604b7d2381cf9d101f68472c Hydropower Sustainability Guidelines Feb 2021

First published December 2018.
This edition published May 2020.
Copyright
© 2018 International Hydropower Association Limited.

The “International Hydropower Association” name and
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Acknowledgements
The Hydropower Sustainability Guidelines define how good international industry practice should be
assessed, and build on the global knowledge and experience gathered through the multi-stakeholder
process of the Hydropower Sustainability Assessment Forum (2008-2010), plus insights gained through
international application of the Hydropower Sustainability Assessment Protocol (IHA, 2011).
The guidelines content was largely authored by Dr Helen Locher, who was coordinator for the Hydropower
Sustainability Assessment Forum and is an Accredited Lead Assessor for the Hydropower Sustainability
Assessment Protocol. The lead author for the Climate Change Mitigation and Resilience topic was João Costa,
Senior Sustainability Specialist, International Hydropower Association (IHA).
This compendium has benefitted from the collaboration of numerous experts who provided valuable written
comments during the expert review process. This collaboration is gratefully acknowledged.
The members of the Hydropower Sustainability Assessment Council, coordinated through its governance
committee, reviewed and approved this document.
This work would not have been possible without the financial support and guidance from the Swiss State
Secretariat for Economic Affairs.
Drafting:
Helen Locher, Lead Author
João Costa, Author (Climate Change Mitigation and Resilience)
Reviewed by:
Aida Khalil, Asian Development Bank
Andrew Scanlon, Independent Consultant
Belinda Lip, World Wide Fund for Nature
Donal O’Leary, Transparency International
Douglas Smith, Independent Consultant
Eduard Wojczynski, Independent Consultant
Eleni Taylor-Wood, Entura
Elisa Xiao, New Development Bank
Gabriel Todt de Azevedo, Inter-American Investment Corporation – IDB Invest
Jeff Opperman, World Wide Fund for Nature
Jeremy Bird, Independent Consultant
Jian-Hua Meng, World Wide Fund for Nature
Joerg Hartmann, Independent Consultant
Margaret Trias, TULLOCH Engineering
María Ubierna, International Hydropower Association
Mathis Rogner, International Hydropower Association
Richard Taylor, International Hydropower Association
Sara Mercier-Blais, Université du Québec à Montréal – UQAM
Communications:
Will Henley, International Hydropower Association
Louis Scorza, International Hydropower Association
Hydropower Sustainability Guidelines on Good International Industry Practice | 1

Introduction
Purpose The definitions and examples that have emerged

were agreed through a collaborative multi-
stakeholder process which began with the
The Hydropower Sustainability Guidelines on publication, by the International Hydropower
Good International Industry Practice (HGIIP) form Association (IHA), of the first IHA Sustainability
the normative document on how sustainability Guidelines in 2004, leading to the formation of
practice should be defined and measured in the the Hydropower Sustainability Assessment Forum
hydropower sector. between 2008 and 2010, which delivered the
Hydropower Sustainability Assessment Protocol.
The guidelines offer the most detailed
descriptions of international good practice for A process of drafting and expert review by
sustainability in the hydropower industry and leading authorities in their fields took place
are intended to be used in a variety of different during 2018, resulting in the 26 chapters
settings, either individually or as a compendium. presented in this compendium. The Hydropower
They have been developed to bring definition to Sustainability Guidelines were reviewed and
the processes and outcomes that constitute good approved by the Hydropower Sustainability
international industry practice for topics relevant Assessment Council (HSAC), through its
to preparing, implementing and operating governance committee, leading to their
hydropower projects. publication in December 2018.
Organisations may choose to reference

compliance with the guidelines in contractual Form and structure
arrangements; lenders and investors may opt
to reference the guidelines in their terms of The guidelines provide definitions of good
agreement; while markets and labelling systems practice in accordance with six criteria: covering
may specify them in their eligibility requirements. project assessment, management, stakeholder
engagement, stakeholder support, conformance/
compliance, and outcomes. The guidelines
History and development expand on what is expected by statements
on these criteria in two complementary
The Hydropower Sustainability Guidelines, assessment tools: the Hydropower Sustainability
a compendium and reference manual, is the Assessment Protocol (HSAP) and the Hydropower
culmination of two decades of discussions about Sustainability Environmental, Social and
what constitutes good practice in hydropower Governance Gap Analysis Tool (HESG). Reference
development. These discussions have involved a to the criteria statements is made in inset boxes
broad range of stakeholders, from hydropower within each guideline. What follows is a detailed
companies, to social and environmental NGOs, explanation of the requirements of that statement
intergovernmental organisations, financial in order to achieve good practice, including
institutions and governments. definitions of terms and relevant examples.
2 | Hydropower Sustainability Guidelines on Good International Industry Practice

A suite of sustainability tools performance above and below defined good
practice; this enables projects to benchmark their
performance in a comprehensive way. In addition,
With the completion of this compendium, the Hydropower Sustainability ESG Gap Analysis
the sector now has a suite of Hydropower Tool (HESG), launched in July 2018, can be used to
Sustainability Tools (HST) to harmonise check for gaps against good practice on targeted
understanding of sustainability in a hydropower topics and includes a gap management plan to
context. Performance against the Hydropower improve processes and outcomes.
Sustainability Guidelines (HGIIP) can be
measured through the Hydropower Sustainability
Assessment Protocol (HSAP) which takes into
account all the 26 guideline topics and measures

Contents
Communications
Communications
and Consultation and Consultation————————————————————————————— 06
Governance—————————————————————————————————————— 12
Governance
Demonstrated
Demonstrated
Need and Need and Strategic Fit———————————————————————————— 18
Strategic Fit
Siting
Siting
and Designand Design———————————————————————————————————— 22
Environmental
Environmental
and Social Issues and Social Issues Management———————————————————————— 28
Management
Integrated
Integrated Project Management—————————————————————————————— 36
Project
Management
Hydrological
Hydrological Resource—————————————————————————————————— 40
Resource
Asset Reliability
Asset
and Reliability and Efficiency—————————————————————————————— 46
Efficiency
Infrastructure
Infrastructure Safety——————————————————————————————————— 52
Safety
Financial
Financial Viability———————————————————————————————————— 58
Viability
Project
Project Benefits————————————————————————————————————— 68
Benefits
Economic
Economic Viability———————————————————————————————————— 74
Viability
Procurement—————————————————————————————————————— 78
Procurement

Project Affected
Project Affected Communities and Livelihoods———————————————————————— 84
Communities
and Livelihoods
Resettlement—————————————————————————————————————— 94
Resettlement
Indigenous
Indigenous Peoples——————————————————————————————————
Peoples 102
Labour and
Labour and Working Conditions—————————————————————————————
Working 112
Conditions
Cultural
Cultural Heritage———————————————————————————————————
Heritage 120
Public
Public Health—————————————————————————————————————
Health 126
Biodiversity and
Biodiversity
Invasive Species and Invasive Species———————————————————————————— 134
Erosion and
Erosion and Sedimentation———————————————————————————————
Sedimentation 142
Reservoir
Reservoir Management————————————————————————————————
Management 150
Water
Water Quality—————————————————————————————————————
Quality 154
Waste, Noise
Waste,
and Noise and Air Quality——————————————————————————————
Air Quality 162
Downstream
Downstream
Flow Regimes Flow Regimes——————————————————————————————— 170
Climate Change
Climateand
Mitigation Change Mitigation and Resilience————————————————————————— 176
Resilience

Communications
and Consultation
This guideline expands on what is arising in the external environment and changes
expected by the criteria statements in these factors over time; an increased ability to
find management solutions that are supported
in the Hydropower Sustainability by stakeholders; and, ultimately, the avoidance
Tools (HST) for the Communications of delays and additional costs arising from poor
and Consultation topic, relating to communications.
assessment, management, stakeholder
engagement and conformance/ A stakeholder is defined as anyone who is
compliance. The good practice criteria interested in, involved in or affected by the
are expressed for different life cycle hydropower project and its associated activities.
Project stakeholders can consist of a broad
stages. range of different groups, such as affected
communities, government agencies, partners,
In the Hydropower Sustainability contractors, suppliers, financiers, catchment
Assessment Protocol (HSAP), this topic residents, the media, academics and experts,
civil society, and Non-Government Organisations
is addressed in P-1 for the preparation (NGOs). A stakeholder does not have to be
stage, I-1 for the implementation stage directly affected to meet project stakeholder
and O-1 for the operation stage. In definition and anyone with an interest should
the Hydropower Sustainability ESG be able to have access to mechanisms for
Gap Analysis Tool (HESG), this topic is communication and engagement.
addressed in Section 10. The intent is that stakeholders are identified and
engaged in the issues of interest to them, and
Hydropower projects involve a range communications and consultation processes
of stakeholders. Effective stakeholder establish a foundation for good stakeholder
communications and consultation throughout relations throughout the project life.
the life of the project is an important element
of good practice. Benefits for the developer and
owner/operator can include: a better and earlier
understanding of project risks and opportunities

and Consultation
Communications
Assessment • based on risks to the project - e.g. those with key
roles in the supply chain; and
Assessment criterion - Preparation Stage: Stakeholder
mapping has been undertaken to identify and
• based on responsibilities - e.g. government
institutions, regulatory agencies.
analyse stakeholders, to establish those that are
directly affected, and to establish communication Community-level consultation workshops,
requirements and priorities, with no significant gaps. interviews, and baseline surveys will contribute
to the identification of local-level stakeholders.
In the preparation stage, the identification of
The first step towards good practice for
stakeholders should be part of, or closely linked to,
communications and consultation is stakeholder
the Environmental and Social Impact Assessment
mapping. Stakeholder mapping involves
(ESIA) process, although communications
the identification of all project stakeholders
in general should not be left solely to ESIA
in meaningful groups (e.g. project-affected
consultants. A continuous presence of project staff
communities, regulators, contractors, etc.). Once
in local communities will best assist in identifying
stakeholder groups are identified, progressive
stakeholders, analysing requirements and
levels of communications and consultation
priorities, and building relationships that are well
analyses and planning can be undertaken.
set up for the life of the project.
A project may affect a community with several
Stakeholder analyses should be undertaken
thousand members, but within that community
for all groups. These should involve: evaluating
there are likely to be various sub-groups with
the relative influence of the project on different
different interests and views on the project. All
stakeholder groups or individuals, as well as their
groups of stakeholders, their interests, and the
influence on the project; evaluating related risks
most appropriate means for engaging with them
and level of risk; identifying issues of interest;
should be identified.
and planning the most effective mechanisms for
Stakeholders that are directly affected by the engagement.
project, versus those indirectly affected by
Important considerations in defining
or with an interest in the project, should be
communications requirements for different
identified. Directly affected stakeholders are
stakeholder groups include:
those stakeholders with substantial rights, risks
and responsibilities in relation to the project or
• literacy;
issues it affects. These stakeholders may be inside
the project affected area (e.g. project affected • language, especially with ethnic minorities and
communities) or outside the project affected area indigenous peoples;
(e.g. government regulators, finance institution • cultural norms and courtesies;
representatives, investment partners, NGOs). They
may live downstream and be at risk of effects that
• accessibility to various forms of information,
e.g. internet access, transport access to public
will not emerge for a number of years. Indirectly meetings, or locations of signposted information;
affected stakeholders usually include those with
second order impacts, such as those affected by • gender, as women in the same stakeholder
changes in the activities of a local project supplier group may have different issues and impacts
compared to the men and may not be included
or tourists passing through the region.
amongst community representatives unless the
consultation is deliberately designed for this;
The following are examples of stakeholder groups
based on rights, risks and responsibilities: • appropriate project representatives for the
various consultation approaches and groups (e.g.
• based on rights – e.g. those with land or water in terms of ethnicity, age, gender, acceptability);
rights potentially affected; • methods needed within groups to consider
• based on risks arising from the project – e.g. information and give meaningful inputs; and
those potentially affected by a specific impact • timing, e.g. time needed for consultation, when
area such as adverse water quality, increased those stakeholders are available, time needed
traffic hazards, or damage to cultural heritage for responses, and fit with important information
artefacts; updates and availability of the project.

Assessments to inform communications and Stakeholder interests and communications needs
consultation plans at the preparation stage should can differ again at the operations stage. Important
include what kind of and when information should information areas for the operations stage
be shared with regards to the progress of the might relate to, for example: flood warning, spill
project (see the Integrated Project Management management, drought management, downstream
guideline). Important information sharing flows, reservoir uses and rules, water offtake rules,
points in the project development timeline coordination with other hydropower facilities
include: periodically during development of the and water users in the river basin, notifications
Environmental and Social Impact Assessment of outages, major operational changes under
(ESIA) studies; on the draft ESIA report; during consideration, and crisis communications.
development of the Environmental and Social Stakeholders will also be interested in the
Management Plan (ESMP); and at regular intervals effectiveness of management plans, as well as
during implementation to see if measures are the status shown by monitoring data on the
effective or if issues are arising. environmental and social values that have been
flagged as important during the preparation stage.
Assessment Monitoring during implementation and operations
Assessment criterion - Implementation Stage: should be oriented towards testing that:
Communications and consultation requirements
and approaches have been identified through an • stakeholder maps and associated information
assessment process involving stakeholder mapping, are up-to-date;
supported by ongoing monitoring. • communications and consultation approaches
are effective; and
Assessment criterion - Operation Stage: Ongoing or • stakeholders are getting the information they
emerging issues relating to hydropower facility are interested in (which is likely to change over
communications and consultation have been time).
identified; requirements and approaches are
determined through a periodically updated assessment At all project stages, the developer and owner/
process involving stakeholder mapping; and operator should be able to demonstrate that
effectiveness is monitored. stakeholder groups are receiving the information
intended for them and are able to effectively
Further to the above guidance, stakeholder access the consultation mechanisms designed
mapping, analysis, and accompanying databases for interactions with them. Periodic surveys,
should be developed at an early stage of project questionnaires, feedback requests, and seeking
development and maintained and updated suggestions for improvements can be useful
through all project stages. These processes should techniques to test the effectiveness of existing
be developed at any project stage if they have not approaches. This is especially important because
previously been completed as they will always communications and consultation requirements
add value whenever developed. Keeping these and stakeholder interests can extend over long
current is important through the implementation periods of time, from years to decades.
and operation stages as both communities and
stakeholder groups and their needs and issues
evolve over time. Management
Management criterion - Preparation, Implementation
Information needs at the implementation stage and Operation Stages: Communications and
are diverse. Stakeholders affected by construction consultation plans and processes, including an
and implementation activities will want to be kept appropriate grievance mechanism, have been
well informed on many aspects, which may include developed at an early stage applicable to project
project work plans, impacts and risks, mitigation preparation, implementation and operation that
measures, monitoring and review. Public safety outline communication and consultation needs
communications are critical. Water safety will and approaches for various stakeholder groups and
need a lot of communications attention both at topics.
the time of reservoir filling and testing and with
commissioning of the power station and related
assets.

and Consultation
Communications
Once the stakeholder mapping is established, the should make it clear how gender considerations
analyses undertaken should help define the most and the inclusion of vulnerable social groups
appropriate engagement strategies between the (e.g. ethnic minorities) have been given careful
project and the various stakeholder groups. These consideration, as well as how individual needs such
should be embedded in communications and as transport, accessibility, logistical constraints,
consultation plans and processes. timing, disabilities, language, literacy and cultural
considerations are taken into account.
Typically, a project would establish an overarching
communications and consultation strategy or Consultation at the community level typically
plan, setting out the methods, frequency, and involves meetings and workshops, which can
responsibilities. These may be supported by sub- be numerous during the preparation and
plans for particular groups of stakeholders, for implementation stages, or public consultation
example a media communications plan or affected meetings or hearings, some of which may be a
community consultation plan. Communications formal regulatory requirement. The establishment
plans might include content such as: the vision, of groups that regularly meet, such as liaison
principles and values of communication; committees, can be a useful means of consulting
objectives; responsibilities and structures; with groups of stakeholders. Communications
communications channels; institutional branding; activities are normally carried out by a social or
and processes to be followed. They may also be community liaison team, government liaison
underpinned by a corporate stakeholder relations team or officers, and/or a public relations team.
policy or communications policy. Consultation Dedicated community liaison officers, often one
plans should include objectives, participants, or two per community, are a frequently used
locations, notifications, forms of information, method for local communications. In remote areas,
timing, time allowances for questions and community runners/messengers from the local
feedback, method of recording or documenting, communities can be appointed and provided
etc. with transport to provide a function of keeping
communities informed and making arrangements
At the implementation stage, contractors may for meetings. Larger projects may maintain the
have separate community relations plans and presence of communications agents in all affected
processes. Responsibilities and expectations for communities. Other forms of communication could
communications and consultation amongst the include, for example: project information centres;
different parties involved in project delivery should a physical project model; printed information in
be well articulated in all relevant plans, including in many forms; stakeholder visits to the project site;
the integrated project management plans. local media articles and programmes; and a project
website.
The initial stakeholder map can be expanded
into or supplemented by a database of contacts, Good practice requires the establishment of
including contact details, responsibilities for grievance mechanisms. Grievance mechanisms
maintaining contact, and frequency and timing refer to the processes by which stakeholders are
of contact. A database may be a central database able to raise concerns, grievances and legitimate
including all project stakeholders, or there may complaints; the project procedures to track
be separate stakeholder maps and databases and respond to any grievances; how issues will
for individual stakeholder groups. Approaches be escalated if they cannot be easily resolved;
to stakeholder identification and analysis may commitments to inform stakeholders of status or
be managed by different parts of a business for outcomes; and legal recourse avenues. Grievance
different groups of stakeholders. mechanisms should be formally developed,
easily accessible, and well understood by relevant
Communications and consultation processes parties, particularly those who are intended
should include how the project proponent collects to have access to them. Grievances can be
feedback on stakeholder issues and responds to collected in many forms, for example verbally or
issues raised, and how these issues are addressed in writing, through an intermediary (e.g. a village
in decision-making. Process requirements should chief ), etc. Procedures should include excellent
include the need to take, distribute, and keep records management. Processes to be included
copies of minutes of meetings. Plans and processes in grievance mechanisms may differ depending

on the context, community norms, degree of Stakeholder engagement is part of the
development or remoteness, etc. They may implementation of communications and
include, as appropriate: consultation plans. Important elements of good
practice relate to timing, two-way methods,
• a community liaison office; focal areas for engagement, good faith, issues
identification, and feedback.
• community liaison officers;
• a dedicated telephone line for raising grievances, Appropriately timed means that engagement is
preferably a toll-free line; early enough in the relevant stage that the project
can respond to the issues raised, stakeholders
• an online contact form;
can respond before the project or facility takes
• a dedicated email address, post box, or decisions, and engagement occurs at times that
local government office drop box for raising are suitable for relevant stakeholders to participate.
grievances; Stakeholders should be supportive of the timing
• a centralised grievance database; of engagement activities. Business or government
stakeholders have their own decision-making
• the appointment of a grievance redress officer processes that need to be coordinated, such as
focused solely on documenting and facilitating board or committee meetings. Communities need
resolution of grievances; and sufficient time to receive information, discuss it
• an ombudsman or arbitrator to resolve openly with the project representatives, then go
disagreements. through their own community dialogue processes
before forming a consolidated community view to
In some areas, a formal government channel or a relay back into the evaluation processes.
channel using traditional authorities may be used Two-way means the stakeholders can give
alongside the project’s grievance mechanism. their views on considerations relevant to the
In all cases it is necessary that grievances are communications focal area and not just be
logged and dated, and the dates by which they given information without any opportunity to
are acknowledged, answered and resolved are respond. Examples of two-way processes are
recorded. If there are multiple databases, these public meetings and hearings, public comments
should inform a centralised database from which on studies and options assessment documents,
statistics can be gathered for regular reporting. interactive participation in workshops, negotiation,
Records need to be well maintained by the mediation, and focus groups. Whilst provision of
developer and the owner/operator so that parties information by the developer, owner or operator is
who raise grievances and are unsure of the important, it is not sufficient to meet good practice
outcome, or want to remind themselves after many and there needs to be evidence that feedback on
years, can get the relevant documentation. that information is obtained in a meaningful way.
Good faith engagement refers to the quality
Stakeholder Engagement of the discussions held. The project and the
Stakeholder Engagement criterion – Preparation, stakeholders should engage honestly, as equals,
Implementation and Operation Stages: The project with willingness to listen to each other’s points
preparation, implementation and operation stages of view, and the intent to reach agreement.
have involved appropriately timed communications Seeking stakeholder input into the design of
and engagement, often two-way, with directly engagement processes is often indicative of
affected stakeholders on topics of interest and good faith engagement. Other indications could
relevance to them; engagement is undertaken include examples of two-way participatory
in good faith; ongoing processes are in place for processes showing negotiation or evidence that
stakeholders to raise issues and get feedback. the developer has responded to issues raised by
stakeholders in development decision-making.

and Consultation
Communications
Processes in place for stakeholders to raise issues to be demonstrated by the project grievance
at any point in the life of the project or operating mechanism; or public disclosure of certain project
facility may happen through a formal grievance documents such as monitoring reports on key
mechanism as described above or through less issues.
formal means. These could include, for example:
a contact person and/or a ‘contact us’ space on Conformance refers to delivering what is in the
the company website; periodic public briefings plan. Examples relevant to communications and
or question/answer opportunities; participation consultation could include budgetary allocations,
of company staff on stakeholder or catchment designation of roles and role expectations,
committees; and regular meetings and issue- resource provisions, provision of internal training,
raising mechanisms developed in liaison with local meeting schedules, support mechanisms, response
government authorities. times, and record keeping.
Feedback on stakeholder issues could be
Commitments may be expressed in regulatory
demonstrated by means such as emails, records of
requirements for addressing communications
telephone conversations, written correspondence,
and consultation, in relevant policy requirements
meeting minutes, media releases, or provision of
of the developer or owner/operator, or in any
responses to frequently asked questions on the
relevant company statements made publicly
company website. Good practice requires a register
or within management plans. For example, the
to be kept by the developer and owner/operator
company CEO may make a statement in the
detailing the source, date and nature of issues
press that transportation will be made freely
raised, and how and when each was addressed and
available for community members to attend the
resolved. Closure of issues with the stakeholder
public meetings about the project. The grievance
who raised them is essential.
mechanism may contain commitments to certain
time targets for issue acknowledgement, response,
resolution, and feedback. Evidence of adherence
Conformance/Compliance to commitments could include, for example
Conformance/Compliance criterion – Preparation, internal monitoring and reports, government
Implementation and Operation Stages: Processes and inspections, and independent review. Variations
objectives relating to communications and to commitments should be well-justified and
consultation have been and are on track to be approved by relevant authorities, with appropriate
met with no major non-compliances or non- stakeholder liaison.
conformances, and any communications related
commitments have been or are on track to be met. The significance of not meeting a commitment is
based on the magnitude and consequence of that
omission and will be context-specific. For example,
Good practice requires evidence that
a failure to demonstrate delivery of a stakeholder
communications and consultation measures
consultation process required under the relevant
are compliant with the relevant legal and
legislation is likely to be a significant non-
administrative requirements for public disclosure
compliance, whereas a slight delay in publication
and consultation, which may be expressed in
of a monitoring report could be a non-significant
licence or permit conditions or captured in
non-conformance (depending on the consequence
relevant legislation. Compliance requirements may
of that delay).
relate to, for example: the number, timing and type
of community consultation sessions undertaken
as part of project preparation; the standards

Governance
This guideline expands on what is transparency, integrity and accountability issues;

expected by the criteria statements in the can manage external governance issues; and can
ensure compliance.
Hydropower Sustainability Tools (HST)
for the Governance topic, relating to All businesses are operated, regulated, and
assessment, management, conformance/ controlled according to a set of internal rules
compliance, stakeholder engagement and processes, which are defined as corporate
and outcomes. The good practice criteria governance. Different corporate processes and
structures will be required depending on internal
are expressed for different life cycle characteristics of the business (e.g a single-
stages. project or multi-project entity; government-
owned, privately held, or listed on the stock
In the Hydropower Sustainability market; or a domestic or multi-national business).
These requirements will be further shaped by
Assessment Protocol (HSAP), this topic the external governance environment, such
is addressed in P-2 for the preparation as government regulatory requirements, legal
stage, I-2 for the implementation stage frameworks, and risks.
and O-2 for the operation stage. In
External governance refers to the political,
the Hydropower Sustainability ESG
institutional, legal and regulatory system within
Gap Analysis Tool (HESG), this topic is which the project is developed and operates.
addressed in Section 9. Hydropower projects typically operate in
complex external governance environments.
Governance refers to the combination of A number of different institutions are likely to
processes and structures that inform, direct, have responsibilities for different aspects of
manage and monitor the activities of a project or the hydropower development. These include
entity towards the achievement of its objectives. regulators, which are responsible for electricity
This guideline addresses corporate and external generation, transmission and distribution,
governance considerations for the hydropower dam safety, water resource management,
project and the operating hydropower facility. environment, labour, and electricity pricing, and
The intent is that the developer and owner/ agencies, which are responsible for planning,
operator have sound corporate business land, emergency services, hydro-meteorology,
structures, policies and practices; address geology, health, and culture.

Governance
Hydropower projects may have different not limited to: the elected government; the civil
proponents and business structures at different service/public sector institutions; political parties;
project life cycle stages which influence the anti-corruption organisations; the judiciary;
ownership model and governance arrangements. grievance addressing agencies such as the
Projects may be privately or publicly owned, or ombudsman; law enforcement agencies; Freedom
a public-private partnership (PPP). Projects may of Information; the media; local government;
emerge from the public sector, transfer to the financial institutions; international institutions
private sector at the preparation stage, and return (e.g some provide peer review of anti-corruption
to the public sector at a later stage. Reasons for efforts); audit/oversight institutions; and the
ownership model changes could be, for example, public contracting system.
to accelerate the development timetable by
using private developers, to facilitate financing Examples of external governance issues that may
strategies, or to spread risk. be identified as relevant to a project include:
This guideline addresses corporate and external • gaps, uncertainties or contradictions in

governance considerations that affect the regulations, policies and/or standards;
sustainability of the hydropower development • capacity shortfalls in public institutions in
project or operating facility. This guideline is not relation to, for example, staff numbers, expertise
directed at the external governance framework levels, and regulatory frameworks and policies;
itself (e.g national policy, legislation, government • demands for illicit payments;
agencies, or government capacity building). It
focusses on the developer’s and owner/operator’s • disagreements between jurisdictions affected by
own corporate governance measures, as well as the project;
how the developer and owner/operator work • transboundary issues, e.g inconsistent
within the external governance environment regulations and standards, and their
to identify and manage risks associated with enforcement; and
external governance (e.g weaknesses, impending • changes in government or policies.
changes, emerging trends).
Such issues can lead to delays or denials
of approvals, reduced financial viability of
Assessment projects, or reputational problems. On the
Assessment criterion - Preparation Stage: other hand, opportunities may arise in the
Assessments have been undertaken of political external governance environment, for example
and public sector governance issues, and corporate through developments in renewable energy
governance requirements and issues, through the legislation, emerging policies, synergies with
project development cycle with no significant gaps. other development objectives, and stronger
institutional coordination (e.g the water-energy
nexus). Businesses need to ensure that they have
Throughout the project cycle, the project and the
adequate information, whether by commissioning
business to which it belongs need to understand
assessments (for example as part of feasibility
their external governance environment. The
studies and the Environmental and Social Impact
political, institutional, legal and regulatory system
Assessment (ESIA)), assigning staff specifically
within which the project is developed and will
to following political and regulatory issues, or
operate, as well as any issues that may pose risks
relying on analyses by business associations or
to the project and any opportunities that may
external advisers.
arise, needs to be thoroughly assessed. Even in
countries with stable and predictable governance
Specific external governance risks that should be
environments, relevant policies and regulations
well-assessed at the project preparation stage
evolve over time or could change after the next
include:
election. In countries with unstable governance
environments, understanding the challenges can • Political risk – the risk of financial loss
be critical to project success. or inability to conduct business faced by
investors, corporations, and governments
External governance roles relevant to the project due to, for examplee.g.: government policy
can be broad and diverse. They include but are changes; government action preventing

entry of goods; expropriation or confiscation;
currency inconvertibility; politically-motivated
Assessment
interference; government instability; or war. Assessment criterion - Implementation and
Operation Stages: Processes are in place to
• Transboundary risks – limitations or
uncertainties in the institutional arrangements identify any ongoing or emerging political and
between neighbouring jurisdictions that address public sector governance issues, and corporate
boundary-related issues, such as the governance requirements and issues, and to monitor
management of project impacts in a river if corporate governance measures are effective.
system, transport
of goods and services, and information and In addition to all expectations outlined within
resource sharing. the preparation stage assessment guidance, the
• Corruption risks – these may occur within processes for monitoring of effectiveness take
the business, such as issues with how finances on particular importance at the implementation
are managed; external to the business, such as and operation stages. Examples of mechanisms
bribery in the supply chain; or within the public for monitoring the effectiveness of corporate
sector, such as a failure to address licence or governance measures include internal
permit violations. Public sector corruption risk audit, external audit, independent reviews,
examples include short-cutting of assessment or
benchmarking exercises, and topic specific
preparation requirements, non-transparent
approvals, and ignoring licence and permit evaluations (e.g on occupational health and
violations. safety).
Corporate governance requirements also need to

be well-understood as they apply throughout the
Management
project cycle. Corporate governance components Management criterion - Preparation, Implementation
typically include: the roles of the Board of and Operation Stages: Processes are in place to
Directors and the executive management team; manage corporate, political and public sector risks,
business structure and administration; policies compliance, social and environmental responsibility,
and processes; risk; accountability; internal grievance mechanisms, ethical business practices,
and external reporting; auditing; compliance; and transparency; policies and processes are
Corporate Social Responsibility (CSR); ethical communicated internally and externally as
business practices; culture; and stakeholder and appropriate; and independent review mechanisms
shareholder relations and engagement. are utilised to address sustainability issues in cases
of project capacity shortfalls, high sensitivity of
Examples of corporate governance issues particular issues, or the need for enhanced credibility.
include: an absence of key policies such as for
CSR, transparency, stakeholder engagement, or
Good international industry practice for the
anti-bribery; key roles not filled; a lack of internal
governance of hydropower projects requires
financial controls and weak audit processes;
that a number of key management processes are
internal corruption risks; poor documentation of
clearly demonstrated. These are outlined in turn
compliance; a lack of Board- or Executive-level
below.
focus on key performance indicators related to
sustainability (e.g safety, working conditions,
Corporate, political and public sector risks.
environment, stakeholders); or a lack of project
A risk management process should be in place.
management or other relevant capacities.
This should be based on a risk register that
rates all risks by their probability and impact
Corporate affairs, legal, audit and similar
(often estimated in financial terms), describes
departments are often tasked with assessing
mitigation measures, and assigns risk owners.
corporate governance requirements or
The register should be updated periodically
issues and monitoring the effectiveness of
to reflect new information and be integrated
corporate governance arrangements over time.
with other corporate processes (for example
International standards for corporate governance
setting performance targets for risk owners and
can be referred to as a guide to good practice,
budgeting for mitigation measures). Depending
and periodic independent review and advice can
on their sensitivity and the organisational
help ensure processes are comprehensive and up-
structure, corporate, political and public sector
to-date with evolving expectations.

Governance
risks may be handled separately from project- bribery or anti-corruption policies; internal and
level technical, environmental and social risks. If external auditing; procedures for reporting and
risks have been identified, both risk management investigation; a whistle-blowing arrangement;
measures and follow-up monitoring should be and confidentiality limited to legally protected
evident. information. While they may take significant effort
to put in place and administer, such instruments
Compliance. A standard compliance assurance are designed to reduce expenditure as well as
process should be in place. This should be based risks associated with ethics breaches and give
on a register of all relevant legal and regulatory confidence to business partners and investors.
requirements, licence conditions, and reporting
requirements. The compliance register would Grievance mechanisms. Grievance mechanisms
also ideally contain requirements resulting from are processes by which concerns or complaints
internal policies and voluntary commitments. can be raised and will be reviewed and responded
Responsibility for each requirement should to in a timely manner. These should be open to
be clearly assigned, and a central compliance any grievances related to the project and the
role should update requirements and track business, including from project affected people
compliance over time. A well-functioning and businesses, workers, contractors, customers,
compliance process will go a long way towards and civil society groups. These may be divided
establishing good relationships with regulators into several separate mechanisms for practical
and other stakeholders. purposes, with some (e.g those relating to labour
or procurement) based on mechanisms enshrined
Social and environmental responsibility. in law. A well-functioning grievance mechanism
Policies, programmes, and plans for social and provides early warnings of issues so that they can
environmental responsibility should be in be addressed before turning into major problems.
place. These should primarily cover the core
business activities (i.e. responsible development Transparency. Corporate policies, processes,
and operation of hydropower projects) activities and results should be communicated
and secondarily any additional voluntary internally and externally as appropriate, taking
commitments such as under a CSR commitment, into account business size, capacity, ownership,
or in the form of benefit sharing or grants. public interest in specific issues, and any legal
Internal processes should allocate responsibilities requirements (such as regulations on the ‘right to
and budgets and also establish transparent rules know’ or ‘freedom of information’, and on privacy).
for decisions on external requests for support (for Transparency is also a key aspect of effective
example under a community development fund stakeholder engagement.
or a research and development fund).
Independent review. Independent review
Procurement of goods and services. From a should be used for sustainability issues in cases
governance perspective, procurement is both of project capacity shortfalls, high sensitivity,
a source of potential risks (primarily corruption aspects of uncertainty, or the need for enhanced
and conflicts of interest) and an opportunity credibility. Independent review is defined as
to have a positive influence beyond the direct review by experts who: are not employed by the
scope of the business. Procurement plans and project, have no financial interest in profits made
processes should include a procurement policy, by the project, are unaligned with the project in
pre-qualification screening, bidding, awarding any other manner, and are generally perceived
of contracts, anti-corruption measures, and as being objective. An expert is a person with a
mechanisms to respond to bidder complaints (see high degree of skill in or knowledge of a certain
the Procurement guideline). subject as a result of a high degree of experience
or training in that subject. In the absence of
Ethical business practices. The business should review by regulators, forms of independent
have a number of processes to ensure and review may vary from contracting an expert
demonstrate that unethical practices are avoided, consultant to provide a written review of a
detected and dealt with appropriately. Examples particular assessment, plan or report to a Panel
include: a business code of ethics; an employee of Experts (PoE). A PoE usually comprises a mix of
code of conduct; a business integrity pact; anti- expertise appropriate to the project and provides

both periodic assessment and written reports Good practice also requires regular public
on issues identified as being within its scope of reporting on sustainability aspects of the project
review. or operating hydropower facility. Sustainability
aspects might include those that relate to the
Additional governance measures may be necessary environment, community, safety, engagement,
depending on the issues identified through the project benefits, labour and ethics. This helps the
assessment process. developer or owner/operator to demonstrate
its willingness to be transparent and provides
a basis for sustained dialogue. Information on
Stakeholder Engagement project progress and sustainability performance
Stakeholder Engagement criterion - Preparation, can be released through annual corporate,
Implementation and Operation Stages: The business environmental, or sustainability reports; project
interacts with a range of directly affected progress and monitoring reports; independent
stakeholders to understand issues of interest to them; evaluation reports; real-time access to data (for
and the business makes significant project reports example on water levels and water quality); and
publicly available, and publicly reports on project by other means. Some projects have created
performance, in some sustainability areas. independent monitoring mechanisms where
relevant data is tracked over years and published
Good corporate governance is based on and to demonstrate baselines and project impacts.
results in positive and productive relationships
with other stakeholders. Understanding Conformance/Compliance
stakeholder interests is a precondition for
Conformance/Compliance criterion - Preparation,
targeting the right stakeholder groups with
Implementation and Operation Stages: The project
relevant information and relevant mechanisms
and operating hydropower facility has no significant
for engagement. The process of stakeholder
non-compliances.
mapping and analysis is a good starting
point for identifying the issues of particular
interest to different stakeholders. This is Good practice requires evidence that the
usually complemented by direct questions to project and operating hydropower facility are
stakeholders through individual interactions, fully compliant with the relevant jurisdictional
community meetings, inviting public comments, requirements. These may be expressed in
or surveys. Some businesses undertake a formal licence or permit conditions or captured in the
materiality analysis each year to ensure that relevant legislation. Compliance requirements
what is published in annual reports reflects may relate to, for example, standards to be met,
what stakeholders are most interested in the frequency and type of monitoring to be
hearing about. More details about approaches performed, audit schedules, and reporting to be
and expectations for stakeholder engagement submitted by the owner to government.
are provided in the Communications and
Consultation guideline. The compliance obligations for the project
will need to be established and tracked with a
The developer and owner/operator should compliance register. Compliance monitoring
make significant project reports publicly reports would document the project’s
available. Which reports are significant will vary compliance against legal obligations and may
with project, but the ESIA or a non-technical be a requirement of external regulators. There
summary of the ESIA should always be included. may also be compliance obligations arising from
Provision of significant reports helps to engage conditions of lenders to the project. Compliance
stakeholders in a process of project improvement, requirements can change over time. In some
minimise disinformation and rumours, focus jurisdictions the legislation, regulations and
stakeholder engagement on areas of particular policies are changing rapidly, so there should be
interest, and create mutual trust and confidence. evidence that the compliance register is regularly
Information availability in the local language(s) updated.
of the target stakeholders is important to ensure
accessibility.

