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1
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
Op
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Corp
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ocia
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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