Payment Services In Kulekhani Watershed Environmental Sciences Essay

Indra Sarovar Lake is the manmade 114 m high rockfill reservoir that impounds approximately 2.0 of surface country. The full capacity of the reservoir is 1530.2 m from where H2O can be drained to the 6.2 kilometer headrace tunnel down to billow armored combat vehicle so it flows to the first power works of Kulekhani through 1.3 kilometers penstock pipes. It was designed to flux H2O with the discharge rate of 13.1 M3s per second with rated net caput of 550 metres. The degree of 1480 m is considered as the mention degree beneath which has been regarded as the dead storage. The reservoir had capacity of 85.3 Mm3 H2O with unrecorded storage of 68.25 Mm3 and the dead storage of 17.05 Mm3, nevertheless the capacity has been decreased to 61.65 Mm3. This gives a sum of 25.07 Mm3 sediment depositions in the reservoir in 27 old ages since 1982. By the twelvemonth 2009 March, unrecorded storage accounted to be 54.53 Mm3 and the dead storage 5.70 Mm3. Based on the observed informations, Nepal Electricity Authority ( NEA ) calculated the one-year sediment deposition rate as 928374 m3/year, one-year siltation rate per unit catchment country as 7631 m3/km2/year and siltation rate of the twelvemonth 2008 per unit catchments country as 270 m3/km2 ( NEA, 2009 ) . High harm was caused to reservoir by the inundation of 1993. It has been estimated that about 7.71 Mm3 deposits were deposited within three yearss of heavy rainfall in July 1993 which was considered as the highest volume of deposits deposited till now. Sediment deposition was besides high in the undermentioned twelvemonth 1994 and 1995.

The entire volume of deposit in dead storage is found to be 11.347 Mm3 and the staying dead storage volume with mention to the dead degree of 1480m is 5.702 Mm3. Dead storage loss in this twelvemonth is 0.056 Mm3. The estimated entire sediment deposition in March 2009 is 0.023 Mm3 which shows that the deposit from unrecorded storage country moves down. It may be the influence of big cheque dike constructed in the recess of Palung River and smaller one in the upstream country ( Ibid ) or high grade of forest preservation than earlier. The sediment deposition of 2008 is slightly similar to the 2007 i.e 0.034 Mm3 that might be the ground of less precipitation than before or good attempt in preservation by the highland communities.

6.2. Demand of Servicess

Kulekhani HEP I was started in 1978 and completed in 1982 with the aid of World Bank fund. Kulekhani HEP is the lone reservoir based hydropower undertaking in Nepal. It has the capacity to bring forth 92 MW electricity. It has three power production houses i.e Kulekhani I holding 60 MW powers, Kulwkhani II holding 32MW and Kulekhani III holding 19MW ( under building stage ) . It is the 2nd largest Hydropower Project of the state and contributes about 17 % of the entire hydroelectricity to the state ( NEA, 2009 ) .

NEA demands for H2O, dirt preservation and forest preservation in upstream catchment. Forest helps to reconstruct H2O at the beginning degree and maintain flow regularity in river throughout the twelvemonth and dirt preservation reduces the dirt eroding rate and helps to cut down deposit in the reservoir. Upland countries of the Kulekhani watershed are non merely the beginning of H2O, but besides a beginning of deposit in the Kulekhani reservoir. Hills of Nepal are really much prone to dirty eroding because of rugged topography. Kulekhani watershed country is besides prone to eroding because of the same ground. The possible on the job age of the reservoir was estimated 50 old ages but late it is estimated as 100 old ages through item survey on deposit burden through the rivers. The deposition of deposits in the reservoir affects reservoir and increase the bed burden ( NEA, 2009 ) .

6.3. Public engagement on resource direction to carry through the demand of service purchaser

Peoples are extremely cognizant of the importance of forest preservation patterns. They are conserving the forest like their ain plus. Community forestry plan has been booming in Nepal since 1993. Then after, behaviour on preservation turned to positive and they started to re-afforestation and afforestation in the unfastened Government land wherever they get. Such sort of alterations has besides been seen in the Kulekhani watershed country. Under the immense undertaking of Bagmati Integrated Watershed Management Program some presentation and preparation on dirt preservation was done which has been still in pattern among the villagers over at that place. Terrace betterment, tree sapling distribution for community forestry group and distribution of fresh fish tree to the communities as good so as to cut down dirt eroding from the farm are still been popular among the upstream communities. After that, they have started seting fruit trees on the private land where basic harvests and veggies could non be grown.