Governance
The significance of a non-compliance is based on importance is that any governance-related issues
the magnitude and consequence of that omission are recognised and that actions are underway
and will be context-specific. For example, a failure towards their resolution in a timely manner. An
to demonstrate delivery of a licence entitlement external review of governance-related issues
for resettlees is a significant non-compliance. for the business can help inform how well the
A slight delay in delivery of a monitoring business has avoided, minimised and addressed
report could be non-significant, depending on governance-related issues.
the consequences. Repeat delays in meeting
compliance requirements can erode trust and The significance of any unresolved issue would
confidence in the developer, which can have be with respect to the magnitude and severity
longer-term ramifications. of the consequences of non-resolution. In most
cases, the actions underway are likely to lead to a
resolution of the issue. An example of a significant
Outcomes unresolved governance issue could be a major
Outcomes criterion - Preparation, Implementation court case against the project that has not yet
and Operation Stages: There are no significant concluded and could stop the development, or
unresolved corporate and external governance issues corruption charges against the CEO that are being
identified. investigated. A strong governance framework
underpinned by good assessment, management,
It is to be expected that the hydropower engagement and compliance measures
developer or owner/operator will be required should help ensure that significant unresolved
to address issues of varying types relating governance issues are unlikely.
to corporate and external governance. Of

Demonstrated
Need and Strategic Fit
This guideline expands on what is Environmental Assessment (SEA) of a national

expected by the criteria statements in the Energy Policy, which is ideally carried out well
before project preparation stages, would cover
Hydropower Sustainability Tools (HST) for aspects such as demonstrated need and strategic
the Demonstrated Need and Strategic Fit fit.
topic, relating to assessment, stakeholder
engagement and outcomes. The good One of the most basic reasons for civil society
practice criteria are expressed for the opposition to a hydropower development may be
that, with regard to societal objectives, the need
preparation stage. for the project has not been well-established. It
may be difficult for project affected communities
In the Hydropower Sustainability to support a project that appears to be being
Assessment Protocol (HSAP), this topic developed primarily as a profit-making venture
for a private developer. The better a project
is addressed in P-3. In the Hydropower proponent can communicate the demonstrated
Sustainability ESG Gap Analysis Tool need for the project in terms of local, national,
(HESG), this topic is addressed in and regional water and energy services, the
Section 1. better the chances that the project can be
supported by the communities that it affects.
This guideline addresses the contribution of the In the case of a transboundary project there may
project in meeting demonstrated needs for water also be regional (i.e. multi-national) initiatives that
and energy services as identified through broadly have relevant policies and plans. The project may
agreed local, national and regional development be within the sphere of a River Basin Organisation
objectives, and in national and regional policies (RBO) that has its own institutional structures,
and plans. The intent is that the project fits with policies, agreements, plans, and guidelines. There
development objectives and relevant policies may be bilateral or multi-lateral agreements that
and plans can be demonstrated, and that the govern the shared water resource. The developer
project is a priority option to meet identified will need to know what state or province (the tier
needs for water and energy services. The terms below national) the project sits within, whether
‘demonstrated need’ and ‘strategic fit’ are often any aspects of the project have implications that
associated with the early assessment stage of cross state or provincial boundaries, and the
energy and water planning and are closely linked policy and planning requirements that will be
with options assessment. For example, a Strategic applicable. There may also be a local government

Demonstrated
level for which policies, strategies and plans energy demand projections; local, national or
should be identified. regional development assessments including
livelihoods and living standards; conservation
strategies; climate adaptation plans; a report of
Assessment relevant policies and plans; a report on project
Assessment criterion - Preparation Stage: An demonstrated need and strategic fit; and use of
assessment has been undertaken of needs for water multi-criteria analysis in assessing options.
and energy services, of options to meet water and
energy needs; and of national and regional policies There may be competing needs stated in various
and plans relevant to those needs, with no significant development related plans. For example, a
gaps. region may clearly need energy, water and food
security. Food or livelihood security may best be
The assessment of demonstrated need should provided for by protecting instream fish stocks
commence with a thorough analysis of national or agricultural land. Energy security may be
and local development goals, and development well provided for through a hydropower project
objectives expressed in policies and plans. The development, but it may in turn impact on fish
initial emphasis should be on stated needs stocks and available agricultural land. Mitigation
for water and energy services, but it would of impacts to fish stocks and agricultural land
be important to include further analysis of a would then be required to ensure that the
broader set of stated demonstrated needs in the demonstrated need for food security is not
assessment. compromised by meeting the demonstrated need
for energy security.
Water services examples include: drinking
water supply; domestic needs of riparian Energy services are most easily linked to
dwellers; energy generation; fisheries; floodplain economic development, for example to
agriculture; food supply, water storage capacity, power new industries in a region that wants
sanitation; water for business and industry; to improve on basic economic indicators such
irrigation water supply; flood management; as employment, per capita income, and gross
navigation; recreation; tourist opportunities; domestic product. There are also social and
focal area for transboundary cooperation; and environmental needs that are highly relevant
ecosystem services (e.g. floodplain maintenance, to the consideration of demonstrated need. For
connectivity for migratory species, maintenance example, the need to avoid carbon emissions is
of off-river wetlands, nutrient and sediment an environmental consideration while the need
balance, delta sediment replenishment, to provide electricity for health services is a social
estuarine flushing, spawning ground access and consideration. These needs should be articulated
maintenance). on a broader basis than just economic concerns.
Energy services examples include: provision of The project under consideration may not be the
electricity to meet local, national and/or regional only avenue used to address these needs, but
demand or opportunities; provision of grid it should clearly contribute towards addressing
stability; provision of peak load; and provision of the identified needs. Any conflicts (e.g. with
ancillary benefits such as spinning reserve, system food security) should be identified at an early
regulation, and improved thermal efficiency. A stage so that measures to address them can
hydropower development to meet the energy be built into the project proposal (e.g. through
requirements of an energy-intensive off-taker modifying project components or through
(e.g. an aluminium smelter) would be considered project benefits). Ways in which a project can
a demonstrated need if it is included in broadly contribute to multiple demonstrated needs could
agreed development objectives, policies and include the provision of energy, fresh water,
plans. new industries, new employment opportunities,
and new avenues for food production. Multi-
Local, national and regional objectives may purpose projects are often designed for multiple
be expressed in different forms, such as: an objectives, although every project does not
energy master plan; a water development necessarily have the right characteristics for this.
plan; a country development report; strategic
environmental assessments; options assessments;

The assessment should go beyond alignment clearly established to address significant project
with demonstrated need to also show the issues, and ideally also demonstrate a track record
strategic fit of the project with existing policies of implementation, the more likely it is that
and plans. Examples of national and regional the developer will be able to gain stakeholder
policies and plans include: development, energy, support or at least avoid major stakeholder
water, biodiversity, climate, conservation, opposition to the project.
transboundary agreements, and land use.
Examples of social and environmental related
needs, policies and plans include: poverty
Stakeholder Engagement
eradication, food security, maintenance of Stakeholder Engagement criterion - Preparation
fisheries, protection of high value sites (e.g. Stage: The results of the assessment of strategic fit are
national parks, World Heritage sites, Ramsar publicly disclosed.
wetlands, sites of cultural significance, recognised
significant landscapes). In some contexts, Public availability of a report that captures the
customary use may be a significant consideration. outcomes of a project-specific assessment of
Projects may also need to show alignment with strategic fit would meet this criterion. Strategic
the policies of financing institutions. fit may be a section within the Environmental
and Social Impact Assessment (ESIA). Evidence
The assessment should show the ability of the that such a report can be downloaded from a
project to manage or compensate for shortfalls website or evidence of distribution to interested
or inconsistencies with existing policies and stakeholders on request would be examples that
plans. For example, if there is no government meet this criterion. It may be that the assessment
resettlement policy and the project is likely to was not done specifically for the project, but
involve resettlement, a prospective developer exists in other documents such as development
may need to have its own policy for resettlement plans and options assessment. Demonstrated
or state a commitment to be consistent public availability of these documents, as well as
with an internationally recognised standard. availability of relevant policies and plans, would
Other important policy (and institutional) satisfy this criterion.
gaps may relate to, for example, dam safety,
land acquisition, governance of aspects of Public disclosure is demonstrated if members of
reservoir management, project benefits, flood the public can access the relevant information if
management, land titles, and emergency they would like to do so. This may be access to the
response. relevant documents (either posted on a website,
distributed, or made available on request to
Because the policy formulation process can interested parties) or public notification about the
take years, developers should also be attentive results via a media release or website. If there was
to emerging policies that may take effect in a one-off notification, information may later be
the future with implications for the project. hard to access. In this case, some effort should be
The developer should monitor how the policy made by the owner/operator to ensure awareness
formulation process is developing and how of and ease of accessibility of information by
underlying societal values are changing. stakeholders over time. Information provision
should be in locally accessible languages (see the
The government may provide summaries of
Communications and Consultation guideline).
relevant policies and plans for hydropower
developments to prospective developers, or
the proponent may have commissioned such Outcomes
an analysis itself. The fit of the project with Outcomes criterion - Preparation Stage: The strategic
policies and plans is likely to be unique and fit of the project with needs for water and energy
would have to be analysed on an individual basis, services, and relevant policies and plans can be
with consideration of policies and plans for any demonstrated.
particular issues triggered by the development
(e.g. if it involves resettlement or indigenous
peoples, or has implications for existing
conservation areas). The better a developer can
demonstrate alignment, have its own policies

Demonstrated
To meet good practice, the project should clearly Care needs to be taken to ensure that there is
be contributing to the identified development not a disconnect between energy planning and
needs for water and energy services. This would water planning, which can occur when these
be well-demonstrated through: two activities are done in isolation. Ideally,
there would be an Integrated Water Resource
• clearly documented statements or reports on Management (IWRM) or energy-water nexus
local, national and regional objectives for water approach that can be shown to underpin the
and energy services; project.
• evidence that such objectives are broadly
supported, e.g. the objectives were developed If there are no obvious contradictions between
through an open and participative process with the development and the relevant policies or
a high degree of consensus; and/or plans, this can be considered a strategic fit. In
• clearly articulated statements of project practice, there may need to be a process of
objectives that are aligned with or point directly dialogue and an adjustment of project features
to the local, national or regional objectives. and activities to address any areas of concern or
to improve alignment (see the Siting and Design
Strategic fit should be with respect to both guideline).
energy and water resources planning as well
as other criteria such as environment, climate The ability of the proponent to address any
change, etc. Relevant policies and plans will gaps or shortfalls in the alignment of the project
always include those that address core elements with relevant policies and plans would need to
of the hydropower development, for example be demonstrated through evidence. Examples
relating to energy, water, resource management, include the prior track record of the government,
and development. Social and environmental developer, or other similar developments in the
policies and plans with direct relevance to the region in managing similar gaps or shortfalls.
project may vary depending on the project A strong corporate policy framework and track
context, for example a river basin policy, a record for a prospective developer are also
resettlement policy, or a cultural heritage policy. sources of evidence.
A broader approach to analysis of strategic fit
will help build stakeholder confidence in the
project, for instance demonstrating alignment
with policies relating to education, health, labour,
climate, biodiversity, and customary use.

Siting and Design
This guideline expands on what is • deliver the project objectives – the power station
may be single purpose (hydropower generation
expected by the criteria statements in the only, which in turn may be for base load or peak
Hydropower Sustainability Tools (HST) load power, domestic use or export, or servicing
for the Siting and Design topic, relating rural or urban or industrial needs) or multi-
purpose (e.g. the reservoir may also provide
to assessment, management, stakeholder water supply for irrigation, aquaculture, or other
engagement and outcomes. The good industries, or be used for recreational, tourism
practice criteria are expressed for the and development purposes);
preparation stage. • optimise the constructed elements of the project
– namely the dam type and size, generation
capacity and efficiency, safety and access; and
In the Hydropower Sustainability
• avoid, minimise and mitigate any issues
Assessment Protocol (HSAP), this topic associated with the development – these should
is addressed in P-4. In the Hydropower not only consider technical and financial issues,
Sustainability ESG Gap Analysis Tool but should also include social and environmental
aspects.
(HESG), this topic is addressed in Section 1.
Optimal in this context means best fit once all
identified sustainability considerations have
This guideline addresses the evaluation and been factored in based on the outcomes of
determination of project siting and design a consultative process. Project designers are
options, including the dam, power house, skilled in optimising for technical and financial
reservoir and associated infrastructure. The objectives, such as maximising power output for
intent is that siting and design are optimised least cost. This guideline is focussed on ensuring
as a result of an iterative and consultative that a broader set of objectives, including
process that has taken into account technical, regulatory, social, environmental, safety and
economic, financial, environmental and social stakeholder priorities, informs and influences the
considerations. optimisation process and conclusions for project
siting and design.
The siting and design of a hydropower project
aim to: Examples of sustainability considerations for siting
and design include: prioritising alternatives that

Siting and Design
provide opportunities for multiple use benefits; are usually readily available in most countries.
that are on already developed river systems; that Potential hydropower developments are often
minimise the area flooded per unit of energy identified through national energy masterplans,
(GWh) produced; that maximise opportunities for which ideally involve analyses at the national
and do not pose unsolvable threats to vulnerable or river basin scale to prioritise technically and
social groups; that enhance public health and economically feasible projects with relatively
minimise public health risks; that minimise lower social and environmental impacts. An
population displacement; that avoid exceptional increasing level of attention has been dedicated
natural and human heritage sites; that have lower to river basin planning tools and approaches
impacts on rare, threatened or vulnerable species; to optimise river basin development plans for
that maximise habitat restoration and protect hydropower taking into account an array of
high quality habitats; that achieve or complement sustainability considerations.
community supported objectives in downstream
areas (i.e. downstream flow regimes); that have Regardless of the background to the
associated catchment management benefits; that identification of the individual project, the
have lower sedimentation and erosion risks; and assessment process for that project needs
that avoid exceptional greenhouse gas emissions to demonstrate that an options assessment
from reservoirs. approach has been taken to the determination of
location and the general layout of the project. The
options assessment should use a Multi-Criteria
Assessment Analysis (MCA) approach. There are many degrees
Assessment criterion - Preparation Stage: Technical of sophistication that an MCA can take, and no
information has been analysed at an early stage single approach is recommended. Of importance
alongside social, environmental, economic, financial, is that the developer can demonstrate that:
and regulatory considerations in order to develop a
preliminary project design and some options around • various location and general layout options have
this. been identified based on initial information and
stakeholder input;
The siting of a hydropower project will initially • criteria and methods for MCA evaluation have
be a location that offers an ability to technically been defined based on an engaged process with
stakeholders;
generate hydropower due to:
• criteria reflect social and environmental
• the head – i.e. the height through which water considerations in addition to technical and
would fall to reach the turbine (the greater the financial aspects;
head, the more power can be generated);
• methods of and outcomes from the MCA
• the volume of water available – the more analyses are readily able to be understood by key
water available, the greater the number and/or stakeholders;
size of the turbines that can be spun and
the greater the power output of the generators;
• information on technical, financial, economic,
regulatory, social and environmental criteria is
and
collected using appropriate expertise, and clearly
• the geological suitability for a dam – this is informs the analyses of location and general
determined by the shape and size of the valley at layout options; and
the proposed construction site and the geology
• stakeholder inputs and views are clearly
of the valley walls and floor. reflected in the options, the analyses, and the
The location selection for hydropower outcomes.
developments is generally (but not always) based More detailed siting and design investigations are
on consideration of several location options, and typically undertaken as part of project feasibility
the general layout that would suit each location studies. This process tests the suitability of the
option. Technically feasible sites for hydropower location and the exact siting of the project
can be derived at a comparative level (i.e. to show components through on-site investigations
more or less promising sites) from contour maps, (e.g. test drilling), develops the project design,
hydrological statistics and geological maps, which and considers how to optimise a host of other

considerations within the siting and design. The design of project components must suit
From a technical perspective, once the location is the site and can be used to address some of the
determined, the approach to project design often issues associated with the site arising through
follows the following steps: the technical, environmental and social studies.
Optimising the design may result in changes in
• selection of the most suitable general layout the siting to improve design efficiency or to avoid
for the dam and power house locations and the or minimise negative impacts.
general arrangement of the water conduits for
power generation; The siting and design of the project, and areas
• optimisation of the dam height and selection of where trade-offs may be required, need to take
the maximum and minimum reservoir levels; into account many considerations including the
following:
• optimisation of the installed capacity; and
• other detailed optimisations, such as the • Hydrological suitability – the amount of water
diameters of the water conduits, river diversion the project will yield, the volume and velocity
structures, and spillway design. of water flowing into the site, the predictability
of water yield, and the ability to meet power
Of importance is that this optimisation generation demand.
process goes beyond technical and financial
considerations, and clearly brings in social and • Geomorphological suitability – the shape of
environmental issues in a timely manner. Siting the river channel, which influences the size and
construction method of the dam, as well as the
and design should be addressed through an
storage capacity and water retention ability of
iterative process. This may initially draw on the reservoir.
information from a Strategic Environmental
Assessment (SEA) at a broad geographical scale • Geological suitability – the underlying geology
(e.g. river basin or national), and then draw on at the dam site must be suitable to ensure water
information from the Environmental and Social retention, and the geology of the project area
must be able to provide long-term stability of
Impact Assessment (ESIA) studies as they advance
the project infrastructure (e.g. tunnels, roads,
for the proposed project. At the project level, housing).
this requires good coordination between the
project manager for the engineering studies • Location suitability – proximity to existing
and the project manager for the environmental infrastructure such as transmission lines and
roads, ease of access to the site and to the
and social studies. Unfortunately, technical
required materials, and suitability with respect to
studies are often well-advanced before the power markets.
environmental and social studies even begin. It
is important to access high level information on • Financial considerations – e.g. cost of
environmental and social aspects before all of construction, costs of environmental and social
the siting and design optimisations are too far mitigation measures, design to maximise
revenue (e.g. to generate peaking power for
progressed; if not available through a broader-
export), and design considerations to conform
scale SEA, this can be obtained by commissioning with eligibility for financial support (e.g. Clean
early scoping studies and early stakeholder Development Mechanism funding).
engagement on environmental and social issues.
Based on the issues and solutions identified • Regulatory requirements and design standards
in the design and arising from information on – there may be areas where there are no
alternatives because of the need to meet
social and environmental issues, site changes
compliance and standards, for example relating
may occur. The design is then revised again to to infrastructure safety.
ensure compatibility with the new site and to
incorporate social and environmental impact • Social and environmental considerations –
mitigation measures or enhancement of project avoidance and minimisation of social and
environmental impacts through siting and
benefits.
design choices, based on sound environmental
and social assessments, is far more cost-effective
Management for a hydropower project than trying to manage
and mitigate problems after they occur.
Management criterion - Preparation Stage: An
optimisation process has been undertaken to assess
the project siting and design options.

Siting and Design
• Economic considerations – net costs and benefits • fish ladders or mechanical fish elevators can
of different siting and design alternatives, siting assist fish with their upstream migration,
and design to provide for multiple use benefits although these can be of mixed success and
to maximise the development contribution of need to be very carefully researched and tested.
the project. Structures that facilitate catching and releasing
of fish or fish nurseries and breeding projects can
Packaging and conveying such a complexity be designed to fit into the overall project layout;
of information to facilitate engagement with
stakeholders can be very challenging. • measures can be employed to divert fish away
from the turbine intake to safer passageways
to facilitate downstream fish migration, such as
The ability to rearrange siting in response to
purpose built channels or pipes going around or
issues may be highly restricted. Major changes through a dam wall; diversion methods such as
to siting may require relocation of the dam site fish screens, strobe lights, sound or air bubbles,
in order to avoid protected areas, resettlement, and electrical fields; and dedicated design
or impacts to migratory fish routes. Siting may choices around turbine, spillway and/or overflow
be highly constrained by those locations with design can minimise fish injury or mortality on
a suitable valley shape and size, plus necessary the downstream migration;
geological characteristics to site the dam. • strategically placed and purpose-designed
Alternatives for variations in siting may end up barriers may restrict ranges for faunal pest
being more closely related to components of the species, such as anti-jump screens or even
project other than the dam (or dams), for example creating local flow velocity barriers;
with the power house and water conduits (e.g.
• sediment bypass systems for floodwaters, gated
above ground or below ground) and associated structures for sediment flushing, and sediment
infrastructure (e.g. roads, transmission lines, other trapping and filtration systems can help
buildings and site features). As an alternative to minimise reservoir sedimentation rates;
dam relocation there may be options around the
height of the dam, which will affect the area of • downstream re-regulation storages can dampen
rapidly fluctuating flow releases from power
inundation but may require compromises in the
stations and attenuate the downstream flows;
amount of energy generated. and
There are many examples of design features • construction of smaller off-stream storages to
that address social and environmental impact deliver minimum flows to address particular
mitigation or enhance social or environmental local issues could be a cost-effective alternative
to environmental flow releases directly from
benefit. The optimisation process should
the power station. Another approach is
consider avoidance and minimisation of social to have a dedicated turbine for delivery of
and environmental impacts first, and where they the environmental flow that has its optimal
cannot be avoided, then the relative merits of electricity generation at that designated flow
different approaches to mitigation should be level.
evaluated. Examples of measures that could be
effectively built into project design, rather than Planning of temporary features that are necessary
added on later, include: during construction should ideally be considered
within the designs for permanent features. For
• selective or multi-level offtakes in deep example, new roads, temporary access tracks,
reservoirs to limit the amount of water drawn works storage areas, quarry sites and excess spoil
into the power station from cold, anoxic depths; areas might be located below the minimum
water levels of the future reservoir so that they
• downstream stilling basins, variations in spillway
design, or structures that favour degassing can are unobtrusive following inundation of the
avoid downstream gas supersaturation; impoundment. Conversely, features required by
the project in the short-term may be located and
• air injection facilities and aerating turbines can designed to provide a lasting community benefit
avoid de-oxygenated water being delivered to in the longer-term, such as spoil dumping sites
the downstream river system;
later providing sports grounds.
• in shallow lakes, baffles can direct circulation and
ensure adequate water flow-through and mixing,
and can also inhibit wind-induced resuspension
of lake bottom sediments;

Climate change presents some further design trade-offs among different alternatives can be
considerations with new projects. Features may recognised and evaluated. However this may
need to be put in to increase their flexibility to be late in the process. The earlier that social,
adapt to any possible climate change impacts. environmental, stakeholder and project benefit
Examples include larger spillways for extreme considerations can be brought to the attention
floods or boat ramps and water abstraction points of the project designers, the more efficient the
that will still be functional if the lake is drawn iterative process of adjustment and refinement
to very low levels during extreme drought. The will be.
project design can include features to increase
the project’s flexibility to deliver different The developer should recognise and factor in that
flow levels over the long-term, which could there is likely to be a necessary requirement for
be important in a river where climate change education of the stakeholder base about technical
may affect what flow levels will be effective or aspects of hydropower. There are many aspects
expectations for flows may change over time. For of hydropower that are not well-understood by
example, turbines of different sizes can increase members of the public, such as types of energy,
the ability to generate at different flow levels, the market situation, and constraints on options
thus increasing management flexibility. arising from the physical and built environment.
Design documents should be produced at varying Stakeholder mapping should identify directly
levels and should include preliminary designs, affected stakeholders for various aspects of
groupings of designs according to specialty the project (see the Communications and
area (e.g. civil, structural, electro-mechanical, Consultation guideline). ‘Two-way’ engagement
geotechnical, hydraulic), and detailed designs for means the stakeholders can give their views
specific project components (e.g. weirs, spillways, on siting and design considerations rather
tunnels and channels, pumping stations, surge than just being given information without any
tanks). Documentation should also include opportunity to respond. Examples of two-‐way
drawings, technical specifications, modelling processes include public meetings and hearings,
works such as fluid computational modelling, and public comments on studies and options
master designs and plans. Physical models may assessment documents, interactive participation
need to be developed to test different design in workshops, negotiation, mediation, and focus
components, for example hydraulic flumes to groups.
test sediment management approaches. Physical
models of the project layout can also help Appropriately timed means that engagement
stakeholders engage to discuss where there are starts early enough in the preparation stage so
issues to be avoided. that the project can respond to the issues raised;
stakeholders can respond before the project takes
decisions; and engagement takes place at times
Stakeholder Engagement that are suitable for people to participate (e.g.
Stakeholder Engagement criterion – Preparation with respect to seasonality or time of day).
Stage: The siting and design optimisation process has
involved appropriately timed, and often two-way, Stakeholders should be supportive of the timing
engagement with directly affected stakeholders; of engagement activities. Communities need
ongoing processes are in place for stakeholders to sufficient time to receive information, be able to
raise issues and get feedback. discuss it openly with the project representatives,
then go through their own community dialogue
Location and general layout options, and siting processes before forming a consolidated
and design alternatives, should be identified community view to relay back into the evaluation
based on a dialogue with directly affected processes.
stakeholders, and this engagement process
Processes in place for stakeholders to raise issues
should continue through the evaluation and
could include, for example, a contact person and/
optimisation process. This engagement often
or a ‘contact us’ space on the company website,
happens as part of the ESIA process so the

Siting and Design
periodic public briefings or question/answer Sustainability considerations for project
opportunities, or focal group meetings. Feedback siting and design should arise from a process
on stakeholder issues could be demonstrated by of research into this area as well as through
means such as meeting minutes, media releases, engagement with directly affected stakeholders.
or provision of responses to frequently asked Several examples of potentially relevant
questions on the company website. Ideally a sustainability considerations to factor into siting
register is kept by the developer of source, date and design have been provided at the start of this
and nature of issues raised during the siting and topic guidance. The project proponent should
design process, and how and when each was be able to demonstrate that any significant
addressed and resolved. sustainability related considerations have been
identified for the project, and in particular those
There is no expectation that all stakeholders will that reflect social and environmental concerns.
be satisfied and agree with conclusions drawn. Documentation should show that alternatives for
The aim should be that stakeholders understand project siting and design have been evaluated
and respect the process that has been taken against these criteria. The resultant proposed
to get to conclusions, that they have been project should clearly be able to demonstrate
offered appropriate opportunities for two-way that many of the sustainability considerations are
engagement, and that they feel their inputs have met in the final siting and design.
been incorporated fairly.
Outcomes
Outcomes criterion - Preparation Stage: The final
project siting and design has responded to many
sustainability considerations for siting and design.

Environmental and
Social Issues Management
This guideline expands on what is economic settings, so care needs to be taken to

expected by the criteria statements in determine what environmental and social risks
the Hydropower Sustainability Tools are applicable to any given project.
(HST) for the Environmental and Social
Issues Management topic, relating to This guideline outlines steps that must be
assessment, management, conformance/ demonstrated to meet good practice, which
may go beyond national requirements. The
compliance, stakeholder engagement international expectations are based on global
and outcomes. The good practice criteria hydropower experience and ensure that risks
are expressed for different life cycle that could have been avoided at the impact
stages. assessment stage do not later emerge. The intent
for environmental and social issues management
of hydropower is that:
Assessment Protocol (HSAP), this topic • environmental and social impacts are identified
is addressed in P-5 for the preparation and assessed;
stage, I-3 for the implementation stage • appropriate avoidance, minimisation, mitigation,
compensation and enhancement measures
and O-3 for the operation stage. In are designed, implemented, monitored, and
the Hydropower Sustainability ESG demonstrated to be effective;
Gap Analysis Tool (HESG), this topic is • negative environmental and social impacts
addressed in Section 1. associated with the hydropower facility are
managed; and
Hydropower projects can have a number of • environmental and social commitments are
environmental and social impacts if these are not fulfilled.
carefully assessed and managed. Fortunately, • ‘Avoid, minimise, mitigate and compensate’ is
there is considerable global experience available a concise expression for what is understood
to help identify potential impacts and to mitigate to be a sequential process. Measures to avoid
these impacts. Hydropower projects are quite or prevent negative or adverse impacts are
individual due to their varied technological always prioritised, and where avoidance is
specifications and environmental and socio- not practicable then minimisation of adverse

and Social Issues
Environmental
Management
impacts is sought. Where avoidance and • a scope including the hydrological resource,
minimisation are not practicable, mitigation terrestrial and aquatic biodiversity, waste,
and compensation measures are identified and noise, air quality, water quality, erosion and
undertaken commensurate with the project’s sedimentation, downstream flows, project
risks and impacts. affected communities (including a focus on
resettlement and on indigenous peoples if
Assessment relevant), climate change, cultural heritage,
public health, and labour and working
Assessment criterion - Preparation Stage: conditions (individual guidelines provide further
Assessments of project environmental and details on each of these topics);
social impacts have been undertaken for project
• distinct evaluation of the above areas for the
implementation and operation, including evaluation pre-construction, construction and operation
of associated facilities, scoping of cumulative stages of the project;
impacts, role and capacity of third parties, and
impacts associated with primary suppliers, using • proposed mitigation measures and management
plans linked to each identified impact, with
appropriate expertise and with no significant gaps;
each measure clearly stating the objective and
and a baseline has been established and well-
indicators of effectiveness;
documented for the pre-project condition against
which post-project changes can be compared. • identification of residual impacts, i.e. those
remaining after mitigation measures are
implemented;
During project preparation, assessment of
potential environmental and social impacts, • management plan implementation
and the planning of measures to address these arrangements, including responsibilities, timing,
impacts, are as fundamental as engineering resources and budget; and
feasibility studies. The Environmental and Social • a monitoring programme that addresses all
Impact Assessment (ESIA) report is a critical step potential impacts and will demonstrate if
taken alongside project feasibility studies and mitigation measures are effective or not.
informing detailed design. An ESIA identifies, Defining the project affected area is a critical
predicts, evaluates and proposes mitigation for step in the impact assessment process. This
the biophysical, social, and other relevant effects should be done at the scoping stage so that more
and consequences of development proposals detailed impact assessment and consultation is
prior to major decisions being taken and comprehensive. The project affected area is the
commitments made. project’s area of influence in terms of direct and
indirect effects. The assessment should not be
To meet good practice, an ESIA report should
limited by jurisdictional boundaries; i.e. an impact
contain at a minimum:
assessment should not stop at a national or state
border unless a credible assessment determines
• a description of the proposed hydropower
project; that there will be no impacts outside of this area.
Surrounding communities, activities along roads,
• the hydropower project rationale and quarries, disposal areas, and downstream areas
alternatives; subject to project influence must be included.
• a description of the existing environment
sufficient to establish the pre-project baseline; Spatially, the scope of impact assessment and
management must cover direct and indirect
• relevant legal and policy requirements;
impacts. Direct impacts are those under the
• a summary of stakeholder consultation control of or caused by the project, such as:
undertaken during the impact assessment (see changes in land ownership and/or land use;
the Stakeholder Engagement criterion for this changes in environmental quality; and changes
topic); in quality of life for directly affected people.
• identification and assessment of potential Indirect impacts are those outside the control
positive and negative project impacts, including of the project, such as: induced changes in
ratings of their likelihood, and the magnitude regional demographics, employment, business
and severity of consequences; and tax revenues, property values, and supply
chain effects. The establishment of a project

affected area should also ascertain if there are the changes brought by the project can be
any transboundary aspects of the project. This compared. The impact assessment documents
will allow early and careful consideration of how should explain and justify the data collection
transboundary issues will be addressed when and analysis processes for different types of data
assessing impacts, engaging with stakeholders, to show that they are systematic and rigorous.
and defining mitigation measures. Requirements for baseline information for each
focal area of the ESIA include the following:
The ESIA should include impacts arising from
facilities associated with the project. Associated • appropriate expertise is used for the sampling
facilities are those facilities that would not be design, data collection, data analysis and
constructed if the project did not exist, and where interpretation;
the project would not be viable without the other • all available sources of secondary data are
facility. These facilities may be funded, owned, identified and included, including previous
constructed, and/or operated separately from the studies, national databases, and all relevant
project, in some cases by third parties. Examples institutions;
pertinent to a hydropower project could include • local knowledge and information is included,
roads, transmission lines, buildings, quarries and including from communities in the project
waste disposal sites. affected areas (local anecdotal information can
often provide a good guide for primary data
The ESIA should include evaluation of the role collection design);
and capacities of relevant third parties, such as • primary data (i.e. sampling by the ESIA
local and national governments, contractors, and consultant) is collected from locations
suppliers. An effective assessment should identify meaningful to project risks, including in areas
the different entities involved and the roles they of direct and indirect effects, including as far
play, as well as any corresponding risks that downstream as the project significantly affects
need to be managed with respect to achieving flows;
environmental and social outcomes. This should • sampling data is collected over a time period
specifically include primary suppliers, i.e. first-tier and at intervals that reflect important seasonal
suppliers which are providing goods or materials cycles for the topic being investigated;
essential for the project and which may incur
environmental and social impacts in this supply • sampling results are described according to
relevant national standards, and if national
activity (such as a quarry or a factory).
standards are not available, then international
standards are adopted;
While a full cumulative impact assessment
is beyond the expectation of good practice, • sampling results are linked to other factors
the ESIA should include scoping of relevant (e.g. seasonality, climate, flows, land uses, other
cumulative impacts. Cumulative impacts are activities) in order to explain pre-project trends
and issues;
those impacts that result from the incremental
impact of the project when added to other • the methodology used for primary and
past, present, and reasonably foreseeable secondary data capture is well-described;
future actions or trends. At a minimum, the ESIA • the implications of limitations in data availability,
should contain a Cumulative Impacts section analysis and interpretation are discussed; and
which seeks to ensure that: potential areas
for which cumulative impacts may arise have
• wherever practical, sampling results are reported
back to relevant national databases.
been identified; the nature of these potential
cumulative impacts has been considered; liaison Baseline information should be supported by
with key stakeholders has been undertaken; and a good quality set of maps in the ESIA report,
initial agreements have been made on avoidance, following a standard format designed to ensure
monitoring and response mechanisms. easy readability. The scale of each map should
be appropriate to the project context, the size of
An essential requirement of the ESIA is to the impact area, and the information intended
establish baseline information against which to be conveyed, with the emphasis being on
ensuring that the reader can discern the intended
information easily.

and Social Issues
Environmental
Management
Impacts, mitigation measures, management, Throughout the impact assessment process
and monitoring plans should be considered and identification of ongoing and emerging
separately for the project construction and issues, appropriate expertise should be used.
operation stages. Predicted impacts should be This is especially the case for specialist issues.
described using recognised descriptive terms Appropriate expertise refers to specialists with
to characterise the impacts, such as: type of experience in the key identifiable topical areas of
impact (positive, negative); nature of impact the assessment and management plans, giving
(direct, indirect, cumulative, potential if trigger particular attention to the differences between
conditions are met); magnitude or severity of environmental areas and social impact areas.
impact (low, moderate, high); extent of impact Impact assessment reports should document the
in terms of geographic area (small, medium, expertise used.
large); timing of impact (short-term, long-term,
intermittent, continuous, seasonal); duration of
impact (temporary, permanent); reversibility of
Assessment
impact (reversible, irreversible); and significance Assessment criterion - Implementation Stage:
of impact (local, regional, global). Descriptive Environmental and social issues relevant to project
terms should be explained for the different types implementation and operation have been
of impacts as needed. identified through an assessment process, including
evaluation of associated facilities, scoping of
Every attempt should be made to quantify cumulative impacts, role and capacity of third
the impacts. Predictions of impacts are parties, and impacts associated with primary
normally based on commonly used qualitative suppliers, using appropriate expertise; and
and quantitative methods and models. The monitoring is being undertaken during the project
sophistication of the predictive models should implementation stage appropriate to the identified
be proportional to the significance of the issue to issues.
which it is being applied.
During project implementation, there is a need to
The assessment should include researching monitor:
appropriate mitigation approaches for all
identified impacts. Some hydropower impact • waste, noise, dust, air quality, water quality,
mitigation measures are well-known and often erosion, sediments, and hazardous materials
applied (e.g. speed limits for vehicle related arising from construction activities;
risks), whereas others require considerably • secondary effects of construction and
more evaluation due to questions of cost and implementation activities on receptors (e.g.
likely effectiveness (e.g. multi-level offtakes for environmental receptors such as habitats and
reservoirs at risk of developing stratification, wildlife, and social receptors such as workers,
re-regulation weirs or storages to dampen flow communities and livelihoods); and
fluctuations, downstream flow releases, fish • the quality of implementation of environmental,
passage technologies, fish hatcheries, livelihood health and safety, and social programmes
improvement options, and project benefits). within the ESMP (resettlement, cultural heritage,
There may well be other measures that would occupational and public health, etc. as relevant).
merit further analysis for the proposed project
based on conflicting views among stakeholders The purpose of monitoring is to ensure
and the benefits that closer analysis and impacts are mitigated, to verify achievement
justification would bring. The effectiveness of a of objectives, and to identify any issues arising.
mitigation approach for one hydropower project Monitoring commitments should be integrally
may not be achievable for another project, so embedded within the ESMP so that the reasons
the feasibility of alternative approaches needs for monitoring are clearly apparent. Monitoring
to be tested. The feasibility of each mitigation information within the various ESMP sections
approach should be carefully considered with should clearly identify, with reasons given:
respect to factors such as likeliness of achieving parameters, locations, timing, sample analysis
its objectives, cost effectiveness, understanding and data reporting methods, standards for results
of the relevant technology or policy approach, comparison, and responsible parties.
capacity to deliver, experience in application,
stakeholder views, and risks.

