TIMELINE
1974
The Himal Cement Factory, that previously occupied the site of the Chobhar dry port being built in Kirtipur Municipality in south of Kathmandu, was built as a gift from the German government. The government had acquired 285 houses in the Chobhar area for the Factory.
31 August 2000 (15 Bhadra 2057 BS)
After protests by locals over the pollution caused by the cement plant, a 5- point agreement was signed with the Environment Protection Struggle Committee, including for provision of fair compensation for the human and physical harms caused by the Factory during its operation. However, the government’s commitment for compensation never materialized.
2002
The Himal Cement Factory was closed due to the concerns about environmental pollution of the locals as well as the mismanagement of the company.
4 January 2006 (13 Poush 2062 BS)
On a case filed by the representatives of the land acquired for the Himal Cement Factory, the Appellate Court issued an order to the District Administration Office of Kathmandu to conclude the process of their petition filed at the Office for the return of lands in line with the provision of the Land Acquisition Act, 1977. The Act states that if any land acquired is found unnecessary for the purpose for which it has been acquired, or there remains surplus land upon using for such purpose, it shall be returned to the expropriated landowner.
23 February 2007 (11 Falgun 2063 BS)
In response to the Government’s appeal against the Appellate Court order, the Supreme Court of Nepal issued a judgment endorsing the Appellate Court’s order. However, the court orders have not been implemented.
28 June 2013
The Nepal-India Regional Trade and Transport Project (P144335) was approved for a total of US$101 million equivalent, consisting of a US$69 million equivalent International Development Association (IDA) Credit, a US$30 million equivalent IDA Grant and US$2 million from the International Finance Corporation (IFC)’s South Asia Regional Trade and Integration Program. The expected closing date of the Project is 30 November 2021 as restructured in December 2019 to extend the closing date by 23 months from 31 December 2019. The Chobhar dry port is one of three sub-components under the Project with the cost of US$15.5 million.
13 October 2017
The Ministerial Cabinet meeting decided to acquire the Himal Cement Factory’s land to build the Chobhar dry port and an international exhibition venue over an area of more than 40 hectares, that it plans to directly link the dry port to Indian and Chinese railway stations. The dry port is expected to accommodate 350 trucks and 600 containers, and a 6-lane highway to access the dry port is also planned, linking it to Kathmandu’s Ring Road at Balkhu.
March 2018
A draft Environmental Impact Assessment (EIA) report for the Chobhar dry port is posted on the website of the Nepal Intermodal Transport Development Board (NITDB) – the government agency constructing the dry port.
Representatives of the affected communities, including the elected local officials who attended public consultations and hearings during the EIA stage of the dry port since 2016, had repeatedly raised the issues of return of land acquired for then Himal Cement Factory as well as outstanding liabilities of then Factory to its employees and its pollution impacts – that are noted in the draft EIA report.
However, the draft EIA report failed to address our demands. The report is only available in draft version to date on the NITDB website, which is very lengthy and technical. The draft report is not accessible to all the affected persons. The summary in Nepali contains little relevant information. Further, it is not even posted in the relevant Project page of the World Bank website.
July 2018
After an extended period of identification of available land and a subsequent delay in land ownership transfer, the Government awarded the construction contracts of the dry port to the Aashish joint venture and the Lumbini-Koinshi and Neupane joint venture.
August 2018
Affected landowners, indigenous Newa and local communities and groups, organized under the Chobhar Protection Committee, issued press releases and submitted memorandum to the Kirtipur Municipality and the NITDB. They voiced grievances related to historical land issues, salary claims of erstwhile employees of the Himal Cement Company Limited, and environmental and socio-cultural conservation demands.
On 22 August, 100 percent of the attendees of a public gathering organized by Kirtipur Municipality Ward No. 6 in presence of local intellectuals and renowned personalities regarding the suitability of the construction of the dry port in Chobhar expresse that it is not appropriate to build the dry port in the area.
Following grievances from the groups, works were stopped from August 2018 to January 2019. The World Bank informed the government that no disbursement would be made against this component until grievances of the communities were addressed and the process of grievance redressal documented. The Government constituted a 2-Tier Grievance Redressal Mechanism comprising two Committees – one at the Field (project site) Level and the other at the Ministry Level
The Committee provided another memorandum to the NITDB in October 2018 via local contractor – Sakchhi Ashish Construction Pvt. Ltd.
November 2018
A meeting was held between Nepal’s Ministry for Industry, Commerce and Supplies, the World Bank and the NITDB had decided to take the concerns of the locals into consideration. But the construction began without any concrete action to address their concerns.
January 2019
Nepal’s Prime Minister KP Sharma Oli laid the foundation stone for the dry port amid protests and opposition from the locals. At the time, at least fifty-two locals were arrested from the streets and their houses in a brutal police suppression of their peaceful sit-in and demonstration. Around 150 locals had gathered to oppose the government’s forceful move to construct the dry port in Chobhar that will destroy the place of historical, cultural and environmental significance of Chobhar area without fair acquisition of their land.