From the twelvemonth 1993, woods were handed over to the community for direction with some conditions. About 90 % of the woods of watershed country were besides handed over to community in a series of twelvemonth. Community forestry plan contribute significant attempt in preservation sector particularly in the Kulekhani Watershed Area. Figure 6.1 besides explains clearly how the preservation has been increasing. Table 6.1 shows that approximately 90 % of the wood land has already been handed over to the community with 72 user groups within 8897 families as users. NEA functionaries, Local Government functionaries, local CBOs functionaries, and other cardinal individuals of the communities have observed the bettering status of the woods elsewhere in the watershed country due to community people. In add-on, Sloping Agricultural Land Technology ( SALT ) has besides been introduced in some countries which can be seen in the figure below. SALT has been considered as one of the effectual dirt direction engineering in the hills.

Table 6.1: Brief information on community woods.

Total Community Forest Area ( hour angle )


Entire Households


Entire CFUG Groups


Entire country of the Watershed ( hour angle )


Entire Area of the Forest ( hour angle )


Percentage of the Community forest with response to watershed country ( % )


Percentage of CF with regard of forest country ( % )


Beginning: DFO, Makawanpur, 2009.

Figure 6.1: Changes in forest status within 20 old ages of clip.

Biruwa Ban Chitlang VDC, 1985

Biruwa Ban, Chitlang VDC, 2005

Gulley Control Works, First Year of Treatment, Road Side, Bajrabarahi, 1983

Gulley Control Works, First Year of Treatment, Road Side, Bajrabarahi, 1988

Beginning: Upadhyaya, 2005.

Adopted SALT Technology.

6.4. PES Scheme in Kulekhani

6.4.1. Introduction on PES

PES plan is still a new construct in Nepal. PES plan in Kulekhani was implemented under the Rewarding Upland Poor for Environmental Services ( RUPES ) plan which was financed by the World Agro-forestry Centre ( ICRAF ) . The plan was initiated in February 2002 after a regional workshop in Indonesia. There were about 61 participants from nine states in the workshop. Transfer mechanism and payment for environmental services was formulated with recommendation from expertness provided by specially commissioned documents and working groups. They agreed to work in action research manner as the cardinal attack of RUPES. Other international organisations that are committed to honoring directors of delicate ecosystems joined IFAD and ICRAF to organize an International Steering Committee. They include the Centre for International Forestry Research ( CIFOR ) , the World Resources Institute ( WRI ) , Conservation International, Winrock International Nepal ( WIN ) , the International Institute for Environment and Development ( IIED ) , IUCN, Ford Foundation, the Nature Conservancy, WWF, and the Economy and Environment Program for Southeast Asia ( EEPSEA ) . After intensive reappraisal of 50 campaigner countries, aa‚¬A“action research sitesaa‚¬A? were initiated in the Ikalahan and Bhakun Ancestral Domains, Philippines, in Kulekhani, Nepal and in Bungo, Sumberjaya, and the Singkarak Lake watershed in Indonesia. Six aa‚¬A“associateaa‚¬A? research sites have been identified in Indonesia, Philippines, and Southwestern China ( van Noordwijk, 2005 ) .

In Nepal, The action research was conducted by the WIN under the RUPES plan in Kulekhani Watershed from 2003 to 2006. WIN was able to happen out environmental services which were on demand to downstream, economic rating of the services, place possible purchasers and Sellerss and place possible mechanism for transportation payments. They did it through societal mobilisation, consciousness edifice and capacity edifice to develop the institutional transportation mechanism system. Third twelvemonth of the plan was the twelvemonth of constitution of the strategy. Activities implemented under this plan included the constitution of transportation payment mechanism, development of mechanisms for measuring ESs, designation of precedence development plan and development of ESs payment on poorness and supports of highland hapless. The plan has raised consciousness on the PES construct at the national degree through assorted medium like airing plan on the national Television Channel, executing street play, mobilising the local Eco-club, airing regular plan on local wireless and hanging hording boards. Some people from the service suppliers group were selected to go to preparation in India on capacity edifice ( RUPES, 2005 ) .

6.4.2. Aims of the RUPES Program

The chief aims of the RUPES were made as:

( 1 ) To place and value environmental services provided by the Kulekhani watershed and place possible providers and purchasers of these services,

( 2 ) To place appropriate environmental services reward transportation mechanism,

( 3 ) To beef up the capacity of local organisations to implement wages transportation mechanism and ( 4 ) To circulate lessons learned.

