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Suman BasnetIndependent Power producers’ Association, Nepal (IPPAN)

Corporate Social Responsibilityin Hydropower Project Development

An Example in Nepal

Power Summit 200823-24 September 2008

Kathmandu, Nepal

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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 Principles1.Sustainable growth2.Act responsibly & transparently3.Safeguard environment4.Deliver value to host communities5.Develop our people6.Promote health and safety7.Support human rights

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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

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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

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Impacts of CSR on HPL

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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

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Thank you