Assessment specific plans for different impacts or mitigation
activities. The objectives of an ESMP are:
Assessment criterion - Operation Stage:
Systematic processes are in place to identify any • to document commitments to mitigation
ongoing or emerging environmental and social issues measures;
associated with the operating hydropower facility,
• to establish systems and procedures for
utilising appropriate expertise; and monitoring implementation;
programs are in place for identified issues.
• to assign budgets, time schedules and
responsible parties for implementation;
Hydropower projects developed prior to the
1960s are unlikely to have had a pre-development • to monitor the effectiveness of mitigation
ESIA. In such cases, environmental and social measures and, if necessary, update the
issues identification and management planning mitigation commitments;
should be conducted in an appropriately tailored • to ensure compliance with relevant laws,
manner during the operational stage. regulations, conditions and standards; and
During operations, the project should establish

• to take necessary actions when unforeseen
impacts occur.
systematic processes to identify ongoing and
emerging issues that may or may not have been The alternatives analysis in the ESIA can
predicted in earlier stages. A range of methods often provide good evidence of avoidance or
may be used to identify issues, including: minimisation measures. Where both avoidance
corporate environmental management systems; and minimisation are impracticable, mitigation
monitoring programmes (either internal and compensation measures are identified
or government); periodic risk assessments; and undertaken commensurate with the
mechanisms by which stakeholders can raise project’s risks and impacts. Residual impacts are
issues; and internal monitoring programmes used those impacts that remain after all avoidance,
for other purposes such as maintenance or safety. minimisation and mitigation measures
have been applied, and it is for these that
compensation measures are often considered to
Management “offset” the impact or loss. Projects should aim
Management criterion - Preparation Stage: for:
Environmental and social issues management plans
and processes have been developed with appropriate • all significant impacts to have clear measures
expertise (internal and external) for project defined that avoid, minimise, mitigate and
implementation and operation with no significant compensate;
gaps; in addition to key social and environmental • all significant residual impacts to be
issues relating to the hydropower project, plans well-understood by those who bear the
address construction related waste, noise, air consequences of those impacts;
quality, land disturbance and rehabilitation; the
• improvement of living standards and
environmental and social impact assessment and key livelihoods for project affected communities
associated management plans are publicly disclosed. compared to pre-project conditions; and
• ideally, net gain of biodiversity and
The impact assessment process should result in environmental quality compared to pre-project
the identification of measures to avoid, minimise, conditions.
mitigate and compensate impacts. Measures
should be set out in an Environmental and Social Mitigation measures can be classified into
Management Plan (ESMP). An ESMP details the structural and non-structural measures.
measures to be taken during the implementation Structural measures include design or
and operation of a project to eliminate or offset location changes, engineering modifications
adverse environmental impacts, or to reduce and construction changes, landscape or site
them to acceptable levels, and the actions treatment, mechanisation and automation, etc.
needed to implement these measures. The ESMP For hydropower projects these may include,
may be a large consolidated plan or a number of for example: sediment settling basins; erosion

and Social Issues
Environmental
Management
protection works; wastewater treatment plants; objectives. Ideally, the ESMP would also include
fish passage; re-regulation structures; and safety adaptive management measures. This would
barriers. Non-structural measures include, for identify what issues might be identified through
example: economic incentives; legal, institutional the monitoring and surveillance and what
and policy instruments; reservoir and power the response would be (including responsible
station operating rules (e.g. ramp-up and ramp- parties and contingency budget set aside).
down rates, minimum and maximum reservoir
levels); water release rules for downstream flow The ESIA and ESMP should be made available
commitments; information signage; warning to the public. This is often achieved by making
sirens; provision of community services; and hard copies available in public venues, for
training and capacity building. Non-structural example at the regulator’s office and at local
measures are increasingly being used to reinforce municipal offices; by posting the documents on
or supplement structural measures and to a publicly accessible website; and by providing
address specific impacts. summaries on paper and verbally in local
public meetings. International good practice
The ESMP needs to be structured to distinctly requires making the ESIA and ESMP fully
cover construction and operation. Sections of available on an easily accessible public website
an ESMP for hydropower projects will reflect so that it can be accessible to a broad group
the individual project context and issues. of interested stakeholders, as well as ensuring
Examples of focal areas that may be within local availability through well-considered means
the ESMP are: catchment area treatment and (see the Communications and Consultation
protection; the Resettlement Action Plan; guideline).
principles and guidance relating to indigenous
peoples; spoil (excavated waste soil) dump
management; compensatory afforestation;
Management
downstream (or “environmental”) flows; Management criterion - Implementation Stage:
integrated water resources management; Processes are in place to ensure management
emergency management; terrestrial biodiversity of identified environmental and social issues
conservation and wildlife management; utilising appropriate expertise (internal and
green belt development; quarry restoration; external), and to meet any environmental and
aquatic biodiversity conservation and fisheries social commitments, relevant to the project
management; air quality management; implementation stage; plans are in place for the
noise management; labour management; operation stage for ongoing environmental and
worker occupational health and safety; land social issues management; and the environmental
management; land disturbance rehabilitation; and social impact assessment and key associated
water quality management; water use and water management plans are publicly disclosed.
supply management; reservoir rim treatment;
erosion and sedimentation management; Management criterion - Operation Stage: An
wastewater treatment; solid waste management; environmental and social management system
public health management; stakeholder is in place to manage measures to address
engagement; grievance management; identified environmental and social issues, and
community development; project benefits; is implemented utilising appropriate expertise
livelihood improvement; community safety; (internal and external).
road safety; energy conservation; and traffic
management. Identification and associated management
arrangements should be updated in
Each component of the ESMP must outline response to changes in the project, findings
impacts, mitigation measures, mitigation from monitoring programmes, changes in
objectives and indicators of success, community expectations, and changes in
responsibilities, budget including contingency, compliance requirements that may occur
time schedule, and monitoring. It is essential that during implementation and operation. An
all items on the above list are included or else the environmental and social management
ESMP actions risk not achieving their intended system provides a systematic approach to

the management of social and environmental Conformance/Compliance
issues during the operations stage. More
detailed guidance can be found in international Conformance/Compliance criterion - Implementation
standard ISO14001. The issues managed should and Operation Stages: Processes and objectives in the
reflect problems identified in the preparation environmental and social management plans have
and implementation stage and should at been and are on track to be met with no major non-
a minimum be consistent with the legal compliances or non-conformances, and
obligations of the project. A compliance register environmental and social commitments have been or
or comparable mechanism can be used to are on track to be met.
document environmental and social compliance
requirements, and actions taken in relation During implementation and operation, the project
to them. A systematic process should include should be in conformance with the objectives and
ongoing assessment of issues and monitoring commitments set out in the management plans,
of the effectiveness of management measures, and any broader corporate commitments (for
and changes and improvements to management example as set out in a corporate sustainability
approaches over time as new information policy) or commitments made to stakeholders
becomes available. A process of evaluation, (such as financers). The project should be
and improvement where warranted, should be in compliance with all legal requirements,
evident. which should have been identified during
the impact assessment process and through
Stakeholder Engagement ongoing systematic monitoring, including any
legally-enforceable conditions associated with
Stakeholder Engagement criterion - Preparation permitting. Variations to commitments should
Stage: The environmental and social impact be well-justified and approved by relevant
assessment and management planning process has authorities, with appropriate stakeholder liaison.
involved appropriately timed, and often two-way,
engagement with directly affected stakeholders; The significance of not meeting a commitment
ongoing processes are in place for stakeholders to is based on the magnitude and consequence of
raise issues and get feedback. that omission and will be context-specific. For
example, a failure to demonstrate delivery of
Stakeholder Engagement criterion - Implementation an essential environmental impact mitigation
and Operation Stages: Ongoing processes are in commitment is a significant non-compliance,
place for stakeholders to raise issues and get whereas a slight delay in delivery of a monitoring
feedback. report could be a non-significant non-
conformance.
Good practice requires that a process of
stakeholder engagement has been followed in Outcomes
the assessment and planning for environmental Outcomes criterion - Preparation Stage:
and social issues management for hydropower Environmental and social plans avoid, minimise and
projects. The identification and assessment of mitigate negative impacts with no significant gaps.
impacts during preparation should be based on
stakeholder engagement. The impact assessment
is often the main stakeholder engagement Outcomes criterion - Implementation Stage: Negative
process during preparation. In addition, there environmental and social impacts of the project are
should be ongoing processes for stakeholders to avoided, minimised and mitigated with no significant
make their views on impacts heard. Full details gaps.
on stakeholder engagement are provided in the
guideline on Communications and Consultation. Outcomes criterion - Operation Stage: Negative
environmental and social impacts associated
with hydropower facility operations are avoided,
minimised and mitigated with no significant gaps;
and land disturbance associated with development of
the hydropower project is rehabilitated or mitigated.

and Social Issues
Environmental
Management
To show that plans avoid, minimise, mitigate demonstrate that responsibilities and budgets
and compensate negative environmental and have been allocated to implement ESMP plans
social impacts from project activities, mitigation and commitments. Monitoring reports and
measures in the plans should be directly linked data in the implementation and operation
to all identified environmental and social issues stages should clearly track performance
and risks. The assessment and planning should against commitments and objectives and
be informed by appropriate expertise. The capture environmental and social impacts.
assignment of responsibilities and resource It should be possible to provide examples to
allocation for implementation, monitoring and show how identified risks from the ESIA have
evaluation should be appropriate to the planned been avoided or minimised. It should also
actions. be possible to table evidence to show that
mitigation plans have been implemented
An evidence-based approach should demonstrate and are being monitored. Implementation
that negative environmental and social impacts of measures for environmental and social
arising from project implementation and mitigation should be evident and monitoring
operation activities are avoided, minimised, should show how they are achieving their
mitigated and compensated with no significant stated objectives.
gaps. The developer, owner and operator should

Integrated Project
Management
This guideline expands on what is one component does not progress at the expense
expected by the criteria statements in the of another.
Hydropower Sustainability Tools (HST) for
the Integrated Project Management topic, Project components in this context refer
relating to assessment, management, to components of the overall hydropower
development programme that need to be
conformance/compliance and outcomes. scheduled and managed. These may include,
The good practice criteria are expressed and are not limited to, design, construction,
for the preparation and implementation environmental, social, resettlement, finance,
stages. safety, human resources, communications, and
procurement.

Assessment Protocol (HSAP), this topic is Assessment
addressed in P-6 for the preparation stage Assessment criterion - Implementation Stage:
and I-4 for the implementation stage. Monitoring of project progress, milestones, budget
and interface issues, and of the effectiveness of
management of implementation stage plans
including construction management, is being
An effective integrated project management undertaken on a regular basis during project
process is fundamental to the success of a project. implementation.
Major infrastructure project developments
typically involve many contractors and sub-
While there is no Assessment criterion in the
contractors and multiple work sites. Overall
Protocol’s preparation stage and this stage
coordination of these multiple considerations is
starts with development of the integrated
essential. This guideline addresses the developer’s
management plan (see below under the
capacity to coordinate and manage all project
Management criterion), there are assessment
components, taking into account project
activities necessary to develop this plan. These
construction and future operation activities at
start with understanding all aspects of the project
the project affected areas. The intent is that the
development needs and the associated objectives
project meets milestones across all components,
and risks.
delays in any component can be managed, and

Integrated Project
Management
Once developed, the integrated management Management
plan forms the basis for the implementation stage
monitoring programme. Responsibilities, scope, Management criterion - Preparation and
timing, methods and reporting for monitoring Implementation Stages: An integrated project
of project construction and integrated project management plan and processes have been
management plans should be clear for all aspects developed and are in place that takes into account all
of project implementation. The logic of the design project components and activities with no significant
of monitoring programmes should be clearly gaps; and a construction management plan has been
documented and linked to objectives and risks. developed and is in place that identifies construction
Monitoring reports should have a hierarchical risks and describes processes that contractors and
design in which information is provided at the others are required to follow to manage these risks.
appropriate timing and level of detail for the
uses and users of that information. Monitoring The preparation stage assessment activities will
should also be regularly consolidated into have established the project needs through the
reports for higher management, at a minimum feasibility studies, detailed design report, and
addressing construction progress, environment, Environmental and Social Impact Assessment
health, safety, labour and quality statistics, and (ESIA). Plans produced during preparation
identifying risks and interface issues. Higher should clarify objectives, establish necessary
level reports for supervisory board members resources for implementation, identify roles
should consolidate progress on engineering, and responsibilities, establish critical paths,
environmental, financial and institutional assess risks and risk management measures, and
activities guided by Key Performance Indicators evaluate potential interface issues. A frequent
(KPIs) set by the board of directors. Reports cause of project cost over-runs and delays is poor
should clearly inform meetings and decision- planning in relation to project activity scheduling.
making and guide continuous improvement Many activities depend on the completion of
measures. others prior to commencement, and the critical
path needs to be well-understood. Individual
Interface issues present risks to the project in plans for particular project focal areas (many of
terms of the potential to have a major impact which form the basis for contracts) must fit into
on cost, timing or result in dispute. On sites with an overall integrated project management plan.
multiple major contractors and suppliers, each is
appointed separately and gaps in responsibility The integrated project management
can arise. Interface issues can arise between plan should address the major project
different contractors, for example with access components and the hierarchy of relevant
to and timing of works in a particular work area plans and responsibilities. There will always be
or with use of resources and supplies. Further a construction management plan, but these
examples of interface issues include: starting to construction activities need to be implemented
fill the reservoir before the resettlement plan alongside the Environmental and Social
is fully implemented; construction activities Management Plan (ESMP) and component
impinge on significant cultural heritage sites sub-plans, which may include plans relating to
that should have received prior protective resettlement and project benefits and may also
measures; or noise and dust from construction exist alongside plans relating to transmission
activities limit the effectiveness of biodiversity line development and upgrades to the national
management measures. An overall project road network to enable supplies to come into
management office, and interface mapping and the project. The integrated project management
management, are key mitigation measures. Good plan should encompass the activities necessary
practice requires a thorough analysis of potential for successful delivery of the project, whether
interface issues, as well as monitoring throughout they are the direct responsibility of the developer
project implementation to determine how well or not, and ensure that the parties involved
these issues are being avoided and managed and understand their respective roles, responsibilities,
if new issues are arising. scheduling, resources, significant path analysis,
interface targets, risks, communications and
coordination mechanisms, procedures, and
controls.

The model for project delivery will depend on (e.g. camps, offices, internal roads, storage,
the choices made by the developer with regards workshops); major project construction (e.g. river
to contractual arrangements, costs, and how risk diversion, intake structure, outlet works, dam
is allocated and managed. Under any model, a construction, spillway, power house); reservoir
project management office should be established filling and project commissioning; and site
with the central responsibility for project demobilisation and land rehabilitation.
coordination and tracking against the overall
integrated project management plan. The construction management plan should
establish relevant policies and processes that will
The construction management plan sits at a level guide the work. These should include but not be
under the integrated project management plan. limited to: project management; occupational
It outlines activities required for construction health and safety; procurement; communications;
of the hydropower infrastructure and specifies reporting; labour management; environmental
the layout and zones for the construction site management; quality assurance/quality control;
activities. Locations of permanent project security; risk; compliance; budgets; insurance;
features (including the dam, reservoir, penstock, permits; and audits. Alignment of policies and
power house, tailrace, and transmission line) and processes through work areas and contracts
temporary project features (including access and sub-contracts should be ensured by clearly
roads, labour camps, workshops, offices, storage including expectations in contracts.
areas, waste disposal areas, and topsoil stockpiles)
should be specified. The detailed construction Construction risks should be well-analysed with
schedule, critical path, and interfaces should be proposed avoidance, minimisation and mitigation
specified. These may include permits, inspections measures in the construction management
and approvals for various steps. Construction plan. Major construction risks relate to impacts
stage resource requirements and sources should on time, cost and quality. Further and more
be outlined with management measures, specific construction risk examples could be in
including: relation to safety, air, noise and water pollution,
land contamination, land disturbance, water
• major supplies and equipment (e.g. cement, management, waste management, introduced
concrete aggregate, steel, explosives, pipework, species, health, the workforce, the supply chain,
turbines, and other electromechanical quality, weather, and worker-community conflicts.
equipment); Many of these factors may be identified and
• quarries, borrow pits, spoil, and topsoil stockpile evaluated in the feasibility studies, detailed
areas; design report and the ESIA, hence the need for
• labour (permanent, contracted, sub-contracted, close coordination between the construction
third parties); project managers and the environmental and
social managers.
• temporary storage areas;
• temporary access roads; An important element to be included in the
integrated project management plan is the
• construction stage water uses, quantities, quality, handover from construction to operation. There
sources, treatment, and disposal;
are many aspects that need to be built into this
• construction stage energy uses, types, quantities planning, including document management,
and sources; engagement with the owner/operator during
• solid, liquid and hazardous waste quantities, the design and construction stage so that future
treatment, drainage plans, transport needs, and operations and maintenance (O&M) needs are
disposal; and built into the design, and training of the future
O&M staff on the equipment and operations.
• temporary camps, workshops, offices.
The construction schedule should address
requirements from pre-construction site
preparation (e.g. land acquisition and permits, site
clearing, early access roads, temporary structures,
energy and water access); site development

Integrated Project
Management
Conformance/Compliance different contractors or work areas are adhering
to appropriate processes. These may relate to,
Conformance/Compliance criterion - Implementation for example, working conditions, hazardous
Stage: Processes and objectives in the integrated work spaces, procurement, data management, or
project management plan and the construction quality control measures.
management plan have been and are on track to
be met with no major non-compliances or
non-conformances. Outcomes
Outcomes criterion - Preparation Stage: The project
The integrated project management plan and is likely to meet overall budget and timing objectives
the construction management plan represent and targets, and plans avoid, minimise and mitigate
a shared view of how the project will proceed. construction risks with no significant gaps.
Approvals for project development and/or for
project finance are likely to be given on the Outcomes criterion - Implementation Stage: The
expectation that measures outlined in these plans project is meeting overall budget and timing
will be delivered as per the plan. Compliance with objectives and targets; interface issues are managed
terms of approvals is essential in development of effectively; and construction risks are avoided,
the project. minimised and mitigated with no significant gaps.
The significance of any non-compliance is linked

to magnitude, consequence, or repetition. Overall budget and timing objectives and targets
Major non-compliance examples could include: should be clearly identified in relevant plans and
not providing accommodation facilities for in major contracts. At the preparation stage, the
labourers in line with national standards; not content of the plans, the level of risk analysis
reporting hazardous chemical spills; not using an and mitigation measures, and the capability
independent panel of experts for dam safety as of the developer, major contractors and third
specified in the approvals and in the construction parties, should be at a level of planning that
management plan; clearing a substantial area provides confidence in the ability of the project to
of vegetation without receiving the appropriate deliver on its overall budget and timing targets.
permit; or repeatedly dumping waste spoil in Contingencies should be well-considered and
areas not officially designated to receive it. A included.
significant non-conformance with the integrated
Data collected and reported during
project management plan might be commencing
implementation should clearly show project
reservoir filling before resettlement preparations
performance against KPIs and demonstrate
have been completed. A minor non-compliance
delivery to targets and corrective actions taken
might relate to, for example, a slight delay
where deviations from targets are evident or
in delivery of a standard monitoring report.
a clear risk. In addition to time and cost, KPIs
Variations to contracts should be well-justified
set by the board of directors and possibly by
and documented.
major financial institutions might address
In the case of a major project development, other areas such as safety, labour, environment,
compliance with contractual clauses needs close communications, and quality. KPIs should be
attention, especially when activities and tasks strategically set so that emerging issues can be
are delivered through sub-contractors or off-site detected, interface issues can be avoided, and
manufacturers and suppliers. Consequences for risks can be managed early.
non-compliances should be clear and delivered,
Project costs and time requirements may be
such as fines or stop work actions (e.g. for a safety
updated during project implementation as
non-compliance).
practical issues with project delivery arise. They
Monitoring should include checking that should remain within the boundaries of financial
processes in management plans are being viability established for the project financial
followed. These will be specific to individual areas. model (see the Financial Viability guideline).
Spot audits can be useful to randomly check how

Hydrological
Resource
This guideline expands on what is of water availability can lead to overinvestment in

expected by the criteria statements in the the hydropower facility and future financial viability
issues. Insufficient consideration of other water
Hydropower Sustainability Tools (HST) for users, including downstream, can lead to water
the Hydrological Resource topic, relating resource use conflicts.
to assessment and management. The
good practice criteria are expressed for the River flows are stochastic in nature, meaning
preparation and operation stages. they have a random probability distribution or
pattern. The degree of hydrological variability
can be extreme in many areas of the world. The
In the Hydropower Sustainability correct analysis of water resources and proper
Assessment Protocol (HSAP), this topic allocation between competing uses for that
is addressed in P-7 for the preparation resource are critical to the viability and operation
stage and O-4 for the operation stage. In of a hydropower facility. The longer the period of
the Hydropower Sustainability ESG Gap field data collected to inform project design, the
higher the confidence in planning for hydrological
Analysis Tool (HESG), this topic is addressed resource risks. Management of uncertainty and
in Section 11. extreme climatic conditions, especially given
climate change and potentially competing needs
As a significant water resource development, for water resources, require close attention
a hydropower project requires a very good throughout the project life cycle.
understanding of water inflows to and outflows
from the project site and the future operating This guideline addresses the level of
hydropower facility. Poor estimations of water understanding regarding the hydrological
availability can lead to inefficient design and resource availability and reliability for the
operation of the hydropower facility and reduce project or operating hydropower facility, and the
its production potential. Misunderstanding of planning for generation operations based on
the magnitude, timing, variability and extremes these flows. The intent is that power generation
of the patterns of water inflows can also present planning and operations take into account a
significant infrastructure safety risks. Overestimation good understanding of the hydrological resource
availability and reliability in the short- and
long-term, including other needs, issues or
requirements for the inflows and outflows, as well

Hydrological
Resource
as likely future trends (including climate change) use); stream flow (e.g. discharge, snow melt,
that could affect the facility. floods); groundwater data (e.g. infiltration,
discharge); and patterns of other water resource
uses. Data should be validated as being of
Assessment good quality and checked for consistency to
Assessment criterion - Preparation Stage: An identify gaps and non-conformances with typical
assessment of hydrological resource availability hydrological patterns. Recognised methods
has been undertaken utilising available data, field should be used to fill short-term data gaps and
measurements, appropriate statistical indicators, and to correct any systematic errors, with modelled
a hydrological model; issues which may impact on data also checked for consistency. Consistency
water availability or reliability have been identified checks should include various forms of analyses
and factored into the modelling; and scenarios, of stage-discharge relationships, average flows,
uncertainties and risks have been evaluated. flow volumes, flow time series, and rainfall-runoff.
Where feasible, consistency checks should involve
The determination of the hydrological resource comparisons with observed data in comparable
for a hydropower project requires a combination adjacent catchments or sub-catchments.
of investigations and analyses by field
hydrographers, hydrologists, and hydropower The length of flow record used to inform
and hydraulics engineers. The initial hydrological project design would ideally be 10 years for
resource assessment will normally take place early a relatively small project (e.g. run-of-river or
in the investigation and assessment phase of a small impoundment) and up to 25 years for a
project and will continue through the feasibility major storage project. As flow records are rarely
studies and detailed design stages. Assessment available at or close to the intended project site,
activities involve gathering and measuring basic shorter-term field data should be correlated with
rainfall and streamflow data, statistical analyses longer-term records of nearby and comparable
and statistical extension of this data, modelling sites, with hydrological modelling used where
of the reservoir, optimisation of the project siting required to build flow records. It would be
and design, and optimisation of the construction expected that real-time data is collected and
planning and scheduling (e.g. taking into account analysed throughout the development and
diversion dam design with respect to flood operation of a more complex hydropower project.
frequency analyses).
If the project is to be operated largely in run-of-
The degree of reliability of flow, and thus of future river mode, there should be evidence of proposed
power generation, primarily depends on three or actual daily operational plans that match the
factors: desired station output with the available flow.
If the project is able to retain water as storage
• the magnitude and variability of reservoir for later release, there should be evidence of
inflows, taking into account natural flows and reservoir management analysis in the form of
upstream water users; seasonal reservoir rule curves and operating rules.
The complexity of analysis and data requirements
• the required generation (and equivalent turbine
flow); and relates to the economic, safety and environmental
risk of the project. Where a derived flow sequence
• the size of the storage (largely dictated by the has been used for the primary hydrological
site characteristics). resource analysis, the method of data simulation
The generation output and the storage size needs to be carefully considered. For lower levels
and head should be optimised for the specific of project risk a simplified regression method
site characteristics (see the Siting and Design may be appropriate, whereas for high risk and
guideline). complex projects a more rigorous statistical and
regional method and/or appropriately calibrated
Data requirements for hydrological assessments hydrological model will be required. Hydrological
include: climatic data (e.g. rainfall, air models should be scientifically recognised
temperature, humidity, wind, evapotranspiration); and well-calibrated using multiple gauging
topographic data (e.g. slopes, river length, land stations and at least 12 months of rainfall-runoff
measurements over a range of flow types and

magnitudes. The impacts of glaciers, snow cover, Organization (WMO). The spillway design flood
and climate change should also be taken into needs to further take into account acceptable
account. hydraulic conditions, adequate freeboard on the
dam crest, and assumptions on gate operation
Future climate change trends should be informed for gated spillways. Hydrological studies should
by scaled-down regional climate models. Analyses calculate the PMF, SPF and floods with return
should assess site-specific temperature and periods up to 10,000 years. Design engineers
precipitation changes over the short- and long- should choose and justify the design floods
term, using one or more global climate models appropriate to the hydropower development
(also known as general circulation models) as well based on national requirements, reservoir size,
as evaporation and runoff modelling to estimate hydraulic head, and a thorough understanding of
changes in net water yield. Sensitivity analyses downstream and operational risks.
should be conducted to consider various climate
change scenarios and the results using different Hydrological assessments that inform the design
global climate models. of river diversion works for the construction
period should underpin construction planning
Analyses to determine the electricity generation considerations relating to timing, cost, safety,
potential need to align with any national resources and convenience. Time requirements
requirements regarding dependability values for the diversion depend on the asset being
for the energy produced and the timesteps used protected (i.e. dam, power house) and type, scale
for the analyses (e.g. daily or monthly inflow and location. The appropriate annual flood return
values). These analyses are a critical input to the period needs to be established in relation to
financial models as they provide an estimation construction needs and risks, and flood frequency
of revenues and hence the project’s financial analyses conducted for dry season and annual
viability (see the Financial Viability guideline). flood frequency.
Electricity generation calculations must take into
account water needs for other purposes (see the For planning of reservoirs, flood volume is more
Downstream Flow Regimes guideline). important than the floods with the highest peaks.
Flood hydrographs should be developed based
Flood estimations and analyses are a major on different rainfall durations, which will depend
component of the preparation stage assessments. on the catchment size. Flood volumes should be
These estimates inform spillway design and routed through the reservoir to determine the
are used for planning river diversions during decisive design flood that leads to the highest
construction. Flood assessments require high reservoir water level.
resolution rainfall data and concurrent runoff
data. Spillway design relates to the inflow design Issues which may impact on water availability and
flood, the size of the reservoir, and the hydraulic reliability need to be well-identified and factored
head. Methods for calculating design floods vary into planning. Examples include: upstream
by country and with dam type. Requirements may and downstream hydropower operators and
relate to the Standard Project Flood (SPF), being water resource users; future water resource use
the flood generated by the most severe rainstorm developments; future development of water-
on record, and the Probable Maximum Flood reliant land uses (e.g. agriculture, industry,
(PMF), which is a calculated value and not based population growth); catchment conditions;
on observed records. Any estimates should take climate change; and negotiations over water
into account Glacier Lake Outburst Floods (GLOFs) allocation. If the project is reliant on water
if relevant to the region. resources that extend beyond the jurisdictional
boundaries in which the project is located, the
The International Commission on Large Dams implications of this need to be fully considered.
(ICOLD) requires that large dam design should
be based on the PMF, and this is adopted as the
standard for many modern dam projects. The
PMF should be calculated based on the Probable
Maximum Precipitation (PMP), following the
method specified by the World Meteorological

Hydrological
Resource
Assessment Periodic studies should be undertaken to
consider longer-term scenarios and sensitivities.
Assessment criterion - Operation Stage: Monitoring is These studies are closely linked to those needed
being undertaken of hydrological resource to inform asset management planning (see
availability and reliability, and ongoing or emerging the Asset Reliability and Efficiency guideline)
issues have been identified; inputs include field and infrastructure safety assessments (see the
measurements, appropriate statistical indicators, Infrastructure Safety guideline).
issues which may impact on water availability or
reliability, and a hydrological model.
Management
Further to the guidance above, assessment of Management criterion - Preparation Stage: A plan
the hydrological resource is required throughout and processes for generation operations have been
operation of the hydropower facility in order to developed to ensure efficiency of water use, based on
maintain optimal performance according to the analysis of the hydrological resource availability, a
short- and long-term operational requirements. range of technical considerations, an understanding
of power system opportunities and constraints, and
Real-time monitoring of rainfall and flow should social, environmental and economic considerations
be undertaken in the catchment to provide including downstream flow regimes.
data on water resource availability and trends.
Field data needs to be regularly calibrated and
Management criterion - Operation Stage: Measures
validated, and data quality should be recorded.
are in place to guide generation operations that
All data collected should be stored in a database
are based on analysis of the hydrological resource
that allows ready access to the data and retrieval
availability, a range of technical considerations,
of historical analyses.
an understanding of power system opportunities
and constraints, and social, environmental and
A range of hydrological and generation models
economic considerations.
can be used to manage one or a fleet of operating
hydropower facilities and will depend on the
Generation operations should be informed
context and market situation. For example,
by short- and long-term modelling of water
models may be set up separately for analyses and
availability and reliability as described above and
projections of:
should be guided by clearly stated operating
rules. Operating rules help inform generation
• inflows to storages based on rainfall and water
levels; operators of thresholds for decision-making
(e.g. drawing a reservoir down before the flood
• short- and long-term electricity generation season, releases required for environmental flow
based on market demand and available objectives) and should factor in not only technical
generating and transmission assets;
and financial considerations but also social,
• water value based on forecast inflows and power environmental and economic needs (see also the
trading signals; and Downstream Flow Regimes guideline).
• flood forecasting linked to reservoir
management and dam safety emergency At the preparation stage, planning for generation
planning. operations should seek to ensure efficiency of
water use while meeting other water resource
Issues that may affect generation need to be needs, including those of external stakeholders
monitored and assessed to inform generation upstream and downstream of the project. At the
decisions, including inflow trends, effects of operation stage, systems should be in place to
climate change, drought, energy forecasts and ensure that emerging issues are rapidly identified
price predictions, asset maintenance, other and inform management responses. Generation
(and possibly changing) resource demands, operations should be informed by regularly
environmental constraints, and social uses of the updated risk assessments and forward plans
water resources (e.g. new developments, water should be developed for a range of time scales.
recreation events). Outputs of models and other Power system opportunities and constraints
monitoring mechanisms should be available to should be well-monitored, for example patterns
data users and decision-makers as needed. of demand for energy (e.g. base vs peak load),

power prices, other generators and their more educated and allocations of water for
capacities and constraints, and transmission environmental and social needs are increasingly
issues. becoming embedded in legislation. Competing
water uses and other developments in a
Over the long-term, communities surrounding catchment can lead to more rigid water allocation
the hydropower facility in the catchment, around rules and more rigid standards on water quality
the assets, and along the downstream river and biodiversity indicators. The business will need
will evolve, with consequent changes in water to be aware of and prepared to adapt to changing
abstraction, land use, and expectations for shared societal needs and should be able to demonstrate
water resources. Awareness of environmental and this through risk assessments and community
social values and needs, both within the reservoir engagement processes.
and downstream, is growing as societies become

Hydrological
Resource

Asset Reliability
and Efficiency
This guideline expands on what is Hydropower asset types relevant to this

expected by the criteria statements in the guidance include: the water storage and conduit
system (i.e. the reservoir, intake, head race
Hydropower Sustainability Tools (HST) for tunnel, surge shaft, emergency valves, pressure
the Asset Reliability and Efficiency topic, shafts, penstock, main inlet valves); turbines;
relating to assessment, management, generators; transformers; the switchyard; and
conformance/compliance and outcomes. non-generational infrastructure such as land,
The good practice criteria are expressed buildings, roads, bridges, jetties, signage, vehicles,
communications systems, and monitoring
for the operation stage. stations. Transmission infrastructure would also
be included insofar as the responsibilities rest
In the Hydropower Sustainability with the hydropower facility owner/operator.
Assessment Protocol (HSAP), this topic is
addressed in O-5. Operating hydropower facilities, including
associated infrastructure, require regular and
systematic assessment and maintenance to
The asset reliability and efficiency guideline seeks ensure adequate reliability and efficiency over
to ensure that hydropower assets are maintained time. The consequences of poorly planned and
to deliver optimal performance in the short- implemented asset management can include:
and long-term, in accordance with the overall machine failure and loss of power generation; loss
electricity generation and supply strategy of the in efficiency of the system, which will increase
owner/operator. Asset, in this context, refers to the cost per megawatt of generation; reduced
the infrastructure, plant and equipment on which asset life span; public safety issues (e.g. dam
the hydropower station generation operations failures, trees falling onto power lines, injuries
are reliant. Reliability means that equipment will to community members); and environmental
be available when needed to meet customer incidents (e.g. oil spills into waterways).
demands and may be closely linked to energy Infrastructure safety is integrally related to asset
security. Efficiency typically relates to the management and is addressed more specifically
conversion of available energy into electricity, in the Infrastructure Safety topic guideline.
which for a hydropower plant can be as high as
95% depending on a range of factors. Efficiency Many civil assets such as dams are required to
in this context may also refer to the value of the achieve an effective service life in excess of 100
asset in relation to the costs of running it. years. The nominal service life for many major

Asset Reliability
and Efficiency
electrical and mechanical hydro assets is typically lower than design expectations or production
in the order of 50 years, although modern digital targets, or very high maintenance costs in relation
electronic equipment has a nominal service life of to the value of the electricity generated. Root
only 10 to 20 years. Actual asset life depends on a causes could include, for example, normal wear
number of factors including: and tear, pitting or abrasion of parts, changes to
machinery configuration over time which reduces
• the extent to which the original designs and efficiency, difficulties with valves due to lack of
manufacturing and construction quality address use, rust, corrosion, stresses, material fatigue,
the actual operational duties; and cracks. The results of inspections, condition
• operating conditions, including environmental assessment and maintenance need to be well-
factors; documented, stored, and analysed to identify
• changes to operational duties over the life of the or predict asset condition changes, trends and
asset; and emerging risks.
• the adequacy of asset management inspections, Routine monitoring may include visual
functional testing, condition assessment, inspections, testing, measurements, and data
maintenance, repair, rehabilitation and upgrade collection from instrumentation. Measurements
regimes.
can be obtained through a diverse range of
sensors selected for specific risk detection or
assurance of optimal running conditions, such
Assessment as accelerometers for vibration or strain gauges
Assessment criterion - Operation Stage: Routine for mechanical stresses. An online condition
monitoring of asset condition, availability and monitoring system for the generator, turbine and
reliability is being undertaken to identify risks and main transformers can be set up to enable live
assess the effectiveness of management measures; data to be read by system operators at a central
and ongoing or emerging asset maintenance and control room.
management issues have been identified.
Optimal asset management is based on
analysis of technical condition, residual life, risk,
Operating conditions should be continuously
profitability, and timing of maintenance and
monitored and recorded. A number of intrusive
reinvestments. Condition assessments are a key
inspection and maintenance activities are
element of optimising asset management and
required in order to achieve the expected asset
as noted under the Management criterion are
life. These activities need to be complemented
the cornerstone of a mature asset management
by a well-tailored programme of preventative
system. These assessments support the
maintenance, condition monitoring and testing.
development of long-term investment strategies,
Monitoring should inform identification of prioritisation of capital investments, coordination
ongoing and emerging asset maintenance and of operations and maintenance (O&M), and
management issues. Asset maintenance issues identification and tracking of performance goals.
may be related to, for example, budget cycles
Condition assessments should be designed to
and availability, the availability and capabilities
achieve objective and repeatable assessments
of the workforce, logistical or access difficulties to
with minimal time and expense for testing, data
undertake planned maintenance, or the ability to
analysis, reporting and data management. Risks
get parts and spares.
to avoid in undertaking assessments include:
Asset reliability issues could include, for inefficient processes; more tests or inspections
example: start failures and forced or unplanned than is necessary; improper validation or
outages (i.e. the power station stops operating), calibration of procedures and results; and a lack
maintenance-induced failures; or constrained of a convenient or consistent method to store,
operation due to, for example, temperature access and utilise data.
or vibration issues. Asset efficiency issues
Condition assessments typically result in
could relate to megawatts (MW) of electricity
development of a condition index or rating.
generation per unit of water flow (m3/s) being
A view on a particular asset unit or group and

the power station as a whole is informed by and determining residual life. Investigations of
aggregating individual equipment ratings. asset failures or tripping occurrences should
Information to inform condition assessments address how and why the issue occurred and
can originate from a wide range of sources and what can be done to avoid its reoccurrence,
should include: drawings; reports; test results; with the learnings applied to all similar plant or
photos; data monitoring and trend curves; processes.
interviews with plant operators and engineers;
records of maintenance routines, operational Manufacturers criteria, records, experience
problems and visual inspections; descriptions and history should inform the setting of
of condition state; inspection reports; and new limiting values for key equipment parameters.
measurements. Established evaluation and Characteristics of identical equipment can
classification rules should inform views on the vary from unit to unit and unique features can
condition rating, taking into account equipment emerge over time based on usage patterns and
age, O&M history, and any other relevant the particular context, such as environmental
condition indicators. Information quality and or climatic factors. The original equipment
confidence in the result should also be rated. manufacturer’s recommendations on maximum
A low condition rating or data quality score and minimum permissible parameters for their
should lead to further evaluation. More detailed equipment are often conservative, and so the
assessments should involve non-routine tests and limits adopted in practice should be informed by
inspections using specialised expertise and/or good monitoring and analyses accompanied by
instrumentation, resulting in a refined and more an understanding of failure modes and risks.
accurate asset condition index.
Condition assessment ratings inform refinements

Management
to O&M programmes and are an important Management criterion - Operation Stage:
input to the timing and scale of planned major Measures are in place to address routine monitoring
investments into refurbishments and upgrades. and maintenance requirements of the operating
Many other factors should also inform asset facility in accordance with the overall electricity
investment priorities and decisions, including generation and supply strategy of the
strategic importance, lost revenues as a result owner/operator.
of equipment failure, reliability criticality, forced
outage rates, environmental concerns, cost, Asset monitoring, maintenance, management
consequence, and risk. Undertaking or not and refurbishment requirements depend greatly
undertaking a repair or replacement action on the hydropower plant type, setting, usage, age
can be of concern from a technical perspective and stresses. Asset management plans should be
but may also have legal, regulatory, safety, developed in a systematic manner, addressing
environmental, and economic consequences. appropriate levels (asset portfolio, power station,
Important analyses to inform business priorities asset type) and both short-term and long-term
and investment decisions include asset failure or needs.
residual life models, analysis of failure probability
and associated risks, cost-benefit analyses of Management plans, guidelines, procedures, and
maintenance and reinvestment measures. The detailed work instructions should be addressed
type of analysis undertaken will depend on the with respect to each of the specific types of
context. assets, as listed in the introduction to this
guidance. Routine requirements and detailed
Failure mode identification is an important tool work instructions will be specific to the asset type
for asset assessment and planning and should and are typically a mix of inspections and actions
inform an asset risk register to capture the key risk that help ensure optimal asset performance
issues. Issues arising in practice should be readily and prevent major issues arising. For example,
identified through the routine O&M activities and routine requirements for water storage and
analysed with respect to root causes. Records are conduit systems could include: regular testing of
very important in diagnosing the root causes of operation of conduit isolation system equipment
faults or failures, informing replacement decisions (e.g. intake gates, valves, excess flow device,

Asset Reliability
and Efficiency
surge equipment); periodic physical inspections (e.g. maintenance procedures); and performance
to look at condition, silt deposition, rust, erosion, evaluation and support.
abnormalities; leakage inspections, testing and
treatment; painting inspections and repainting; A corporate asset management policy should
replacements of deteriorated valve seals; document big picture issues such as business
purification and testing of hydraulic system oil; goals, strategies, constraints and risk appetite,
and clearing and maintenance of the trash rack or which have a bearing on the asset management
intake gate filter. approach at an individual facility within the
corporation’s portfolio. The corporate policy
Asset management data should be recorded, should identify and establish the overall
managed and reported in a manner that objectives that the business is intending to
supports accessibility by various parties for achieve, taking into consideration stakeholder
their information and decision-making needs. expectations, regulatory compliance, social and
Operating hydropower facilities and organisations cultural obligations, and business risk appetite.
should ensure that their equipment condition This vision is normally developed at the board
data is contained in a centralised database in a level in an overall business context. Corporate
standardised format. This database should allow objectives for assets might include, for example,
for centralised data entry, storage, and retrieval, to increase efficiency, achieve cost savings,
as well as individual power station and portfolio manage usage, and ensure safe operation.
level analysis. Data should be available (where
possible) in real-time and web-accessible. The A corporate asset management plan should
database should include a comprehensive list establish the framework for the business in its
of assets, all input records that inform condition approach to asset management. This plan would
assessments, and readily enable generation of typically: document information about the
reports. company and the hydropower infrastructure; list
assets managed within the asset management
The asset database should link into, or be system; list current infrastructure projects; set
embedded within, a Computerised Maintenance the asset values and current performance levels;
Management System (CMMS) that addresses day- present the target asset values (short-term and
to-day monitoring and maintenance activities. long-term economic value) and performance
A CMMS aids planning through scheduling, targets (level of availability, water collection);
produces job tickets, work orders and instructions outline the main risks and opportunities related
for operational staff, and records actions taken, to the operation of the infrastructure; and define
inspection and assessment findings, and the roles and responsibilities of the various
asset performance. The CMMS should enable stakeholders (owner, asset manager, operator,
supporting documentation for a condition energy manager).
assessment (e.g. test reports, photographs,
operation and maintenance records) to be The asset management approach should
attached to each work order so that historical be established in the asset policy and asset
knowledge is readily available. The CMMS should management plan. A common starting
also enable reports to be routinely generated as approach to asset management is to use a
appropriate for decision-makers at various levels fixed-time maintenance strategy, often informed
in the business. by the recommendations of the original
equipment manufacturers. A more mature asset
Asset management plans and processes for an management approach should be based on asset
operating hydropower facility should ideally be condition assessments as described under the
embedded within a corporate asset management Assessment criterion of this guidance, centred
system. Benchmark requirements for asset on risk assessment and mitigation informed
management can be guided by the international by asset failure mode and root cause analyses.
standard ISO 55001 and relate to: the This approach seeks to provide improved plant
organisational context and objectives for asset performance at a reduced maintenance cost and
management; the responsible parties; relevant a lower risk exposure profile. International good
plans; supporting systems and processes (e.g. practice is based on a risk approach tailored to
communications, human resources); operations the risk tolerance of the individual business.

