Review of Dams and Development by the World Commission on DamsConflicts over dams have heightened in the last two decades due largely to the social and environmental impacts. Socialgroups bearing the social and environmental costs and risks of large dams, especially the poor and vulnerable and futuregenerations, are often not the same groups that receive the water and electricity services, nor the social and economicbenefits from these. The debate is also related to many competing uses and needs of water—there is increasing concernabout access, equity, and the response to growing needs. This could affect relations within and between nations; betweenrural and urban populations; between upstream and downstream interests; between agricultural, industrial and domesticsectors; and between human needs and the requirements of a healthy environment. These needs are intertwined. The debateabout dams is a debate about the very meaning, purpose, and pathways for achieving development. Having conducted anindependent, comprehensive, global review of dams and their contribution to development, the World Commission on Dams(WCD 2000) concluded the following:(i) Dams have made an important and significant contribution to human development, and the benefits derived fromthem have been considerable.(ii) In too many cases an unacceptable and often unnecessary price has been paid to secure those benefits, especiallyin social and environmental terms, by people displaced, by communities downstream, by taxpayers, and by thenatural environment.(iii) Lack of equity in the distribution of benefits has called into question the value of many dams in meeting water andenergy development needs when compared with alternatives.(iv Bringing to the table all those whose rights are involved and who bear the risks associated with different options forwater and energy resources development creates conditions for a positive resolution of competing interests andconflicts.(v) Negotiating outcomes will greatly improve the development effectiveness of water and energy projects by eliminatingunfavorable projects at an early stage, and by offering as a choice only those options that key stakeholders agreerepresent the best ones to meet the needs in question.The commission recommends that it is necessary to break through the traditional boundaries of thinking and enshrine fivecore values in water and energy development: equity, efficiency, participatory decision-making, sustainability, andaccountability. Decision-making needs to ensure: comprehensive approach to integrating social, environmental, and economicdimensions of development; greater levels of transparency and certainty for all involved; and increased levels of confidencein the ability of nations and communities to meet their future water and energy needs. The commission has proposed sevenstrategic priorities and related policy principles that water and energy resource projects should integrate in the planning andproject cycles.(i) Gaining public acceptance: Acceptance emerges from recognizing rights, addressing risks, and safeguarding theentitlements of all groups of affected people, particularly indigenous and tribal peoples, women, and other vulnerablegroups.(ii) Comprehensive options assessment: Alternatives to dams do often exist. The selection is based on a comprehensiveand participatory assessment of the full range of options, and assessing social and environmental aspects at parwith economic and financial factors.(iii) Addressing existing dams: Opportunities exist to optimize benefits from many existing dams, address outstandingsocial issues, and strengthen environmental mitigation and restoration measures.(iv) Sustaining rivers and livelihoods: Rivers, watersheds, and aquatic ecosystems are biological engines. Understanding,protecting, and restoring ecosystems at river basin level is essential to foster equitable human development and thewelfare of all species.(v) Recognising entitlements and sharing benefits: Joint negotiations with adversely affected people result in mutuallyagreed and legally enforceable mitigation and development provisions.(vi) Ensuring compliance: Ensuring public trust and confidence requires that the governments, developers, regulators,and operators meet all commitments made for the planning, implementation, and operation of dams.(vii) Sharing rivers for peace, development, and security: Storage and diversion of water of transboundary rivers has beena source of considerable tension between countries and within countries. Dams require constructive cooperation.76 Environment Assessment of Nepal : Emerging Issues and Challenges
indoor air quality, with a positive impact on humanhealth.Having micro-hydro or solar electricity isimportant for rural villagers. It provides light forstudents to study, and powers TVs and radios thatbring news and can be an important means of familyentertainment. Substituting traditional biomass fuelswith electricity has a number of advantages: (i)Improvement in indoor air quality by reducing oreliminating smoke, (ii) Reducing pressure on forestand saving time spent collecting firewood, and (iii)Electric light allows household families additionalworking time.Where electricity and biogas are not practical,technologies such as improved cooking stoves canbe promoted in rural areas. This will not onlyincrease efficiency and reduce firewood consumption,but also reduce indoor air pollution and lead topositive health impacts.Energy Policy and PlanThe Tenth Plan (2002–2007), HydropowerDevelopment Policy 2001, Renewable EnergyPerspective Plan of Nepal 2000–2020, PerspectiveEnergy Plan 1991–2017, Water Resources Act 1992,and Electricity Act 1992 are the main policy, planning,and legislative documents guiding the energy sectorin Nepal. These policies aim to attract local andforeign private developers to the hydropower sector.The Tenth Plan (NPC 2002) emphasizes ruralelectrification and has a target to increase nationalelectricity coverage from 40% to 55% over the planperiod. The major strategies to be followed arepromoting private sector participation, institutionalreforms, establishment of a Power DevelopmentFund, initiating an explicit subsidy policy for gridbasedrural electrification, and creation of anindependent regulatory body in the power sector.The highlights are summarized below.(i) No license is required to generatehydropower up to 1 MW capacity, butprojects must be registered with the DistrictWater Resources Committee, and theDepartment of Electricity Development hasto be informed.(ii) A 35-year license will be provided forhydropower production for domesticconsumption; 30 years for export.(iii) Royalty rates will be based on projectcapacity and be higher for export-orientedprojects than for domestic uses.(iv) Institutional reforms will allow operating thegeneration, transmission, and distributionsystems separately through autonomouspublic institutions, local bodies, and theprivate sector.(v) A rural electrification fund to promote anddevelop rural electrification will beestablished, using a portion of royaltiesreceived from hydropower projects.