6.4.3. Designation and rating of the environmental services Designation of the environmental services

The environmental services as described in the chapter 2 are the services and goods that are provided by the watershed. Specifically, environmental services are categorized in to assorted signifiers of services: H2O resources, bio-diversity, and C segregation. These three are the possible environmental services that can be explored and utilized by the water parting. Former two services are normally local market based trade goods whereas latter one is the planetary market based trade good. Here the concern is merely on the local degree, hence, as per the demand of the demand side H2O resources as an environmental service had been identified. Water resources can on a regular basis be provided to the reservoir merely if highland wood is in better off status and dirt preservation methods should besides be adopted in farm land at the same time.

There is a general perceptual experience that natural resources like air and H2O are the gift of God and everyone have right to utilize it in free of cost. So, no 1 is believing or even imagine of being paid for such sort of assets of all time. Win with aid of ICRAF and IFID made people cognizant of what they have in the manus and what they could be benefited from. With the regular public engagement and local authorities concern over the watershed country, designation of the resources was done. Even though, the H2O was regarded as the major service for the current demand, C, bio-diversity and pristine beauty could besides be the services which could be the beginning of income for the upstream communities in future. During the field visit, local people around the reservoir were more concerned on the eco-tourism concern instead than other. That could be besides other possible beginning of income from resources what they have in manus. They were aiming the people from Kathmandu as a regular client and were be aftering to develop country as a close nature stalking country of Kathmandu Valley for weekend Evaluation of the Environmental Services

Appraisal of Entire Economic Value of environmental goods and services is a ambitious undertaking. It is possible to gauge approximative value of environmental goods such as lumber and non lumber forest merchandises but rating of services is a ambitious undertaking. Even so some common techniques used for environmental services rating include: production map, cost of unwellness, replacing cost, hedonistic pricing, contingent rating, pick mold and benefit transportation.

The value of sediment decrease service provided by the highland communities of Kulekahni Watershed was estimated utilizing production map attack. This attack assumes that environmental services influence the production of electricity by hydropower workss. It is found that 6,730 hectare of land is maintained as wood screen. Using Water Erosion Prediction Project ( WEPP ) theoretical account developed by the United States Department of Agriculture ( USDA ) , Amatya ( 2004 ) found that dirt eroding rate for agricultural land and forest land varied significantly. Estimation carried out between showed that it was 73 M Ton/hectare/year for agricultural land where as it was 1 M Ton/hectare/year for forest land. But it was besides found that eroding rates can change from one survey to another. Thus care of 6730 hectare of land reduces soil eroding by 484,560 meitneriums. If one assumes that merely 60 per centum of such scoured dirt is washed off to the reservoir in the signifier of deposits, approximately 290,736 meitneriums would be prevented from come ining the reservoir which comes out to be 241,311 M3 in footings of volume. This would ensue in extra infinite for H2O aggregation which is available for power coevals ( Ibid ) . Table 6.2 shows that agricultural land produces an surplus of 72 Metric Ton of deposits per hectare to forest land.

Table 6.2: Dirt eroding ( Metric ton/ha ) rates for different land utilizations in Kulekhani Watershed.




Shrub and grass





























Beginning: Amatya, 2004.

Kulekhani has been designed that at maximal discharge of 13.1 M3 of H2O per second, Kulekhani I and II can bring forth 92 MW of electricity, which can interpret to 1.96 kWh of electricity. This means that H2O saved from supplanting by forest preservation would bring forth about 472,969 kWh of energy. At an mean monetary value of NRs. 6.6[ 1 ]per kWh, such extra energy would bring forth about NRs. 3,121,598 gross for NEA. Upland communities in the Kulekhani watershed have besides undertaken several preservation steps in agricultural land. Such preservation steps include tree planting in private land, terrassing of agricultural land in inclines, gully control, acceptance of Sloping Agricultural Land Technology ( SALT ) , etc. These preservation steps are expected to lend to farther decrease of deposit in the Kulekhani reservoir ( Upadhyaya, 2005 ) .