The asset management plan should address Assessment processes and management
asset life cycle planning. A life cycle plan should measures relating to asset management
record estimates of asset life, routine or major should be compliant with relevant legal
maintenance costs and time periods, and upgrade and administrative requirements. The asset
or replacement costs and time periods. The asset management system should identify all internal
life cycle plan should include: identification of standards, procedures or guidelines as well as
issues and risks over time; updates and changes all relevant national and international standards
in management approaches over time as assets or licence conditions applicable to the assets.
age; foreseeable changes that will be required Applicable legislation and permits may relate
for maintenance; and a clear understanding of to, for example: operation and maintenance of
the difference between failure and end-of-life. cranes, hoists and lifts; pressure vessels; and
Asset renewal decisions can be complicated by chemicals and flammable substances. Legislated
considerable uncertainties relating to technical requirements may include, for example,
condition, the expected remaining life of assets, registration of particular assets, certification
and future market demands. Timing of major by third parties, and particular forms of record
works should take into account when other plants keeping.
can meet the market demand for electricity
alongside other factors such as resource To demonstrate conformance, the asset-related
availability. Life extension actions can help measures implemented should be consistent with
postpone comprehensive renewal and this may what is in the company policies and plans. Asset
be profitable provided that delays do not lead to management commitments may be expressed
major failures with high consequential costs. in policies of the owner/operator or company
statements made publicly available or within
Asset management should be accompanied management plans. Variations to commitments
by a resource development and capability should be well-justified and approved by relevant
strategy to ensure that asset management authorities, with appropriate stakeholder
requirements can be appropriately supported. liaison. Conformance with requirements of the
Human resources supporting a corporate asset asset management plans and reliability and
management system include: on-site plant staff efficiency expectations should be systematically
who work with equipment daily and have a checked, including the completion of routine
direct role in performing routine maintenance and special monitoring and maintenance tasks,
and the equipment condition assessments; and the ongoing recording and updating of asset
plant or facility managers who support plant condition. A minor non-conformance might be
maintenance, rehabilitation, and replacement delayed submission of a monitoring report; a
decisions, and evaluate equipment condition major non-conformance might be neglecting to
assessment data and trends; technical staff undertake essential maintenance works on an
(engineers, economists, environmentalists, asset.
biologists and technical specialists) who
undertake more detailed supporting analyses
and risk assessments; and asset managers who
Outcomes
prioritise competing investment needs, analyse Outcomes criterion - Operation Stage: Asset
business cases and justifications for investment reliability and efficiency performance is in line
decisions, and support decisions that consider with the objectives of the owner/operator and
trade-offs between competing needs or any asset performance guarantees with only
conflicting requirements. minor gaps.
To ensure outcomes are met, it is essential

Conformance/Compliance that the objectives of the owner/operator for
Conformance/Compliance criterion - Operation the assets are clearly expressed. These may
Stage: Processes and objectives relating to asset relate to, for example: targets for availability,
maintenance and management have been and are reliability, and efficiency; asset life targets;
on track to be met with no major non-compliances asset life cycle cost targets; and safety-related
or non-conformances, and any asset related objectives. A hydropower plant may also have
commitments have been or are on track to be met. asset performance guarantees embedded into

Asset Reliability
and Efficiency
contracts. Performance guarantees may relate to assessments, information on asset efficiency,
electricity generation availability and reliability, information on comparative equipment and
and (depending on the capabilities of the power system performance, and information on the
station) also ancillary services that support the operational efficiency of the individual power
security and stability of the electricity grid (e.g. station (or groups of power stations) in the
frequency control, spinning reserve, operating context of the broader system and relevant
reserve, black start capability). market arrangements. Evidence may be collected
by the owner/operator or through independent
An evidence-based approach should demonstrate inspections and benchmarking studies.
asset reliability and efficiency performance. Evidence should also show that the full range of
Monitoring reports and data should clearly track maintenance issues are being addressed and that
performance against objectives and capture the systems used to manage the maintenance
incidents. Examples of evidence can include programme are in place and effective.
records of asset performance, asset reliability

Infrastructure
Safety
This guideline expands on what is there are a broad range of risks to the community
expected by the criteria statements in that need to be taken into account. The
requirements and expectations for the developer
the Hydropower Sustainability Tools and owner/operator differ during the life cycle
(HST) for the Infrastructure Safety topic, stages - project preparation, implementation and
relating to assessment, management, operation. The intent at any life cycle stage is that
conformance/compliance and outcomes. life, property and the environment are protected
The good practice criteria are expressed from the consequences of dam failure and other
infrastructure safety risks.
for different life cycle stages.
This guideline is primarily focussed on community
In the Hydropower Sustainability safety but has the benefits of increased employee
Assessment Protocol (HSAP), this topic safety. More focussed guidance on employee
is addressed in P-8 for the preparation safety is provided in the Labour and Working
stage, I-5 for the implementation stage Conditions guideline.
and O-6 for the operation stage. In
the Hydropower Sustainability ESG Assessment
Gap Analysis Tool (HESG), this topic is Assessment criterion - Preparation Stage: An
addressed in Section 4. assessment has been undertaken of dam and other
infrastructure safety risks with appropriate expertise
during project preparation, construction and
operation, with no significant gaps.
The infrastructure safety guideline seeks to
ensure that populations affected by hydropower For hydropower projects at the preparation
infrastructure are not put at risk at any point stage, good practice requires that dam and
during the life of the hydropower project. other infrastructure safety risks are thoroughly
While dam safety is one of the most critical identified for each project stage using
infrastructure safety considerations, this topic appropriate expertise.
also has a strong community safety focus and

Infrastructure
Short-term and temporary infrastructure safety Calculation of the probable maximum flood
Safety
risks that can arise during preparation activities and determination of the design flood for the
could relate to, for example: temporary labour spillway are critical assessment requirements
camps, access roads, test wells, helipads, fuel for dam safety at the preparation stage. The
storage, and power supply. During preparation, methodologies used, hydrological datasets, and
structures may be built or assembled in guiding standards all need to be well-considered
previously undeveloped locations with no and justified (see the Hydrological Resource
protection against community interactions. The guideline). Regional circumstances will influence
assessment should consider risks inherent to the the degree to which other types of risks require
structures, the likelihood of community impacts, consideration (e.g. volcanism, seismicity, landslip
and options to avoid or minimise safety incidents hazard, glacial lake outburst floods). Cascading
(e.g. location, fencing or other barriers, security dam failure may be of importance in basins with
personnel, signage). multiple dam developments. Dambreak analyses
should always be undertaken to determine
During the preparation stage, the evaluations the downstream risk zones, the populations or
that ensure adequate safety measures will structures at risk, and propagation times for
be incorporated into the permanent project flood waves, and these analyses should inform
infrastructure design are critical. Dam and other emergency response planning.
infrastructure design choices are informed by
numerous and varied assessments including: All regulatory requirements for the jurisdiction,
climatic, hydrological, hydraulic, geological, and relevant design standards for the
geotechnical, seismic, glacial (where relevant), infrastructure and risks, should be identified, well-
and material properties. documented and met.
For a hydropower project, dam safety is Appropriate expertise must be used for
paramount and a highly specialised field. All infrastructure safety-related assessments. This
potential failure modes, i.e. features or events refers to specialists with proven experience
in the systems that can lead to an asset failure, designing and constructing projects of a
should be identified and addressed where similar complexity. Particular attention should
possible in the dam design. Extreme events can be given to engineering safety competencies,
trigger failures (e.g. floods, earthquakes, fire, such as hydrological, geotechnical, structural,
landslips, landslides), as well as more incremental electrical, mechanical, and for key risk areas (e.g.
processes internal to the structure (e.g. cracks, seismology, volcanology, glaciology).
settlement, instability). The design should address
all identified failure modes and consider the Important during the preparation stage is
following dam failure risks at a minimum: infrastructure safety risk assessment and planning
for the implementation and operation stages.
• overtopping, which may be caused by Any risk assessment should take a systematic
inadequate spillway design, debris blockage of approach to considering possible risks,
spillways, or settlement of the dam crest; monitoring instrumentation and procedures,
• foundation defects, which may arise due to and management responses to risks that may
settlement or slope instability; materialise during each project life cycle stage.
• seepage-induced erosion (i.e. piping), which
can occur around hydraulic structures such as Assessment
pipes and spillways; through animal burrows;
around roots of woody vegetation; and through Assessment criterion – Implementation Stage: Dam
cracks in dams, dam appurtenances, and dam and other infrastructure safety risks relevant to
foundations; project implementation and operation have been
identified through an assessment process; and safety
• structural failure of the materials used in dam monitoring is being undertaken during the project
construction; and
implementation stage appropriate to the identified
• inadequate monitoring and maintenance. issues.

Infrastructure safety issues unique to the types of risks can emerge. Regularly scheduled
implementation stage include quality control, visual inspections of all infrastructure safety
flooding risks, landslip risks (sliding of a landmass measures are essential to assess aspects such as
down a slope), landslide risks (breakup and vegetation growth, fencing status, condition of
downhill flow of rock, mud, water and anything signage, cracks, land stability, and community
caught in the path), and construction-related interaction risks.
issues. Monitoring for quality assurance and
quality control is essential to ensure that the Monitoring for dam safety risks during operations
infrastructure is constructed fully to design usually involves a mix of instrumentation, manual
standards and any issues arising (eg variations inspections and readings, and alert and alarm
in materials specifications or fault zones in mechanisms. The monitoring programme should
excavation areas) are detected and addressed. be well-designed to match the identified risks and
Flooding, landslips and landslides can cause to verify that risk avoidance and management
direct damage and also impact on the measures are achieving their objectives. Focal
effectiveness of the coffer dams, diversion tunnels areas for dam safety monitoring must include
and other diversion works used to divert water leakage and deformation, regardless of the dam
around the construction site or fill underground type. Uplift should be monitored for concrete
excavation areas. Other construction-related dams, and pore pressure along seepage lines
public safety issues can include an increase for embankment dams. Where relevant, the
in traffic, heavy machinery on roads, blasting response to earthquakes should be monitored.
activities, and/or chemical and hazardous Instrumentation often includes V-notch weirs
material storage areas. and drainage holes for seepage, surveys against
established reference points for deformation,
settlement gauges for embankment dams,
Assessment piezometers for uplift pressure, and seismographs
Assessment criterion – Operation Stage: Routine for earthquakes.
monitoring of dam and infrastructure safety is
being undertaken to identify risks and assess the At the operations stage, an important area for
effectiveness of management measures; and ongoing assessment processes is to periodically test
or emerging dam and other infrastructure safety the effectiveness of planned measures for the
issues have been identified. emergency response system. Such a system often
includes notification and warning systems for
During the operation stage, the infrastructure downstream areas in the event of sudden releases
safety assessment focus should be on the of water that could cause harm downstream.
systematic and routine monitoring and Periodic evaluations should be made to ensure all
surveillance of infrastructure to ensure the aspects of the system are functional.
safety objectives are achieved and on the
emergency response processes that are in Management
place. Infrastructure safety monitoring should
be embedded within asset management and Management criterion - Preparation Stage: Dam and
maintenance plans (see the Asset Reliability and other infrastructure safety management plans and
Efficiency guideline). processes have been developed for project
implementation and operation in conjunction with
In addition to infrastructure safety risks relating relevant regulatory and local authorities with no
to asset failures, community safety risks significant gaps and provide for communication of
during operations can include electric shock, public safety measures; emergency response plans
hydrological risk, drowning, road accidents, and include awareness and training programs and
other types of accidents arising from community emergency response simulations; and dam safety is
interactions with project structures. These risks independently reviewed.
all need to be well-identified, assessed, and
monitored throughout the life of the project. As Infrastructure safety issues and responses
a project ages, communities and their activities are broad-ranging. They may be managed
evolve around the operating facility, and new under a central asset management system in a

Infrastructure
business or may be dispersed with management written review of a particular assessment, plan or
Safety
responsibilities for different safety issues allocated report, or inclusion of a safety expert in a panel of
to different parts of a business. Linkages and experts.
overlaps between asset management planning
and safety management planning should be
clearly defined. Plans should outline what actions
Management
will be implemented for the important aspects Management criterion - Implementation Stage:
of infrastructure safety identified through the Processes are in place to address identified dam
assessment processes. Plans should make it clear and other infrastructure safety issues and to meet
how responsibilities are allocated, important any safety-related commitments relevant to the
timing requirements, budget allocations, and project implementation stage, including providing
reporting and review procedures. for communication of public safety measures; a
formal quality control programme is in place for
Examples of infrastructure safety management construction; safety management plans for the
measures that may be included in relevant plans operation stage have been developed in conjunction
include: signage, exclusion zones, emergency with relevant regulatory and local authorities; and
preparedness and response, monitoring, emergency response plans include awareness and
inspections, training, incident response, and training programmes and emergency response
communications. Regulatory and local authorities simulations.
should be consulted and involved in preparation
of infrastructure safety plans, especially where Management criterion - Operation Stage: Dam and
they involve public safety measures. other infrastructure safety management plans and
processes have been developed in conjunction with
Public safety measures need to be communicated relevant regulatory and local authorities with no
as appropriate to the measure and populations. significant gaps and provide for communication of
Examples of communications methods for public public safety measures; emergency response plans
safety include: public signage, documentation and processes include awareness and training
appropriately lodged with local authorities, programmes and emergency response simulations.
awareness raising through various types
of community engagements, and verbal During the implementation and operation stages,
communications by on-site patrolmen. infrastructure safety plans relevant to those
stages should be demonstrably put into action.
Given the potential consequences of any dam
The management arrangements are likely to be
safety incident to public safety, international
quite different given the large role of contractors
good practice requires independent review of
in the construction processes versus what is
all aspects of dam safety to be undertaken at
probably a more permanent and smaller staff
the preparation stage. Ideally, this should be an
during operations. Consequently, it is essential
ongoing process that commences during the
to have plans catering to each of these stages
development of concept designs and continues
and the relevant risks and mitigation measures
right through the operation stage, with the
that have been identified. Because of the long
frequency of independent reviews during the
time frame applicable to the operations stage,
operations stage being commensurate with risks.
review and updates to plans should be made at
Independent review refers to expert review by
meaningful time intervals.
someone who is not employed by the project,
has no financial interest in profits made by the During implementation, the quality control
project, is not unaligned with the project in programme to ensure that infrastructure is
any other manner, and is generally perceived built to design specifications is of very high
as being objective. An expert is a person with a importance. Quality control process examples
high degree of skill in or knowledge of dam and include procurement specifications and factory
infrastructure safety as a result of a high degree assessment tests, materials testing away from and
of experience or training in that subject. Forms of on-site, supervision procedures, and involvement
independent review may vary. Examples include of design engineers during construction
contracting an expert consultant to provide a monitoring. Quality control processes should

reflect a systematic approach to achievement of are to undertake the required tasks. Emergency
the design objectives that address infrastructure response exercises should be followed by
failure modes. The independent review panel evaluations and updates to plans and measures
discussed under the Preparation stage criterion to address any identified human resource,
can be an effective aspect of an overall quality communications or equipment gaps or issues.
control programme, which can be continued into
the operations stage.
Conformance/Compliance
Infrastructure safety plans during operations Conformance/Compliance criterion - Implementation
often involve considerable ongoing monitoring, and Operation Stages: Processes and objectives
as well as asset repairs and upgrades that should relating to safety have been and are on track to be
be embedded within asset management plans. A met with no major non-compliances or
systematic and routine approach to monitoring non-conformances, and safety related commitments
and responding to infrastructure safety issues have been or are on track to be met.
should be demonstrated, both relating directly
to asset condition and indirectly to community
Assessment processes and management
interactions with the assets. Data should be
measures relating to infrastructure safety need to
analysed and linked to identified failure modes
be compliant with relevant legal or administrative
or specific safety risks. In cases where the data
requirements. These may be expressed in licence
indicates an event or issues, there should be
or permit conditions or captured in legislation.
evidence that a response has been taken to
Compliance requirements may relate to, for
address that issue.
example, standards to be met, the frequency
and type of monitoring to be performed, and
To ensure good ongoing communications on
reporting to be submitted by the owner to
public safety matters, reports should be regularly
government. Meeting of design standards is of
made to those with the ultimate responsibility
particular importance for infrastructure safety,
and authority for all public safety matters (this
and quality control and independent review
could be the company board of directors and
processes should be thorough and credible and
may also extend to regulatory authorities).
include documentation to verify that all design
Reports should be based on agreed indicators
standards are fully met.
that meaningfully alert those responsible to
any issues or new risks arising and prompt
Conformance refers to delivering what is in
management responses to address those risks,
the plans. These planning inclusions may go
with agreed indicators that meaningfully alert
beyond compliance requirements or detail
those responsible to any issues arising.
steps the business will make that ultimately
lead to ensuring compliance. Examples include
During the operations stage, measures should
budgetary allocations, designation of roles and
ensure that emergency response plans are
role expectations, and provision of internal
current, relevant, and widely understood
training.
by all those who would be involved in their
implementation. A risk to avoid is that plans for
Commitments may be expressed in regulatory
emergency response have not been practiced or
requirements for addressing infrastructure
are not familiar to responsible parties when an
safety, in relevant policy requirements of the
actual emergency arises. Measures to address
developer or owner/operator, or in any relevant
this risk should be demonstrated, such as
company statements made publicly or within
regular updates to plans, and regular training
management plans. Evidence of adherence
programmes. Exercises should be periodically
to commitments could be provided through,
conducted for company staff and relevant
for example, internal monitoring and reports,
authorities; these exercises should include
government inspections, or independent review.
simulations of emergency scenarios and test
Variations to commitments should be well-
how well the plans address the scenarios and
justified and approved by relevant authorities,
how capable the parties and resources involved
with appropriate stakeholder liaison.

Infrastructure
The significance of not meeting a commitment An evidence-based approach should
Safety
is based on the magnitude and consequence demonstrate that infrastructure safety risks
of that omission and will be context-specific. during project implementation and operation
For example, a failure to demonstrate delivery have been avoided, minimised and mitigated
of an infrastructure safety commitment such as with no significant gaps. The developer,
implementation of an alarm system is a significant owner and operator should demonstrate that
non-conformance, whereas a slight delay in responsibilities and budgets have been allocated
delivery of a monitoring report could be a non- to implement infrastructure safety plans and
significant non-conformance. commitments. Monitoring reports and data in
the implementation and operation stages should
clearly track performance against commitments
Outcomes and objectives, and have a systematic approach
Outcomes criterion - Preparation Stage: Plans avoid, to data collection, analysis and reporting so
minimise and mitigate safety risks with no significant that incidents and trends are fully evident. It
gaps. should be possible to provide examples to show
how identified risks from the assessment were
Outcomes criterion - Implementation and avoided or minimised. Evidence should show
Operation Stages: Safety risks have been avoided, that mitigation plans have been implemented
minimised and mitigated with no significant gaps. and are being monitored. Implementation
of measures for infrastructure safety should
be evident, such as signage, fencing, alarms,
Of utmost importance is that public safety risks security personnel, a quality control lab on the
relating to infrastructure are recognised and construction site, actions taken to reject materials
addressed to a justifiable level of residual risk. that failed testing, minutes of meetings with
local emergency services, and photo records
To show that plans avoid, minimise and mitigate of emergency response simulation exercises.
infrastructure safety risks, they should include Records should be kept of any safety incidents,
a thorough outline of relevant risks. Mitigation including near misses, and these should inform
measures in the plans should also be directly improvements of plans and processes. Ideally,
linked to all identified risks. The assessment and plans and processes should reflect a continuous
planning should be informed by appropriate improvement approach and should be adapted
expertise. The assignment of responsibilities to ensure that incidents that have occurred are
and resource allocation for implementation, unlikely to be repeated. Monitoring should show
monitoring and evaluation should be appropriate how plans are achieving their stated objectives.
to the planned actions.

Financial
Viability
This guideline expands on what is resettlement and livelihood enhancement,

expected by the criteria statements in the benefits to project affected communities, and
commitments to shareholders and investors.
Hydropower Sustainability Tools (HST) for
the Financial Viability topic, relating to
Financial viability, in this context, is the ability
assessment, management, conformance/ of an entity to continue to achieve its operating
compliance and outcomes. The good objectives and fulfil its mission from a financial
practice criteria are expressed for different perspective over the long-term. It would be
life cycle stages. expected that a financially viable project
generates sufficient cash flow to deliver an
appropriate risk-adjusted return on the capital
In the Hydropower Sustainability invested. However, some projects may be multi-
Assessment Protocol (HSAP), this topic is purpose ventures in which hydropower is not
addressed in P-9 for the preparation stage, the primary purpose, and therefore the financial
I-6 for the implementation stage and O-7 objective of the hydropower component may be
for the operation stage. In the Hydropower to support the delivery of the other purposes of
the scheme (e.g. water supply, irrigation water,
Sustainability ESG Gap Analysis Tool etc.). For some projects the financial contribution
(HESG), this topic is addressed in Section 1. is measured from the perspective of the system
within which it operates; for example, some pump
This guideline addresses project storage projects may run at a loss but enable
financial management, the funding of measures a greater profit to be made from other power
aimed at ensuring project sustainability, and the stations within the system because of the greater
ability of the project to generate the necessary efficiencies gained. Consequently, it is important
financial returns to meet project funding to consider the project context and purpose in
requirements. The intent is that the project is relation to its financial objectives.
proceeding with a sound financial basis that covers
all project funding requirements, including social
and environmental measures and commitments,

Financial Viability
Assessment The approach to estimating unit prices should
be well-justified, such as for how much concrete
Assessment criterion - Preparation Stage: An or steel is required. This may take place through
assessment of corporate financial viability, including estimation of unit prices (e.g. by weight, volume,
potential project costs and likely revenue streams, length) from records of actual prices used in
has been undertaken using recognised models with similar projects, through published lists, or
no significant gaps; analyses include risk assessment, through detailed analyses. Lump-sum price
scenario testing and sensitivity analyses. estimates for specific project components also
rely on professional experience and on any
Financial assessments at the project preparation accessible information from previous projects.
stage have a number of aspects, including Equipment price estimates may also be informed
project costs, revenue estimates, project funding by previous projects or indications from
mechanisms, and financial risks. All of these potential suppliers, noting that major electro-
inputs inform financial modelling, which provides mechanical equipment can be subject to very
a determination on overall financial viability and wide fluctuations due to market conditions
allows different scenarios and assumptions to be or workloads of the different suppliers. The
tested. requirements for the transmission system, and
who bears these costs, needs clarification as there
may need to be cost-sharing agreements with
Project costs other projects.
Cost estimates need to be developed on
an itemised basis using a logical structured Operation and maintenance (O&M) costs should
approach, with well-considered contingencies also be identified at the preparation stage.
added to each cost item based on an evaluation They should take into account the costs of
of risk. The reference year for costs should be labour, consumables, spare parts replacement,
clearly stated and annual escalation costs applied routine maintenance, exceptional maintenance
as appropriate. All assumptions behind each requirements, replacement of major equipment,
cost estimate need to be clearly stated (e.g. insurance, and generation costs of the operator.
tunnelling rates linked to geology, currency The reference year for these cost estimates should
exchange rates as applicable, materials sources, be clearly stated and annual escalations included.
transport requirements). Cost estimates should Ideally, O&M cost estimations should involve the
be updated once the main construction contracts future operator and should include appropriate
are awarded based on the outcomes of further contingencies.
field investigations and studies and the approach
to contracting. An example of a logical structured Costs for environmental and social components
breakdown for project cost estimates is: should be derived from the Environmental
and Social Impact Assessment (ESIA) and
• pre-construction costs (e.g. feasibility studies, Environmental and Social Management Plan
detailed design, tendering) (ESMP), as addressed under the Environmental
• civil works (including temporary and permanent and Social Issues Management guideline.
project structures) Example costs include conservation measures,
building of a health clinic, resettlement
• hydro-mechanical equipment community and livelihood re-establishment
• electro-mechanical equipment activities, drainage works and sediment settling
ponds, etc. If borne by the project proponents,
• switchyard equipment
these costs would typically be internalised as
• transmission infrastructure part of the capital and operational costs of the
• environmental and social costs, including land project for the appropriate timeframe and to the
acquisition appropriate standard. If some or all costs of social
and environmental measures are funded from
• construction supervision and administration outside the project, this needs to be explicitly
• interest during construction explained. Contingencies for environmental and
social costs need to be well-considered.
• other costs (e.g. taxes and duties, insurance)

Revenue estimates (PPAs), which are typically private long-term
electricity contracts between a generator and
Estimates of revenue are based on estimates an off-taker (i.e. power purchaser). Markets
of electricity generation and other services also exist to varying degrees for power-related
provided (e.g. firm capacity, ancillary services), commodities known as ancillary services.
corresponding tariffs, and any revenue associated Ancillary services, in this context, refer to
with investment drivers for new market entrants operations provided by hydroelectric plants that
such as carbon finance, renewable energy ensure stable electricity delivery and optimise
certificates, etc. transmission system efficiency, including the
provision of reactive power, frequency control
Revenue estimates need to be based on a and load following. The status of the electricity
clear understanding of the inflows and the market is evolving in many parts of the world.
operational plans for the power house and There is a general trend towards more open
reservoir. Calculations should take into account wholesale and retail electricity markets through
hydrological risk, operations of upstream deregulation and promotion of competition,
reservoirs, irrigation schemes, diversions, etc., if including at regional (transboundary) levels, to
any, and any operational constraints on reservoir better fund ancillary services and incentivise
management or downstream flow releases (see energy efficiency and green energy.
the Hydrological Resource guideline). Estimated
energy generation should be expressed in
association with an inflow probability based on Project funding mechanisms
hydrological modelling, for example 3,000 GWh in Assessment of project funding options is a major
a 90% dependable year. focal area during the preparation stage. Large
utilities with a steady cash flow may choose to
The approach to estimation of the tariff, i.e. the self-finance major parts of project costs. With
electricity pricing, will depend on the market regards to external funding, the terms “project
context for the project. Tariffs may need to be funding” and “project financing” are often used
differentiated, for example for local and export interchangeably, but in fact project financing is
energy, for peak or base load energy, and by a specialised form of funding. There are broadly
season. The levelised tariff should be calculated, three approaches to funding major infrastructure
referring to the average fixed and variable tariff projects: government funding, corporate or on-
over the project life, or the entire term of the balance sheet finance, and project finance.
Power Purchase Agreement, adjusted for inflation.
For tariff calculations, it is important to clearly Government funding is where the government
document the tariff calculation method used, chooses to fund some or all of the capital
the assumed tariffs for firm energy (i.e. energy investment into a project, primarily in the case of
guaranteed to be available) and excess energy, publicly owned utilities and projects. There are
the expected firm and excess energy each year, also many models for public-private partnerships,
and applicable annual escalation factors. often designed in response to particular needs
of the government and the private developer
The market situation can be highly variable regarding energy master planning, the timing
depending on the project, and market research required to have the infrastructure commissioned,
and an understanding of how the market is available expertise, and allocations of risk.
evolving is critical to making forward revenue Governments may provide direct support, such
estimates. Market, in this context, refers to the as through subsidies, grants, equity investment
situation of supply and demand for electricity, and loans (i.e. debt). Funding support may also be
water and ancillary services in which the provided through indirect methods which lower
hydropower project operates. An open electricity the overall project cost, such as waiving fees,
market is a system for purchases and sales of costs and other payments that a private company
electricity through bids and offers at relatively would normally make to the government. The
short-term time intervals, usually managed by government may also provide subsidies and
an independent market operator responsible for guarantees to power off-takers to help them meet
generation and load balance. At the other end of the electricity tariffs and/or reduce demand risk
the spectrum are Power Purchase Agreements to the project company.

Financial Viability
With corporate finance (or “on-balance sheet” • other pre-COD financial costs, such as charges
finance), the developer obtains finance for and fees; and
the project based on the balance sheet of the • loans grace and repayment periods and
company rather than the project. This typically amounts.
enables a lower cost of funding and is less
complicated. There are limits to its use in that The cash flow modelling during project
a company can only raise a limited amount implementation needs to link very closely to
of finance against its equity to stay within its procurement planning (see the Procurement
target debt-equity ratio, and this approach guideline).
may constrain how many projects the company
can invest in. There are also “off-balance sheet” Financial risks
approaches that can be taken by a corporation,
such as leases and partnerships. The financial risk assessment is an additional
significant requirement at the preparation stage.
Project financing is a common and relatively Financial issues and risk examples include:
efficient approach to project funding, but the higher than estimated project costs; inability to
level of risk is relatively higher because it is solely meet required costs; overestimation of revenue
tied to the project’s financial viability. Project streams; later then estimated COD; currency
finance relies on the future cash flow of a project exchange fluctuations; difficulties in access to
as the primary source of repayment and holds the project finance; non-acceptance into renewable
project’s assets, rights and interests as collateral incentive or other comparable schemes;
security. Lenders typically carry out extensive due market access and changes; major inflation or
diligence on the project’s viability, and on how depreciation; and loss of financial viability of the
risks have been identified, analysed and will be principal power off-takers.
mitigated.
A financial risk assessment needs to be centred
Investor options need to be well-researched. around the financial objectives for the project.
There are a range of potential investors, with The financial risk assessment typically considers
the accessibility of these depending greatly the probability and consequences of potential
on the project location, characteristics and scenarios, changes, incidents or failures that
risks. Examples of potential investors include could affect the financial viability of the project.
commercial banks, capital markets, equity funds, Because hydropower projects are complex
export credit agencies, development finance and site-specific, a high proportion of them
institutions, bilateral agencies, multilateral experience schedule and budget overruns and
development banks and sovereign wealth funds. consequently the probability of such events
Preferential funding options may be available should be carefully considered. Reference class
if projects can demonstrate meeting certain forecasting, which uses empirical data about
requirements, for example by qualifying for the schedule and budget performance of similar
development bank loans or for certified green projects, can be useful for this purpose. The
and climate bonds. definition of scenarios should inform financial
policies and processes and should clarify the
Regardless of the funding mechanism, the range of factors that would be tested in the
financial model will need to include information financial model as sensitivity analyses.
on:
Sensitivity analysis should be carried out on the
• the portion of the total costs up to the financial results taking into account the risks
Commercial Operations Date (COD) expected identified for the project. These typically include
to be covered by equity (i.e. the amount of funds tests of sensitivity to implementation costs,
contributed by the owners, and any grants) and implementation time, energy production, tariffs,
by debt (i.e. loans and bonds); the discount rate, and financing costs.
• interest rates (foreign and local currency
components);

Financial modelling costs (in present value). NPV is often used by
companies to make decisions on investments
Financial modelling is used to ensure that because it provides an equivalent method
a project can deliver a sustainable financial of comparing both internal and external
return under a range of credible scenarios (or investments of a company where there are
other stated financial objectives specific to the different values and profits over time.
project’s purpose and context). In addition to
the inputs identified above, parameters for the Internal Rate of Return (IRR) – IRR is also a
financial modelling should include the project useful tool to compare potential investments
economic life period (e.g. 30 years), key project or potential scenarios for investment. IRR is
implementation dates (notably including the frequently used to rank multiple potential
COD), and the discount rate for the project. projects or scenarios for projects, with the highest
The discount rate is the percentage rate used to IRR indicating the best likely financial result. The
compute the value of future income, given that IRR is the discount rate that makes the NPV of all
the value of money and hence its purchasing cash flows from a project equal to zero. The term
power tends to decrease over time. The discount “internal” is used because external factors, such as
rate is often calculated from the Weighted the cost of capital and inflation, are omitted from
Average Cost of Capital (WACC) and should be the calculation. The IRR is calculated based on
less than the cost of debt. The cost of debt is the the NPV formula with the NPV set to zero and the
interest a company pays on its borrowings. calculations used to determine the discount rate,
which is here the IRR.
There are a number of approaches that can be
taken to financial modelling. A quick “back of Discounted Cash Flow (DCF) – DCF is very similar
the envelope” method of analysis is payback to NPV, relies on the same formula, and takes into
analysis. A payback analysis calculates how long account calculations of both NPV and IRR. The
it will take to recover an investment into a project difference is that DCF looks at how valuable an
by dividing the initial investment by the average investment will be in the future, and therefore
yearly cash inflow to determine the payback the focus of attention is on the discounted future
period. This method is not particularly accurate cash flow. DCF is of high interest to investors
but can be useful for considering the relative because it helps calculate the returns that would
merits of a project or group of projects regarding be obtained for the investment and how long it
the likelihood of achieving a desired result. would take to get the returns.
Capital budgeting methods for financial There are other financial indicators that
modelling have more rigour and use of one or developers and lenders are likely to be closely
more of these methods should be demonstrated tracking. Lenders often have thresholds on
by the project. Because the amount of capital financial ratios specified in financial agreements,
for a new project will be limited at any given with measures to be employed if target ratios
time, capital budgeting techniques are used to are breached. Examples of commonly tracked
determine which investment scenario will yield financial ratios include:
the most financial return over a period of time.
Three examples of widely recognised methods • Debt to Equity Ratio. The debt to equity ratio
of financial modelling using capital budgeting is calculated as long-term debt divided by
– Net Present Value, Internal Rate of Return, and shareholders’ equity. A high debt to equity ratio
Discounted Cash Flow – are listed below. decreases the amount shareholders need to
supply but poses risks to the lenders in terms
Net Present Value (NPV) – NPV is a common of what can be recovered in case of project
financial modelling approach. The NPV formula financial difficulties.
calculates the difference between the present • Loan Life Cover Ratio (LLCR). The LLCR
value of cash inflows and the present value of represents the number of times the cash
cash outflows over a period of time. A positive flow over the life of the loan can repay the
NPV (NPV > 0) indicates that the investment will outstanding debt balance. It is calculated as the
be profitable because the projected earnings NPV of available cash for debt service up to the
(in present value) is greater than the anticipated maturity of the loan, divided by the principal

Financial Viability
outstanding. Lenders often specify a minimum Assessment criterion - Operation Stage: Routine
LLCR to provide reassurance about loan monitoring of the operating hydropower facility’s
repayments. finances is being undertaken to identify risks and
• Debt Service Cover Ratio (DSCR). The DSCR assess the effectiveness of management measures;
measures the amount of cash flow available to and ongoing or emerging financial management
meet periodic interest and principal payments issues have been identified.
on debt. The DSCR is similar to the LLCR in that it
indicates the ability to repay debt, but it focusses Although implementation and operation stage
on specific periods in time rather than the overall financial assessment requirements have many
life of the loan. Debt service is the amount
of the same elements as the preparation stage,
of payment due to the lenders by the project
company in any given period, and servicing they are focussed on following up on the
debt refers to making loan repayments. The substantial assessment work already done. A
DSCR calculates the ratio of the total revenues large focus at the implementation stage, during
available for debt service during a period which loan disbursements are made and major
(e.g. net of operating costs, insurance premia, expenditure is undertaken, is on recording and
taxes, etc., but before equity distributions) and evaluating project costs, monitoring cash flows in
compares this to the amount of debt service relation to disbursements, ensuring all necessary
owed. payments will be able to be made on time, and
• Rate of Return (ROR) or Return on investment monitoring implementation of financial plans
(ROI). The ROR or ROI (or “return”) refers to the and risks. A large focus at the operations stage is
ratio of money gained or lost on an investment on revenue forecasting, financial model updates,
(including both debt and equity) relative to the cost management, and business cases for major
amount of money invested, usually on an annual refurbishment requirements.
basis. Internal rate of return (IRR) as discussed
above is the discount rate that results in an NPV Financial risk assessment and management are
of zero for revenues over the project period; this essential components of all stages and need to
shows the annualised effective compounded
consider both internal risks (e.g. effectiveness
ROR which can be earned on the invested capital
(both debt and equity). Return on Equity of internal controls, budget exceedances,
(ROE) removes the return committed to debt effectiveness of financial systems, processes and
servicing, which provides equity investors with software) and external risks (e.g. market trends,
an indication of their return over the project hydrological risk, exchange rates, regulatory
economic life. developments, new technologies, operating
constraints).
The quality of a financial model, and hence
its outputs, depends on a number of factors,
including the robustness of assumptions made, Management
the accuracy of cost and revenue estimates, Management criterion - Preparation Stage: Financial
and the type and range of scenarios that are management plans and processes have been
considered for the project. All should be well- developed for project implementation and operation
researched and justified. Financial modelling with no significant gaps, and opportunities for
should be undertaken utilising appropriate project financing have been evaluated and pursued.
expertise.
Management criterion - Implementation Stage:

Assessment Measures are in place for financial management
Assessment criterion - Implementation Stage: An of project implementation; plans are in place for
assessment has been undertaken of project financial financial management of the future operating
viability, including project costs and revenue hydropower facility.
streams, using recognised models and including risk
assessment, scenario testing and sensitivity analyses; Management criterion - Operation Stage: Measures
and monitoring of the financial situation during are in place for financial management of the
project implementation is being undertaken on a operating hydropower facility.
regular basis.

