Nepal Hydropower Development Project Quarterly Report Q4 FY 2018

NHDP's mission is to support the Ministry of Energy, Water Resources and Irrigation (MoEWRI) and the Office of the Investment Board of Nepal (OIBN) in managing the development of six medium and large hydro power projects (HPPs). The project focuses on providing transactional and policy support to these institutions, with the goal of facilitating regional electricity trading, promoting sector restructuring, and establishing an independent electricity sector regulator. NHDP has identified approximately sixty distinct risks that hinder HPP development in Nepal, including inadequate or incomplete project documents, country and sovereign risks, gaps or defects in the legal and regulatory framework, and gaps or defects in the environmental and social framework. The project is working to mitigate or remove these risks through various interventions, including providing transactional support to GoN bodies, assisting stakeholders in acquiring data and developing tools to reduce project risks, and providing training and capacity building for project counterparts. During the fourth quarter of US Government Fiscal Year 2018, NHDP continued to provide support to MoEWRI and OIBN in managing the development of the six HPPs. The project's transactional support included assisting the MoEWRI in developing policies and laws that facilitate regional electricity trading and promote sector restructuring. NHDP also provided training and capacity building for project counterparts, including OIBN, the Department of Electricity Development (DoED), and the Nepal Electricity Authority (NEA). The project's activities and outputs during the quarter included providing support to the Electricity Regulatory Commission (ERC) in developing a regulatory framework for the hydropower sector. NHDP also assisted the MoEWRI in developing a disaster management plan (DMP) for the hydropower sector, which aims to mitigate the risks associated with natural disasters such as floods and landslides. In addition to these activities, NHDP continued to work on its risk mitigation and removal efforts, including providing support to GoN bodies in acquiring data and developing tools to reduce project risks. The project also continued to update its Risk Baseline Matrix, which provides a "moving picture" of risks mitigated, new risks encountered, and overall project progress. Overall, NHDP's activities and outputs during the fourth quarter of US Government Fiscal Year 2018 were focused on supporting the development of the six HPPs and mitigating or removing the risks associated with HPP development in Nepal. The project's continued support to MoEWRI and OIBN is expected to contribute to the realization of Nepal's hydropower potential and the expansion of access to clean, high-quality electricity services. NHDP's support to MoEWRI and OIBN during the quarter included providing transactional support to the development of the Upper Trishuli-1 (UT-1) HPP, which is being developed under the authority of the MoEWRI. The project also provided support to the development of the five HPPs under OIBN's jurisdiction, including the Upper Karnali, Arun-3, and Marsyangdi HPPs. In terms of project management and administration, NHDP continued to work on its project implementation unit (PIU) and project monitoring unit (PMU), which are responsible for overseeing the project's activities and outputs. The project also continued to work on its donor coordination efforts, including coordinating with the Asian Development Bank (ADB) and the International Finance Corporation (IFC) on the development of the hydropower sector in Nepal.