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    Reference: SG/E/2018/39
    Received Date: 08 October 2018
    Subject: Nepal Power System Expansion
    Complainant: Free Prior and Informed Consent ("FPIC") and Rights Forum
    Allegations: Alleged negative social and environmental impacts of the project
    Type: E - Environmental and social impacts of financed projects
    Recommendations: no
    Admissibility*
    Assessment*
    Investigation*
    Mediation*
    Consultation*
    Closed*
    15/10/2018
    22/07/2019

    * Admissibility date reflects the date the case was officially registered. All other dates pertain to the date in which a stage was completed.

    Case Description

    Complaint

    On 8 October 2018 the Free Prior and Informed Consent (“FPIC”) and Rights Forum (“the Complainants”) sent a letter to the EIB Complaints Mechanism (EIB-CM) submitting a request for mediation regarding part of the EIB-funded 220 kV Marsyangdi Corridor high voltage transmission line and other hydropower sector development in the region. The allegations leading to the request for mediation relate to the following:

    1) Lack of adequate consultation, agreement seeking and information sharing/disclosure about the project, its impacts and how each impact can be avoided, mitigated or compensated;
    2) Inadequate compensation and lack of proper compensation process, benefit sharing scheme and appropriate census;
    3) Lack of adequate FPIC process concerning the indigenous communities affected by the project;
    4) Insufficiencies in terms of the substance and timing of the environmental and social studies performed (alleged “salami-slicing” of the studies and lack of a cumulative impact assessment).

    In case a collaborative resolution process is not possible or concludes without resolution of the issues, the Complainants request a compliance review.

    EIB-CM Action

    Between 14 and 20 March 2019, the EIB-CM went on mission to Nepal to meet with the communities affected by the Project as well as the Promoter and national authorities. A draft Initial Assessment Report was shared with the Complainants and the Promoter on 5 June 2019.  On 22 July 2019, the EIB-CM completed the Initial Assessment Report and subsequently distributed the report both in English and in Nepali.