West Seti Dam, Nepal

The West Seti River flows through the Far Western Development Region of northwestern Nepal. This region is rich in biodiversity and remains one of the least developed regions of the country. However, the proposed West Seti Dam has recently been given the go-ahead by the Nepalese government to commence construction after a stall in the project in 2007 that resulted from political uncertainty. Driving the project is the China Exim Bank, one of many Chinese banks funding the project (and by far the largest funder). An Environmental Impact Assessment (EIA), prepared by West Seti Hydro Ltd. between 1996 and 2000, has also been recently approved by the Asian Development Bank (ADB) for a private sector loan, despite the project's violations of the ADB Environmental Policy, Involuntary Resettlement Policy and Public Communication Policy, as well as recommendations by the World Commission on Dams.

An estimated 2,322 hectares of land will be acquired for the projectand 678 hectares for the transmission line. This includes large expanses of cultivated land, forest, grassland, and shrubland--all crucial ecosystems for native flora and fauna and the human communities that depend on them. The dam will prevent migratory fish species from reaching upstream spawning grounds, forcing them to disappear from the upper Seti River and cutting off crucial upstream fisheries. Flow fluctuations from the power station discharges will also reduce fish numbers downstream. A small section of the transmission line will cross the Shukhalaphata Wildlife Reserve, which serves as an occasional migratory route for wildlife, including the Asian elephant.

A total of about 1,575 households will be displaced by the project. 13,000 people will be impacted by the project, 7,870 will be resettled outside the project area, and 1,200 will relocate locally. Most of the oustees belong to the lower Hindu caste system and depend upon the natural resources and rich biodiversity of the soon-to-be-submerged region for their livelihoods. Benefits will mostly go to India, with 90 percent of the electricity transmitted to India through a 230-kilometer transmission line. A recent report found several violations in the project's resettlement program, inadequate information disclosure and deception of the people's consent.

Project Specifics

Standing at 195 meters, the 750-megawatt dam will be largely funded by the China Exim Bank, at 75 percent of the total US$1.6 billion cost of the project. Other funders include the Industrial and Commercial Bank and the Bank ofChina, with funding from the ADB for a private sector loan, political risk guarantee, and equity investment. West Seti Hydro Ltd., which is owned by SMEC (or Snowy Mountains Energy Corporation, an Australian group), is the main builders of the project.

LATEST ADDITIONS:

West Seti Hydel to Start Soon

Report on West Seti Hydroelectric Project and ADB Policy Violations

CONTACT US:

Ann Kathrin Schneider
annkathrin [at] internationalrivers [dot] org
+49 30 214 0088

Nicole Brewer
nicole [at] internationalrivers [dot] org
+1 510 848 1155