ADB_book_18 April.qxp - Himalayan Document Centre - icimod

Figure 10.5: Community Savings and Biodiversity Fundsin Protected AreasKNP = Khaptad National Park, KTWR = Koshi Tappu Wildlife Reserve,PWR = Parsa Wildlife Reserve, RBNP = Royal Bardia National Park,RCNP = Royal Chitwan National Park, RNP = Rara National Park,RSWR = Royal Suklaphanta Wildlife ReserveSource: Ministry of Forest and Soil Conservation recordsThese additional incentives and formation ofcommunity development groups have beeninstrumental in encouraging local people to improvenatural resources management, particularly soil andwater conservation.The Government has also initiated collaborativeforest management since 2003 in selected districts ofthe Terai with the objective of managing the foreststhrough the joint participation of users, local bodies,and the Government. The major stakeholdersinclude forestry organizations, particularly theregional forestry directorates and district forestoffices, local bodies such as district developmentcommittees and village development committees,and user groups. The Collaborative ForestManagement Manual (MOFSC 2004) provides forestablishing both “revolving funds” and“development funds.” The former will be utilized forthe commercial felling and transportation of forestproducts (timber and firewood), and thedevelopment fund will be used for developmentactivities. The Government has planned to replenishboth funds though donor assistance. Thedevelopment fund will later be converted to a districtforest sector investment fund and utilized forintensive forest management.The Government of Nepal has also developed amechanism to share the Collaborative ForestManagement benefits. Twenty-five percent of therevenue generated from the sale of timber andfirewood under the scheme will be deposited in thelocal fund and the remainder will go to the nationalconsolidated fund. Funds for local use will bedispersed by the District Forestry SectorDevelopment Coordination Sub-Committee, andsome portion of this fund will be set aside for theimplementation of the Collaborative ForestManagement scheme (MOFSC 2004).The Irrigation Policy 2003 acknowledgespeople’s participation in irrigation development,particularly the involvement of water usersassociations. The policy outlines the framework forcost sharing for the construction of irrigation canalsystems and also provides a framework forownership development (Table 10.3).The Irrigation Policy provides the frameworkshown in Table 10.3. The benefit sharing is based onthe workload for management of the irrigationschemes. After construction of the irrigation project,The Government can hand over managementresponsibility to the water users association, andabout 95% of the benefits derived from irrigation feesare deposited into the users’ fund. This enhances thepossibility for generating more funds for irrigationwater management and opportunities for involvingthe beneficiaries in the process (see Table 10.4). Asthe irrigation projects are scattered, there aredifficulties in fully assessing the funds generated bythis policy. However, they are expected to besignificant.Table 10.3: Users’ Share in Irrigation ProjectConstructionAverageIrrigable AreaPercentage of Share (of TotalInvestment)Main BranchCanal CanalHeadworkDistributionCanalLess than 0.5 ha 0 0 0 10O.5 ha–1.0 ha 0 0 5 101.0 ha–5.0 ha 1 3 7 125 ha or above 3 5 10 15ha = hectareSource: MOWR (1993)Private Sector InvestmentPrivate sector organizations are also involved inenvironmental management, particularly forpollution control. Some of the breweries such asTuborg Beer Company at Nawalparasi District andSan Miguel Beer Company at Chitwan District havedeveloped effluent treatment plants to treat theirchemical and biological wastes. The Governmenthas also introduced an environmental managementsystem and energy conservation scheme in selectedindustries with the assistance of Danish InternationalDevelopment Agency (DANIDA) to reduce pollutionload at source. Some industries are practicingenvironmental management systems. For example,the Godavari Marble Factory located at Godavari inLalitpur district of Kathmandu Valley has joined theenvironmental management systems program. Anumber of environmental problems have cropped upduring mining and processing of marble. The areaexperiences the loss of topsoil and plants, noise, andChapter 10: Environmental Financing149