Project information in understandable form to them and their participation in the decision-making; review of the assessments of impacts on their lands and livelihoods as well as their common properties and cultural resources; their meaningful participation in the impacts assessments and fair compensation of any loss to their lands and livelihoods; sharing of benefits of the Project with them.

While the THL office in Damauli did not officially acknowledge the letters of the families, they were able to register their letters with the District Administration Office on the same day. However, there was not any response from the THL and the District Administration.

22 March 2021

THL signed a contract with Song Da Corporation, Vietnam-Kalika Construction Pvt. Ltd, Nepal (Joint Venture) for the construction of the headworks, including dam (Package 1) of the Project and the construction has progressed.

May-June 2021

Given the silence of the THL to the letters/issues of the additional Magar and Dalit families, they were emailed as complaints to the ADB’s Accountability Mechanism and forwarded to the OSPF on 26 May. The complaints were acknowledged and registered on the same day. However, the complaints were declared ineligible for investigation on 3 June and forwarded to the ADB management for problem-solving.[12] Accordingly, the concerned ADB personnel from regional and Nepal office, on 30 June, discussed with the representatives of the Magar and Dalit families and their NGO advisors to understand the issues and concerns of the families and plan the ADB’s responses to their requests. There were follow up discussions online due to the COVID-19 pandemic-induced travel restrictions.

3 June 2021

On 3 June, the additional Magar and Dalit families filed the same complaints with the EIB-CM. On 16 June, the EIB-CM confirmed the admissibility of the complaints and noted the allegations to include: 1) Lack of adequate information sharing, meaningful consultation, and participation; 2) Lack of compensation; 3) Inadequate grievance redress mechanism; and 4) Lack of proper consideration of Indigenous Peoples’ vulnerability and rights (including their free, prior and informed consent).

By June 2021, under the second package of hydromechanical and electromechanical works of the THP, the Sinohydro Corporation completed the tunnel construction of the Project.

22 August 2021

Additional Magar, Dalit, and Newar households requested to join the second set of complaints presented to the EIB-CM bringing the total number of households to 26 (15 Magar households, 1 Newar household and 10 Dalits) (hereinafter “the new Complainants”). The EIB-CM included the additional households in the second complaints.

31 August 2021

The earlier Complainants (the Committee) wrote to the OSPF raising concerns about its hiring process of the independent expert for the land valuation study without their consent and the rushed manner in which the field visit and consultation for the study was proposed in July 2021, among other things. They called on the OSPF to respect their FPIC in each step and throughout the process of the study. The OSPF had commissioned Sandip Kumar Deb from India as the expert for the study without consulting with the Committee, which the Committee hesitantly agreed to but the Committee was also given too short notice for the first field visit of the expert to meet with the Complainants.

Earlier, the OSPF had commissioned Shyamu Thapa Magar as the independent expert for Indigenous Peoples’ socio-cultural-economic study upon recommendation of and consultation with the Committee and the NGO advisors. The Committee has appreciated the works carried out by her in a manner of proper consultation and understanding of indigenous traditions and with respect to the FPIC of the Complainants.

September 2021

Late monsoon causes number of landslides affecting the lands and lives of the earlier and new Complainants. The new Complainants living near the inundation area are even cut off from the nearest town due to absence of bridges in the local streams that were swollen up.

29 November 2021

Nepal’s Minister of Energy, Water Resources and Irrigation, Pampha Bhusal paid an inspection visit to the Project site. A following news report describes the progress made by the THP despite disruptions caused by issues in the selection of contractors. As per the news report, the hydropower plant is likely to come into operation in 2024 (three years later than it was planned).