6.5. Service Suppliers and the Service donees

In the Kulekhani Watershed country, Local Government of Nepal on behalf of the Nepal Electricity Authority ( NEA ) has been declared as the environmental Service direct donees. Cardinal Government has been having about 250 million from the royalty of Kulekhani I and II HEP. In that manner, Cardinal Government is besides the indirect donees of the environmental services. In add-on to this, the Nepali people who are utilizing hydroelectricity are besides indirect donees of the services provided by the upstream communities. The local people from eight Village Committee i.e. Daman, Palung, Bajrabarahi, Tistung, Chitlang, Markhu, Phakhel and Kulekhani have been declared as the Environment Service Seller. Among the upstream VDCs, portion of the Tistung VDC falls under the Kulekhani Watershed and other portion belong to the Trishuli watershed. Similarly, little portion of Phakhel portions to Kulehani watershed remainder of which belongs to the Bagmati Watershed. Kulekhani portion merely some country as upstream remainder of which belongs to the downstream portion of Kulekhani Watershed. The mention point for upstream and downstream is the reservoir as a mention point. The country above the reservoir has been considered as upstream country and down to which has been regarded as the downstream. Majority of the people are from the Tamang community remainder are from Newar, Brahmin/Chhetri and Untouchable Castes ( Dalits are in minorities ) . Harmonizing to the 2003 figure of the country, about

43 % of the populations are under poorness line ( Upadhyaya, 2005 ) .

6.6. Intermediary and experts

Winrock International, Nepal played a function of intermediary during dialogue procedure. It provided the proficient support for public audience, meetings, wall pictures and wireless plan. Furthermore, it had provided the experts for measuring resources and feasibleness survey. Advisers of Winrock International, Nepal, Local Development Officers and secretariats of Ministry of Local Development were considered as the experts.

6.7. Reward Service Transfer Mechanism

As discussed earlier the RUPES plan had been run for about three old ages. The chief result of the plan was the constitution of the wages transportation mechanism through policy guideline.

6.7.1. Mechanism of Payment

Government of Nepal had been apportioning a certain sum of the royalty received to the concerned territory. But ne’er did the service suppliers know it. The fund was managed by the local line bureau – District Development Committee. Local stakeholder and other professionals had worked for three old ages to set up a payment mechanism to guarantee livelihood security within watershed country. The Kulekhani Watershed Conservation and Development Forum ( KWCDF ) was the lone authorised organisation to work with the WIN so. They had formed the force per unit area group which in their sentiment worked a batch. Continuously from the beginning of the plan in 2003, the executives of the KWCDF started speaking with the functionaries. Based on the interview with executives of KWCDF and WIN Consultant, a group of people who subsequently on formed a KWCDF had been doing trust against anti royalty distribution regulation of Government. They had a talk with former Water Resources Minister, Sailaja Acharya, on this issue in presence of the local leader. Harmonizing to the Local Self Governance Act 1997, the local people could acquire portion of the royalty which has been received by the Local Government. Former Minister had agreed to revise the Act and to supply the people ‘s right. However, the execution could non be happen so. In the Meanwhile Winrock Nepal gave involvement on the same issue. WIN played a critical function as a go-between in set uping wages transportation mechanism through moral and proficient support throughout the fighting stage. Consultation plan with different secretariats of the ministries was organized taking to do cognizant on “ what is royalty about? “ , “ How it transfers from Cardinal Government to Local Government? ” and “ how can it be possible to administer within provider communities? ” Similar sorts of audience plans were organized affecting all of the possible stakeholders to circulate on-going procedure. Based on the several audience plans, they come up with the policy preparation thought which subsequently on proved to be one of the best results of the plan.

Electricity Act, 1992 stated in footings of royalty has to be paid to Government as: “ ( 1 ) The licensee shall hold to pay royalty to His Majesty ‘s Government at a rate of NRs. 100 for each installed kW of electricity per twelvemonth plus 2 per centum of the mean duty per unit ( per kilowatt hr ) for a term of up to 15 old ages from the day of the month of coevals of electricity for commercial intent. ( 2 ) After the term specified in subdivision ( 1 ) , the licensee shall hold to pay royalty to His Majesty ‘s Government at a rate of NPR 1000 for each installed kW of electricity per twelvemonth plus 10 per centum of the mean duty per unit ( per kilowatt hr ) . ” Therefore Cardinal Government of Nepal has been having about NPR 252,857,143.