The assessment work undertaken during mitigation and compensation. Financial
the preparation stage needs to result in the risk management measures should be well-
development of financial management plans. researched and re-evaluated on a regular basis.
Plans should be developed at the preparation Examples of financial risk mitigation approaches
include investments in risk prevention and
stage for both the implementation and (at a
minimisation, risk monitoring, insurances,
preliminary level) the operation stage. Financial performance guarantees, contingency budgets,
management plans should address staffing, and funding commitments that can be called
resourcing, systems, policies, procedures, internal upon in the case of cost overruns. Some risks
controls, risk, compliance, monitoring, reporting, may be transferred to other parties (government,
and independent review. Plans should clearly contractors, off-takers, insurers, etc.) through
document financial objectives, such as Key contractual arrangements.
Performance Indicators (KPIs), important financial • Accounting – Processes and systems should be
ratios, and their target levels. in place to manage accounting needs, including
budgets, expenditure, payroll, tax, materials
Financial management processes should be management, asset valuations, etc.
clearly documented and typically include:
• Auditing – An annual schedule of both internal
• Internal controls and approvals – Role and external auditing should be in place with
responsibilities for financial approvals should be clearly defined processes.
defined in a delegations policy or manual and • Financial reporting – Processes should be
authorisation processes should be built into the defined leading to the generation of regular
financial management system. Duties should financial reports, following standard accounting
be segregated to ensure control and individuals practices, and tailored to meet the needs of
should be given authorisations, for example to decision-makers.
clear master data, manage depreciations, and
run the payroll system. Systems of checks and Starting with test operations and COD, additional
balances should be evident, such as monthly financial management processes will come into
bank reconciliations and automatic detection play related to market research, sales, billing, and
systems for irregular transactions. revenue management. Market conditions will
change over time and depending on marketing
• Budgeting and expenditure – The financial
management plans need to outline allocations arrangements there may be constant or periodic
for expenditure for each financial year, in opportunities to increase revenues or a need
line with the progression of works during to respond to adverse developments. Some of
the implementation stage and the various these may require significant investments for
management plans at both the implementation expansion, rehabilitation, or reoperation.
and operations stages. Processes should
define formats, timing and approvals Other options that may be considered at certain
processes for annual budgets. Budgets points in the project life cycle include: sales of the
should include appropriate contingencies. All entire project, certain assets or shares; refinancing
management plans should be included (e.g. of debt; re-negotiation of joint venture, power
asset management, environmental and social,
purchase, concession and other agreements;
occupational health and safety), with care
taken that one focal area does not take funds securitisation of revenue; and/or mergers or
away from other areas of commitment (see the acquisitions.
Integrated Project Management guideline).
Processes for cost control should be defined and
closely linked to procurement processes (see the
Procurement guideline). Processes should also Conformance/Compliance criterion - Implementation
be defined for managing budget variations and and Operation Stages: Processes and objectives
allocation of contingency budgets. relating to financial management have been and are
• Financial risk management – Financial risks on track to be met with no major non-compliances or
should be managed by applying the same non-conformances, and funding commitments have
mitigation hierarchy as for other types of risks, been or are on track to be met.
namely through avoidance, minimisation,

Financial Viability
Good practice requires evidence that financial Outcomes
management measures are compliant with the
relevant government requirements, which may Outcomes criterion - Preparation Stage: The
be expressed in licence or permit conditions, or project can manage financial issues under a
captured in relevant legislation, or in the case range of scenarios, can service its debt, can pay
of public utilities be subject to public financial for all plans and commitments including social
administration regulations. Lenders will also have and environmental, and access to capital can be
their own requirements that need to be met. demonstrated.
Compliance requirements may relate to, for Outcomes criterion - Implementation and Operation
example, accounting, reporting and auditing Stages: The project or the corporate entity to which it
standards to be met, debt repayment schedules, belongs can manage financial issues under a range
tax requirements, audit schedules, and financial of scenarios, can service its debt, and can pay for
reporting to be submitted to government and/or all plans and commitments including social and
made public. environmental.
Conformance refers to delivering what is in

the corporate or project-level financial plans. To be considered financially viable, the
These planning inclusions should go beyond project should (during the preparation and
budgetary allocations and should include implementation stages) be projected to and
planning for financial management roles and (during the operation stage) demonstrably
role expectations, funding for and adherence generating sufficient cash flow to deliver an
to internal controls (e.g. auditing, delegations, appropriate risk-adjusted return on the capital
financial approvals), delivery of audit and invested. The expectations on the return to be
reporting schedules, and ensuring appropriate generated should be well-stated in financial plans
financial management capacity, for instance and modelling. As noted above, there may be
through financial management software and staff exceptions to the expectation that a project will
training. be profitable on a standalone basis, such as the
case of multi-purpose projects or pump storage
Financial commitments may be expressed projects within an energy asset portfolio. Of
in regulatory requirements, government importance is that the financial objectives are
or developer policies, or in any relevant clearly documented, and financial modelling,
company statements made publicly or within plans, analyses and status reports show that these
management plans. Many financial commitments objectives are achievable.
are embedded within contracts and loan
agreements. Evidence of adherence to funding Financial modelling, plans, analyses and status
commitments could be provided through, for reports should be consistently focussed on
example, inspections, monitoring, reports, and selected financial indicators, as discussed under
independent review. the assessment criterion. Financial modelling
should have tested a set of reasonably identified
The significance of not meeting a financial scenarios and included sensitivity testing on key
requirement is based on the magnitude and assumptions in the model. The financial reporting
consequence of that omission and will be should show how indicators are being met and,
context-specific. A minor non-conformance might where risks and adverse trends are emerging,
be a slightly late internal monitoring report. A how management interventions have effectively
major non-conformance might be a significant achieved the outcomes sought.
overspend that impacts on the financial viability
of the project and requires significant replanning A range of documents should be readily
and refinancing. A major non-compliance could accessible relating to the financial policies,
be failure to pay taxes owed to the government or practices and results of the developer or owner/
to follow legal requirements in meeting financial operator. Financial information should be well-
obligations. documented due to the commercial and legal

implications of financial activities. Policies and The Environmental and Social Management
procedures should be available that address Plan (ESMP) budget should be a clear line item
the range of issues described in this guideline. in all financial planning and reporting. At the
Financial status reports should include: preparation stage, financial planning for the
environmental and social measures should
• cash flow statement – tracks the money flowing include a well-considered budget contingency
in and out of the business and shows payment for this area. Despite the best researched
cycles or seasonal trends that require additional and detailed ESMP, issues always arise during
cash to cover payments; implementation that cannot be fully foreseen
• profit and loss statement (also known as an ahead of time. The contingency budget needs
income statement) – lists income and expenses to be sufficient and well-considered, with
and enables determination of profit or loss over appropriate controls on its use. The developer and
a given time period; owner/operator should be able to demonstrate
• balance sheet – provides a snapshot of the that:
business at a particular date, listing all of the
business’ assets and liabilities, and enables • the main elements of the ESMP have each been
determination of net assets (i.e. equity); considered with regards to their individual risks
of not achieving successful long-term outcomes;
• monitoring of key financial ratios to help analyse
the business’ financial health; and • contingencies for funding have been calculated
or estimated that would enable implementation
• monitoring of key financial risks, and actions of alternative or enhanced measures in the case
taken to address ongoing and emerging risks. that mitigation measures are not successful;
Other documentation that can demonstrate this • ESMP-related management plans identify
criterion is met includes market research reports, what would be shown by the monitoring to
analysis of financing options, financial modelling indicate that contingency measures need
reports, financial risk analysis, financial plans, and to be implemented (e.g. exceedance of a
third party review and advisory reports. threshold value over a certain time period), thus
supporting the case when contingency funds are
Access to capital to deliver the financial plans sought; and
should be clearly demonstrable. The total capital • contingency budgets have been well-utilised
committed to the project (via equity, grants, to ensure successful outcomes from the
loans, bonds) should correspond to the estimated environmental and social programmes (i.e. not
total cost of the project, taking into account diverted to other purposes and then unavailable
interest rates and costs of finance. The financial for their initial purpose).
model should include all sources of capital,
take into account any conditions or thresholds
in relation to the various sources, and should
demonstrate that the cash flows over time will
match the project construction and operation
plans. Appropriately closed financial agreements
should be in place for all sources of capital.

Financial Viability

Project Benefits
This guideline expands on what is equitable regional development and uplifting

expected by the criteria statements in the of vulnerable groups can be pursued. Well-
considered project benefits can help demonstrate
Hydropower Sustainability Tools (HST) the economic viability of a project in a cost-
for the Project Benefits topic, relating to benefit analysis. The intent is that opportunities
assessment, management, conformance/ for additional benefits and benefit sharing
compliance, stakeholder engagement and are evaluated and implemented in dialogue
outcomes. The good practice criteria are with affected communities so that benefits are
demonstrably delivered to communities affected
expressed for different life cycle stages. by the project.
In the Hydropower Sustainability Project benefits can arise in different ways:

Assessment Protocol (HSAP), this topic
• Some benefits are essential to the core project.
is addressed in P-10 for the preparation An example is improvement of a road, which is
stage, I-7 for the implementation stage necessary for site access or supply transport and
and topic O-8 for the operation stage. can also (or later) be used by the community.
In the Hydropower Sustainability ESG • Some benefits are additional to the core project
Gap Analysis Tool (HESG), this topic is but are designed to have positive outcomes
for both the project and the community. An
addressed in Section 4. example is a catchment protection programme
that pays households to maintain or improve
vegetation cover, thus reducing soil erosion and
improving water quality in rivers and streams.
This guideline addresses the additional benefits
that can arise from a hydropower project and the • Some benefits are entirely oriented towards
sharing of benefits beyond one-time compensation community interests and outcomes as a result of
payments or resettlement support for project a deliberate effort by the project to contribute
affected communities. Acceptance of projects to local area development, even if it requires
can be facilitated through a well-considered additional cost. Examples include: changes in the
siting, design and operations of a project (e.g.
programme of project benefits, especially where
a change in the alignment of a road to improve
there are concerns that benefits will primarily go community access); a particular approach to
to non-local recipients. Policy objectives such as construction (e.g. employment of a community

Project Benefits
group or a local company for road works, even Commitments to additional benefits or benefit
if it requires additional training or is not the sharing may be the responsibility of other
lowest-cost solution); and contributions to local agencies and not the project developer or owner/
infrastructure, services and livelihoods. Such operator.
contributions may be in-kind or financial and
they may be temporary during construction
or permanent (such as through a community Assessment
development fund set up initially or through a
Assessment criterion - Preparation Stage: An
revenue sharing arrangement).
assessment of opportunities to increase the
Project benefits may take the form of additional development contribution of the project through
benefits or benefit sharing strategies. additional benefits and/or benefit sharing strategies
has been undertaken; and the pre-project baseline
Additional benefits are benefits that can be against which delivery of benefits can be evaluated
leveraged from the project for the benefit of post-project is well-documented.
the affected communities. Additional benefits
may have nothing to do with the hydropower
The Environmental and Social Impact Assessment
project infrastructure or operations; they could
(ESIA) should demonstrate that opportunities
be the provision of services away from the
for project benefits have been researched, along
project site, for example. Of importance is that
with the feasibility of measures to identify and
project affected communities are among the
realise them. Project benefits should be linked to
beneficiaries of any additional benefits. Examples
development objectives, which may be expressed
include: capacity building, training and local
in national, regional or local development
employment; infrastructure such as bridges,
plans and strategies. Examples of development
access roads, boat ramps; improved services such
objectives to which the project might contribute
as for health and education; support for other
include: poverty alleviation; provision of
water usages such as irrigation, navigation, flood/
infrastructure; access to electricity; food security;
drought control, aquaculture, and recreation;
water security; increased per capita income;
increased water availability for industrial and
access to health services; access to education;
municipal water supply; and benefits through
reduced infant mortality; and other public health
integrated water resource management.
targets.
Benefit sharing is distinct from one-time
The assessment should consider various
compensation payments due to its ongoing
approaches that could deliver on development
nature and distinct from resettlement support
objectives and seek to develop a feasible
due to being unrelated to the mitigation of
approach to accompany the project. Additional
project impacts. Examples include:
benefits that are often deployed by projects
• equitable access to electricity services, whereby include: new or improved health services and/
project affected communities are among the first or educational facilities; transport to improve
to be able to access the benefits of electricity access; jobs for locals; training and capacity
services from the project, subject to contextual building; community development initiatives;
constraints (e.g.g electricity safety, preference); local royalties and other revenue-sharing
arrangements; local shareholdings in project
• non-monetary entitlements to enhance resource
access, whereby project affected communities companies; multiple-use strategies for reservoirs
receive enhanced local access to natural (e.g. fishing, recreation, tourism); and multi-
resources and/or improvements in the quality of purpose projects which are designed to deliver
the resources; other water resource management benefits
besides hydropower generation (e.g. irrigation,
• revenue sharing, whereby project affected
communities share the direct monetary benefits flood control, water supply, aquaculture).
of hydropower according to a formula and
approach defined in the regulations.

There are many opportunities to leverage Assessment
hydropower projects for positive social change,
but special care has to be taken to protect Assessment criterion – Operation Stage: Monitoring is
vulnerable groups in this process (see the Project being undertaken to assess if commitments to project
Affected Communities and Livelihoods guidance); benefits have been delivered and if management
this may be achieved by involving them in measures are effective; and ongoing or emerging
decision-making on mitigation, compensation issues relating to delivery of project benefits have
and benefit sharing mechanisms, and by been identified.
designing specific management approaches
for these groups. Support mechanisms may be In addition to the above guidance, the
targeted to help vulnerable groups or individuals sustainability of project-enabled benefits is an
make use of and participate in opportunities (for important consideration at the outset. Benefits
example, through preferential treatment in local such as new schools or health centres can
employment and procurement). Project benefits deteriorate after the period of project support
may be targeted with the objective to further ends. Any support from the project should be
reduce vulnerability. designed to fit well with normal government
service systems. Agreements should be made
There needs to be adequate documentation of on the period of project support and handover
the pre-project status around the area of the provisions to the government. Although benefits
benefit so that delivery of the benefit and its from local procurement and employment will
effectiveness can be demonstrated at a later date. generally decline at the end of the construction
For example, if the benefit is for a health clinic to stage, the project can support local businesses
improve access to health services, appropriate and workers in building skills and capacity, thus
baseline indicators might include: average preparing them for the time after construction.
distance to travel to a health clinic for project
affected communities pre-project; average In the case of older projects, there may not be
number of visits per year per community (or well-documented commitments to delivery of
individual); and a range of health indicators. project benefits made at the time of project
approval nor data on the pre-project baseline
against which to compare delivery of benefits. If
Assessment this is the case, the focus for good practice is on
Assessment criterion - Implementation Stage: the ability of the hydropower owner/operator
Opportunities to increase the development to identify issues, concerns and opportunities
contribution of the project through additional within the surrounding communities in
benefits and/or benefit sharing have been assessed. relation to project benefits and to demonstrate
In the case that commitments to additional benefits responsiveness within corporate social
or benefit sharing have been made, monitoring is responsibility or sponsorship programmes.
being undertaken on delivery of these commitments.
Management
Further to the guidance above, monitoring in
relation to project benefits should: Management criterion - Preparation Stage: Project
benefit plans and processes have been developed
• use indicators that allow comparison against the for project implementation and operation that
baseline; incorporate additional benefit or benefit sharing
• be designed to indicate the effectiveness commitments;
of the project benefit contribution towards commitments to project benefits are publicly
improvement in the targeted development disclosed.
objectives; and
• illustrate if any practical issues have arisen that Management criterion - Implementation Stage:
require a management response to ensure Measures are in place to deliver commitments by
sustainability of the benefit. the project to additional benefits or benefit sharing;
and commitments to project benefits are publicly
disclosed.

Project Benefits
Management criterion - Operation Stage: Measures • Public use project facilities. Consideration
are in place to deliver commitments to project should be given from an early stage and in
benefits, and to manage any identified issues dialogue with relevant government agencies
relating to these commitments; and commitments about potential public uses of project facilities
to project benefits are publicly disclosed. (e.g. roads, health centres, schools, reservoirs)
during construction and operations. If required,
adjustments can be made to project siting,
Commitments to project benefits need to be
design and operations to achieve better local
clearly documented in plans with appropriate benefits. The capacity, quality and costs of
processes in place to ensure delivery and follow- facilities may be higher if designed as permanent
up. Plans should include information on the rather than temporary. After the construction
nature of the benefit and the beneficiaries, stage, some facilities may be handed over
responsibilities for implementation, budget to appropriate government agencies for
allocations, time targets, milestones, and operations.
monitoring of effectiveness. Examples of • Community development initiatives.
management approaches for some common Community development initiatives can take
project benefits are outlined as follows. many forms depending on local conditions
and priorities. Investments in community
• Local supply of goods and services to the infrastructure and services may include water
project and to contractors. The project can supply, public transport, waste disposal, health
undertake local market studies to determine and education support, community buildings,
the supply potential, as well as potential price banks/ATMs, reliability of electricity supply,
increases and their impacts on community etc. Livelihood development may include
members. Project targets can be developed investments in agriculture (such as improved
for procurement of local goods and services livestock breeds, fruit trees, or storage and
and reported on regularly. Contractors can be processing facilities) or tourism opportunities
encouraged or required to procure goods and (for example reservoir management plans
services locally. The project can support local allowing for other developments and uses,
producers in providing appropriate quantities development of trekking routes or visitor
and qualities, for example through training, destinations, or better access to and protection
information on goods and services needed, of culturally significant areas). Initiatives for
creation of project procurement centres (e.g. a community development may be developed
food cooperative for local growers), or facilitation in partnership with local governments and
of partnership approaches between experienced embedded in local development planning
contractors and local businesses. The project can mechanisms to reflect the priorities of the
also support local producers in developing other community. These should be based on effective
markets once project construction is completed. community consultations, building of trust,
• Local employment and training. The project managing expectations by clearly defining
would need to undertake local labour market roles and responsibilities, development of
studies to determine employment potential appropriate capacity, setting of measurable
and assess potential wage increases and their goals, and reporting on progress. Plans should
impact on community members. Project targets ensure the sustainability of initiatives, either
can be developed for local employment and through long-term commitment from the
reported on regularly. Contractors can be
developer or through agreements with local
encouraged or required to hire local workers.
Ideally, programmes should be designed governments on O&M responsibilities. These
and delivered to train local people for skilled plans may involve third parties such as NGOs as
jobs during construction and operations, if delivery mechanisms.
necessary starting years before the beginning A commitment should be in writing to recognise
of construction. The project can cooperate its formality and be within an appropriate
with labour authorities and local government
document signed by a recognised representative
to match local workers with employment
opportunities. Local workers of contractors of the party who will deliver on this commitment.
can be identified for the future operations and Government licence requirements and court
maintenance (O&M) workforce. decisions are considered formal commitments.
The formality of a commitment can be

demonstrated by how it has been recorded, of good practice. ‘Appropriately timed’ means
documented, witnessed, and publicised by the that engagement should take place early enough
party responsible for its implementation. so that the project can respond to issues raised,
those affected by the project have inputs before
Public disclosure is demonstrated if members the project takes decisions, and engagement is
of the public can access information on the at times suitable for people to participate. Project
commitment if they would like to do so. This benefit stakeholders should be supportive of
may involve access to the actual document that the timing of engagement activities. ‘Culturally
records the commitment (either posted on a appropriate’ means that methods of engagement
website, distributed, or made available on request respect the cultures of those involved and allow
to interested parties), or public notification adequate provisions to fit with the discussion and
via a media release or website about the main decision-making processes typically followed.
provisions of the commitment. If there was a Stakeholder engagement processes that are
one-off notification, information may later be culturally sensitive consider, for example, meeting
hard to access. In this case, some effort should be styles, venues, facilitators, language, information
made by the owner/operator to ensure awareness provision, the community’s decision-making
of and ease of accessibility of information by processes, time allocation, recording, and follow-
stakeholders over time on downstream flow up. Engagement processes need to consider
regime commitments. gender and the inclusion of vulnerable social
groups. ‘Two-way’ means that project benefit
Stakeholder Engagement stakeholders can give their views on the project
benefit plans that will affect them rather than just
Stakeholder Engagement criterion - Preparation being given information without any opportunity
Stage: The assessment and planning process relating to respond. Examples of two-way processes
to project benefits has involved appropriately timed, include focus groups, community meetings, and
and often two-way, engagement with directly public hearings.
affected stakeholders; ongoing processes are in place
for stakeholders to raise issues and get feedback. Processes in place for project benefit stakeholders
to raise issues could include, for example,
The risks of poor outcomes in relation to the designated contact people, periodic briefings
development contribution of project benefits or question/answer opportunities, or feedback/
are high if communications and cooperation suggestion boxes at easily accessible areas.
between the recipient communities, the Feedback on issues raised could be demonstrated
developer, and government does not work well. by means such as written correspondence or
This may arise if, for example, there was poor meeting minutes. A register should be kept by
consultation on the benefit opportunities and the owner/operator of source, date and nature
the risks associated with achieving objectives and of issues raised and how and when each was
indicators of success. addressed and resolved.
Good practice requires that a process of Conformance/Compliance

stakeholder engagement has been followed in
the assessment and planning for project benefits. Conformance/Compliance criterion - Implementation
The focus is on project affected communities who Stage: Processes and objectives relating to project
should be amongst the beneficiaries and other benefits have been and are on track to be met with
stakeholders with the potential to be directly no major non-compliances or non-conformances,
affected by the benefits under consideration. and any additional benefits or benefit sharing
Great care needs to be taken in engagement commitments have been or are on track to be met.
processes to ensure that benefits are strategically
identified to support development objectives Conformance/Compliance criterion - Operation
and are not just popular ‘wishlists’ which can Stage: Processes and objectives in place to manage
sometimes create winners and losers within project benefits have been and are on track to be
communities or areas. met with no significant non-compliances or non-
conformances, and commitments have been or are
Appropriate timing, culturally appropriate, and on track to be met.
two-way processes are important components

Project Benefits
Assessment processes and management Outcomes
measures relating to project benefits need to be
compliant with relevant legal and administrative Outcomes criterion - Preparation Stage: Plans deliver
requirements. These may be expressed in licence benefits for communities affected by the project.
or permit conditions or captured in legislation.
Implemented measures should be consistent with Outcomes criterion - Implementation Stage:
what is in the plans to demonstrate conformance Communities directly affected by the development of
with the plans. the hydropower project have received or are on track
to receive benefits.
Commitments to communities in relation
to project benefits may be expressed in the
Outcomes criterion - Operation Stage: Communities
policies of the developer or owner/operator,
directly affected by the development of the
or in company statements made publicly or
hydropower facility and any other identified
within management plans. A major concern
beneficiary of the facility have received or are on track
arises if project benefit ‘promises’ are made to
to receive benefits.
communities to smooth the way for project
development and avoid opposition, and then
these promises are not delivered. Consequently To demonstrate that plans will deliver benefits
it is important to document the evidence for for communities affected by the project, it is
what was committed and the full delivery of necessary to show that a thorough definition of
the commitment. Evidence of adherence to project affected communities was undertaken
commitments could be provided through, and that the baseline against which later
for example, internal monitoring and reports, benefits could be demonstrated was adequately
government inspections, or independent review. documented (see the Project Affected
Variations to commitments should be well- Communities and Livelihoods guideline). The
justified and approved by relevant authorities, assignment of responsibilities and resource
with appropriate stakeholder liaison. allocation for implementation, monitoring and
evaluation should be appropriate to the planned
The significance of not meeting a commitment actions. The developer, owner and operator
is based on the magnitude and consequence of should demonstrate that responsibilities and
that omission and will be context-specific. For budgets have been allocated to implement
example, a failure to demonstrate delivery of a project benefit plans and commitments.
licence requirement relating to a benefit for the
local communities is likely to be a significant non- An evidence-based approach should demonstrate
compliance, whereas a slight delay in delivery of that project benefits were delivered and met
a monitoring report could be a non-significant their objectives. Monitoring reports and data in
non-conformance. the implementation and operation stages should
and objectives.

Economic
Viability
This guideline expands on what is economic contribution to society after all costs
expected by the criteria statements in the and benefits have been accounted for. This
includes social, environmental and financial
Hydropower Sustainability Tools (HST) for costs and benefits to society. Economic viability
the economic viability topic, relating to is distinct from financial viability, which typically
assessment, stakeholder engagement and focuses on the ability of a project to generate
outcomes. The good practice criteria are sufficient cash flow to deliver an appropriate risk-
expressed for the preparation stage. adjusted return on the capital invested.
Economic viability is informed by the financial

In the Hydropower Sustainability analysis but takes a broader approach to costs
Assessment Protocol (HSAP), this topic is and benefits than just financial considerations.
addressed in P-11. Compared to a financial analysis, the economic
analysis typically encompasses a larger
geographic scale, examining the national or
This guideline addresses the net economic regional implications of the project and social
viability of the project. The intent is that there is and environmental externalities. Social and
a net societal benefit from the project once all environmental externalities are factors that are
economic, social and environmental costs and not reflected well in market prices but can affect
benefits are factored in. societal wellbeing; pollution is an example of a
negative externality (e.g. it can impose public
Hydropower projects can provide both economic health and clean-up or remediation costs), and
benefits and costs in the regions where they are education is an example of a positive externality
developed. These can be through either direct (e.g. educated people can go on to educate other
activities of the project (e.g. construction of dams, people). These externalities are the social and
relocation of villages, provision of electricity) or environmental costs and benefits in an economic
actions indirectly related to the project (e.g. the assessment.
creation of new industries).
The term ‘economically viable’ is used to describe

a project that provides an overall positive net

Economic Viability
Assessment All assumptions should be clearly stated in the
analysis.
assessment of economic viability has been Considerations in relation to costs in the
undertaken with no significant gaps; the assessment economic model include:
has involved identification of costs and benefits of
the project and either valuation in monetary terms • all construction costs in the project financial
or documentation in qualitative or quantitative model should be included as a starting point;
dimensions. • costs should include residual (not fully avoided,
mitigated or compensated), environmental and
Economic viability assessments may be social impacts of the project;
completed to confirm a rationale for public • land acquisition costs may need to reflect the
investment (including investment from public future income potential of a piece of land if that
sector development banks), to fulfil regulatory potential is not reflected in market prices and/or
requirements, or to demonstrate to project compensation rates;
stakeholders that the project will provide an • the analysis may need to differentiate between
overall economic benefit to a region. traded (imported) and non-traded goods
(domestic resources);
The main method for assessment of economic
viability of a project is a Cost-Benefit Analysis
• the analysis may need to differentiate between
scarce (often skilled) labour and surplus (often
(CBA). Costs and benefits are expressed as far as unskilled) labour;
possible in monetary terms so that they can be
compared on an equal level. A project is assessed • the economic model should not include costs
as economically viable if the project benefits relating to taxes or financing costs;
exceed the project costs. • considerable care needs to be taken in terms of
how best to factor in the effects of inflation and
The main steps in an economic evaluation are: future changes in prices over time from a wider
economic perspective; and
(i) identify the project benefits and costs; • sunk costs, and costs that would be incurred
even if the project did not go ahead, should be
(ii) quantify and value the benefits and costs documented, although they typically do not
(where possible);
influence a decision to proceed with a project.
(iii) adjust the costs and benefits to reflect their Benefits in the economic model should include:
economic values (where necessary);
• energy production benefits from the full energy
(iv) establish benefit and cost streams over time production;
and discount them at an appropriate rate; and
• additional energy production of downstream
plants achieved because of the project;
(v) compare the present value of gross economic
benefits with the present value of gross economic • any induced (secondary) benefits from energy
costs. availability, in the case that the country is
energy-constrained and there is no alternative
The economic analysis always starts with the generation option; and
project financial analysis, and then extends and • any net environmental and social benefits for
modifies it. The analysis should include all costs society, such as net benefits for biodiversity
and benefits that can be associated with the through offsets and the net social benefit
particular project. Costs and benefits should be through improved livelihoods of the local
quantified (where possible) and estimated for population.
the entire life of the project. Valuation methods
The magnitude of anticipated benefits should be
for each separate cost and benefit must be
analysed against appropriate baseline indicators,
carefully considered and justification provided
and the longevity of the benefits should be
for the method adopted. It is important to justify
factored into the analysis.
the discount rate used to reach the conclusion.

Although monetary evaluation of the certain value number from elsewhere may be
environmental and social costs and benefits sufficient (e.g. tonnes of CO2 avoided x cost of
of a project can be difficult, wherever possible climate change per ton as estimated by some
the values should be estimated as this allows a authoritative sources).
comparison with financial assessments. If it is
not possible to estimate a value for a particular If assessments are undertaken by parties with
benefit or cost, at least quantitative estimates vested interests they may focus on the benefits
can be provided for expected changes in of project and place less weight on negative
the environment and for society and/or an impacts, which can create significant bias in
ordinal ranking could be assigned on the basis the analysis. All economic analysis models are
of its materiality (i.e. societal importance or prone to data manipulation, which can include
significance). Where costs and benefits are not issues such as double-counting of benefits and
quantified, justification should be provided along poor quality of data. As such, findings should
with an assessment of the materiality of the be scrutinised. The most defensible economic
unquantified factors. viability assessment will:
Sources of information for the analysis may • use appropriate expertise;

include, for example: an analysis of the • be objective;
economic context or region; an analysis of the
climate change benefits of the project; analysis, • be comprehensive in fully considering costs and
benefits;
quantification and valuation of project costs and
benefits; loan appraisal reports; and economic • ensure quality and defensibility of the inputs,
analyses of natural resources and riparian linked assumptions and methods; and
livelihoods. A consideration of alternatives to • take a balanced approach to considering
the project development can be important for costs and the broader implications of the
determination of project costs and benefits, development for the community and the
including doing nothing, alternative forms of environment.
power generation, and alternative uses of the site.
There are a number of analytical techniques that Stakeholder Engagement

may be incorporated into the economic viability
Stakeholder Engagement criterion - Preparation
assessment. Examples include:
Stage: The results of the economic viability analysis
• Incidence analysis – This analysis disaggregates are publicly disclosed.
the overall impact of the project according to
the impact on individual community groups (e.g. Public disclosure is demonstrated if members
minority groups, regions, age segments). This of the public can access information on the
can assist in identifying groups that are most results of the economic viability analysis if they
impacted and in defining compensation and
would like to do so. This requires some means
benefit sharing options.
by which the public knows that the analysis has
• Input-output analysis – This is an economic been completed. Public disclosure may take
model which uses a range of intersectoral place by enabling access to the actual document
relationships to estimate the regional flow-on that presents the analysis or a summary of the
(also called induced or secondary) effects of a
analysis, either posted on a website, distributed,
project.
or made available on request to interested
To meet good practice, some practical steps can parties. If not consolidated into a single report,
be taken to keep the economic analysis feasible; public disclosure could be demonstrated through
for example, a partial analysis may be undertaken public accessibility of the various sources that led
of the most important economic effects. to the conclusions on the results.
Components of the analysis may be distributed
over a range of documents rather than being Good practice relates to disclosure of the results
consolidated in a single report. For some aspects, of the analysis and not the full details of the
simply multiplying a quantitative change by a analysis. The public could be notified via a media

Economic Viability
release or website about the main outcomes of The economic model should not be biased
the analysis. If only a one-off notification of the towards positive economic benefits (particularly
results has been made available, information financial benefits) or misrepresent the costs of
may later be hard to access. In this case, some negative material impacts. Sensitivity analyses
effort should be made by the developer to ensure would ideally be conducted to demonstrate the
awareness of and ease of accessibility of these robustness of the conclusions. These analyses
results by stakeholders over time. usually involve testing different values for key
parameters to see by how much the underlying
quantity or its value can change before the
Outcomes rate of return of the project becomes negative.
Outcomes criterion - Preparation Stage: From an Scenario analyses can also provide more rigour
economic perspective, a net benefit can be to the conclusions, e.g. by looking at several
demonstrated. adverse circumstances that could potentially arise
simultaneously and how they would affect the
Demonstration of net benefits should be conclusions. If probability distributions for various
provided through quantitative indicators. parameters can be estimated, this can be done,
Examples of quantitative indicators include net for example, through Monte Carlo simulations.
benefit, benefit-cost ratio, and economic rate Cost and time overruns should be amongst the
of return. From an economic perspective, rate adverse circumstances considered.
of return is an indicator for the developmental
impact of a project proposal, allowing It is common for economic viability reports to
comparisons with other energy sector investment include a summary table that outlines all the
options. Unlike the financial rate of return, costs and benefits associated with the project,
which is mainly of interest to organisations with their assigned values, and the subsequent
commercial stakes in a proposal, the economic calculation of the project’s overall net economic
rate of return is of interest to society at large. impact. This summary should be high-level
Depending on the perspective of the evaluation, and presented in a simple, easy to understand
alternative indicators such as the net present manner. For the conclusion that a project has a
value of the project, or the economic costs per net positive impact, benefits must exceed costs in
unit of capacity installed or power generated, the most probable scenario.
may be used.

Procurement
This guideline expands on what is Procurement in this context means the

expected by the criteria statements in the purchase of goods or commodities by the project
developer or operator, as well as contracting
for services or goods. Hydropower projects rely
for the Procurement topic, relating to upon a range of works, goods and services being
assessment, management, conformance/ provided to the project. These are usually in the
compliance and outcomes. The good form of contractors doing works, consultancies
practice criteria are expressed for the providing expert advice, materials, manufactured
goods and equipment, and services.
preparation and implementation stages.
Procurement is guided by selection criteria, for
In the Hydropower Sustainability example to select the highest quality or lowest
Assessment Protocol (HSAP), this topic is cost or a combination of these. Procurement may
involve direct purchase from a known supplier for
addressed in P-12 for the preparation stage items under a certain value, and most commonly
and I-8 for the implementation stage. In involves a bidding process for higher value items
the Hydropower Sustainability ESG Gap in which the bidders or sellers quote their prices.
Analysis Tool (HESG), this topic is addressed The bidding process begins when the procurer
in Section 9. identifies the need for goods or services and
starts to search the market for bidders. This
may take place through publicising a tender.
This guideline addresses all project-related After identifying suppliers, a request for bids,
procurement including works, goods and services. proposals, quotes, and information can be made.
The intent is that procurement processes are Direct contact with bidders can also be made
equitable, transparent and accountable; support instead of advertising the above requests. After
the achievement of project timeline, quality and selecting the suitable bidders, a quality check
budgetary milestones; support developer and may be undertaken to confirm the suitability of
contractor environmental, social and ethical the goods or services in question. The next step
performance; and promote opportunities for local is agreement on the terms, conditions, quality,
industries. and delivery schedules, followed by delivery and
payment. All of these items are usually included
in the bidding documents, which form the basis
of the bidding process.

Procurement
Procurement is a standalone topic in the • EPC – an Engineering, Procurement and
preparation and implementation assessment Construction (EPC) contract involves a principal
tools because of the significant level of contractor implementing the project through
procurement that is required at these project the use of sub-contractors. The scope of
stages. During the operation stage, procurement services may cover from design right through
to commissioning and handover to the owner
activity is lower and is therefore addressed as
depending on how it is set up. An EPC contract
a component of the Governance topic (O-2). typically has project costs closer to the total
Procurement is strongly linked to the Integrated project cost because a large part of the risk is
Project Management topic, where considerations transferred to the EPC contractor. Advantages
relating to the overall project works programme, for the owner include engagement with a
budget and scheduling are addressed. single point of responsibility, working to a
fixed price and completion date, and relying on
performance guarantees to ensure delivery of
Assessment required functionality. Potential disadvantages
Assessment criterion - Preparation Stage: An to the owner can include less involvement in
assessment of major supply needs, supply sources, the design process and quality control during
relevant legislation and guidelines, supply chain risks project implementation, which may ultimately
result in higher life cycle costs and reduced
and corruption risks has been undertaken with no
performance outcomes. Another potential
significant gaps. disadvantage is that the EPC contractor may not
have direct responsibilities for, nor take a long-
The most significant decision at the early stage term view, on environmental and social issues
of the project is the approach to be taken to relating to the project.
major contracts, which is closely interrelated with Under any scenario, it is essential to itemise all
management of financial risks (see the Financial procurement requirements for the project as
Viability guideline). Approaches to the major this is necessary to estimate project costs and
contracts can vary widely, with different pros and to inform procurement strategies. The feasibility
cons and different outcomes regarding risk. Two studies and detailed design report should include
widely differing examples are shown below, but identification of potential sources for major
there are many variations on these approaches to supply needs as this will influence accessibility,
meet particular circumstances: transport costs, financial planning in relation to
taxes and duties, and logistical planning.
• Unit price – the owner manages all major
construction contracts and pays a fixed sum
Major supply examples include:
for each completed unit of work based on
estimated quantities of items and their unit
price. Contracted costs will be lower than total
• consultancies for design, economic, financial,
technical, environmental and social studies;
project costs because costs to the owner are
not reflected. Advantages are that the owner • contractors for project construction works;
can easily verify that prices are not inflated
and variations are relatively easily managed. • materials for construction such as concrete,
Disadvantages are that this model requires aggregate, and steel, as well as hydro-
a high degree of experience and capacity on mechanical and electro-mechanical equipment
the part of the owner, the owner carries a high for the project;
level of administration and supervision, and the • equipment for processes relating to construction
owner carries the major risks. One approach such as storage tanks, generators, and pumps;
to reduce risks to the owner is to contract and
an owner’s engineer to fill in resource and
expertise gaps, provide administration and • services such as accommodation, food, driving,
supervision services, and ultimately protect catering, cleaning, auditing, independent review,
the owner’s short- and long-term interests by waste management, and medical for the site
ensuring all contractors are adhering to project offices and labour camps.
specifications and advising the owner on any
issues which arise.