December 2021

Til Bahadur Thapa, the Chair of the earlier Complainants’ Committee, reportedly received threat over a call from someone identifying himself as from the local administration for blocking the road in course of local protests against resumed extraction in the Baadarkuna inundation area. Earlier, Til Bahadur and others from Paltyang, together with the locals in the area (the new Complainants), had protested resumption of sand/stone extraction from the river affecting their lands and lives and blocked the local road. In response, the contractors had called police, who misbehaved with the protestors. The protestors had left the road blocked that day until the local government resolved the matter for which a field visit was discussed. However, the field visit has yet to happen and the contractors backed by the police have reportedly broken the padlock placed to block the road. Til Bahadur has informed that he feels unsafe with the goons deployed by the contractors in the area.

The earlier and new Complainants have repeatedly called on the local authorities to halt the extraction in the area affecting their lands and lives but their verbal and written pleas have been ignored. They allege that the extraction is happening in the area as it falls within the inundation area of the Project, particularly after a letter dated 31 January surfaced whereby the THL urged the Bhimad Municipality to provide necessary assistance for supplies of aggregate to its sub-contractors through a local aggregate industry. The THL however claims that the aggregate industry is not extracting materials from Badarkuna area and that it has no authority or influence over such extraction activities.

13 December 2021

The EIB-CM finalized its Initial Assessment Report in English, Magar and Nepali on the second complaints of the new Complainants after the virtual meetings with the Complainants, their NGO advisors, and the Promoter. The consultations with the Complainants were also carried out on site in Nepali and Magar.

Pending the Project’s decision on the definition of the buffer zone for the inundation area that will partly address the key concerns of the new Complainants, the EIB-CM deferred its decision on further work (either in the form of a compliance review or a collaborative resolution process) on the complaints until February 2022. The works on the buffer zone have been consistently delayed.

January-February 2022

In response to the second complaints forwarded by the OSPF to the ADB management, the concerned ADB personnel from the regional department and Nepal office, together with the THL personnel, carried out field visit to and discussions with the new Complainants on 20 and 21 January in Rishing Patan. There were discussions on the demands of the Complainants, particularly in relation to the buffer zone as well as GPS mapping of the lands of the Complainants.

In follow up meeting on 8 February, the ADB representatives discussed possible resettlement options with the new Complainants. On 9 February, the THL representatives, including the Managing Director Kiran Kumar Shrestha, met with the Complainants to present their responses of the THL to the demands of the Complainants, including for regular consultations and information sharing, studies for buffer zone determination and impacts assessment therein, etc. The THL strongly objected to the participation of NGO advisors in the meeting and sought to discuss directly with the Complainants that led to uneasy situation at the meeting.

In a community meeting on 11 March, the THL representatives further shared a set of agreed actions with timeframe with the Complainants in line with the THL’s responses to their demands. As part of the action plan, regular information sharing and consultations and community development activities with the Complainants have been progressing.  

March-April 2022

The OSPF representatives shared the final drafts of the reports of the independent studies it commissioned at a meeting with the earlier Complainants (the Committee) in Paltyang on 3-4 March.

At the meeting, the Social/Indigenous Peoples Expert, Shyamu Thapa Magar presented the report on “Socio-Economic and Cultural Household Survey Conducted with Magar People Directly Affected by Inundation Due to the Tanahu Hydropower Project” to the Complainants in person. The report was prepared following intensive discussions with the Complainants, including a household survey and focused groups discussions with women and youth, over three field visits during 2021. The report detailed their cultural profile as indigenous Magars, demographic information, their socio-cultural and economic aspects, including registered and unregistered land holdings, sacred sites and ritual places in the inundation area, as well as the economic, social and cultural impacts on them due to the inundation. A list of recommendations, including replacement lands for the Complainants, were made in the report.

Earlier, on 21 January, during the previous visit by the OSPF representatives, the Complainants had deferred agreeing to the findings of the socio-cultural-economic study report until the report of the land valuation study was disclosed to them and concrete actions were taken by the THL and the ADB with the local and/or national governments to raise concerns against the continued extraction of sand/stone aggregate along the Seti riverbank, that was affecting their lands in the inundation area. The OSPF had then deferred sharing the land valuation study report with the Complainants citing serious concerns of the THL on the report.

