Kathmandu. KATHMANDU: Formulation of planned budgets for the development of indigenous and indigenous communities from various hydropower projects in Nepal has begun in accordance with the international provisions of the Independent Advance Information Agreement (FPIC).

According to the Indigenous Nationalities Development Plan (IPP), the 216 MW Upper Trishuli-1, the 1061 MW Upper Arun and the 670 MW Dudhkoshi reservoir area are being constructed with the facilitation of Nepal Federation of Indigenous Nationalities, Federal Council and the project site community representatives.

The process of appropriating budget by formulating a development plan for indigenous nationalities was not implemented in Nepal before taking prior consent of the indigenous nationalities as any big project would exploit the nature and could lose their tradition and livelihood.

According to the Federation of Indigenous Nationalities of Nepal, this will benefit both the project side and the community. Rs 150 million has been allocated for the development of the community in Upper Trishuli-1, Rs 600 million in Upper Arun and around Rs 1 billion in Dudhkoshi reservoir.

FNJ Federal Council General Secretary Diwas Rai said the achievement was as a result of the community’s rights-oriented movement as per the international norms to establish the community as a partner in development and not just as an affected party. “This type of approval process should be adopted while operating the project. Otherwise, there will be no investment. The government cannot build projects. It is a kind of conditional consent and if the conditions are not met, the community can withdraw it at any time they want,” he said.

General Secretary Rai said that the indigenous nationalities would have the right to seek consensus on the representation of all including the local government, the committee of the indigenous nationalities community, traditional organizations, youths, women and senior citizens.

With this type of budget arrangement, budget will be allocated for the development programs like taps, monasteries etc. locally in the project-affected areas. According to him, the rights-oriented movement of indigenous nationalities has gained momentum after their leadership in the federation and this task is also an important achievement.

Lakpa Sherpa, vice-president of the federation, said that the initiation of the approval process with independent prior notice while implementing the projects affecting the rights of the indigenous nationalities to the land, territory and resources of the indigenous nationalities could be affected while operating any project and exploitation of natural resources. It will also be a milestone for prioritizing green energy in the context of the government being a party to the process and not implementing it.

Sherpa said that the sequence of budget arrangement for pre-consent and planned development has started as it would be easier to attract investment after the World Bank and international banks and investors adopt it with priority in carbon emission products.

Nepal has become a party to the International Labour Organization (ILO) Convention 169 to ensure the rights of the affected indigenous nationalities in the development, construction and operation of hydropower projects. In addition, the United Nations Declaration on the Rights of Indigenous Peoples has also ensured this right.

The indigenous nationalities in the Upper Trishuli, Upper Arun and Dudhkoshi reservoir areas have long been demanding compensation and benefits for land use, access to natural resources and impact on livelihood. The process of distributing the dividend has been forwarded following discussions and consensus with the concerned bodies in coordination with the FNCCI Federal Council.

Article 19 of the Declaration of the Rights of Indigenous Peoples states that States are required to consult and cooperate in good faith through representative bodies to obtain their free, prior and informed consent before adopting and implementing legislative or administrative measures that may affect Indigenous Peoples.

Article 32 of the Declaration calls for the adoption of laws or administrative policies that affect indigenous peoples. Independent prior notice and approval process should be followed for the implementation of projects that affect the rights of indigenous peoples to land, territory and resources, including mining and other uses or exploitation of resources. The plan includes basic drinking water, education, health, religious traditions, local infrastructure and livelihood promotion programs for the local indigenous nationalities.