(vi) Various subsidy and incentive schemes willbe established for alternative energydevelopment, including micro-hydro, biogasplants, and solar-based electricity.The Way ForwardEnergy affects livelihood, wellbeing, and developmentin multiple ways. As population increases andthe economy expands, people need energy inincreasing amounts. How the present and futureenergy needs are met affects not only theenvironment but also overall development. Energypolicy and strategy are linked with sustainabledevelopment approaches and environmentalstrategies.The industrial world has already shown that itstraditional mode of industrial development andenergy consumption is not sustainable. Indiscriminateuse of fossil fuel is leading to globalenvironmental threats such as global warming andclimate change. Industrialized nations need tochange current practices to those using energy fromcleaner and sustainable sources, and moreefficiently than in the past. This shift will be difficult,costly, and painful for them as their currentindustries, economies, and lifestyle depend heavilyon the use of fossil fuels.Nepal is at a low level of industrialization. Thisprovides an opportunity to learn from the alreadyindustrialized countries and to pursue a path thatutilizes cleaner energy in an efficient manner. Thisshould not be as difficult for Nepal as it would be foralready industrialized countries, as Nepal does notneed to shift from an already existing system to anew one, but to choose a more sustainable andbenign path. Nepal therefore needs to pursue anenergy policy and strategy that can supply energy forpresent and future use from sources that aredependable, affordable, safe, and environmentallysound. Nepal’s energy development should thereforebe guided by the following three basic principles.Self-reliance in Energy and Promotion ofIndigenous Renewable SourcesA massive promotion of indigenous renewableenergy sources will be necessary. Nepal’s indigenousenergy resources—hydro, biomass, solar, andwind—are renewable, and their combined potentialexceeds current demand as well as demand for theforeseeable future. In theory, therefore, energyshortages should not be a problem for Nepal, andChapter 6: Energy Resources77
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About the OrganisationsAsian Develo
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© 2006 International Centre for In
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AcknowledgementsWe would like to ex
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PM2.5PAHRSSAARCSACEPSEASO 2TSPUKUND
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Chapter 6: Energy Resources 65Intro
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List of FiguresFigure 2.1: People a
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Table 6.1: Energy Consumption and P
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forests are also used for infrastru
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as data gathered by different agenc
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Table 2.1: Population Growth Rates
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mortality rates for rural and urban
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Agglomeration village in the centra
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soil erosion, and depletion of wate
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provision remains inadequate becaus
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Malnutrition remains a serious obst
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Table 2.24: Existing and Projected
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Table 2.28: Income Poverty Indicato
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Table 2.31: Change in Employment St
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Sub-regional LinkagesOther developi
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Figure 9.1: The Key Environmental I
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(iv)(v)(vi)plants, and other non-ti
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environmental governance can be bet
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can vary considerably. Both sides h
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Dhungel, D.N., and A.B. Rajbhandari
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Table A9.1.2: Industry-Specific Tol
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. Cultural Heritage8. Convention fo
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Appendix 9.3: Some Prominent Enviro
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Some funding arrangements made by t
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(NARDF 2004) for a period of 1 to 3
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Table 10.2: Annual Income and Expen
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Table 10.4: Users’ Share in Benef
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From Hands Around Everest bookFrom
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Table 10.8: Subsidy Rate for Biogas
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microorganism communities and the n
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subsidies (Mason 1996). All these a
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addressed only part of the problem.
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historical practice of community-ma
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moved or relocated. The fact that s
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Kathmandu Valley and receives a lar
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cooperative ventures provided neith
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further poaching has not been repor
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http://www.pugwash.org/reports/pac/
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United Nations. 2003. World Populat
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how other countries with substantia
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(i) Broad-based and sustainable eco
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Although progress is encouraging, m
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Nepal’s Changing Pattern of Trade
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Table 12.2: Trade/ GDP RatiosFY1981
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Table 12.5: Percentage Share of Maj
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well as other provisions in specifi
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Future Implications for NepalIncrea
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International Trade Forum (ITN). 20
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- Gross domestic product per unit e
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Time Series InformationGenerally tw
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Table 13.1a: Different Datasets Col
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elevant due to its multidisciplinar
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Figure 13.6: Examples of Applicatio
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Judith DobmannThere are many source
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sustainable livelihoods requires an
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and haphazard. Population pressures
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issue. These deficiencies stem from
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population must be assessed. MOEST
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Appendix 14.1: List of Key Environm
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(vii) The EIA report approving agen
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Goal 1: Eradicate extreme poverty a
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Nepal’s Progress Towards the MDGs
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Goal 4: Reduce child mortalityReduc