At the meeting, an OSPF representative also shared the “Draft Independent Land Valuation Survey Report around the Tanahu Hydropower Project Area” submitted by the Land Valuation Expert, Sandip Kuma Deb. The report was based on interviews, focus group discussions and community consultations over three field visits during August, October and December 2021. The report used international valuation standards to determine replacement value and cost of registered and unregistered lands of the Complainants. The replacement value of the registered lands was determined at a much higher figure than the compensation offered by the authorities. In the preface to the report, the OSPF noted that “the THL did not agree with the findings of the report, specifically on the valuation procedure and principle adopted as land valuation was beyond its jurisdiction”. THL nonetheless committed to improve the compensation for the Complainants, such as factoring inflation since the determination of the compensation and other special allowances for them, as well as to explore the possibility of identifying suitable replacement lands for the Complainants.

At the same time, the Complainants also disagreed with the valuation of their titled and untitled lands in the report although the valuation for titled lands was higher than the compensation rates offered to them. They raised concerns that the OSPF did not respect their FPIC in deferring the disclosure of the report and doubts if the original report had been changed.

Further, at the meeting, the OSPF representative shared the THL responses to the Committee’s demands and further issues as identified in the socio-cultural-economic study. The Committee stated they would provide written reply to the responses while agreeing to the OSPF’s proposal for joint meetings with the THL to move ahead with the problem-solving process.

On 20 March, the THL also reportedly wrote to the Bhimad Municipality urging stoppage of illegal extraction activities in the Seti riverbanks and on the lands notified for acquisition for the Project citing complaints from the communities.

15 April 2022

In a letter to the OSPF and the EIB-CM on 15 April, the Committee registered their disagreement on the land valuation study report, including on the valuation procedure and sharing of the report. They sought to discuss the land replacement option as noted in the report as the way ahead.

The Committee, in another letter emailed to the OSPF and the EIB-CM on the same day, also raised many concerns in the responses made by the THL to the Committee’s demands. They reiterated that the replacement of their lands affected by the project within a defined timeframe was their primary demand to move forward.

20 April 2022

The new Complainants sent their written reply to the responses and action plan of the THL to their demands. While they noted that many responses and actions were positive, including for additional consultations and assessments, they called for immediate determination of the buffer zone and impact assessments by August 2022, commitment for compensation at replacement costs, and application of FPIC in the Project’s processes concerning them, among other things.

6 May 2022

EIB-CM issued an Addendum to its initial assessment report of 13 December 2021 on the second complaints. While noting the actions undertaken by the THL for information sharing and consultation, community development programs and buffer zone demarcation, the EIB-CM proposed a collaborative resolution process through dialogue for lack of compensation for non-titled and community land users in the reservoir area. The Complainants and the THL agreed to the proposal.

June 2022

EIB-CM representative carried out their first field visit to the communities of the new Complainants and discussed about initiating the collaborative resolution process on 2-3 June in Rishing Patan. The representative also paid a brief visit to the earlier Complainants (the Committee) in Paltyang on 4 June.

July 2022

The EIB-CM organized the first joint meeting of the new Complainants and the THL representatives in Pokhara on 11-12 July in Pokhara as part of its collaborative resolution process.

The OSPF organized the first joint meeting of the earlier Complainants (the Committee) and the THL representatives in Pokhara on 21-22 July as part of its problem solving process.

NGO advisors and ADB representatives attended the meetings as observers. THL has continued to raise objections – directly or indirectly – about the role of NGO advisors in the meetings.

October 2022

The EIB-CM organized second joint meeting of the new Complainants and the THL representatives in Pokhara on 11-12 October in Pokhara as part of its collaborative resolution process. The meeting discussed progress in the community development efforts supported by the THL while the key issues of buffer zone determination and compensation for Project impacts on the lands and houses of the complainants were deferred.

The OSPF organized the second joint meeting of the earlier Complainants (the Committee) and the THL representatives in Pokhara on 13-14 October as part of its problem solving process. The THL presented proposal for revised compensation rates of the lands of the Complainants. In that, the THL also offered exploring land for land compensation option for the titled lands but with various conditions and not for untitled lands, which was not acceptable to the Complainants.

