The Project: The Nepal Power Development Project (PDP) was approved by the Board on May 22, 2003 for SDR 36.8 million IDA credit (US$50.4 million equivalent) and SDR 18.4 million IDA Grant (US$25.2 million equivalent) with a closing date of June 30, 2009. It consisted of three components, namely: (a) establishment of a Power Development Fund (PDF) to finance private development of small and medium-sized hydro schemes; (b) community-based village electrification through construction of micro-hydro systems (MHVEP, sizes of up to 100 kW); and (c) grid transmission and distribution improvements. The borrower is the Kingdom of Nepal and the Project implementing agency is the Ministry of Water Resources (MOWR). Other government agencies involved in implementation of the Project are the Nepal Electricity Agency (NEA) and the Alternative Energy Promotion Center (AEPC).
The Requesters state that the Project “has resulted in violations of World Bank policy, Nepali and international law” and “was designed without informing or consulting with affected communities in Sindhuli District; its planned route over schools, homes, and historical sites is likely to result in involuntary displacement and damage to cultural property; and its 30-meter right of way (“RoW”) threatens to make the already poverty-stricken communities more vulnerable by harming agricultural production and dividing communities.”
Policies and Procedures raised in the Request: - OP/BP 4.01 Environmental Assessment - OP/BP 4.04 Natural Habitats - OP/BP 4.12 Involuntary Resettlement - OP/BP 4.36 Forests - OD 4.20 Indigenous Peoples - OPN 11.03 Management of Cultural Property
The Board of Executive Directors approved the Inspection Panel's Report and Recommendation to investigate matters of policy non-compliance and related harm raised in the Request for Inspection. The investigation commenced after April 30, 2014, and a Panel team visited the Project area in July 2014. The Panel submitted its Investigation Report to the Board of Executive Directors on February 12, 2015 and sent a copy to Management. Per the Panel’s Resolution, within six weeks from receiving the Panel’s findings, Bank Management will submit to the Executive Directors for their consideration a report indicating its recommendations in response to the Panel’s findings. The Update on the Management Action Plan, which was published on this website on July 9, 2014, is a document prepared by Bank Management.
The World Bank Board of Executive Directors discussed the Inspection Panel Investigation Report on Nepal Power Development Project on July 9, 2015. The Board approved the Management Action Plan submitted in response to the Panel’s findings.