Sources may be local or within the country, or made by the developer. Local suppliers are those
from international locations. The assessment within geographic proximity of the project who
process should include investigations of sourcing can or have the potential to deliver the required
options and related risks, and determinations on good and services. The definition of ‘local’ will
specifications to include in bidding documents. be context specific (e.g. those in the project
affected area or local government district). Local
Legislation and guidelines relevant to capacity development refers to assistance that
procurement for the project, for example with is provided to entities in the proximity of the
regards to labour laws or occupational health and project who have an identified need to develop a
safety, need to be thoroughly understood and certain skill or competency or general upgrading
built into the project’s procurement procedures. of performance ability in order to meet or deliver
Lenders may have requirements relating to a desired service. Enhancing local capacity
aspects of the project they are funding, such as may be a project benefit committed to by the
the use of international competitive bidding. developer. Assessment processes should include
local capacity assessments and investigation of
Supply chain risks should be thoroughly mechanisms by which such commitments could
outlined and investigated for their likelihood be fulfilled. This could include a local employment
and probability, magnitude and consequences, policy or statements of preference for local
and mitigation measures. Supply chain risks suppliers in contract documents, and support
may relate to, for example, inability to meet the provided to local suppliers to enable them to
contract provisions (e.g. with respect to cost, participate in the tendering process. Assistance
time, amounts, quality, specifications), corruption and training may also be provided to increase the
(e.g. bribes, facilitation payments, favouritism, capacity of local workers to comply with higher
shortcuts on specifications), transport standards than they might be used to for issues
impediments (e.g. floods, fire, civil unrest), and such as safety. In some cases local employment
human rights (e.g. child labour, forced labour may not be possible because of skills shortages;
used by suppliers of suppliers). The viability of a in such situations, the developer might establish
particular supplier, and their quality assurance/ training programmes to upskill local people
quality control commitments and processes, are to enhance local employment opportunities
important elements to include in the assessment associated with the project. Packaging of some
of potential supply sources. The assessment procurement needs into smaller units more
should include identification and evaluation of accessible in scale to local businesses may be
risk mitigation measures (such as inspections, used to promote opportunities for local suppliers;
insurances, independent evaluations) and however, this approach should not be used to
monitoring programmes to identify emerging avoid more stringent tendering requirements
risks and assess the effectiveness of mitigation associated with larger procurement lots and it
measures. needs to be consistent with national, regional,
and/or institutional policies and guidelines.
The assessment processes should include
corruption risks as one of the supply chain risks.
Corruption risks at the contracting and bid Assessment
evaluation stage may include, for example: non- Assessment criterion - Implementation Stage: Major
transparent pre-qualification; confusing tender supply needs, supply sources, relevant legislation and
documents; non-transparent or non-objective guidelines, supply chain risks and corruption risks
selection procedures; bid clarifications not shared have been identified through an assessment process;
with other bidders; award decisions not made ongoing monitoring is being undertaken to monitor
public, or not justified; deception and collusion; effectiveness of procurement plans and processes.
unjustified agents’ fees; and conflicts of interest
for officials and consultants. Monitoring is an essential accompaniment to
procurement during project implementation.
Provision of and support for creating Monitoring should be directed at:
opportunities for local employment and local
capacity building may be a requirement for • ensuring procurement processes are properly
project development or may be a commitment implemented and fully ethical (e.g. through
independent auditing);

Procurement
• processes to receive, review and respond to Procurement plans should include procurement
procurement-related grievances, and to identify objectives and commitments or refer to these if
any underlying issues so that corrective actions they are in a policy document. The plan should
can be implemented; include lists of works, goods and services
required and the timing of these needs, and
• ensuring that contracts, materials, equipment, then specify how items will be bundled and
supplies and services procured meet required the method and timing by which they will be
specifications and are on time and within procured (e.g. call for bids, quotes from preferred
budget; and suppliers, direct purchase). Processes should
• identifying any emerging political or logistical be specified regarding approaches to various
issues that may affect the supply of goods and types of procurement to be used and under what
services, such as political unrest, road closures, circumstances each approach is appropriate (e.g.
strikes, materials shortages, or price changes. linked to a value threshold or the funding source,
where a lender may have its own requirements).
Factory assessment tests can be an important
For major competitive bids, processes should
assessment tool to ensure quality assurance/
specify the approach to pre-qualification
quality control during the off-site manufacturing
screening, bidding, awarding of contracts,
of major equipment. Monitoring through
anti-corruption measures, and mechanisms to
inspections before, during and after transport of
respond to bidder complaints. Procurement plans
major equipment are in the developer’s interests.
should include risk mitigation measures, such
as inspections, insurances, and independent
Management evaluations. Procurement plans and processes
should also clearly allocate responsibilities,
Management criterion - Preparation Stage:
accountabilities, and monitoring and evaluation.
Procurement plans and processes have been
developed for project implementation and operation
Pre-qualification screening is a means of
with no significant gaps.
shortlisting suitable suppliers based on specified
criteria as an initial step in the procurement
Management criterion - Implementation Stage: process. By way of example, screening could
Measures are in place to guide procurement of be for quality, reputation, and cost, and
project goods, works and services and address essentially involves evaluating a provider’s prior
identified issues or risks, and to meet procurement performance in terms of meeting contractual
related commitments. obligations. Screening based on sustainability
criteria might encompass additional criteria
Procurement plans and processes should already which could include, by way of example, social,
have been developed during the preparation environmental, ethics, human rights, health and
stage as this stage already involves contracting safety performance, and preference and support
of services and provision of equipment (e.g. for to local suppliers where they meet other criteria.
investigations). Contracts need to be awarded Screening to address anti-corruption might
during the project preparation stage for specify, for example, that companies tendering
investigations, design, environmental and social must have a code of conduct addressing anti-
impact assessments, and early site establishment corruption and/or that they have never been
works. prosecuted for unethical business dealings.
The development of procurements plans and Procurement plans should clarify the processes
processes for implementation and operation to be followed to receive, review and respond
may not have taken place during the project to procurement-related grievances. These might
preparation stage in cases where the project involve, for example, a debriefing process with
is sent to a bidding process at the end of the the company’s procurement staff if requested
preparation stage. In such cases the plan for by unsuccessful bidders. Independent audit
procurement could consist of a commitment to processes might also be used to handle
utilise the corporate entity’s procurement plans procurement-related grievances, and processes
and processes, which would then be required to for escalation of grievances may be included in
meet the stated criteria. the relevant legislation.

Procurement plans should include anti-corruption The significance of not meeting a commitment
measures. Examples of anti-corruption measures is based on the magnitude and consequence of
include: open bidding contracting processes to that omission and will be context specific. For
be above a low threshold; commitments by the example, breach of a lender requirement for
contracting authority and its employees to an international competitive bidding could be a
anti-corruption policy and/or project integrity major non-conformance; failure to demonstrate
pacts; mechanisms to report corruption and delivery of procurement commitment such as
protect whistleblowers; and confidentiality creation of opportunities for local suppliers could
limited to legally protected information. be a significant non-conformance; and a slight
delay in delivery of a monitoring report could be
Conformance/Compliance a non-significant non-conformance.
Conformance/Compliance criterion – Preparation

and Implementation Stages: Processes and Outcomes
objectives relating to procurement have been Outcomes criterion - Preparation and
and are on track to be met with no major Implementation Stages: Procurement of works, goods
non-compliances or non-conformances, and any and services across major project
procurement related commitments have been or components is equitable, efficient, transparent,
are on track to be met. accountable, ethical and timely, and contracts are
progressing or have been concluded within budget or
Assessment processes and management that changes on contracts are clearly justifiable.
measures relating to procurement need to
be compliant with relevant government A range of documents relating to the
requirements. These may be expressed in licence procurement policies and practices of the
or permit conditions or captured in legislation. developer should be readily accessible.
Compliance requirements may relate to, for Procurement information should be well-
example, standards to be met, the frequency documented due to the commercial and legal
and type of monitoring to be performed, and implications of procurement activities. Policies
reporting to be submitted by the owner to and procedures that address the range of issues
government. Meeting of design standards is of described in this guideline should be available.
particular importance for procurement; quality Other documentation that can demonstrate this
control and independent review processes criterion is met includes tender requirements/
should be thorough and credible and include specifications; bidding documents; supplier
documentation to verify that all design standards screening criteria; evaluation of supplier
are fully met (also note points relating to performance; recommendation of the bid
quality control in the Infrastructure Safety topic evaluation team; documentation in relation to
guideline). conflicts of interest; bidder grievance log; record
of compliance with relevant legislation and
Conformance refers to delivering what is in the guidelines, including those of financing agencies;
plans and procedures. Following all processes and and monitoring and/or third-party review reports.
procedures consistently is a critical requirement
to ensure equity and accountability. Procurement approaches should demonstrate
a number of outcomes. Equity would be
Commitments may be expressed in regulatory demonstrated through fair and open processes.
requirements for addressing procurement, in Efficiency would be demonstrated by processes
relevant policy requirements of the developer, that are clear, consistent and able to be
or in any relevant company statements made readily implemented, and meet timing and
publicly or within management plans. Evidence budget requirements. Transparency would be
of adherence to commitments could be provided demonstrated by procurement processes that
through, for example, internal monitoring and are easily accessible to and understood by
reports, government inspections, or independent suppliers and third parties (e.g. regulators, civil
review. society), and outcomes where the rationale for
choices made are readily provided. Accountability

Procurement
would be demonstrated by ensuring those with Project progress reports should show that
responsibilities can be identified and can answer projects are performing against time and
to how their actions align with business policies. budget targets. If contracts have not been
Ethics would be demonstrated if processes to concluded within budget, evidence should be
detect corrupt practices are sufficient, well- provided to show that the changes on contracts
established and applied, shown to be effective, are clearly justifiable and that variations have
and show no unethical practices. Timeliness been handled with all the same principles as
would be demonstrated if goods and services the original contract establishment. Evidence
have been obtained within timeframes that should be accessible to show that any changes to
supported meeting of project timelines and did contracts and associated budgets have explicitly
not impinge on the project’s critical path or cause followed corporate or other relevant institutional
management issues such as temporary storage procedures.
shortages.

Project Affected
Communities and
Livelihoods
This guideline expands on what is Potential impacts of a hydropower project

expected by the criteria statements in the on communities could include economic
displacement, deterioration of livelihoods and/
Hydropower Sustainability Tools (HST) or living standards, and impacts to rights, risks
for the Project Affected Communities and and opportunities for those affected. Livelihood
Livelihoods topic, relating to assessment, refers to the capabilities, assets (stores, resources,
management, conformance/compliance, claims and access) and activities required for a
stakeholder engagement, stakeholder means of living. For example, with a farming-
based livelihood, important resources include
support and outcomes. The good practice prepared fields, water of a suitable quality, fertile
criteria are expressed for different life soil, seeds, and appropriate tools, equipment and
cycle stages. machinery. Living standards refer to the level
of material comfort as measured by the goods,
services, and luxuries available to an individual,
In the Hydropower Sustainability group, or nation, often using indicators of
Assessment Protocol (HSAP), this topic household wellbeing. Economic displacement
is addressed in P-13 for the preparation refers to the loss of assets, access to assets, or
stage, I-9 for the implementation stage income sources or means of livelihoods. These
and O-9 for the operation stage. In losses could occur as a result of land acquisition,
changes in land use or access to land, restrictions
the Hydropower Sustainability ESG on land use or access to natural resources, or
Gap Analysis Tool (HESG), this topic is changes in the environment leading to health
addressed in Section 4. concerns or impacts on livelihoods.
The outcomes sought in relation to hydropower

This guideline addresses impacts of the
effects on communities are that livelihoods and
hydropower project on affected communities.
living standards are improved relative to pre-
Project affected communities are the
project conditions, and commitments to project
interacting population of various kinds
affected communities are fully delivered over an
of individuals in the area surrounding the
appropriate period of time.
hydropower project who are affected either
positively or negatively by the hydropower
project and its associated infrastructure.

Communities and
Project Affected
Livelihoods
Assessment clean water, sanitation, health, education, and
transport. Livelihoods are usually assessed using
Assessment criterion - Preparation Stage: An a mix of quantitative data, such as the number
assessment of issues relating to project affected of individuals pursuing a particular livelihood,
communities has been undertaken with no and qualitative methods such as interviews,
significant gaps, utilising local knowledge. focus groups, and observation to establish
information about the activities and assets
The potential impacts of a hydropower project on on which a livelihood depends. Information
communities and livelihoods should be assessed should be disaggregated by cultural, ethnic,
as part of the Environmental and Social Impact socio-economic, gender, age, education, health,
Assessment (ESIA). Some national requirements location and other characteristics.
may focus more narrowly on environmental
impact assessment, but international good Because project development can take years,
practice also requires a strong focus on social the baseline assessment needs to be carefully
aspects. timed. Populations can move in and out of
project affected areas and the assessment should
Project affected communities should be identified form the basis for support and compensation
with respect to both direct and indirect potential measures. In order to enable fair compensation
impacts. Upstream and downstream communities arrangements, the baseline information needs
must be included as far as flow changes induced to include data on affected households and
by the project can be detected. This may include businesses and their assets at an established
communities in other jurisdictions or countries. registration date or period. The timing of
Communities affected by transmission lines, roads establishment of the baseline should take into
and other associated infrastructure should be account any variations in the conditions that are
included. A concern to be avoided is that those influenced by, for example, seasonal cycles or
members of the community who will be resettled infrequent events (e.g. droughts or floods).
get all of the assessment and compensation
attention. It is essential that those community Once the baseline conditions are established,
members who are not resettled but experience project-related risks to livelihoods, living
direct impacts, secondary or indirect impacts, standards, and economic displacement are
or impacts only after some time has passed identified and the nature and degree of impacts
are identified as part of the project affected analysed. Analysis of gender and vulnerable
communities and that mitigation measures are groups should be included. Community risks
addressed for these impacts. during the construction stage may include the
following:
The studies must establish a baseline of the
households and communities that may be project • Physical displacement (e.g. relocation, loss of
residential land, or loss of shelter). Physical
affected. Social science expertise and recognised
displacement involves risks both for the
social survey techniques should be used to select displaced people and for the host communities
indicators and generate baseline information. As receiving them (see the Resettlement guideline).
far as practically possible, standardised indicators
should be used that are compatible with • Economic displacement (e.g. loss of community
existing official monitoring mechanisms, such forest access, loss of paddy or home garden,
or diminished fisheries). Many issues can be
as the periodic household surveys. Indicators
missed relating to affected livelihood resources
of livelihoods and living standards used for if, as is often the case, there is too narrow a
characterising the baseline should be applicable focus on land acquisition and compensation.
for post-project development comparisons. Living Many livelihood impacts can occur through,
standards are usually assessed using quantitative for example, changes in road accessibility, land
social science methods, such as census and public access, supply chains, or river flow regimes.
health data. Examples of indicators of living • Impacts from worksites and construction
standards include: consumption, income, savings, traffic (e.g. dust and other air emissions, solid
employment, health, education, nutrition, waste, wastewater, noise, vibrations, visual
housing, and access to services such as electricity, disturbances, hazards, access to travel routes,

water abstractions). These impacts can affect • loss of roads, bridges, transmission and
homes, workplaces, fields and gardens, forests telephone lines, pipelines, and other public
and hunting areas, rivers and water sources, infrastructure caused by reservoir inundation;
roads, and other community infrastructure.
• barrier effects of the reservoir or any areas with
• Loss in value of properties, which can be restricted access to land transport; and
affected directly or indirectly by project
activities.
• changes in reservoir levels, water quality, river
flows, and sediment transport, which affect
• Lack of capacity or temporary closures of local properties and users along the reservoir shore
infrastructure and services. These may include, and along the downstream river.
for example, roads, schools, health centres,
shops, bridges, footpaths and tracks, and boat/ The risks listed above are particularly acute, with
ferry transport. a higher probability of occurrence for vulnerable
groups and individuals. Vulnerability refers
• Rising costs of living. These may occur because to the inability of people, organisations and
the influx of contractors, workers and project
followers creates additional demand. societies to withstand adverse impacts from
multiple stressors to which they are exposed.
• Conflicts between the workforce and the local Vulnerable groups are those people who by
population and exposure to risky behaviour virtue of gender, ethnicity, age, physical or
(such as drugs and alcohol abuse). mental disability, economic disadvantage, or
• Conflicts within the local population. These can social status may be more adversely affected by
arise for a range of reasons, often relating to project impacts than others and who may be
issues of inequity. Examples of potential conflict limited in their ability to claim or take advantage
areas include: compensation measures, which of project assistance and related development
may arise from a lack of clarity on cut-off dates, benefits. A vulnerable individual is a person
eligibility criteria, or entitlement provisions (e.g. who, by virtue of gender, ethnicity, age, physical
duration); access to and extent of training and
or mental ability, economic disadvantage, or
support; and access to and extent of project
benefits. social status, is experiencing hardship and would
benefit from targeted support or assistance.
• Human-wildlife conflicts. These can occur due Small adverse changes in their livelihoods can be
to environmental improvement or mitigation enough to cause them to fall under the poverty
measures that promote conditions for wildlife line. They may be at risk of discrimination. They
and bring it closer to human settlements, or
will often find it more difficult to adapt to rapid
because livelihood activities are forced to go
more remotely into areas with higher human- social change, which disrupts traditional norms
wildlife conflict risks. and social safety nets. They can be less able to
deal with monetary compensation, and more
• Loss of ownership, access to, or use of sacred dependent on in-kind compensation. Vulnerable
sites, community forest, or other natural
households and individuals can benefit from a
resources.
case-by-case approach to management, which
• Loss of social cohesion. This may occur through should involve good cooperation with relevant
a range of causes, such as impacts to or loss government agencies. Indigenous peoples may
of community resources (e.g. roads, gardens, be among those who are highly vulnerable to
land, forest, fisheries), community assets (e.g. project impacts (see the Indigenous Peoples
community meeting areas, culturally significant
guideline).
features), and various types of conflicts within
and relating to the local population as described
A long-term view on the timeframe over which
above.
impacts to project affected communities are
Community risks during the operation stage may assessed is important. For example, downstream
include: river bank erosion can cause impacts to riverbank
gardens that are not fully experienced until
• all of the above, but generally on a smaller some years after project commissioning. In
scale, considering that only a small workforce some cases the impacts may result in project
remains to operate and maintain the project in affected communities eventually needing to
permanent accommodations and offices;
move, but they may not be considered part of the
resettlement community because the physical

Communities and
Project Affected
Livelihoods
resettlement was a secondary impact (from hydropower facility to have mechanisms to detect
delayed bank erosion) and not a primary impact and evaluate if issues relating to the hydropower
(e.g. from reservoir inundation) of the project. facility are arising for the surrounding
The risk of long-term impoverishment for project communities as these can evolve over the many
affected communities is a major concern and decades of operations.
must be fully assessed.
Management
Assessment Management criterion - Preparation Stage:
Assessment criterion - Implementation Stage: Issues Management plans and processes for issues that
relating to project affected communities have been affect project affected communities have been
identified through an assessment process utilising developed with no significant gaps including
local knowledge; and monitoring of project impacts monitoring procedures, utilising local expertise
and effectiveness of management measures is when available; and if there are formal agreements
being undertaken during project implementation with project affected communities these are publicly
appropriate to the identified issues. disclosed.
Assessment criterion - Operation Stage: Monitoring is Management criterion - Implementation Stage:

being undertaken to assess if commitments to Measures are in place to address identified issues that
project affected communities have been delivered affect project affected communities, and to meet
and if management measures are effective; and commitments made to address these issues; and
ongoing or emerging issues that affect project if there are any formal agreements with project
affected communities have been identified. affected communities these are publicly disclosed.
During the implementation and operation stages,

monitoring should be conducted to establish
are in place to deliver commitments to project
whether anticipated or unanticipated issues
affected communities, and to manage any identified
are arising. Monitoring should focus on agreed
issues relating to these commitments; and if there
indicators and methods used in the baseline
are any formal agreements with project affected
assessment so that credible comparisons can be
communities these are publicly disclosed.
made. It is important to build local knowledge
into assessment processes so that community
members can establish effective data collection Plans for project affected communities should
and monitoring processes that will bring be included in the Environmental and Social
information forward in a timely manner. Management Plan (ESMP) and should separately
address construction and operation stage
Examples of mechanisms by which issues can impacts. A multitude of measures to address
be brought forward include regular visits by project-related effects on communities have
social workers or by community representatives been implemented with hydropower project
responsible for communicating any emerging developments globally. The following are some
issues to those responsible. Depending on the of the approaches that could be considered in
particular arrangements and the time period project management plans to address specific
post-project commissioning, responsibilities may issues and risks for communities.
have been handed over from the owner/operator
to government agencies. Handover processes and Measures to mitigate economic displacement
responsibilities for monitoring and response are should first fully explore avoidance and
important to establish and ensure effectiveness. minimisation through project siting, design
and operations. Where economic displacement
For older projects there may be an absence is unavoidable, mitigation measures should
of well-documented commitments to project be implemented and may include some of the
affected communities made at the time of project following:
approval or an absence of data on the pre-
project baseline against which to compare post- • Affected households or communities are
project. In this case, it is still important for the part of discussions and agreements on the

decision to participate in livelihood restoration construction; and opening of project facilities to
and improvement programmes and which local communities.
livelihoods to pursue, or to take monetary
compensation. Measures to mitigate risks of rising costs of
• Compensation is in-kind (land-for-land of living as the influx of contractors, workers and
equivalent productive capacity, shop-for-shop project followers creates additional demand
etc.), or where not available or not desired by the include: monitoring of price levels for housing,
affected household, compensation is provided in groceries, fuels, etc.; balancing of interest in
cash at replacement cost or legally established local procurement and stimulation of the local
compensation rates, whichever is higher. economy with protection of vulnerable local
• Assistance is provided to help affected households; where possible, support for increased
households and communities to maintain and local supply of housing, groceries, fuels, etc., for
improve their livelihoods and standards of living example through local farming cooperatives; and
or shift to alternate livelihoods, depending on where necessary, self-contained work camps and
the nature and degree of impact. Examples of limits on local procurement and employment.
support measures include resources, equipment,
permits, credit, training, expert advice, Measures to mitigate risks of conflicts between
demonstration centres, and preparatory actions the workforce and the local population, and
(e.g. land clearing, land preparation, access
exposure to risky behaviour (such as drugs
roads).
and alcohol abuse or prostitution), include:
• Where commercial farms or other types of monitoring of interactions; early identification
business enterprises are affected, support is of potential conflicts; awareness-raising
provided for their owners, employees, and and preventative measures; enforcement of
dependent local businesses (such as suppliers restrictions; balancing of interest in workers’
and processers) to restore or shift their
recreation opportunities with protection of
livelihoods.
vulnerable local households; increased support
• Because the technical and commercial success for local police or security; clear contract
of livelihoods activities can be difficult to predict provisions regarding worker behaviour and
continued monitoring is implemented, ideally consequences; workers sign a Code of Conduct
with planned adaptive management measures, which is reinforced through various project
to ensure effectiveness of the livelihood communications mechanisms; and self-contained
restoration and improvement programme over work camps and limits on interaction with
time. communities (for example, through fencing, gate
Economic displacement may be temporary controls, and curfews).
during construction, or partial where only part
of the land is acquired or where only certain land Measures to mitigate risks of conflicts within
uses are restricted (for example, in the right-of- the local population and loss of social cohesion
way of a transmission line). In such cases, the include: monitoring of social processes and
mitigation and compensation measures can be early identification of potential conflicts; easily
applied proportionately. However, if this results accessible information and clear communications
in undue hardship for affected people (i.e. when on impacts, entitlements, processes, and
the remaining livelihood potential is insufficient), timelines for mitigation and compensation; and
permanent and full compensation is required. fostering a sense of community by equitable
treatment of households, negotiating with
Measures to mitigate the risks of a lack of capacity legitimate community leaders, and supporting
or closures of local infrastructure and services community building activities. Measures to
(such as roads, schools, health centres, shops) mitigate risks of conflicts over compensation
include: avoidance and minimisation of closures entitlements resulting from unclear cut-off
through appropriate construction management dates for baseline establishment and asset
or bypass and replacement facilities; a timely registration include: ensuring that cut-off dates
increase in capacity of public facilities and are agreed with local community leaders, clearly
support to private facilities for increases in documented, and communicated widely. A
capacity; additional temporary facilities during project vulnerability policy is recommended

Communities and
Project Affected
Livelihoods
so that the approach to support for the most mitigation and compensation may be measures
vulnerable is documented and consistent. to formalise or legalise land titles and/or access
to natural resources, or to provide ways to pursue
Measures to mitigate risks of human-wildlife livelihoods that are not in conflict with national
conflict, in which wildlife is displaced by conservation objectives. These are delicate
project activities or humans displaced by the matters and would require good partnership
project encroach upon wildlife habitat, include: approaches between the project developer
avoidance and minimisation through project and the government to ensure the future and
siting, design and operations; provision of long-term wellbeing of the project affected
alternative habitats for wildlife; employment of communities.
local guards or wardens in high risk areas and
times of day; fencing and other measures to keep An agreement is a recorded understanding
animals from fields and settlements; relocation between individuals, groups or entities to
or hunting of problem animals; compensation follow a specific course of conduct or action. An
of farmers for livestock and crop losses; and agreement would be recognised as formal when
training and education for communities on how in the form of a document signed by recognised
to minimise and manage conflicts. representatives of all parties concerned with
witnesses present or expressed in government
Measures to mitigate risks of a barrier effect licence requirements or court decisions. An
created by the reservoir or any areas with agreement is considered publicly disclosed if
restricted access to land transport include: members of the public can access information
avoidance and minimisation through appropriate on what was agreed if they would like to do so.
project siting, design and operations; bridges; Public disclosure may take place through public
bypass roads; and boats or ferry services. access to the actual document that records
the agreement (either posted on a website,
With all management actions, efforts should distributed, or made available on request to
be made to ensure there is no ‘elite capture’ of interested parties), or public notification via
measures and benefits. a media release or website about the main
provisions of the agreement. If there was a
All of the issues identified in the assessment one-off notification, information may be hard
need to be addressed in the management plans. to access at a later date and an effort should be
Local expertise should be involved in the plan made by the owner/operator to ensure awareness
development. The management plans and of and ease of accessibility of information by
processes for addressing impacts should address stakeholders over time.
how responsibilities have been allocated, the
institutional and financing arrangements for
the implementation of plans, timing objectives, Stakeholder Engagement
monitoring and evaluation mechanisms, and any Stakeholder Engagement criterion - Preparation
handover arrangements with responsibilities Stage: Engagement with project affected
over time. For projects with transboundary communities has been appropriately timed and often
implications, the plans should include two-way; ongoing processes are in place for project
arrangements between jurisdictions. affected communities to raise issues and receive
feedback.
In some cases the pre-project use of natural
resources (e.g. water extraction or hunting) may
Stakeholder Engagement criterion - Implementation
not be recognised formally through land tenure,
and Operation Stages: Ongoing processes are in
water rights or resource use agreements, and
place for project affected communities to raise
may in fact be in conflict with existing national
issues and get feedback.
laws (e.g. protection of threatened species).
Any existing informal arrangements should be
The risks of poor outcomes for project affected
taken into consideration in the assessment using
communities are more acute if communications
local knowledge and captured in the baseline
and cooperation between the affected
data, with the impacts of the project on these
communities, the developer, and government
activities clearly identified. Part of the package of

are ineffective. This may happen if, for example, decision-making processes, time allocation,
there is a lack of disclosure of relevant project recording, and follow-up. Engagement processes
information, discrimination, harassment, breach need to consider gender and the inclusion of
of agreements, and denial of fair treatment and vulnerable social groups. ‘Two-way’ means that
access to grievance mechanisms. Gender-related project affected community members can give
inequities in impacts and opportunities may their views on the plans that will affect them
arise if women are not represented adequately in rather than just being given information without
consultation processes and impact assessments. any opportunity to respond. Examples of two-
way processes include focus groups, community
To address these risks, ESIAs, ESMPs and other meetings, and public hearings.
relevant project information should be publicly
disclosed and easily understandable and Processes in place for project affected community
accessible to all project affected communities, members to raise issues could include, for
recognising that all may not be literate nor have example, designated contact people at the
transport to areas where information is displayed villages, periodic village briefings or question/
or explained in meetings. Community members answer opportunities, or feedback/suggestion
should be well-informed of their rights and have boxes at an easily accessible area. Feedback on
collective representation and access to grievance issues raised could be demonstrated by means
mechanisms with thorough and timely feedback. such as written correspondence or meeting
Grievances should be systematically tracked and minutes. A register should be kept by the owner/
resolved and analysis of grievances used to guide operator of source, date and nature of issues
improvements. Representatives of government, raised, and how and when each was addressed
the developer and contractors should cooperate and resolved.
to ensure fair treatment of all communities and
community members, including vulnerable Further guidance can be found in the
persons. Specific support measures for vulnerable Communications and Consultation guideline.
persons should be deployed, for example the
inclusion of language specialists in project teams,
dedicated focal groups during consultations,
Stakeholder Support
partnerships with social welfare NGOs, and Stakeholder Support criterion - Preparation and
preferential access to mitigation measures and Implementation Stages: Affected communities
benefits. generally support or have no major ongoing
opposition to the plans for the issues that specifically
Appropriately timed, culturally appropriate, and affect their
two-way processes are important components community.
of good practice stakeholder engagement.
‘Appropriately timed’ means that engagement Plans for project affected communities in
should take place early enough so that the relation to mitigation of issues arising from
project can respond to issues raised, those the hydropower development should be
affected by the project have inputs before the generally supported by those directly affected
project takes decisions, and engagement takes by them. Communities will have their own issue
place at times suitable for people to participate. consideration and decision-making processes,
Project affected community members should and despite support from a community for the
be supportive of the timing of engagement relevant plans there may still be members of
activities. ‘Culturally appropriate’ means that the community that disagree with aspects of it.
methods of engagement respect the cultures of Stakeholder support may be expressed through
those affected and allow adequate provisions community members or their representatives,
to fit with the discussion and decision-making and may be evident through means such as
processes typical for the affected households surveys, signatures on plans, records of meetings,
and communities. Stakeholder engagement verbal advice, public hearing records, public
processes that are culturally sensitive consider, statements, governmental licence, and court
for example, meeting styles, venues, facilitators, decisions. No major ongoing opposition, or
language, information provision, the community’s temporary opposition that was resolved, would
satisfy this stakeholder support criterion.

Communities and
Project Affected
Livelihoods
Conformance/Compliance Outcomes
Conformance/Compliance criterion - Implementation Outcomes criterion - Preparation Stage: Plans provide
Stage: Processes and objectives relating to project for livelihoods and living standards impacted by the
affected communities issues have been and are on project to be improved, and economic displacement
track to be met with no major non-compliances or fairly
non-conformances, and commitments have been or compensated, preferably through provision of
are on track to be met. comparable goods, property or services.
Conformance/Compliance criterion - Operation Outcomes criterion - Implementation and Operation

Stage: Processes and objectives in place to manage Stages: Livelihoods and living standards impacted
delivery of commitments to project affected by the project have been or are on track to be
communities have been and are on track to be improved, and economic displacement has been
met with no significant non-compliances or non- fairly compensated, preferably through provision of
conformances, and commitments have been or are comparable goods, property or services.
on track to be met.
The consequences of poor assessment and
Assessment processes and management management of impacts to project affected
measures relating to project effects on communities may include: declines in income and
communities should be compliant with impoverishment; loss of family and community
relevant government requirements. These may networks, resulting in isolation and marginalisation;
be expressed in licence or permit conditions declines in housing standards; and malnutrition,
or captured in legislation. Land valuation, loss of access to traditional medicines, and
compensation and replacement processes are occurrence of disease, resulting in increased
often established under government policies or infant mortality and reduced life expectancy.
legislation and implemented with government The intent is that livelihoods and living standards
supervision. for communities impacted by the project are
improved relative to pre-project conditions. Ideally
Commitments to project affected communities these measures would be taken with the aim of
with respect to measures to be taken by the self-sufficiency in the long-term. Improvement
hydropower developer or owner/operator may of livelihoods should be through compensatory
be expressed in policies of the developer or measures that address impacts of the project on
owner/operator, or in company statements pre-project livelihoods so that those affected are
made publicly or within management plans. able to move forward with viable livelihoods with
Implemented measures should be consistent with improved capabilities or assets relative to the pre-
what is in the plans to demonstrate conformance project conditions.
with the plans. Evidence of adherence to
commitments could be provided through, An evidence-based approach should demonstrate
for example, internal monitoring and reports, that livelihoods and living standards have been
government inspections, or independent review. improved and economic displacement fairly
Variations to commitments should be well- compensated. The developer, owner and operator
justified and approved by relevant authorities, should demonstrate that responsibilities and
with appropriate stakeholder liaison. budgets have been allocated to implement
relevant plans and commitments. Evidence should
The significance of not meeting a commitment demonstrate that mitigation plans have been
is based on the magnitude and consequence implemented and are being monitored. It should
of that omission and will be context-specific. be possible to provide examples to show how
For example, a failure to demonstrate delivery identified risks from the assessment were avoided
of a licence entitlement to project affected or minimised. Monitoring reports and data in the
communities is a significant non-compliance, implementation and operation stages should
whereas a slight delay in delivery of a monitoring be aligned with original plans, make evaluations
report could be a non-significant non- against the agreed baseline using appropriate
conformance. and agreed indicators, and use a systematic and

defensible methodology for data collection.
Independent reviews and evaluations can provide
an even stronger evidence basis to demonstrate
delivery of these outcomes.
Fair compensation for economic displacement is

demonstrated by the quality of the assessment
and the methodology used to identify economic
displacement, and the baseline and methodology
used to determine compensation measures. ‘Fair’
means free from favouritism, self-interest, bias
or deception, and conforming with established
standards or rules. Standards and rules for how
compensation is treated in the project should be
clear and transparent.

Communities and
Project Affected
Livelihoods

Resettlement
This guideline expands on what is Resettlement has been a highly contentious issue
expected by the criteria statements in the associated with hydropower development. It is
Hydropower Sustainability Tools (HST) good practice to avoid involuntary resettlement
for the Resettlement topic, relating to and, when unavoidable, to minimise it through
different project siting and design alternatives
assessment, management, conformance/ during the preparation stage. The intent is that
compliance, stakeholder engagement, the dignity and human rights of those physically
stakeholder support and outcomes. The displaced are respected; that these matters are
good practice criteria are expressed for dealt with in a fair and equitable manner; that
different life cycle stages. livelihoods and standards of living for resettlees
and host communities are improved; and that
commitments made to resettlees and host
In the Hydropower Sustainability communities are fulfilled.
Resettlement is the process of moving people
is addressed in P-14 for the preparation
to a different place to live because due to the
stage, I-10 for the implementation project they are no longer allowed to stay in the
stage and O-10 for the operation stage. area in which they were residing. Resettlees are
In the Hydropower Sustainability ESG those people who are required to be resettled,
Gap Analysis Tool (HESG), this topic is including those who have formal legal rights,
customary or traditional rights, as well as those
addressed in Section 5.
who have no recognisable rights to the land.
Host communities are the existing communities
This guideline is intended to be used as to which resettlees are relocated. Livelihood
additional guidance to that provided on Project refers to the capabilities, assets (stores, resources,
Affected Communities and Livelihoods in the claims and access) and activities required for a
case that resettlement is required by the project. means of living. Living standards refer to the
The resettlement guideline applies to projects level of material comfort as measured by the
that require permanent or temporary physical goods, services, and luxuries available to an
displacement of households, resulting in individual, group, or nation.
relocation due to loss of residential land or loss of
shelter.

