1 Suman Basnet Independent Power producers’ Association, Nepal (IPPAN) Corporate Social Responsibility in Hydropower Project Development An Example in Nepal Power Summit September 2008 Kathmandu, Nepal

2  Not simple philanthropy or sponsorship  Goes beyond obligation  Long term focus  Makes economic sense - “bottom line” value  Delivering value to stakeholders  Part of corporate strategy  CSR drives PR  Scope of CSR Hydropower Development & Corporate Social Responsibility (CSR)

Vision of a Hydropower Company Sustainability & long term profit Business Principles 1.Sustainable growth 2.Act responsibly & transparently 3.Safeguard environment 4.Deliver value to host communities 5.Develop our people 6.Promote health and safety 7.Support human rights Operations Corporate Social Responsibility

4  SN Power ownership: 50.4%  Located in Ramechhap and Dolakha Districts  60 MW run-of-river  350 GWh annually  Commercial operation since July 2000  About 10 % of electricity generation in Nepal Himal Power Limited (HPL) Khimti 1 Hydropower Plant

Plant Operation High efficiency Environment friendly High availability High reliability Core Business Development Work Compliance with legal requirements Socially responsible towards the community Mitigation and CSR HPL’s Dual Focus

Development Work Mitigation Works Fish Monitoring Irrigation downstream Drinking water systems Minimum release flow Re-vegetation Electrification:1,000 households (2 km) CSR Mini hydro power plant Wider electrification Rural infrastructure School support Health

Some Examples of HPL CSR Activities

Jhankre 620 kW Hydroelectric Power Plant ( Community owned and managed)

Rural Electrification  Mainly funded NORAD  About 8,000 households electrified  Improving livelihoods  Enterprise development  Collaboration with UNDP & GON  Focus on sustainability & community driven approach

Khimti Rural Electric Cooperative (KREC)  KREC own & manage mini hydro plant and the distribution system  Promotes community empowerment, responsiveness & accountability  Capacity building of KREC ongoing

Khimti Project School  About 400 students  HPL is contributing 70% of the running costs  80% of the children are non-project or local

Khimti Project Clinic 12,000 patients annually 95% local people HPL pays 100% of the cost (except medicines)

1074 toilets (226 connected to biogas plant) 30 drinking water systems for 4,000 people 26 school infrastructure upgraded 10 irrigation systems built 22 km rural trail improved Rural Infrastructure Development

Improved living standards Improved health & local environment Increased employment Women's empowerment Improved sanitation Access to mass media 14 Impact of CSR on Community

HPL a ”good neighbor” HPL: ”partner” NOT ”adversary” HPL received community support during armed conflict Long run: Positive impact on the bottomline 15 Impacts of CSR on HPL

16 Tamakoshi Vision in Tamakoshi Valley  Build on Khimti experience  Dialogue with local communities  Electrification of Tamakoshi valley  Small hydro power plant  Rural electric cooperatives  Vocational training  Rural infrastructure  Enterprise development

17 Thank you