Kabeli-A Hydro Electric Project

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The development objective of the Kabeli-A Hydroelectric Project (KAHEP) for Nepal is to add hydropower generation capacity to supply the Nepal electricity authority (NEA) grid through public private investments. The project comprises of three components. The first component, KAHEP will support construction of the KAHEP, including a diversion dam, intake, settling basins, a headrace tunnel, a semi-underground powerhouse, and a tailrace canal. This component will be implemented by the project company, Kabeli Energy Limited (KEL). The second component, ministry of energy (MOE) will support the MOE in: (a) supervising the implementation of KAHEP to ensure compliance with the project development agreement (PDA), environment management plan (EMP), and social action plan (SAP); (b) building technical, environmental, and social safeguards capacity on integrated river basin management and cumulative impact management for sustainable hydropower development, including development and adoption of guidelines for cumulative impact assessment (CIA) and involuntary resettlement and livelihood restoration; and (c) covering incremental operating cost for the project implementation. The third component, investment board of Nepal (IBN) will provide technical assistance to IBN in improving its ability to carry out its responsibilities of facilitating the development of large hydropower projects across the country in line with applicable international performance, technical, environmental, and social standards equivalent to relevant World Bank Group's (WBG's) safeguards policies and performance standards.