MCA-Nepal Project Progress Updates

Summary of Preparations in Advance of Implementation

MCA-Nepal has undertaken extensive preparations in advance of implementation to ensure completion of projects within the MCC Nepal Compact’s five-year timeline. Below is the summary of the achievements made in the preparatory phase:

1. Conditions Precedent

The Compact agreement has set forth six primary conditions (conditions precedent) that the Government of Nepal must meet for implementation to begin:

Conditions Precedent Status
Electricity Transmission Project (ETP) declared National Pride Project Complete
Law establishing Electricity Regulatory Commission Complete
Project Implementation Agreement (PIA) signed Complete
Operational work plan and agreements between Governments of Nepal and India for cross-border transmission line Complete
Compact ratified by Parliament Complete
Sufficient Progress on Land Acquisition and Forest Clearance for Project Site Access Projected by 30 Aug

 

2. Environmental Impact Assessment (EIA), Environment and Social Impact Assessment (ESIA) Social Gender Inclusion Plan (SGIP)

  • MCA-Nepal has prepared an Environmental Impact Assessment (EIA) to identify environmental and social impacts of the ETP and devise mitigation measures. The EIA was approved by the Ministry of Forest and Environment on 29 April 2021.
  • MCA-Nepal also finalized an Environment and Social Impact Assessment (ESIA) report, per MCC guidelines. The ESIA is a more in-depth assessment and includes plans on critical habitat screening, biodiversity management, indigenous people development, and trafficking-in-persons risk management.
  • Also in 2021, MCA-Nepal finalized its Social and Gender Inclusion Plan (SGIP), which outlines gender and social inclusion strategies undertaken during project implementation.

3. Community Consultations

  • A total of 152 consultations have been organized at the community and municipal level in all 30 affected municipalities to finalize the EIA.
  • 97 ward-level consultations were organized for the MCA Partnership Program, a benefit-sharing component with communities affected by the ETP.
  • 11 ward-level consultations were organized in affected communities to address grievances.
  • Around 400 community consultations are being carried out to support forest census works and resettlement action plans during land acquisition works in all ten affected districts.

4. Land Acquisition- Substations

  • Ratmate Substation: The acquisition of 20.27 hectares of land for Ratmate Substation is complete.
  • New Butwal and New Damauli Substations: Land has been provided by NEA.

5. Livelihood Restoration Program – Ratmate

  • The two-year Livelihood Restoration Program is currently underway, providing job and skills training to project-affected persons whose land has been acquired for the Ratmate substation in the Nuwakot district.
  • 272 people have benefitted from the program through training on high-value agriculture, a wide array of vocational skills, and job skills such as advanced computer training and financial literacy.
  • The program has enabled project-affected persons to launch new businesses and career paths.

6. Land Acquisition- Transmission Line

  • 104 hectares of land will be acquired for towers in 10 districts for the 315 km transmission line corridor.
  • Cadastral Verification: Cadastral verifications to confirm data on land ownership have been completed in nine districts.
  • Household Surveys: Household surveys have been completed in two districts, and are ongoing in two more districts.
  • Section 9 Notices: Section 9 notices as per the Land Acquisition Act, 1977, which freeze land transactions, will be issued in nine districts prior to implementation.

7. Forest Clearance

  • Forest Consultations: MCA-Nepal has held 73 consultations with Community Forest User Groups and Leasehold Forest User Groups in nine project-affected districts.
  • Forest Census: Orientations for Divisional Forest Officers (DFOs) to lead forest census teams have been completed in eight districts.