Deal #10369

Nepal
Created at
2024-06-07
Last update
2024-09-12
Last full update
2024-09-12

Names of communities / indigenous peoples affected

Name of community
A total of 269 families that affected, out of whom 225 are Rai.
Name of indigenous people
Rai, Gurung, Tamang, Sherpa, Limbu, Magar
Comment on communities / indigenous peoples affected
Majority of affected HH belong to indigenous groups. There are 16 Brahmin/ Chhetri (privilege group in caste groups in Nepal) and 2 Dalit families (marginalized group as are in the lowest hierarchy in caste system). Rest are from indigenous groups. 91.55% of the affected people are indigenous.

Recognition status of community land tenure

Recognition status of community land tenure
Indigenous Peoples traditional or customary rights recognized by government
Comment on recognition status of community land tenure
The RAP report provides details of community forests, such as Gorujurae Community Forest, Tinthum Community Forest, Solakhani Community Forest, and Arun Kinar Community Forest, and their respective areas, names, and addresses. In the RAP they even consider unregistered tenure. They even claim that for unregistered owners, they will ensure reallocation as well and look into registering them. (Not sure if it happened on ground though)

Consultation of local community

Community consultation
Free, Prior and Informed Consent (FPIC)
Comment on consultation of local community
Around October and November of 2014, there were number of consultations with the local communities regarding the Arun-3 Project and the expectations of the community from the project.

How did the community react?

Community reaction
Mixed reaction
Comment on community reaction
The community was open to the idea of the project but wanted: job and livelihood security, development of infrastructures, schools and health systems. Additionally the public demanded proper valuation of the land and the crops. They asked for free electricity, shares on the project for free and resettlement. Some other demands were free education for kids whose family will be most affected by the project. They also wanted assurance that water for the community for drinking, irrigation and other uses will be available. The community demanded for alternative livelihood as they are traditionally dependent on river for work. Other demands include no disruption in traditional, cultural and religious tasks as well as funeral space. There was also demand for a better EIA and assurance that environment won't be harmed regularly.

Presence of land conflicts

Presence of land conflicts
Yes
Comment on presence of land conflicts
There had been conflict with local people regarding compensation for access road, and the community had protested and stalled the construction for a while. There have been instances of bombings twice: once in 2018, and 2019. No humans were harmed, but infrastructures and structures suffered damage.

Displacement of people

Displacement of people
Yes
Number of people actually displaced
146
Number of households actually displaced
24
Comment on displacement of people
The RAP identifies vulnerable groups such as individuals and households living below the poverty line, the elderly, female-headed households, households with specific dependency ratios and Dalits, and provides them with appropriate facilities. The government of Nepal has also drafted a National Policy on Land Acquisition, Compensation and Resettlement for Development Projects, which requires that physically displaced people must be relocated with facilities such as schools, health posts, drinking water, security, etc.

Negative impacts for local communities

Negative impacts for local communities
Environmental degradation, Socio-economic, Displacement, Other
Comment on negative impacts for local communities
There are several types of impacts that may be experienced by communities affected by the project, including direct impacts on land (e.g. loss of structures, crops, trees), impacts on access to natural resources (e.g. water, firewood, fodder), and indirect impacts on livelihoods, safety, and community resources. Although I could not find the EIA of Arun 3, I could find environmental impact made by World Bank before it canceled the project in the 90s. It said, impact on biological resources is significant since the Valley Route transverses forested areas for the major part of its length (71 Km out of 124 Km), and that most of the areas show high species diversity and presence of rare, endemic and endangered species of trees and other plants. In addition, the loss of habitat will result in significant impact on vertebrae.