Harmonizing to the revised Local Self Governance Act, 1997 of Nepal, District Development Committee ( DDC ) territory can acquire 12 % of the entire Royalty received by the peculiar hydropower undertaking merely when territory has got power house within. Each DDC of the development part, where the hydel undertaking belongs to, can acquire the 38 % of the entire royalty received by the Government. Makawanpur territory is the place territory of Kulekhani Hydel Project and one of the territories of the Central Development Region, so it has been having 14 % of the entire royalty paid by the Kulekhani Hydel Project. Harmonizing to the Procedural regulation and Hydroelectricity Royalty distribution and use Guideline, 2006, 20 % of the entire royalty received by the DDC will reassign to upstream communities, 15 % to the environing communities and 15 % to the downstream communities. In sum, 50 % of the royalty transferred by the Cardinal Government will be paid to the public assistance of the watershed country and remainder will put in pro-poor country of the territory. Last twelvemonth DDC has transferred the sum of NPR 7,000,000 and NPR 5,000,000 in 2007 and merely NPR 200,000 in 2006 ( implemented twelvemonth ) . As mentioning to the subdivision, NPR 3,121,598 is the estimated extra gross generated by the forest preservation merely. The estimated part in footings of monitory value is comparatively less. But sing other preservation activities, it would be about the same. Till day of the month, upstream communities are merely having the inducements. To keep transparence Environmental Management Special Fund ( EMSF ) was created and do a proviso to reassign money straight to the fund and so to the local CBOs. However, that ordinance was merely implemented in the initial twelvemonth of execution. Subsequently on, DDC makes another proviso of reassigning money which flows from DDC to VDC and so to CBOs. One executive commission was formed to see after the EMSF and the policy which has made clear proviso on the formation of executives and their function. However it is non active now.

Figure 6.2: Sum of inducements received by the service suppliers.

Beginning: Field Survey, 2009 and Upadhyaya, 2005.

6.7.2. Administration Mechanism

The PES system itself has non been controlled or governed by any organisation independently like forest users group in community forestry plan. This portion of the plan has been found really weak in the Kulekhani watershed. However, it has been governed by the District Development Committee of the Makawanpur District itself. Because of struggle between the people, the so established KWCDF organisation could non acquire the authorization to look after the PES plan.

6.7.3. Conflict

Conflict was fundamentally observed in following issues: Geographic division of the watershed country

The populations of Markhu VDC ( immediate upstream and environing country of the reservoir ) were non satisfied with the geographical division of the watershed country. They were claiming them as environing VDC but in fact they were categorized as upstream. They have been claiming more inducements as they were double victim of the reservoir ; fertile agricultural land had already been given during reservoir building and high hazard of implosion therapy of staying lowland agricultural field. So, harmonizing to them, they have to be paid as environing country instead than as upstream country. Unfair distribution of inducements

Upstream-downstream struggle in inducements distribution can be visibly seen. Almost all of the person, who are good known about the established mechanism, were non really satisfied with the division of per centum as 20 % for upstream, 15 % for downstream and 15 % for environing country. As the beginning refinisher, upstream should acquire higher than them but in fact 20 % of the royalty money has to be divided within eight VDCs whereas 15 % has to be divided 3 VDCs each for downstream and environing. Peoples from downstream country were claiming their interest within 20 % of the royalty money which was transferred to the upstream communities. It is really general to hold struggles in these sorts of issues. This sort of struggle might hold been reduced if there was a uninterrupted treatment and engagement of all stakeholders during the procedure.

Downstream communities expected to be paid more of the gross money of NEA because community people felt that they are being more affected by impounded H2O than upstream communities. Conflict Resolution

After the struggle particularly latter one, DDC ordered them to do one public assistance commission including upstream, downstream and environing stakeholders to pull off the fund. However, such theoretical account commission could non be formed because of their internal political clangs.

The policy shapers were believing of revising the guideline which they have made during dialogue procedure and will do clear about the defects of the bing policies. None of the motion was done to decide struggle within the upstream community by anyone boulder clay day of the month.

6.8. Some activities performed during the motion of dialogue

6.8.1. Social Mobilization through wall pictures

Social mobilisation plan was held with the engagement of KWCDF and proficient support under RUPES plan through wall pictures and wireless plan. Wall pictures were done by the name of KWCDF within the watershed country with several mottos like save our water parting, “ works trees, addition H2O beginning ” , “ enhance verdure, develop eco-tourism ” , “ better your patio, cut down dirt loss ” , provide environmental services by conserving natural resources ” etc.

