May 18: The Ministry of Forest and Environment has approved the Environmental Impact Assessment (EIA) report of the Electricity Transmission Project (ETP) to be implemented by the Millennium Challenge Account Nepal Development Board (MCA-Nepal) with the grant funding from the Millennium Challenge Corporation (MCC), USA, and co-funding from the Government of Nepal. 

According to MCA-Nepal, the EIA report approved on April 29, 2021 by the government with a ministerial level decision is a major part of the project preparatory works now underway for the construction of transmission lines and substations under the Electricity Transmission Project.

“The achievement is an important milestone to help meet one condition related to site access before the MCC Compact can enter into force,” said Khadga Bahadur Bisht, executive director of MCA-Nepal, in a statement on Tuesday, May 18.

“The other important milestone will be ratification of the Compact,” he added.

Bisht further said that the report has established the existing status of the physical, biological, socio-economic and cultural environment within the project’s footprint, and has suggested measures to mitigate the potential impacts.

The detailed EIA report, prepared according to the existing laws of Nepal, is in compliance with Nepal's Environment Protection Act (EPA), 2019 and Environment Protection Rules (EPR), 2020, the statement further said.

According to MCA-Nepal, a robust methodology for data collection and analysis, for the EIA which also included a number of consultations and public hearings in all 30 municipalities/rural municipalities of 10 districts in the project’s footprint.

The report has proposed measures to avoid, minimize or mitigate/manage adverse impacts and to optimize project benefits as per Nepal’s environmental laws and regulations, and international best practices.

Following the approval of the report, MCA-Nepal said it will now initiate a process to receive the approval for the use of national forest area and removal of trees and plants.

The Government of Nepal and the US Government’s MCC signed a Compact in September 2017 for undertaking two projects that the Government had identified to address major constraints to Nepal’s development.

One of the two projects, the Electricity Transmission Project, also a National Pride Project, will build around 314 km of 400 kV transmission lines and three 400 kV sub-stations. The transmission lines will pass through 30 municipalities/rural municipalities in 10 districts. The Project will also ensure affected local stakeholders benefit through partnership program and strengthen the power sector in Nepal.

The other – Road Maintenance Project – will support maintenance of Nepal’s roads while also introducing a new road maintenance technology in the country, MCA-Nepal added.