December 2022

Expressing continued concerns with the Project, the earlier complainants and the indigenous households
from the new complainants wrote to the ADB and EIB Board of Directors as well as the senior management of the ADB and JICA requesting suspension of remaining financing allocated for the Project until the Project makes concrete progress to resolve their grievances as follows:

1. THL explicitly commits to provide replacement lands or compensation at replacement value
   for our lands – titled or untitled – that will be acquired for the Project and to ensure
   application of FPIC in the Project’s processes concerning us in line with the Safeguard
   Policies of the ADB and the EIB;
2. THL makes concrete progress in identifying suitable replacement lands equivalent to the
   lands of the affected families of the Committee with meaningful participation of the
   Committee and take forward the land procurement process;
3. THL completes the process of definition of buffer zone to ascertain the impacts on the lands
   and settlements of the new Complainants at the earliest within a defined timeframe and
   with effective participation of the Complainants; and
4. THL supports the process of land registration for untitled lands that will be inundated by
   the Project and provides land-for-land compensation for the untitled lands as they have
   been traditionally used by the Magar indigenous community.

The ADB management and US Executive Director to the ADB responded to the letters from the communities and discussions are underway on their grievances and request.

January-June 2023

In consultations with the new Complainants, EIB-CM prepared a documentaiton on the untitled land claims of the Complainants both within and near the inundation area. The documentation was shared with the new Complainants during the joint EIB-CM/OSPF mission in the Project impact areas in Tanahu from 17-21 April 2022.

For the earlier Complainants, such documentation was prepared as part of the Socio-Economic and Cultural Household Survey commissioned by the OSPF. The THL had requested information on untitled lands from the Complainants while the Complainants were concerned that they wanted registration of their untitled lands, which the THL did not agree it could be responsible for.

During the mission, in dicussions with the EIB-CM and the OSPF and in meetings with the Complainants, the local and other authoritiesreportedly indicated non-availability of public lands for replacement of their lands that will be inundated resulting in continued deadlock between the Complainants and the THL and the Project.

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[1] Technical Assistance to Nepal for Preparing Hydropower Development for Energy Crisis (TA 7590) and

Grant for Detailed Engineering Study for the Upper Seti Hydropower Project (Grant 0215)

[2] Draft RIPP, para 6

^[3] http://thl.com.np/index.php?nav=projects

[4] CEMSOJ, Tanahu Hydropower Project affected communities submit 26-point memorandum to Energy Minister, 19 Dec 2016, https://cemsoj.wordpress.com/2016/12/19/tanahu-hydropower-project-affected-communities-submit-26-point-memorandum-to-energy-minister/

[5] CEMSOJ, ADB co-financed Tanahu Hydropower Project affected communities reject compensation, 11 Feb 2017, https://cemsoj.wordpress.com/2017/02/11/adb-co-financed-tanahu-hydropower-project-affected-communities-reject-compensation/

[6] Final Review and Assessment Report of the Special Project Facilitator on Complaint on Loan Nos. 2990/2991-NEP: Tanahu Hydropower Project, Sep 2020, para 11

[7] The Kathmandu Post, CMC Ravenna, Sinohydro get Tanahu hydro contract, https://kathmandupost.com/money/2018/10/02/cmc-ravenna-sinohydro-get-tanahu-hydro-contract

[8] UpRIPP, para 1-2, pp 1

[9] Conversations with the affected indigenous communities’ leaders in different occasions since 2016

[10] The Nepali or Magar versions of the UpRIPP are not available online. The THL website only contains version of the RIPP dated 2012 at http://thl.com.np/images/supportive_docs/5653THL.pdf.

[11] Final Review and Assessment Report, para 22; complaint

[12] https://www.adb.org/who-we-are/accountability-mechanism/complaints-receiving-officer/complaints-registry (point 21)