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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)
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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
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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
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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
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Some Examples of HPL CSR Activities
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Jhankre 620 kW Hydroelectric Power Plant
(Community owned and managed)
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Rural Electrification
Mainly funded NORAD
About 8,000 households electrified
Improving livelihoods
Enterprise development
Collaboration with UNDP & GON
Focus on sustainability & community driven approach
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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
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Khimti Project School About 400 students HPL is contributing 70% of the running
costs 80% of the children are non-project or local
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Khimti Project Clinic
• 12,000 patients annually
• 95% local people
• HPL pays 100% of the cost (except medicines)
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• 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
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•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
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•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