Resettlement
In many jurisdictions, regulations exist that health facilities; water supply; electricity supply;
enable the compulsory acquisition of land by marketplace structures; roads; jetties; religious
the government for infrastructure or other structures; and burial grounds. Community-
developments. In countries with active and level livelihood dependent assets should also
recent hydropower development, regulations or be documented, such as grazing lands, forest
policies may exist to address legal obligations lands, community plantations, irrigation schemes,
for resettlement. Responsible agencies and fishing resources, shared fishing or boating
institutional arrangements for resettlement, equipment, or shared farming equipment or land.
and the financing of resettlement activities,
will vary. In some cases, government fully takes The methods for and expertise used to establish
on these responsibilities or an independent the resettlement baseline need to be clearly
authority may be established with responsibility documented. Photo records including the people
for implementing the range of resettlement involved are an important inclusion in an asset
activities. The hydropower project developer may register. Registered property surveyors should be
be required to provide the agreed funding and used where appropriate.
support but may not be involved in the direct
implementation of the resettlement programme. In some cases, land occupancy in the basin
pre-project may be informal, with the people
living in the basin having no formal land tenure
Assessment or formally recognised rights to land or water.
Assessment criterion – Preparation Stage: An The assessment of the resettlement baseline and
assessment of the resettlement implications of the designation of those eligible for compensation
project has been undertaken early in the project should include all people living permanently
preparation stage to establish the socio-economic in the affected area and their pre-project
baseline for resettlement for potential resettlees and livelihoods, regardless of their land tenure status.
host communities and has included an economic
assessment of required resettlement including The assessment process should involve
ongoing costs for improvement in living standards. identification and presentation of relocation
options supported by the developer so that
resettlees can elect where they go. Where
At the preparation stage, a socio-economic
resettlees go can vary greatly from project to
baseline should be established so that post-
project. Examples include: new resettlement
resettlement impacts and benefits can be
villages constructed on available land in the
well-quantified and demonstrated. Baseline
same area; houses moved up a hillside to a
information relevant to resettlement and host
higher elevation to avoid the new reservoir;
communities should be detailed to household
and resettlees moved to existing villages or
level and should include: a census of households
townships where they need to assimilate into the
and people to be relocated; household size;
host communities. Self-relocation is usually an
household organisation and income; livelihoods
option offered to those exhibiting high resilience
and economic activities; living standards; access
and low vulnerabilities and should take into
to services (e.g. health, education, transport,
consideration monetary compensation, transport
water supply, electricity); health indicators;
assistance, money management education, and
education levels; social interaction patterns; fixed
follow-up monitoring.
and mobile assets; land tenure and use; crops
and livestock; subsistence activities; customary
Baseline socio-economic information needs to
traditions; and access to resources that may
be collected for host communities as they can
not have monetary value but are important to
experience impacts from receiving resettlees and
livelihoods.
may receive benefits (e.g. improved community
infrastructure, free health checks, livelihood
Community-level assets and their specifications
support measures). In some cases resettlees move
and condition should also be inventoried for
into a large urban area, in which case the baseline
the socio-economic baseline in cases where
scale needs to be practically defined. Any surveys
whole villages are to be relocated. These may
undertaken to develop baseline data from a
include, as relevant: educational facilities; public
representative portion of a population need to be

guided by experts in social science and must be Assessment
able to serve as a comparative baseline for later
post-resettlement surveys. Assessment criterion - Implementation Stage: An
assessment of the resettlement implications of the
The timing of the census that establishes the project has been undertaken that establishes the pre-
socio-economic baseline for resettlement is project socio-economic baseline for resettlees and
a critical consideration and should be well- host communities; monitoring is being undertaken
considered and clearly defined. Families, activities of implementation of the resettlement plans, and
and assets evolve over time, and there can be to see if commitments made to resettlees and host
processes of inwards and outwards migration communities have been delivered and are effective
associated with rumours of a development and to identify any ongoing or emerging issues.
project. The baseline data should be formally
documented by the developer in close Progressing on the preparation work described
partnership with the government as it is likely above, the main assessment requirements
to be the basis for later claims and will need at the implementation stage are to track the
to have legal status. Accompanying policies effects of implementation of measures and
need to be established that clarify the cut-off plans. Monitoring may be undertaken by the
date, the methods and basis for valuations, and project staff, externally by a consultant, by the
the eligibility for compensation and benefits government, or through an agreement with
for resettlees. Assessments should consider a non-government organisation. Monitoring
communication needs and approaches as part should assess whether measures are properly
of these investigations so all relevant parties are implemented (i.e. process indicators) and
well-informed, including on their rights, risks and achieve the intended results against the baseline
entitlements. conditions (i.e. outcome indicators). Monitoring
should be formally outlined in a programme
Once the socio-economic baseline has been that has identified appropriate indicators to
defined for all relevant parties, project impacts track progress and to identify emerging issues
against this baseline should be comprehensively or impacts during implementation. Monitoring
assessed along with appropriate mitigation should involve a consistent approach that will be
measures. The assessment should include continued for an agreed period during operation.
consideration of the impacts on vulnerable
people and gender, livelihood restoration and Monitoring indicators should follow a subset
improvement costs, and risks to the achievement of those used to define the pre-resettlement
of desired objectives (for example, those pursuing baseline and should be meaningful to assess
water-based livelihoods such as fishing may the status of living standards and livelihoods.
find it very difficult to establish a land-based Indicators of social and cultural wellbeing and
livelihood such as farming). maintenance of cultural traditions should be
included. It is important to include monitoring of
An economic assessment is an expectation for the status of household and community assets
resettlement at the preparation stage. This goes as relocated households may not know how
beyond the cost of buildings and relocation to maintain aspects of their new homes (e.g.
(straight financial considerations) to include electricity, water supply, toilets) and systems may
the type and level of support activities that are not be in place in the new locations to maintain
realistically required for the restoration or re- community assets (e.g. the town water supply).
establishment of livelihoods and community Monitoring of vulnerable groups and households
viability. The economic assessment should take is important and should be in close liaison with
a life cycle approach in its scope, covering any government agencies and established welfare
necessary follow-up to ensure the objectives are systems.
achieved.

Resettlement
Assessment and the relative roles of the owner/operator of
the facility versus government must be clearly
Assessment criterion – Operation Stage: Monitoring is established.
being undertaken to assess if commitments made to
resettlees and host communities have been delivered
and if management measures are effective; and Management
ongoing or emerging issues relating to resettlement Management criterion – Preparation Stage: A
have been identified. Resettlement Action Plan and associated processes
have been developed in a timely manner for project
Further to the above guidance, at the operations implementation and operation, which includes an
stage the focus of assessment activities is on up-to-date socio-economic baseline, compensation
the delivery of resettlement commitments, as framework, grievance mechanisms, and monitoring
well as monitoring and follow-up over time to procedures; and formal agreements with resettlees
ensure that objectives and targets for resettled and host communities are publicly disclosed.
communities and households are achieved.
Documentation and record keeping is critical A Resettlement Action Plan (RAP) is a document
and should be planned to stand up to long-term or set of documents outlining the actions that will
scrutiny so that any concerns within resettlement be taken to address resettlement. The RAP should
communities about non-delivery of any agreed include: identification of those being resettled;
commitments can be checked against records. a socio-economic baseline for resettlees;
measures to be implemented as part of the
Once compensation payments and relocation
resettlement process including those relating to
activities have been implemented, the longer-
resettlement assistance and livelihood support;
term implications of the move for resettlees
compensation frameworks; organisational roles
often drops out of focus for the owner/operator.
and responsibilities; budget allocations and
A common situation is that the resettlement
financial management processes; the timeframe,
has involved provision of new household and
objectives and targets; a risk assessment;
community infrastructure of a standard exceeding
grievance mechanisms; monitoring, reporting
the pre-project condition, and the government
and review provisions; and arrangements for
does not have the capacity to invest in the
consultation, participation and information
maintenance or staffing and it deteriorates over
exchange.
time (e.g. a few years after resettlement, a school
has insufficient equipment or staff to provide the Practical examples of resettlement measures
educational services it was designed to deliver). include provision of: better quality housing,
Livelihood restoration or re-establishment agricultural land, and services (such as access to
programmes often require ongoing follow-up and electricity); legal property titles to households
support, especially where resettlees are expected without a title; livelihood support (e.g.
to shift to new forms of livelihood. Given the agricultural assistance, enterprise development,
long time period for operations, documented fish culture, small business); psychological and
agreements on monitoring and follow-up emotional support; transitional food support;
responsibilities between the owner/operator and better access to natural resources or areas of
relevant government authorities are necessary. importance for the community; and construction
The owner/operator should have policies for what of community assets (e.g. health clinics, schools,
type of longer-term follow-up it is prepared to do community and religious centres, water supply
in agreement with government, especially with systems, electricity supplies, wastewater
regards to issues arising. treatment plants).
Older projects may have an absence of well- The RAP should include a compensation
documented commitments in relation to framework setting out the basis for determining
resettlement made at the time of project approval compensation, the amount that will be allocated
or an absence of data on the pre-project baseline to which parties, and the method and safeguards
against which to compare the post-project for how it will be delivered. Eligibility should
status. In this case, it is important to have agreed include those who do not have legally recognised
processes with government on how issues arising land tenure but were clearly part of the baseline
for resettlers will be identified and addressed,

population at the agreed cut-off date. In cases understanding between individuals, groups or
where resettlees’ livelihoods have been land- entities to follow a specific course of conduct
based, and where consistent with resettlees’ or action; it is recognised as formal when in
preferences, land-for-land compensation should the form of a document signed by recognised
be provided of a comparable quality. Cash representatives of all parties concerned with
compensation options should take into both witnesses present or expressed in government
account inflation rates and costs associated licence requirements or court decisions. There
with asset replacement. Compensation should are many areas of agreement that can be
go beyond material measures (e.g. housing, documented regarding resettlement, such as
cash, food support) that ensure living standards factors relating to the resettlement site, village
are not compromised and should address configuration, house styles and materials,
livelihood support and improvement with an livelihood support, cultural and spiritual
aim of setting up for long-term self-sufficiency. ceremonies, community assets, etc. An agreement
Support measures should be aimed at avoiding is considered publicly disclosed if members of
impoverishment risk and welfare dependency. the public can access information on what was
agreed if they would like to do so.
Timeliness is important. Situations in which the
construction schedule is running ahead of the
resettlement planning need to be avoided. The Management
RAP needs to be fully developed and agreed Management criterion – Implementation Stage:
before construction commences. Timing issues Measures to address resettlement are
may arise in relation to the filling of the reservoir, documented in a Resettlement Action Plan;
the time needed to negotiate and formalise measures are in place to deliver commitments to
agreements, cultural or community events, and resettlees and host communities and to manage any
the timing of the relocation to prepared and identified issues relating to resettlement, including
already productive agricultural land. provision of grievance mechanisms; and formal
agreements with resettlees and host
Grievance mechanisms need to be clearly communities are publicly disclosed.
documented. These are the processes that allow
and address concerns raised by resettlees and Further to the above guidance, the
host communities as broadly described in the implementation stage is a highly sensitive
Communications and Consultation guideline. stage during which resettlement communities
Grievances relating to resettlement may include are moved in preparation for reservoir filling.
mistakes in the census and inventory results at All activities during this stage should be in
the asset registration stage, disputes on land accordance with the RAP described above.
ownership, misunderstandings on entitlements
and eligibility, disagreements on compensation A common issue to be avoided is timing pressure
and livelihood support measures, concerns due to the project construction schedule
about inequity with accessing livelihood support progressing at a pace faster than the RAP
schemes, etc. A project may experience more implementation and communities pressured
grievances relating to resettlement than on any to move before everything is ready. This often
other social matters since resettlees are affected means that important preparation activities for
in such a fundamental way. It is important for the successful resettlement are compromised; for
project to keep sufficient resources (including example, green timber might be used to build
budget) available to deal with grievances, and the new houses and later warps, electricity is not
to ensure records are kept of how they were connected for some months after the resettlees
addressed, closed, and communicated back to the arrive, fields for planting of rice have no access
originator. roads and are not prepared, or assets from the old
village cannot be transported to the new village
The RAP should be developed with the inputs (e.g. house materials, livestock, vehicles, boats).
of resettlees and host communities and should Rising reservoir levels should not put pressure on
involve formal agreements in relation to what relocating households ahead of all resettlement
will be implemented. An agreement is a recorded needs being prepared, and this risk should be

Resettlement
managed through good integrated planning (see later developments, in which case there should
the Integrated Project Management guideline). be well-documented agreements with relevant
parties on how these will be managed and who
has what responsibilities.
Management
Management criterion – Operation Stage: Measures
to address resettlement are documented in a
Stakeholder Engagement
Resettlement Action Plan; measures are in place to Stakeholder Engagement criterion – Preparation
deliver commitments to resettlees and host Stage: Engagement with directly affected
communities and to manage any issues relating to stakeholders has been appropriately timed, culturally
resettlement, including provision of grievance appropriate and two-way; ongoing processes are in
mechanisms; and formal agreements with resettlees place for resettlees and host communities to raise
and host communities are publicly disclosed. issues and get feedback; and resettlees and host
communities have been involved in the decision-
Ideally, an operating hydropower facility that making around relevant resettlement options and
involved a resettlement programme during its issues.
development had a well-documented socio-
economic baseline and clear commitments All physically displaced persons need to be
for the resettlement. This may not be the case engaged about their rights and options in relation
for older projects, and concerns can arise in to resettlement, and host communities also need
relation to whether all commitments were to be fully consulted about how resettlement
delivered and the ongoing responsibilities of will affect them. Engagement, consultation and
various parties. The owner/operator should negotiation plans processes should be included
have a good understanding of the history and in the RAP and associated consultation and
available records alongside clear agreements with communications plans. Engagement plans should
government and the resettled communities on consider the needs of particular stakeholder
the ongoing support and how issues arising will groups and how these needs apply to the
be dealt with over the longer-term. resettlement and host communities.
The duration of support by a hydropower facility Resettlees and host communities should be
for resettlement can be an issue even when involved in the definition of key elements of
the resettlement baseline and RAP are well- the resettlement plan. For example, resettlees
documented. For example, pressure on land can be involved in proposing resettlement sites
availability can arise as families expand and and can indicate their expectations on layout
the next generation wants to stay in the new arrangements and alternative livelihood activities,
village, and assets in the resettlement village as well as influencing decision-making around
can deteriorate over time. The owner/operator housing options during the negotiation process.
should demonstrate that it is not ignoring the
long-term needs of resettled communities, and Appropriate timing, culturally appropriate, and
it is seeking to understand them and provide two-way processes are important components
support in a measured and reasonable manner. of good practice. ‘Appropriately timed’ means
If all mitigation commitments for resettlement that engagement should take place early enough
have clearly been fully delivered, then further so that the project can respond to issues raised,
support should be provided through new those affected by resettlement have inputs before
initiatives unrelated to mitigation requirements. the project takes decisions, and engagement
Mechanisms for support by the business can is at times suitable for people to participate.
include, for example, a business Corporate Social Resettlement stakeholders should be supportive
Responsibility (CSR) programme or contributions of the timing of engagement activities given the
by the hydropower facility owner/operator to a impact of the decisions involved on the rest of
community fund from which the resettlement their lives. ‘Culturally appropriate’ means that
communities or relevant local governments can methods of engagement respect the cultures of
access financial support for agreed programmes. those affected and allow adequate provisions
Cumulative impacts can also emerge due to to fit with the discussion and decision-making

processes typical for the affected households Stakeholder Support
and communities. Stakeholder engagement
processes that are culturally sensitive consider, Stakeholder Support criterion – Preparation and
for example, meeting styles, venues, facilitators, Implementation Stages: Resettlees and host
language, information provision, the community’s communities generally support or have no major
decision-making processes, time allocation, ongoing opposition to the Resettlement Action Plan.
recording, and follow-up. Engagement processes
need to consider gender and the inclusion of The RAP should be generally supported by those
vulnerable social groups. ‘Two-way’ means the directly affected by it. Communities will have
resettlement stakeholders can give their views their own issue consideration and decision-
on considerations for the RAP rather than just making processes, and support of a community
being given information without any opportunity for the RAP may still have members of the
to respond. Examples of two-way processes community that disagree with aspects of it.
include focus groups, community meetings, and Stakeholder support may be expressed through
public hearings, and community feedback is community members or their representatives and
incorporated into RAP design. may be evident through means such as surveys,
signatures on plans, records of meetings, verbal
Processes should be in place for resettlement advice, public hearing records, public statements,
stakeholders to raise issues and these processes governmental licence, and court decisions.
should include a formal grievance mechanism No major ongoing opposition, or temporary
(as discussed above under the Management opposition that was resolved, would satisfy this
criterion). Processes could include, for example, criterion.
designated contact people within the old and
new village(s), community liaison officers,
periodic village briefings or question/answer Conformance/Compliance
opportunities, and feedback/suggestion boxes Conformance/Compliance criterion –
at an easily accessible area. Feedback on issues Implementation and Operation Stages: Processes
raised could be demonstrated by means such as and objectives in the Resettlement Action Plan have
written correspondence or meeting minutes. A been and are on track to be met with no major
register should be kept by the owner/operator of non-compliances or non-conformances, and any
source, date and nature of issues raised, and how resettlement related commitments have been or are
and when each was addressed and resolved. on track to be met.
Stakeholder Engagement Resettlement measures should be compliant

Stakeholder Engagement criterion – Implementation with relevant legal and administrative
and Operation Stages: Ongoing processes are in requirements, which may be expressed in licence
place for resettlees and host communities to raise or permit conditions or captured in legislation.
issues and get feedback. Resettlement measures should be consistent with
what is in the RAP to demonstrate conformance
with plans. Commitments may be expressed in
In addition to the guidance above, many issues
policies of the developer or owner/operator, or
should be expected to arise during and following
in company statements made publicly or within
implementation of the RAP and the developer
management plans. Evidence of adherence
and owner/operator should be adequately
resourced to manage these. The management
plans and agreements with the communities
and government should make it clear over time
on the roles and responsibilities for receiving,
addressing and responding to issues arising. It
is very important to ensure responsiveness and
good documentation at all stages.
The significance of not meeting a commitment
is based on the magnitude and consequence
of that omission and will be context-specific.

Resettlement
For example, a failure to demonstrate delivery Equitable approaches could be evident
of a licence entitlement such as food support through, for example, the valuation basis for
to resettlees is likely to be a significant non- compensation, the standards for new housing,
compliance, whereas a slight delay in delivery of and the distribution of livestock or livelihood
a monitoring report could be a non-significant resources.
non-conformance.
The RAP should include targets and objectives
that state what the plans are aiming to achieve
Outcomes in terms of improvement in living standards and
Outcomes criterion – Preparation Stage: Plans livelihoods, with reference to the baseline and a
provide for resettlement to be treated in a fair clear identification of monitoring and evaluation
and equitable manner, and resettlees and host indicators. The objectives and targets should be
communities to experience a timely improvement in achievable in the preparation stage and should
livelihoods and living standards. be achieved during the implementation and
operation stages. Timeliness can be demonstrated
Outcomes criterion – Implementation and Operation against timing milestones set up in the RAP
Stages: Resettlement has been and is being treated in and whether they are likely to be or are being
a fair and equitable manner, and resettlees and host achieved.
communities have experienced or are on track to
Improvement of livelihoods is demonstrated by
experience a timely improvement in livelihoods and
the compensatory measures taken to address
living standards relative to the pre-project baseline.
impacts of the project on pre-project livelihoods.
Those affected should be demonstrably able to
Important outcome requirements for move forward with viable livelihoods, and with
resettlement include fairness and equity. ‘Fair’ improved capabilities or assets relative to the pre-
means free from favouritism, self-interest, bias project conditions. This may be demonstrated,
or deception, and conforming with established for example, by supporting farmers to continue
standards or rules. ‘Equitable’ relates to equality or to be able to farm or to pursue alternatives,
evenness. With respect to resettlement, fairness accompanied by sufficient support mechanisms
is demonstrated through the establishment of that not only enable any changes to livelihoods
clear project standards or rules, transparency to be well-established but also provide increased
on how they are applied, and the adherence to capabilities or access to the necessary resources
these rules in the plans and their implementation (including training, information, materials, access,
(demonstrated through monitoring reports supplies, etc). Long-term welfare dependency and
or independent evaluations). Equity can be entrenched impoverishment need to be avoided.
demonstrated through the equal application Ongoing monitoring, insightful indicators,
of rules to all affected people and also through and good record keeping are all essential for
support which is allocated in a way that all demonstrating outcomes.
recipients can achieve the same standards.

Indigenous
Peoples
This guideline expands on what is for potentially affected Indigenous Peoples are
expected by the criteria statements in the in line with those outlined in the Project Affected
Hydropower Sustainability Tools (HST) for Communities and Livelihoods guideline in terms of
establishing a socio-economic baseline, assessing
the Indigenous Peoples topic, relating to risks, analysing the degree and nature of potential
assessment, management, conformance/ impacts, identifying opportunities, and outlining
compliance, stakeholder engagement, impact avoidance, minimisation, mitigation and
stakeholder support and outcomes. compensation measures to be embedded into
The good practice criteria are expressed management plans for construction and operation.
This guideline is focused on supplementary
for different life cycle stages. measures or extra care in approaches that
constitute international good practice in matters
In the Hydropower Sustainability relating to the rights of Indigenous Peoples.
Indigenous peoples refers to a distinct social
is addressed in P-15 for the preparation and cultural group possessing the following
stage, I-11 for the implementation characteristics in varying degrees:
stage and O-11 for the operation stage.
In the Hydropower Sustainability ESG • self-identification as members of a distinct
indigenous cultural group and recognition of
Gap Analysis Tool (HESG), this topic is this identity by others;
• collective attachment to geographically distinct
habitats or ancestral territories in the project
area and to the natural resources in these
The Indigenous Peoples guideline addresses the habitats and territories;
rights at risk and opportunities of Indigenous • customary cultural, economic, social or political
Peoples with respect to the hydropower project or institutions that are separate from those of the
operating facility. This guideline accompanies and dominant society or culture; and
is additional to that provided on Project Affected
• an indigenous language, often different from
Communities and Livelihoods, to be applied the official language of the country or part of
if there are Indigenous Peoples among these the country within which they reside.
communities. The good practice requirements

Indigenous People
The intent is that the hydropower project and strengthen their own institutions, cultures and
operating facility respect the dignity, human traditions, and to pursue their development in
rights, aspirations, culture, lands, knowledge, keeping with their own needs and aspirations.
practices and natural resource-based livelihoods It prohibits discrimination against Indigenous
of Indigenous Peoples in an ongoing manner Peoples and promotes their full and effective
throughout the project life. participation in all matters that concern them and
their right to remain distinct and to pursue their
Indigenous Peoples require particular attention own visions of economic and social development.
because, as social groups with identities distinct The UN DRIP has an emphasis on Indigenous
from dominant groups in national societies, they Peoples being able to protect their cultural
are often the most marginalised and vulnerable heritage and other aspects of their culture and
segments of the population. Indigenous People’s tradition.
collective attachment to land, water and natural
resources can pose particular challenges for Ethnic minorities may have a number of similar
hydropower developments that cause significant characteristics as Indigenous Peoples, including
changes to the landscape. Indigenous People often being among the more vulnerable and
can be particularly vulnerable to the impact marginalised, and this guidance may also be
of hydropower projects where they have a useful in relation to these groups. An ethnic
high dependence on natural resources, limited minority is a group of people who have a
recognition of their rights to land tenure and different ethnicity, religion, language or culture
access to natural resources, and/or difficulties to that of the majority of people in the place
to advocate and negotiate safeguards and where they live. The concept of ethnicity is
agreements for their rights at risk. rooted in societal groups marked by a shared
identify, which may be through nationality,
A number of international instruments recognise tribal affiliation, religious faith, language, or
and guide the considerations relevant to the cultural and traditional origins and backgrounds.
rights of Indigenous Peoples, such as in the Countries may have ethnic minority groups
United Nations Declaration on the Rights living in particular regions, sometimes due to
of Indigenous Peoples (UN DRIP) and the historical social migrations or changes in national
International Labour Organisation Convention No. boundaries. The distinguishing feature between
169. The rights of Indigenous Peoples include: ethnic minorities and Indigenous Peoples is that
Indigenous Peoples have a collective attachment
• the right to self- determination; to geographically distinct habitats or ancestral
• the right to ownership and property; territories and the natural resources of these
areas, as well as customary traditions and spiritual
• the right to practise and revitalise cultural beliefs that are strongly rooted in the location in
traditions and customs;
which they live.
• the right to manifest, practise, develop and
teach their spiritual and religious traditions,
customs and ceremonies; and Assessment
• the right to the conservation and protection of Assessment criterion - Preparation Stage: An
the environment and the productive capacity of assessment of the representation of Indigenous
their lands or territories and resources. Peoples in the project-affected community has
been undertaken, including identification of their
The UN DRIP, adopted by the UN General rights at risk in relation to the project, utilising local
Assembly in 2007, sets an important standard knowledge and expertise.
for the treatment of Indigenous Peoples towards
eliminating human rights violations and helping
combat discrimination and marginalisation. It Each country is unique in its recognition of
refers to the individual and collective rights of Indigenous Peoples. The legislative and policy
Indigenous Peoples, as well as their rights to context for Indigenous Peoples must be well-
culture, identity, language, employment, health, understood when planning the project impact
education and other issues. It emphasises the assessment process. National approaches
rights of Indigenous Peoples to maintain and may influence how impact assessments and

engagement are conducted for Indigenous • The socio-political setting and community
Peoples, and in some countries interactions institutions;
with Indigenous Peoples may be required to • Differing roles, needs, interests, values and
be conducted through a specific government aspirations of sub-groups of the indigenous
agency. The developer needs to use all means communities (e.g. women, elders, minorities);
possible, including appropriate expertise and
local knowledge, to determine if Indigenous • Legacy issues and experience of past projects.
Peoples are represented within the project Indigenous Peoples’ rights are considered at
affected communities. There may be different risk when project activities or impacts prevent
views within an indigenous community on the Indigenous Peoples from exercising their rights.
methods used to determine recognition as part of Issues arising from the project that may pose
a particular group. risks for Indigenous Peoples’ rights should ideally
be self-identified. This does not mean that the
The baseline studies for the project indigenous communities must have identified the
Environmental and Social Impact Assessment issue, but that if suggested by others the affected
(ESIA) need to include consideration of those communities concur. Any views expressed as
aspects of the environmental and social setting community views should come from members of
and dynamics that are of special relevance the community or their appointed leaders.
and importance to Indigenous Peoples. Such
considerations are both physical and non- Any impacts of the hydropower project listed in
physical. Research should be conducted to the Project Affected Communities and Livelihoods
identify what may or may not be relevant in the guideline may affect Indigenous Peoples in
project area, and what changes may directly ways different to or more severely than for other
and indirectly occur due to project preparation, segments of the affected population. Examples
development and operation. Good baseline of impacts from the experiences of hydropower
information is outlined in the Environmental and to date, for which particular care should be taken,
Social Issues Management guideline. Additional include to cultural practices, traditional lands,
information to help understand if the rights of natural resources, livelihoods, transportation and
Indigenous Peoples are potentially at risk by a migratory routes, community cohesion, public
project should include: health, customary practices, sacred sites and
burial grounds.
• A full description of the social and economic
situation relevant to the indigenous There can be a number of practical challenges
communities, including demographic and barriers to the assessment of Indigenous
information, and details of living standards and
Peoples’ rights at risk. The ability or willingness of
livelihoods.
the indigenous community to participate in an
• Natural resource uses and their role in the impact assessment may be influenced by factors
livelihoods of Indigenous People, which may be such as: previous experience with development
based on non-monetary economies; projects or government interventions; legal
• Land use, land tenure and resource use for recognition and land tenure status; cultural
Indigenous People, noting these may not be differences that create challenges for information
officially recognised but based on customary exchange; consultation and agreement to plans;
use; and the level of community organisation for
• Important social and cultural practices representation and decision-making.
and resources distinct to the indigenous
communities, such as migrations, resource Local knowledge is essential for an assessment
harvesting activities, festivals and traditions, process relating to Indigenous Peoples. The
rituals, culturally significant sites, and flora or methods used should be designed with regards
fauna used in traditional medicines; to the needs, situation and sensitivities of the
• Analysis of the social and governance structures indigenous communities. Any expert assessment
within the indigenous communities, the degree of indigenous issues should involve community
of social cohesion, the leadership situation, and members that represent different perspectives
decision-making processes; (e.g. men, women, elderly, leaders, youth).

Indigenous People
Professionals that may be involved in the Assessment criterion - Implementation Stage:
assessment and management of indigenous Issues that may affect Indigenous Peoples’ rights in
issues and rights at risk include archaeologists, relation to the project have been identified through
social anthropologists, environmental an assessment process utilising local knowledge
anthropologists and indigenous language and expertise; and monitoring of project impacts
specialists. These experts are usually not members and effectiveness of management measures is
of the indigenous communities that are the being undertaken during project implementation
subject of the assessment. In some cases, these appropriate to the identified rights at risk.
experts may act as representatives for indigenous
people in engagement or participatory processes, Assessment criterion - Operation Stage: Ongoing
often through organisations such as social NGOs or emerging issues relating to the operating
or appointed indigenous councils. hydropower facility that may affect Indigenous
Peoples’ rights have been identified, and if
Not only should local knowledge inform the management measures are required then
assessment of Indigenous Peoples’ rights at risks, monitoring is being undertaken to assess if
but it can be a valuable input for the overall ESIA management measures are effective.
process for the project. Indigenous Peoples have
extensive experience and unique knowledge Further to the above guidance, assessment
of lands, water, animals, plants and their use requirements at the implementation and
by members (e.g. where fish spawn, animals operation stages are consistent with those
migrate, rare plants are found). Indigenous local outlined in the Project Affected Communities and
indigenous knowledge is proprietary and it is Livelihoods guideline. Notably, the developer
up to the Indigenous Peoples if and how it will and owner/operator should ensure processes
be shared. Indigenous local knowledge, when are in place to identify any ongoing or emerging
respectfully used by a developer and with the issues for the Indigenous Peoples in relation
communities’ permission, enables a greater to the project or operating facility activities,
understanding of how a project may affect the and monitoring should ensure any required
people and the environment as it is built and management measures are being implemented
operated. Affected communities will be more effectively.
comfortable sharing traditional knowledge
if a developer clearly acknowledges and Relevant management plans should identify the
demonstrates an understanding of its importance monitoring indicators or parameters and targets,
and indicates how this knowledge may influence the time span for the monitoring, frequency,
the project. location, monitoring techniques, responsibilities,
measurement metrics criteria for acceptability,
Issues for Indigenous Peoples with natural and costs. Adaptive management processes
resource development projects such as should be included in the plans, to be followed
hydropower can be complex. Indigenous issues when the monitored outcome differs from the
can in cases be highly politicised and susceptible predicted outcome or if new opportunities arise.
to political interference in assessment processes
and decision-making. Some jurisdictions may Responsibilities for monitoring, issues
not recognise Indigenous People as members of identification and follow-up may be handed over
the community with equal rights or land tenure to government agencies over time. Regardless
status. The barriers to effective assessment, of who has direct responsibility, it is a good
engagement and management of Indigenous practice expectation that the owner/operator of a
Peoples are often political, institutional, legal mature hydropower facility will remain engaged
and cultural (e.g. the attitudes of the broader through agreed mechanisms (see the Stakeholder
community towards indigenous rights). Engagement criterion) with indigenous
communities on issues that evolve over time
Opportunities to improve the status of in relation to the hydropower operations and
Indigenous Peoples through project benefits activities.
should also be a component of the assessment
process (see Outcomes criterion).

Management content of the ESMP, it needs to be demonstrably
clear that the management plans fully address
Management criterion - Preparation Stage: Plans the Indigenous Peoples’ rights at risk, and the
and processes have been developed for project issues identified as important for or of concern
implementation and operation to address the to Indigenous Peoples. As with any management
Indigenous Peoples’ rights at risk in relation to plan, all measures need to have clearly allocated
the project, and formal commitments are publicly responsibilities, appropriate funding and
disclosed. resources, objectives and targets, and monitoring
and evaluation provisions.
Measures are in place to address the Indigenous Plans and processes affecting Indigenous
Peoples’ rights at risk in relation to the project, Peoples should ensure that all legal requirements
and formal commitments are publicly disclosed. relating to Indigenous Peoples are met. Cultural
awareness and sensitivity training are important
Management criterion - Operation Stage: Measures for project staff implementing plans or otherwise
are in place to address the Indigenous Peoples’ interacting with or affecting the Indigenous
rights at risk relating to the operating hydropower Peoples. A range of support measures should
facility; and formal agreements are publicly be planned to help communities to cope with
disclosed. change. Management plans should incorporate
an effective grievance mechanism (see the
Measures to address Indigenous Peoples’ rights
Stakeholder Engagement criterion).
at risk in relation to the project need to be
incorporated into plans and processes that are Good practice requires the developer to enter
clearly linked to identified impacts and issues into formal agreements with the Indigenous
for Indigenous Peoples. If there are significant Peoples regarding arrangements that may affect
shortcomings in the assessment or issues these communities. Agreements are a recorded
identification process, the plans will also have understanding between the developer and
shortcomings. Measures to mitigate issues that the indigenous communities or other agreed
may affect Indigenous Peoples should ideally be entities. A formal agreement is one in which
self-identified and incorporate the insight and the commitments are recorded, documented,
input of local Indigenous Peoples. Mitigation witnessed and publicised with mutual parties
measure examples from the experience of present and fully engaged. This may be in
hydropower projects globally include: the form of a contract, a Memorandum of
Understanding, a letter of intent, minutes of a
• impact avoidance measures through siting and
design choices; meeting, a joint statement of principles, or an
operating licence granted by a relevant regulator
• protection of and respect for cultural practices; with the legal mandate to represent Indigenous
• agreed arrangements for moveable and Peoples or with the direct involvement and
immoveable physical cultural resources; support of the Indigenous Peoples. Recollections
of community elders cannot be accepted
• health risk prevention and management;
as evidence without supplementary forms
• support for rituals and traditions; acknowledged by and easily accessible to the
• ensured access to and quality of natural counterparties to the agreements.
resource-based livelihoods.
The comprehensiveness, complexity and form of
At the project development stage, plans and agreements will depend on the circumstances,
processes that address Indigenous Peoples’ rights including factors such as: significance of
at risk should be incorporated within the overall impacts; number of indigenous communities
project Environmental and Social Management and individuals; preferences of the indigenous
Plan (ESMP). There may be a number of plans with communities; willingness and ability of the
content relevant to indigenous communities, developer; and national laws and regulations.
such as a resettlement action plan, project Agreements are not only relevant to proposed
development agreement, a cultural heritage new projects. If agreements are not pre-
plan, a livelihood enhancement plan, or a existing, they can still be developed during the
biodiversity management plan. Within the

Indigenous People
implementation and operation stages and even Stakeholder Engagement
for older operating facilities.
Any agreements with Indigenous Peoples need Stage: Good-faith consultation with Indigenous
to be signed off in some manner by legitimate Peoples’ institutions of representation and decision-
representative(s) of the community. The making, as determined by them, has been carried
community representative must be someone out through a process that was appropriately timed,
selected by and confirmed by the community in a culturally appropriate and two-way; ongoing
legitimate process. The legitimate representative processes are in place for Indigenous Peoples to
need not be a community member and can be raise issues and get feedback; and a mutually-
someone such as a legal representative elected or agreed disputes procedure is in place.
designated by the community.
The same expectations on stakeholder
The signing off can consist of physical signatures engagement apply as outlined in the guideline
on the documents or by some other verifiable for Project Affected Communities and Livelihoods.
means. For example, witnessed fingerprints are It is important to spend time researching,
valid if the Indigenous Peoples’ representatives planning and agreeing on the appropriate
cannot write and this approach is accepted by stakeholders and their roles in any engagement,
the other signatory parties. If the agreement is consultation, negotiations and agreements with
not in the form of a contract but one of the other Indigenous Peoples.
possibilities such as statements in an operating
licence, there needs to be some means to confirm Good-faith consultation involves:
that the community representatives concurred. • willingness to engage in a process and
availability to meet at reasonable times and
The agreements should be publicly disclosed. frequency on the part of all parties;
Public disclosure involves the public being
• sharing of information that is accessible and
informed the agreement has been reached, and understandable to the Indigenous Peoples,
the agreement is made available through some disseminated in a culturally-appropriate
form of document distribution or by public manner and in the local language(s)/dialect(s);
posting or upon request. Exceptions for portions
of the agreements could include proprietary • commitment that Indigenous Peoples have
been fully informed of project impacts affecting
information, commercially or financially sensitive
their rights;
information, personal information, or indigenous
knowledge. For example, an agreement with a • use of mutually acceptable procedures for
family which includes personal information would negotiation;
not need to be publicly disclosed. The developer • willingness to change initial positions and
should be able to demonstrate the legitimacy of modify offers where possible; and
the reasons. The process for the publication of
• provision of sufficient time for the Indigenous
agreements and dissemination of information Peoples to consider information using their
can be contained in the relevant agreement or customary internal processes.
engagement plan. This requirement could be
fulfilled with a process for Indigenous Peoples Institutions of representation and decision-
and key stakeholders to access the agreements, making are community leaders or representative
and culturally appropriate activities and materials bodies who have been self-determined by the
to present the contents of the agreement affected communities which they represent.
(e.g. presentations, focus groups, community Engagement should be with self-selected
meetings). community representatives, i.e. individuals
chosen by the indigenous community who are
usually community members. Representatives
could be from potentially affected indigenous
communities, elders and leaders (both male
and female), Indigenous Peoples associations,
government institutions representing Indigenous
Peoples and/or responsible for approving

Indigenous Peoples studies and plans, and/or The proponent should ensure sufficient time is
local NGOs working with Indigenous Peoples. allowed to enable indigenous communities or
If representatives are chosen from outside of groups to fully participate in the engagement
an indigenous community, it is important to process, understand issues, and have the
establish how the community has endorsed a opportunity to voice their concerns, including
person or group as a representative. Different opportunities to identify benefits. Internal
representatives may be put forward for different mechanisms available for the rest of the
issues; for example, female community leaders community to access information on issues under
may speak on behalf of women’s issues. Other negotiation and project aspects may be limited,
sub-groups with different perspectives may especially if there is poor level of literacy in the
include youth, elders, and various resource users community as frequently occurs. Community
(e.g. hunters, fishers, gatherers, farmers). processes may be lengthy in time due to use
of traditional decision-making customs. Given
The Indigenous Peoples may have particular this, a developer should build extra time into
communications and consultation needs scheduled engagements to work with affected
and preferences relating to timing, culturally Indigenous Peoples in a manner which allows for
appropriate methods, and modes for two-way the growth and development of community and
dialogue. The developer should seek guidance representative capacity so that engagement can
from indigenous communities on how they would be meaningful. The overall project development
prefer to be consulted. Great care is needed for schedule should include contingencies to address
the initial contact with Indigenous Peoples, as it delays arising from prolonged engagement and
can lay the foundation for all future interactions good-faith negotiations regarding the rights at
on the project. In addition to being respectful and risk of Indigenous Peoples.
knowledgeable of the local customs, history and
legal status, the project proponent should ensure Engagement processes need to recognise and
that local entry protocols are followed when accommodate the culture of the community.
determining who to make contact with and how This should take into account aspects such as:
to ask permission to enter and engage with the language; use of written versus oral media;
community. selection of engagement representatives on the
part of the proponents; location and timing of
Formal processes for communications and meetings; dress; how meetings proceed and who
engagement may be unfamiliar and threatening speaks when; appropriate days and times; and
for the Indigenous Peoples. Issues that will how agreements are recorded and signed off.
need to be incorporated into the design of
engagement processes may include: language The developer should seek to provide a variety
barriers; levels of literacy for written material; of mechanisms to communicate and receive
suitable locations for meetings (preferably in feedback and to engage in ongoing dialogue.
the communities); inclusion of children and This may include efforts to select mechanisms,
family members; flexibility with time frames venues and events that encourage maximum
and logistics; avoidance of cultural taboos; participation, free exchange of views, and
and availabilities during times of cultural opportunities for informal engagement and
activity. The developer should be aware that ensuring information can be accessed in local
the representatives chosen by the affected languages. It may also include, where appropriate
Indigenous Peoples for discussions about options and feasible, funding for community members
may have limited expertise with regards to to facilitate timely and efficient communications
negotiation. The developer may need to invest (e.g. transportation, translation, community
in capacity building for the communities, with process and advisor costs) and to contribute
the agreement of the communities, to enable to the development of positive community
them to fully understand what they are being relationships. Providing cash to the communities
asked to sign. This may take place through the or their representatives to participate in
development of community representatives or engagement opportunities should be reasonably
providing the communities with the resources to limited and controlled as it may be counter-
engage, such as legal representation and financial productive.
advice. Technical information should be provided in