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
In the RAP, SAPDC claims that they will not displace or evict anyone without compensation. They even said for displaced HH they will give 6 months rent, transportation cost etc. The RAP is considered one of the best plan for a large scale development project in Nepal.
Received compensation (e.g. for damages or resettlements)
In 2019: Locals said the project paid them compensation to build a 15-metre wide road, but it acquired land for a 30-metre wide road at some places, and 200 affected households have not received the full compensation amount. https://tkpo.st/2Q2ffK2 2021 Feb: Locals continued demonstration on the second day at the dam site of Arun III Hydropower Project in Sankhuwasabha on Saturday, demanding compensation for the family of Khadga Bahadur Rai, who died after being hit by a tipper ferrying materials for the project. They also vandalized the hydro power project office and burned vehicles and documents belonging to the project. Windows of the project office were broken after the demonstrators pelted stones.On Friday, the tipper hit Khadga Bahadur at Makalu Rural Municipality-5, Sankhuwasabha killing him on the spot. (Could not find a follow-up report) https://nepalmonitor.org/reports/view/33464 2022: Some 200 households in the area have complained that they have not received compensation for their land acquired for the project. https://english.corporatekhabar.com/construction-of-arun-iii-power-house-has-been-stalled-for-a-week/ Sep 2, 2023: Protest for 24 km stretch between Chhyankuting and Didding. They were protesting for 52 days since Sep 2. With each day obstruction due to protest, the GoN have to pay NRs. 50000000 to SAPDC. 454 locals on the access route need to receive compensation for 28.18 ha of land. https://www.urjakhabar.com/en/news/3010590631 Nov 9 2023, The Arun Third Hydropower Project, with a capacity of 900 megawatts, has resumed its operations at the powerhouse site of the project from Monday, following the settlement of the compensation dispute, after being halted for 67 days. After the government transferred the necessary 530 million rupees to the district administration office’s account in Sankhuwasabha for the compensation of the affected by the inundation, the locals withdrew their protest. http://www.nepalenergyforum.com/arun-hydropower-project-work-resumes-after-compensation-dispute-resolved/ June 7, 2024: Dissatisfied with the compensation amount for the land acquired and that under the right of way, 22 locals affected by the transmission line for the Arun-3 hydropower project had moved the Supreme Court seeking its intervention. https://kathmandupost.com/national/2024/06/07/court-orders-fair-compensation-for-land-affected-by-transmission-lines

Promised benefits for local communities

Promised benefits for local communities
Health, Education, Productive infrastructure (e.g. irrigation, tractors, machinery...), Roads, Financial support, Community shares in the investment project
Comment on promised benefits for local communities
Under the Local Benefits Sharing Plan, the project is supposed to spend 0.5 percent of the project cost on the Local Infrastructure Development Plan which is targeted at 11 wards in the four affected rural municipalities. The plan envisages enhancing road access, foot trail rehabilitation, developing community drinking water supplies in schools building, community irrigation, and constructing school and health infrastructure. It also includes plans for community infrastructure programs like the construction of cardamom storage units, community centers, supporting local cottage industries, upgrading communication towers, and promoting local tourism. There are also plans for rural electrification by providing 30 units of electricity every month free of cost to households affected by project. The plan also envisages providing project shares worth Rs. 1.6 billion to local people. Under the plan, a local industrial development program has also been drawn to offer business opportunities to local industries, suppliers, and service providers.

Materialized benefits for local communities

Comment on materialized benefits for local communities
The project is not completed yet, so could not find much information on it now.

Presence of organizations and actions taken (e.g. farmer organizations, NGOs, etc.)

Presence of organizations and actions taken (e.g. farmer organizations, NGOs, etc.)
Arun Entrance Route Struggle Committee: have conducted various protest to demand proper compensation. In the 90s there was Arun Concerned Group: A network of I/NGOs that lobbied for Arun 3 to be cancelled. They were successful in pursuing the World Bank to cancel the project. However decades later GoN continued with the project in PPP model. However there are people who criticize the move of Arun Concerned Group and go far as to say that locals of Arun valley were looking forward to the project but elites from Kathmandu were the ones in the Arun Concerned Group and they did not represent locals of the Arun valley.