India: AD Hydro Power Limited-01/Himachal Pradesh
Residents of Himachal Pradesh
$45 million ( A + C loan)
The Allain Duhangan project was a planned 192MW run-of-river hydroelectric power plant to be built on the Allain and Duhangan tributaries of the Beas River in the state of Himachal Pradesh in India. The project company was Allain Duhangan Hydro Power Limited (AD Hydro) and was formed to construct, operate and maintain the power plant. In October 2004, village residents of Himachal Pradesh lodged a complaint with CAO with concerns relating to:
1. The adequacy of water supplies and other impacts on local village communities;
2. The adequacy of the Environmental and Social Impact Assessment and public consultation efforts;
3. Future compliance with project commitments & developmental benefits.
CAO Ombudsman facilitated an initial agreement between the parties in March 2005, however it later became apparent that the agreement had in fact been flouted which led to further complaints being lodged. The agreement identified action items in relation to:
• Water - the company agreed to establish contingency supplies of water to protect villagers’ access to water;
• EIA Commitments - the company agreed to develop an implementation plan with the participation of local villagers;
• Community Investments - the company agreed to develop a participatory process to make community funds available for broad societal benefits.
CAO undertook monitoring of more than 6 months of reports and also received periodic supervision reports from IFC, which concluded in March 2008. The CAO Conclusion Report, completed in March 2008, highlighted the material improvements that have resulted from some practical solutions implemented by the company:
• Water supplies have been protected and repaired & additional supplies provided;
• Additional water studies have been released;
• The company prepared a commitments register of its EIA obligations with CAO.
The complaint was closed in March 2008.