About have seen the wall pictures and read it but really few of them have had knowledge why those pictures were done. That could be happened due to the deficiency of consciousness on grassroots degree. Locals might believe that KWCDF was besides a NGO working some development plants like other several organisations. Peoples are overwhelmed with the developmental workers.

6.8.2. Social mobilisation through wireless plan

Radio Palung is the non-profit oriented community Frequency modulator Radio. One of its purposes is to cognizant locals on environment, local political personal businesss and recent developmental plants within community. Radio Palung was given the duty to run the consciousness plan on PES named Watawaran Sewa ( Environmental Services ) . It had been airing one time in every two hebdomads for half an hr from 2005 to 2006. The plan included three subdivisions ; get downing with environmental awareness vocals plans returns with interview with executives of the community based organisation ( s ) working in the field of preservation followed by public voices on their perceptual experience on environmental services and current environmental issues and ended up with utile information on preservation.

Executives of the KWCDF perceived that Radio Palung had played important function in consciousness and apprehension on the decentalisation of royalty in the signifier of PES. The president of the Radio Palung besides shared the similar positions. He added to demo popularity of plan that they got the positive impact of that plan through letters and study they did after completion of plan.

When similar questions were put on the populace, the similar positions did non obtain. Because of concern on farm activities people did non acquire opportunity to hear it decently. Even many of them did non cognize about the plan.

These diverse findings shows that the plan was either popular within the limited groups who have eager to cognize about new updates on environmental of their ain community or people may bury with the three old ages of clip.

6.9. Drumhead

Kulekhani hydropower works is the lone reservoir based hydropower in Nepal. The Indra Sarovar Lake, manmade 114 high rockfill 2 sq. km surface country and 7 kilometer long, is the reservoir of the power works where all the feeders of Kulekhani River contribute to it. Seasonal precipitation is the merely the beginning of H2O in the river since all the rivers are of Siwalik beginning. Hence, the sum of precipitation received during rainy season is the major finding factor on the volume of H2O accumulated in the reservoir. There has been a important lessening in the Volume of the H2O from 1999 to 2007 this is in direct contrast to the fact that the forest country coverage has been increasing. The tendency of sediment burden in the reservoir since last three old ages is slightly similar which either reflects similar sum of precipitation was received or forest preservation is extremely in the up status.

All other hydro electric workss in Nepal are run off river type. The manmade reservoir based Kulekahni works is of really important in Nepal. It is operated during the peak hours and dry season. For case for last two old ages ( 2009 -2010 ) Nepal has been confronting an norm of 12 hours of electricity cut off every twenty-four hours in the driest month from January to May.

NEA demands for H2O, dirt preservation and forest preservation as environmental services from the upstream population. In return, locals have contributed important attempt in forest preservation which can be seen from the land usage tabular array from the chapter 4 and table 6.1 the nucleus involvement of Nepal Government besides the demand of ESs is to bring forth hydro electricity to carry through the demand electricity demand of people during dry season. Community people are besides affecting to continue forest resources. It is visibly seen after the origin of community forestry plan. The tendency of forest land usage system is increasing every bit referred to the tabular array 4.1. Besides community forestry, community people are besides accommodating other dirt preservation engineering like SALT, patio betterment engineering and gabion wall building in the upstream country.

The chapter so describes about the bing PES system in Kulekhani Watershed country. It was established in 2006 and implemented under the RUPES plan funded by ICRAF taking to place and value environmental services provided by the Kulekhani watershed and place possible providers and purchasers of these services, place appropriate environmental services and wages transportation mechanism, strengthen the capacity of local organisations to implement wages transportation mechanism and disseminate lessons learned. Harmonizing to purpose, plan was able to place the watershed services as H2O resources, biodiversity, scenic beauty and C storage capacity. The simple method of resource rating assuming the entire wood land converted to the agricultural land. That would give the simple thought about how much dirt would avoid to be deposited merely from the forest preservation. The following measure was to place service purchaser and marketer. For the bing PES plan, 46,197 dwellers of eight VDCs are identified as the service supplier and Government of Nepal on behalf of the NEA is identified as the service donee.

Payment mechanism was established in the last twelvemonth of RUPES. During the dialogue procedure the go-betweens were guided by the Electricity Act, 1992 and Local Self Governance Act, 1997. Electricity Act clearly guides the royalty transportation to cardinal authorities of Nepal by the hydroelectricity undertakings. Likewise, Local Self Governance Act guide entire per centum of gross collected from the hydroelectricity undertaking to the local authorities and to the local community.