14 January 2019 (30 Poush 2075 BS)
The Chobhar Protection Committee submitted a letter to the Office of the Prime Minister and Cabinet of Ministers voicing their opposition against the dry port.
February 2019
The Chobhar Protection Committee submitted a formal letter to the World Bank Country Office on 11 February informing of their demands in the context of the situation created due to police suppression at the inauguration event. The Country Office had earlier been served copies of various memoranda and complaints submitted to the concerned authorities, including the project implementing agency – the NITDB, on different dates via email as well as in person.
February 2019
Following the NITDB’s notices calling for submission of grievances with the dry port, the Chobhar Protection Committee submitted a complaint to the NITDB, which was resubmitted in April 2019. The grievances were also registered through Jal Binayak Community Forest Users’ Group and bodies of the affected communities by environmental pollution created by then Himal Cement Factory and erstwhile employees of the Factory as well as at individual levels by more than 700 affected persons
The complaint was also conveyed to the World Bank Country Office via email and in person as recently as in May 2019. On 27 February, the Bank personnel acknowledged and responded to the complaint stating that our concerns have “been forwarded to the Project Coordination office, Ministry of Commerce, Industry and Supplies for review and respond”.
October 2019
The NITDB organized a public interaction on the Environmental and Social Management Action Plan, which was also attended by the World Bank officials and led to outpour of public anger for ignoring the demands to relocate the dry port.
27 November 2019 (11 Mangsir 2076 BS)
The NITDB issued a public notice to convey the decision of the Government on complaints submitted regarding the Chobhar dry port dismissing the concerns of the communities. For example, the notice states that the lands within the construction site of
the dry port as well as those outside the constructions site had been acquired for the Himal Cement Factory while further investigation was ongoing in relation to complaints regarding lands. However,
there has not been any concrete action regarding our demands for the return of those lands.
25 April 2020
The Chobhar Protection Committee filed a Request for Inspection with the Inspection Panel – the independent complaint mechanism of the World Bank – detailing their concerns and opposition to the dry port. They alleged failure to uphold free, prior and informed consent of the affected communities – predominatly indigenous Newar – for the project, among other violations, and thus called on the Bank to immediately stop disbursement of budget as well as all construction activity and adopt an alternative plan for the dry port. The Panel acknowledged the receipt of the Request on 30 April.
27 May 2020
The Inspection Panel registered the Request for Inspection.
24 June 2020
Letters were sent to the Executive Directors of the World Bank Group urging suspension of the financing of the Chobhar dry port until another suitable location for it can be found while the Inspection Panel proceeds with the eligibility assessment.
26 June 2020
The World Bank management response to the Inspection Panel on the Request.
22 September 2020
The World Bank Board of Directors approved the Inspection Panel’s request to postpone its recommendation on whether to investigate the project until four weeks from the date that Bank missions to Nepal were reauthorized and national travel restrictions that would inhibit the Panel team from visiting the project area had been lifted. After initially trying to conduct its eligibility review virtually due to COVID-19-related travel restrictions, the Panel noted the complexity of the case and the need to conduct a field visit to be able to make its recommendation to the Board.
29 November to 5 December 2021
After the COVID-19 situation improved in Nepal and Bank rules allowed the Inspection Panel to travel, a Panel team visited Nepal to further inform its eligibility assessment. During its visit, the Panel met with the Requesters and their representative, other affected community members, Bank project staff and officials of the Nepalese government.
10 January 2022
In its Report and Recommendation to the World Bank Board of Directors, the Inspection Panel acknowledged both the serious concerns of the Requesters and weaknesses in the project’s consultation, disclosure and stakeholder engagement processes. However, regretfully, the Panel stated it did not find sufficient grounds to recommend an investigation. It based that decision on its assessment of the situation and considering (i) the lack of a plausible causal link between the project and the harm alleged in the Request regarding historical grievances relating to land, pollution and labor concerns at the former cement factory, and (ii) the application of Bank policies in relation to the assessment of project impact on cultural assets and indigenous people, as well as to the design and implementation of mitigation and enhancement measures.
25 January 2022
The World Bank Board approved the Inspection Panel’s recommendation not to investigate the project and the process was deemed complete.
5 April 2022
Nepal’s Prime Minister Sher Bahadur Deuba inaugurated the dry port within heavy security presence due to opposition of the locals against the dry port.
June/July 2022
The dry port attracts few traders raising questions over its viability – an issue that was raised by the local affected communities throughout their opposition to the project. Challenges for the dry port include lack of its connection to the Kathmandu-Terai/Madhesh Fast Track Expressway – another contentious project in the south of Kathmandu. Government commits to look into the problems.
2023-24
In November 2023, TransNepal Freight Services wins the contract to operate the Chobhar Dry Port for five years under a private-public partnership model. The company quoted the minimum lease amount of NPR 28.8 million for management and operation of the facility built with a NPR 1.54 billion loan from the World Bank. The Nepal Intermodal Transport Development Board, which oversees management of Inland Clearance Depots (ICDs) for facilitation of Nepal’s trade, entered into an agreement with the company to entrust the port to it in March 2024.