Indigenous People
an easily understood form. Any misinformation appropriate and effective during construction,
should be quickly identified and corrected. such as periodic focus group meetings and
Feedback received should be documented and continuous liaison with social experts present
reported on, including how participants’ feedback on-site who are accepted by the community
has influenced the project. A commitment to a and speak their language. This will allow the
minimum time within which feedback will be developer to react quickly enough if any new
provided by the project proponent, and ensuring adverse impacts or risks emerge.
that these timing commitments are consistently
met, can help ensure regular contact with the
community and may assist in enhancing trust.
Stakeholder Support
Stakeholder Support criterion - Preparation and
As well as agreeing on how engagement,
Implementation Stages: Free, Prior and Informed
consultation and decision-making will take place,
Consent has been achieved with respect to the
a disputes procedure should be developed at a
Indigenous Peoples’ rights at risk following the
relatively early stage. A disputes procedure is a
principle of proportionality.
mutually-agreed two-way resolution mechanism
allowing for both the Indigenous Peoples and the
developer to raise disputes and seek resolution. Free, Prior and Informed Consent (FPIC) is a
Relevant management plans should clearly state uniquely formulated expression for stakeholder
the process by which the Indigenous Peoples can support by Indigenous Peoples, and is recognised
self-identify and raise issues. Mechanisms to raise in a number of international instruments. FPIC
concerns and resolve complaints and grievances comprises both a process and an outcome.
should be designed and agreed with the
involvement of the Indigenous Peoples to ensure The FPIC process involves:
they are culturally appropriate. Responsibilities
should be clear and effectiveness should be • good-faith consultation;
monitored. • mutual and cross-cultural understanding with
dialogue that is ongoing and open, and gender
Stakeholder Engagement criterion -
and inter-generationally inclusive whenever
Implementation and Operation Stages: possible (with gender and age disaggregated
Appropriately-timed, culturally appropriate data and analysis);
and two-way channels of communication are
maintained; ongoing processes are in place • inclusive and participatory engagement,
including during the assessment of issues
for Indigenous Peoples to raise issues and get
and the identification of mitigation measures,
feedback; and a mutually-agreed disputes with clarity on the level of participation
procedure is in place. of Indigenous Peoples throughout the
Engagement with Indigenous Peoples during consultation process;
construction and operation should take into • provision of adequate resources to ensure
account when, how and who will provide regular that the Indigenous Peoples representatives
updates to the Indigenous Peoples on the project can participate in the FPIC process equitably,
construction, progress of implementation plans including the services of independent technical
and processes, issues arising and responses, or legal consultants (such as Indigenous
changes in roles and responsibilities, and Peoples Organisation);
benefit opportunities. Special communications • mutual agreement on the process and desired
and consultations should be planned and outcome from the outset of the consultation;
implemented for project milestones (e.g. reservoir
• documentation that is evaluated on an ongoing
filling, start of operations) and emergency events basis, is verifiable by a mutually agreed
(e.g. landslips, cofferdam or dam breaks). methodology, and made publicly available.
The methods of engagement during the project The FPIC outcome is the agreement or set of
implementation and operation stages should agreements, and thorough documentation
be agreed on with the Indigenous Peoples, and of how the agreement was achieved (see the
should not be assumed to be the same as for the Management criterion).
preparation stage. Some methods may be more

FPIC does not require unanimity in the Outcomes
indigenous community and does not grant
individuals or groups veto rights over a project. Outcomes criterion - Preparation and
The principle of proportionality stipulates that Implementation Stages: Plans provide for negative
the extent of consultation and consent required impacts of the project on Indigenous Peoples’
is proportional to the nature and scope of the rights to be avoided, minimised, mitigated or
indigenous rights that are impacted by the compensated with no significant gaps, and some
project. Ordinarily, consent will not be required practicable opportunities for positive impacts to
for impacts that are not significant to Indigenous be achieved.
Peoples. However, good-faith consultation is
required for this determination. The UN DRIP Outcomes criterion - Operation Stage: Processes
states that a project must obtain the consent of provide for negative impacts of the project on
an indigenous community when it will result in Indigenous Peoples’ rights to be avoided, minimised,
the community’s relocation from its traditional mitigated or compensated with no significant gaps,
territories, and in cases involving the storage or and some practicable opportunities for positive
disposal of toxic waste within indigenous lands. impacts to be achieved.
At the level of proven best practice, FPIC is to be
achieved for the entire project, irrespective of the
principle of proportionality. Avoid, minimise, mitigate and compensate is
a sequential approach that should be taken
to address negative project impacts on the
Conformance/Compliance rights of Indigenous Peoples. Measures to
Conformance/Compliance criterion - avoid or prevent negative or adverse impacts
Implementation Stage: Processes and objectives are always prioritised, and where avoidance is
relating to Indigenous Peoples’ rights at risk have not practicable, then minimisation of adverse
been and are on track to be met with no major impacts is sought. Where avoidance and
non-compliances or non-conformances, and any minimisation are not practicable, then mitigation
Indigenous Peoples related commitments have been and compensation measures are identified and
or are on track to be met. undertaken commensurate with the project’s risks
and impacts.
Conformance/Compliance criterion - Operation To show that hydropower development plans

Stage: Processes and objectives relating to avoid, minimise, mitigate and compensate
Indigenous Peoples’ rights at risk have been and negative project impacts to the rights of
are on track to be met with no major non- Indigenous Peoples, mitigation measures in the
compliances or non-conformances, and plans should be able to be directly linked to all
commitments made to Indigenous Peoples identified issues and rights at risk. The assessment
have been or are on track to be met. and planning should be informed by appropriate
expertise. The assignment of responsibilities
Good practice expectations for conformance and and resource allocation for implementation,
compliance relating to assessment, management monitoring and evaluation should be appropriate
and engagement with Indigenous Peoples are to the planned actions.
consistent with those set out in the Project
Affected Communities and Livelihoods guideline. An evidence-based approach should demonstrate
Legal requirements and national policies for that negative impacts to Indigenous Peoples
approaches involving Indigenous Peoples should arising from project implementation and
be understood and adhered to. Agreed plans operation activities are avoided, minimised,
should be implemented as per the measures mitigated and compensated with no significant
specified in the plans, and any variations justified, gaps. The developer, owner and operator should
documented and approved with authorities and demonstrate that responsibilities and budgets
with the engagement and support of the affected have been allocated to implement relevant
parties. Commitments should be fulfilled in a plans and commitments. Monitoring reports
timely manner.

Indigenous People
and data in the implementation and operation regarding Indigenous Peoples are achieved.
stages should clearly track performance against Opportunities or benefits should clearly be
commitments and objectives and capture any additional to actions to mitigate or compensate
impacts to Indigenous Peoples. The developer, impacts. A number of examples are listed under
owner and operator should document evidence the guidelines for Project Benefits and for Project
of how identified risks from the assessment Affected Communities and Livelihoods, and
were avoided or minimised, and to show that any of these could be tailored specifically to fit
mitigation plans have been implemented the interests, rights, requirements and needs
and monitored. Implementation of measures of the Indigenous Peoples in the project area.
for improvements in pre-project conditions Opportunities, and the approaches taken to
for Indigenous Peoples, such as livelihood assess and manage them, should ideally be
enhancement, better access to resources, cultural self-identified and informed by the communities
support, and support for capacity building, themselves. Examples of opportunities might
should be evident and monitoring should show include improvements compared to pre-project
how they are achieving their stated objectives. conditions regarding education and training,
health services, freshwater access, natural
Good practice requires that some practical resource access, livelihood resource extent
opportunities for positive impacts of the project and quality, business and investment support,
employment, institutional and governance
frameworks, and legacy issue assistance and
solutions.

Labour and
Working Conditions
This guideline expands on what is The scope of labour and working conditions
expected by the criteria statements in the assessment and management must consider
human resources policies, staff and workforce
Hydropower Sustainability Tools (HST) for planning, occupational health and safety, equal
the Labour and Working Conditions topic, opportunity, staff development and training, and
relating to assessment, management, grievance and bargaining mechanisms. These
conformance/compliance, stakeholder aspects should be considered for both staff of
engagement and outcomes. The good the developer and for staff of contractors, sub-
contractors, intermediaries, suppliers and service
practice criteria are expressed for providers.
different life cycle stages.
Intermediaries are workers engaged through
In the Hydropower Sustainability third parties who are either performing work
directly related to the functions essential for
Assessment Protocol (HSAP), this topic the project for a substantial duration or who are
is addressed in P-16 for the preparation geographically working at the project location.
stage, I-12 for the implementation They are workers involved with the project who
stage and O-12 for the operation stage. are neither employees nor contractors. They
In the Hydropower Sustainability ESG may be appointed as an in-kind contribution
from another agency, for example to provide a
Gap Analysis Tool (HESG), this topic is facilitation role with indigenous communities.
addressed in Section 2. Clarity around the role, responsibilities,
entitlements and accountabilities of these
The labour and working conditions guideline individuals would need to be defined and
seeks to ensure employee and contractor understood.
opportunity, equity, diversity, health and safety.
The intent is that workers are treated fairly and Labour and working conditions should consider
protected. all project-related offices, workshops, storage
areas, worksites, locations of ancillary services
or activities (e.g. quarries, revegetation areas,

Working Conditions
Labour and
reservoir clearing, catchment treatment, should include an analysis of all compliance
monitoring stations), surrounding areas requirements for the project. The assessment
accessible to workers (e.g. waterways, forest), and should identify management measures that can be
transport routes used for the project. taken to address the identified issues and risks.
Occupational health and safety (OH&S) is a critical Requirements for baseline labour and working
issue for the development and management of conditions information include the following:
hydropower projects. OH&S relates to protecting
the safety, health and welfare of people engaged • All of the aspects listed under the scope of this
in work or employment, for example through guidance are addressed.
preventing disease or injury that might arise • All available sources of secondary data are
as a direct result of workplace activities. OH&S identified and included, including previous
approaches and norms can vary widely from studies, information on labour issues from
country-to-country. In some countries standards comparable projects, national statistics, local
are not high, and while a particular project government information, and from all relevant
may proudly state that higher standards are in institutions.
place than other projects in the region, overall • Local knowledge and information is included,
standards may still be low and workers not safe. including from communities in the project
Poor, partial or inconsistent implementation of affected areas, for example on unemployment,
OH&S policies and plans may also be an area of skills levels, and interest in project-related
weakness. employment.
Preparation stage studies require a high level and
Assessment diversity of contracted and staff labour to: conduct
field investigations, carry out geotechnical drilling
and excavation works; provide hydrographical
assessment has been undertaken of human resource
services; establish monitoring sites; and undertake
and labour management requirements for the
social and environmental baseline studies. At
project, including project occupational health
this stage there may be unique labour issues
and safety (OH&S) issues, risks, and management
associated with the logistics, health, security and
measures, with no significant gaps.
safety of workers working in remote areas with
limited infrastructure (e.g. no roads or limited
For hydropower projects at the preparation stage, communications available).
assessments need to inform workforce planning
for all project stages. These assessments should Labour and working conditions risks at the
establish compliance requirements for the labour implementation stage may include:
force, identify any risks or challenges that have
arisen in relation to the project location, and inform • inadequate or unsafe living conditions in labour
the development of labour policies, plans and camps or individual accommodations
procedures. • hazardous working conditions, including: (i) work
underground, underwater, exposed to landslides
The assessment should address occupational health and rockfall, exposed to floods, working at
and safety issues associated with the preparation, heights, or in confined spaces; (ii) work with
implementation and operations stages, which will dangerous machinery, equipment, or tools, or
differ substantially from each other. The assessment involving handling of heavy loads; (iii) work in
should involve a systematic risk assessment by unhealthy environments exposing the worker
people with appropriate OH&S risk assessment to hazardous substances, agents, processes,
temperatures, noise, or vibration damaging to
expertise and experience with projects of similar
health; (iv) work under difficult conditions such
size and complexity. The assessment should involve as long hours, late nights, inadequate leave,
staff that will be working on the project as they or confinement by the employer; (v) work at
will have the most informed idea of local issues ancillary structures or activities; or (vi) work on
and risks. The assessment should cover all workers roads or through other means of transport
on the project, regardless of whether they are
employees, contractors or intermediaries, as well as
visitors who may or will be on-site. The assessment

• hazards for workers away from the worksites Monitoring of the labour force and working
including risks of drowning, human-wildlife conditions is an important assessment focus
interactions, and on roads during implementation and operation. Monitoring
• the financial burden on workers and their families processes should be designed to detect if an
due to illness, injury, disability and death identified issue or risk is being manifested, and
to verify that management measures are being
• inadequate workforce planning, recruitment, implemented. Parameters commonly used for
training, or retention, possibly leading to project
delays, inadequate quality of work or safety issues monitoring include:
caused by worker turnover
• the numbers, origin, skills levels, and time
• deficiencies in human resource policies and employed in project for workers;
procedures or their implementation, which may
relate to, for example, contracting, working hours, • health and safety statistics such as numbers of
wages, leave entitlements, and local worker visits to clinics, number of reported incidents, lost
targets time/recordable injury frequency rates;
• discrimination, harassment, breach of contract, • worker grievances registered and resolved; and
denial of fair treatment, and limited or no access • unemployment levels in local communities.
to effective grievance mechanisms
The exact nature of the monitoring will be
• conflicts between labour and management, or specific to the issue and management measure.
the workforce and the local population For example, there may be a risk of vehicle
Labour and working conditions risks at the accidents with workers walking around the site;
operation stage are essentially the same, but the management measures are that workers are
much easier to assess and manage because of required to wear high-visibility clothing, speed
the comparatively small number of operations limits are established, and there are random
personnel, more permanent accommodation checks by designated personnel of adherence to
facilities, and generally safer workplace activities. clothing requirements and speed limits. Associated
monitoring might include the number of vehicle
Labour and working conditions opportunities accidents with workers walking around the site and
should also be assessed. These may include, for the number of breaches of the clothing and speed
example: provision of local employment and rules each month.
training opportunities, sometimes in remote
project locations; and capacity-building for
hydropower industry professionals.
Assessment
Assessment criterion - Operation Stage: A periodically
updated assessment has been undertaken of human
Assessment resource and labour management requirements for
Assessment criterion - Implementation Stage: Human the operating facility, including occupational health
resources and labour management requirements and safety (OH&S) issues, risks, and management
have been identified through an assessment process, measures, with no significant gaps; monitoring is
including occupational health and safety (OH&S) being undertaken to assess if management measures
issues and risks; and processes are in place to identify are effective; and ongoing or emerging labour
any emerging or ongoing issues, and to monitor if management issues have been identified.
management measures are effective.
Many of the implementation considerations also
Further to the above guidance, at the apply at the operations stage. At the operations
implementation stage, the focus should be on stage, the labour and work conditions issues will
construction-related activities and implementation be centred on operation and maintenance of
of plans. There will be significant occupational assets, monitoring and implementation of plans
health and safety risks requiring management. and programmes, and a diversity of corporate
The construction workforce can be very large for a activities. Assessment activities need to be tailored
number of years and often needs to be brought in to fit the context and involve re-assessments over
rather than drawn from local labour pools, which time as the situation evolves. There is often a lower
can be a cause of safety and security concerns for proportion of contracted labour in the operations
both labourers and local communities.

Working Conditions
Labour and
stage and a more stable long-term employee • the workforce structure which defines
workforce. On-site workforce sizes can vary from categories such as executive, management,
an unmanned remotely operated power station administrative, technical, and levels within these
with visiting maintenance crews to a power station categories linked to roles, responsibilities and
with hundreds of staff and living quarters provided compensation;
on site for staff families. Workforce arrangements • recruitment and retention;
vary greatly depending on whether it is one of
many power stations owned by the operator or
• equal opportunity, equity and diversity;
an operation wholly owned and operated by a • compensation and entitlements for different
dedicated company. Large on-site staff may be staff levels, including salaries, bonuses, leave
because an operating power station is used as a entitlements and leave purchasing;
training facility to build a wider capacity of staff for • employee and contractor obligations such as
new power stations that are coming through the number of working hours, workplace, travel,
project development cycle. uniform, etc.;
• standards of behaviour including anti-bribery
Management and ethical practices;
Management criterion - Preparation Stage: Human • disciplinary and dismissal procedures;
resource and labour management policies, plans • occupational health and safety obligations,
and processes have been developed for project commitments and procedures;
implementation and operation that cover all labour
• retirement and retirement benefits fund
management planning components, including those contributions;
of contractors, subcontractors, and intermediaries,
with no significant gaps. • collective bargaining;
• staff development and training;
Management criterion - Implementation and • grievance mechanisms;
Operation Stages: Human resource and labour
management policies, plans and processes are in
• workforce record keeping;
place that address all labour management planning • contractor and sub-contractor policies; and
components, including those of contractors, • workforce planning.
subcontractors, and intermediaries, with no
significant gaps. Policies, plans and processes need to be consistent
with national labour regulatory requirements.
In some cases the company directly refers to
Workforce planning is an important requirement
the national legislation in its company policies,
at all stages for a hydropower project. The
whereas in others there are approaches specific
preparation stage of a hydropower project
to the project or operating facility that are spelled
involves a high level of staff and contracted
out in company documentation.
labour over several years. Decisions on where
to use contractors and sub-contractors versus Policies, plans, and processes need to address
permanent or temporary employees are part contractors, sub-contractors and intermediaries.
of major procurement strategies including on This can be done through text in the relevant
how risks are allocated (see the Procurement documentation and also through references to
guideline). corporate policies and plans incorporated into
tender and contract documentation. Monitoring
Planning for labour and working conditions
reports related to labour and working conditions
needs to occur early in the preparation stage,
should include information on contractors, sub-
with policies and procedures in place prior
contractors and intermediaries.
to the commencement of detailed feasibility
studies. Corporate policies and processes should The project Environmental and Social
encompass all aspects of human resources and Management Plan (ESMP) should include
be readily accessible to the labour force. Aspects mitigation actions to address risks relating to the
of labour and working conditions that human labour force. Labour-related management plans
resource policies should address include:

need to be outlined separately for construction death, such as through access to free health
and operation. Guidance on what to look for care on the worksite; and adequate insurance
regarding mitigation options for labour and coverage and/or compensation payments.
working conditions risks is provided below. • Measures to mitigate risks of inadequate
workforce planning, recruitment, training, or
• Measures to mitigate risks of inadequate retention include: workforce requirements
or unsafe living conditions in labour camps that are realistic and detailed; contractors start
include: worker campsites and accommodation recruitment processes with sufficient lead times;
provide an adequate minimum space, supply a workforce database is maintained with records
of safe water, adequate sewage and garbage of all qualifications, training, authorisations,
disposal system, appropriate protection against leave, visas, etc. available for the entire project
heat, cold, damp, noise, fire and disease-carrying workforce; and high workforce turnover is
animals, adequate sanitary and washing discouraged by surveys among workers and
facilities, ventilation, cooking and storage adaptive management of labour and working
facilities, natural and artificial lighting, medical conditions.
services, and entertainment; project design
documents, budgets, contracts, and supervision • Measures to mitigate risks of discrimination,
arrangements ensure requirements are met; harassment, breach of contract, denial of fair
preventative measures such as immunisations treatment and access to grievance mechanisms
and, at a minimum, annual health screenings include: a code of conduct and/or manual
are provided; and information on conditions for employee behaviours; workers are well-
including medical status of project staff is informed of their rights; workers have collective
systematically collected, analysed and used to representation and access to grievance
guide improvements. mechanisms with thorough and timely feedback;
grievances are systematically tracked and
• Measures to mitigate risks of hazardous resolved, and analysis of grievances is used to
working conditions include: design documents, guide improvements; and labour inspectors and
budgets, contracts, supervision arrangements, representatives of the developer cooperate to
and procedures demonstrate awareness and ensure fair treatment of all workers, including
avoidance of work hazards; health and safety contractors, sub-contractors, intermediaries,
regulations such as measurement of gas content suppliers and service providers.
in tunnels, slope stabilisation requirements,
adherence to speed limits, restrictions on • Measures to mitigate risks arising from
access; permit and authorisation processes and deficiencies in human resource policies and
wearing of personal protective equipment (PPE) procedures or their implementation (e.g.
are strictly enforced; workers are trained and affecting contracting, working hours, wages,
encouraged to report unsafe and unhealthy leave entitlements, local worker targets, etc.)
conditions; safety officers are appointed and include: ensuring human resources staff have
given additional training at worksites; injury adequate qualifications and experience; provision
response and emergency systems are in place, of continuing professional development training
including notification systems, evacuation plans, for human resources staff; clearly documented
ambulance facilities, and readily accessible human resources policies and procedures made
health services; information on injuries, readily available to all staff; effective grievance
accidents and near misses is systematically mechanisms for employees to raise issues if
collected, analysed and used to guide policies and procedures are not being followed;
improvements, using internationally recognised independent audits and reviews to ensure proper
safety indicators; and managers and contractors implementation; and ensuring all of the above
have performance targets and contractual also apply to contractors and intermediaries
incentives to ensure safe and healthy working through appropriate contract and agreement
conditions. documentation.
• Measures to mitigate risks of hazards for workers • Measures to mitigate risks of conflicts between
away from the worksites include: guidance, labour and management, or the workforce
procedures, exclusion zones and other rules are and the local population, include: clear rules
in place to minimise hazards for workers away are established to avoid potential conflicts;
from the worksites; policies to help minimise the grievances are systematically tracked and
financial burden on workers and their families resolved and analysis of grievances is used to
due to work-related illness, injury, disability and guide improvements; and measures to address
this risk are included in the Social Management

Working Conditions
Labour and
Plan (SMP) and SMP induction training is broadly Records should be kept of issues raised, how
implemented. they were raised, how they were responded to,
• Measures to promote local employment and when and how they were fully closed and
opportunities include: information and training communicated back to the worker(s) who raised
to local communities during the pre-construction the issue.
stage; employment preferences given to local
workers in general and affected households Further guidance can be found in the
in particular; and encouragement of capacity Communications and Consultation guideline.
development within the local workforce and
knowledge transfer from foreign specialists.
Conformance/Compliance criterion - Implementation
Stakeholder Engagement and Operation Stages: Processes and objectives
Stakeholder Engagement criterion – Preparation, relating to human resource and labour management
Implementation and Operation Stages: Ongoing have been and are on track to be met with no major
processes are in place for employees and contractors non-compliances or non-conformances, and any
to raise human resources and labour management labour-related commitments have been or are on
issues and get feedback. track to be met.
Good practice requires that employees, contractors, Assessment processes and management measures
sub-contractors, intermediaries, suppliers and relating to labour and working conditions should
service providers are all able to raise issues and be compliant with relevant legal and administrative
concerns through a clearly established and requirements. These may be expressed in licence
functional process. This is effectively one form of a or permit conditions or captured in legislation.
grievance mechanism applicable to employees (as Implemented measures should be consistent with
described in the Communications and Consultation what is in the plans to demonstrate conformance
topic guidance). The business should establish with the plans. Labour commitments may be
indicators to ensure employee grievance processes expressed in policies of the developer or owner/
are accessible and being used, and to check operator, or in company statements made
timeliness of response and closure on issues. publicly or within management plans. Evidence
of adherence to commitments could be provided
Processes by which workers could raise issues through, for example, internal monitoring and
should be well-communicated. Examples include reports, government inspections, or independent
through nominated contact people, a designated review. Variations to commitments should be well-
platform on an internal website for workers, justified and approved by relevant authorities, with
periodic workforce briefings or question/answer appropriate stakeholder liaison.
opportunities, suggestion boxes, complaints
boxes, an employee assistance programme, and/ The significance of not meeting a commitment
or a toll free telephone number. An incident is based on the magnitude and consequence of
reporting system, whistle-blowing mechanism, and that omission and will be context-specific. For
workplace support officers or representatives can example, a failure to demonstrate delivery of a
also be evidence that this criterion is met. licence requirement to provide potable drinking
water to all workers is likely to be a significant
Regular staff and contractor team meetings, non-compliance, as would be unfair dismissal of an
surveys, information sessions, and designated employee in violation of the company’s own policy.
contact people are often used as communication A slight delay in delivery of a monitoring report
processes for raising issues and getting feedback. could be a non-significant non-conformance.
Feedback on issues raised by workers should be
documented and could be demonstrated by means The obligations of contractors, sub-contractors and
such as emails, records of telephone conversations, intermediaries with respect to corporate policies
written correspondence, meeting minutes, and/ versus the contractor’s own policies would need to
or provision of responses to frequently asked be made clear in any contract.
questions on the company website.

An evidence-based approach should demonstrate
Outcomes that workers experience all of these rights. Well-
Outcomes criterion – Preparation, Implementation documented and communicated policies, plans
and Operation Stages: There are no identified and processes are important to demonstrate
inconsistencies of labour management policies, plans that the rights are recognised and provided for.
and practices with internationally recognised labour Evidence should be documented to show how
rights. these rights are met during implementation and
operation. Monitoring systems should be robust
Project-specific labour policies, plans or processes with periodic checks that they are capturing the
should be consistent with labour rights and there information that would inform if labour rights are
should be no conflicts. met. Worker grievance procedures should be well-
documented and tracked.
Internationally recognised labour rights are
documented in places such as IFC Performance For OH&S, inspections of worksites, power stations
Standard 2, the International Labour Organisation and other facilities should demonstrate the use of
standards, and the Human Rights Council 2008 signage, safety practices, protective clothing and
Report of John Ruggie “Protect, Respect and equipment, barriers, tagging out systems and sub-
Remedy: a Framework for Business and Human contractor work standards and conditions. Worker
Rights”. These rights include: safety data needs to be centralised, collated,
analysed against agreed indicators, and regularly
• freedom of association; reported.
• the right to equal pay for equal work; In some cases, the national regulations prevent a
• the right to organise and participate in collective company from enabling all rights to be realised,
bargaining; such as the right to collective bargaining or
• the right to equality at work, the right to non- freedom of association. While it is important that
discrimination; the company is compliant with national legislation,
international good practice expectations may not
• the right to just and favourable remuneration; be met.
• abolition of slavery and forced labour;
• the right to a safe work environment;
• abolition of child labour;
• the right to rest and leisure;
• the right to work; and
• the right to family life.

Working Conditions
Labour and

Cultural Heritage
This guideline expands on what is and measures are in place to address those
expected by the criteria statements in the identified to be of high importance.
Hydropower Sustainability Tools (HST) Cultural heritage refers to the legacy of physical
for the Cultural Heritage topic, relating to artefacts and intangible attributes of a group or
assessment, management, conformance/ society that are inherited from past generations,
compliance, stakeholder engagement, maintained in the present and bestowed for
stakeholder support and outcomes. The the benefit of future generations. It can be
understood as the objects, places and practices
good practice criteria are expressed for that define who we are. Cultural heritage are the
different life cycle stages. values we want to retain, share and pass on to
future generations.
Cultural heritage does not refer exclusively to the
Assessment Protocol (HSAP), this topic monumental remains of a culture and includes
is addressed in P-17 for the preparation intangible, ethnographic and social heritage. It
stage, I-13 for the implementation is an evolving concept, reflecting living cultures
stage and O-13 for the operation stage. as well as those of the past. This guideline
focusses on physical cultural resources,
In the Hydropower Sustainability ESG
which are movable or immovable objects, sites,
Gap Analysis Tool (HESG), this topic is structures, groups of structures, and natural
addressed in Section 8. features and landscapes that have archaeological,
paleontological, historical, architectural, religious,
aesthetic, or other cultural significance. Physical
This guideline addresses cultural heritage, with cultural resources may be located in urban or
specific reference to physical cultural resources rural settings and may be above or below ground,
at risk of damage or loss by the hydropower or under water. Their cultural interest may be at
project and associated infrastructure (e.g. new the local, provincial or national level, or within the
roads, transmission lines), or associated with the international community.
hydropower facility. The intent for a hydropower
development is that physical cultural resources Intangible cultural resources are oral traditions,
are identified, their importance is understood, performing arts, social practices, rituals, festive
events, knowledge and practices concerning

Cultural Heritage
nature and the universe, and the knowledge and may need to be undertaken if appropriate to a type
skills to produce traditional crafts. Intangible of heritage or anticipated impact. For example, if
cultural resources should also be thoroughly a site of cultural heritage importance is going to
addressed in any project Environmental and be permanently lost through inundation under
Social Impact Assessment (ESIA) and may well the reservoir, then full documentation of the
be a source of social impact risks as noted in the artefacts and stories/memories relating to it may
guidelines for Project Affected Communities and be an important pre-inundation management
Livelihoods, and for Indigenous Peoples. It is also commitment.
not always possible to separate the physical and
the non-physical; for example, traditions may For each of the cultural heritage resources
be in place in relation to spirits associated with recorded, the assessment should document the
sacred sites. Local groups may accept disturbance condition of the resource to establish baseline
to or loss of physical cultural items of heritage data against which any later concerns about
importance (e.g. a sacred rock or a burial ground) disturbance can be checked. For example, the
as long as appropriate blessings and ceremonies structural integrity of existing monuments and
have been observed. other built heritage structures should be described,
and any existing structural weaknesses and cracks
should be well-documented. Later concerns that
Assessment damage is being caused by blasting, vibration,
Assessment criterion - Preparation Stage: A cultural heavy traffic or vandalism associated with project
heritage assessment has been undertaken with construction can then be evaluated with respect to
no significant gaps; the assessment includes the documented pre-project condition.
identification and recording of physical cultural
resources, evaluation of the relative levels of All potential cultural heritage risks arising from
importance, and identification of any risks arising the hydropower project should be fully evaluated.
from the project. Cultural heritage risks at the construction stage
may arise due to direct and indirect damage
to, loss of, or loss of access to physical cultural
A cultural heritage assessment should be included
resources. Mechanisms of impact may include
in the ESIA to meet international good practice,
through excavation, soil compaction, blasting,
regardless of whether or not it is mandated by
vibrations, pollution, vandalism, theft, desecration,
the government regulatory requirements. The
and groundwater and river flow changes. Loss
assessment should consider protected and non-
of access to important sites might arise due to
protected, tangible and intangible, religious
changes to access routes (e.g. new canals or linear
and non-religious, and archaeological and
infrastructure with barrier fencing, major roads).
paleontological aspects of cultural heritage. All
The influx of workers and camp followers into
available sources of secondary data should be
communities can also cause harm or disturbance
identified and included, including previous studies,
to aspects of heritage. Construction activities may
the national cultural heritage database, locally held
be of concern to cultural heritage stakeholders
information, and from all relevant institutions.
not only due to the resultant physical damage,
The assessment should identify and record physical but potentially also due to disturbance of spirits
cultural resources within the areas that will be both associated with special sites. Cultural heritage risks
directly and indirectly affected by the proposed at the operation stage may include: inundation
hydropower project. Identification should take of cultural heritage sites with the newly formed
place through physical surveys accompanied reservoir or impoundment; downstream damage,
by more qualitative approaches to establish the for example through riverbank erosion, which
relative levels of importance or significance of may take some time to become evident; and
each identified resource. For example, a piece of ongoing loss of cultural traditions due to changes
pottery found in the future construction area may arising from the project. Ideally, cultural heritage
be one of hundreds that are regularly found in opportunities will be identified and could include:
the region versus a significant find that explains a the identification and documentation of cultural
critical gap in the history of the region. Collection resources in the region; sponsoring of cultural
and collation of oral history evidence from those in heritage research, education, rehabilitation, and
the cultural groups who are best able to provide it display; and promotion of tourism focussed on
cultural heritage.

Assessment techniques will vary between Cultural heritage issues may be ongoing issues
jurisdictions and for different types of cultural that arose during project development and
heritage. The assessment should be conducted have not been resolved, for example: inundation
using appropriate expertise as well as local of important sites or artefacts under the new
community knowledge, and any conflicts between reservoir; damage or destruction to important sites
the two need to be resolved in an open and or artefacts due to construction activities; loss of
transparent manner. Suitable areas of expertise access to important sites due to changes to access
might come from a diversity of areas of study and routes (e.g. new canals or linear infrastructure with
experience, such as cultural heritage, heritage barrier fencing, major roads); and disturbance of
conservation, history, social development, social spirits associated with special sites. Alternatively,
anthropology and archaeology. Local expertise and they may be emerging issues such as erosion of
a track record of relevant experience will enable riverbanks exposing new artefacts or developments
familiarity with the types of heritage found in the in policies, legislation or standards changing
region, what to look for, and how to identify it. expectations on how cultural heritage issues will be
Expertise used for on-site information gathering addressed.
should be acceptable to the cultural groups or
stakeholders who value the heritage resources in Monitoring is important to ensure that cultural
question. heritage management measures are effective
and that emergent issues and risks are identified
In some cases cultural heritage information may in a timely manner. Cultural heritage monitoring
be considered confidential due to cultural beliefs should be embedded within management plans for
or practices. For example, a cultural group may construction and operation, with clear monitoring
not want to reveal the exact location of a cultural objectives linked to identified cultural heritage
site but may indicate a broader area for protection. risks. Monitoring should be in accordance with
In some jurisdictions it is considered acceptable a logical design for the locations, timing, and
for the location of these sites not to be revealed methodologies linked to risks and objectives.
publicly or to the developer. Other groups may Locations and techniques used for baseline
consider it inappropriate to divulge the exact information in the ESIA should be continued as far
nature of cultural heritage values to be assessed. as practical.
Independent advice from accredited experts,
approved by local groups, should be sought in For older hydropower facilities, there may be little
these cases, and respect for local customs should new disturbance happening in relation to the
be demonstrated. facility that could raise new cultural heritage issues.
However, periodic refurbishment and upgrade
activities, wildfire or storm disturbances to areas
Assessment around the facility, or discoveries could arise that
Assessment criterion - Implementation Stage: require attention by the hydropower owner/
Cultural heritage issues, with respect to physical operator. Identification of any new issues arising
cultural resources, that are relevant to project could take place through, for example: regular
implementation and operation have been identified operations and maintenance inspections by the
through an assessment process utilising appropriate operator; maintenance of good relationships with
expertise; and monitoring is being undertaken during cultural heritage stakeholders through hydropower
the project implementation stage appropriate to the representatives on a relevant committee;
identified issues. monitoring developments in government cultural
heritage policy and legislation; and/or support
Assessment criterion - Operation Stage: Ongoing measures provided by the hydropower facility
or emerging cultural heritage issues with respect to to cultural heritage interests of the surrounding
physical cultural resources have been identified, and communities through a Corporate Social
if management measures are required then Responsibility (CSR) programme.
monitoring is being undertaken to assess if
management measures are effective.

Cultural Heritage
Management Measures to address cultural heritage risks and
impacts could include some of the following:
Management criterion - Preparation Stage: Plans and
processes to address physical cultural resources have • Measures to mitigate risks of destruction of
been developed for project implementation and physical cultural heritage sites by locating project
operation with no significant gaps; plans include infrastructure directly over those sites: cultural
arrangements for chance finds, and ensure that heritage sites should be thoroughly identified
cultural heritage expertise will be on site and in the ESIA; alternative locations for project
regularly liaised with by the project management infrastructure should be identified and evaluated
team during construction. so that interference with cultural heritage sites
is avoided as far as feasible; if impact cannot be
avoided, resources should be documented and/
Management criterion - Implementation Stage: or relocated in accordance with guidelines from
Processes are in place to ensure management of national heritage experts prior to damaging
identified cultural heritage issues, and to meet activities commencing; a chance finds procedure
commitments, relevant to the project implementation should be included in the ESMP and in the
stage; plans are in place for the operation stage for contracts; processes in place to ensure continuing
awareness.
ongoing cultural heritage issues management.
• Measures to mitigate damage to physical cultural
heritage sites through indirect impacts (e.g.
Management criterion - Operation Stage: Measures blasting, traffic vibrations, vandalism and theft,
are in place to manage identified cultural heritage groundwater and downstream flow changes):
issues. cultural heritage sites and potential indirect
impacts from project construction and operations
Plans in relation to cultural heritage should be should be thoroughly identified in the ESIA;
baseline information on the structural integrity
included as a section of the ESMP. These should
of these sites should be well-documented;
contain the following, outlined separately for potentially damaging project activities should
construction and operation: be located at appropriate distances from
heritage sites in accordance with established
• all sources and types of potential cultural standards (e.g. minimum distances for quarry
heritage impact are outlined; locations, heavy vehicle traffic, blasting);
• mitigation measures for cultural heritage impacts potentially damaging activities should be
are listed and the objectives are clearly explained; implemented according to approved schedules
and norms, such as timing restrictions on heavy
• the actions, timeline, budget, and responsible vehicle movement or blasting; restrictions
parties for implementation of cultural heritage such as ramping rules could be imposed on
mitigation measures are clearly stated; power station releases to limit erosion due
• a chance find procedure is included for to hydropeaking if there are heritage sites on
cases in which cultural heritage resources are riverbanks; sites should be protected against
identified during excavation or later activities. vandalism and theft where necessary; culturally
This procedure should involve access to significant resources should be documented and/
appropriate expertise to establish the value of or relocated where necessary.
the finds; relocation of project components to • Measures to mitigate risks of reduced experience
avoid impacting on the finds, if feasible; and value of physical cultural heritage sites through
documentation and/or relocation of the finds if indirect impacts: project activities should be
justified; located at appropriate distances from heritage
• a programme is defined for surveillance, sites and restricted in accordance with standards
monitoring and auditing, including timeline, (e.g. limits on air, noise, vibration, waste, and
budget, and responsible parties; wastewater emissions); access to sites should
be maintained or feasible alternative access
• ideally, adaptive management measures for created; landscaping should be undertaken to
cultural heritage impacts are also considered. reduce visual impacts; project buildings should
These would identify what issues might be designed to maintain visual cohesion with
be identified through the monitoring and traditional building styles; culturally significant
surveillance and what the response would be resources should be documented and/or
(including responsible parties and contingency relocated where necessary.
budget set aside); and
• audit, review and evaluation provisions.

Stakeholder Engagement consider gender and the inclusion of vulnerable
social groups. ‘Two-way’ means that cultural
Stakeholder Engagement criterion - Preparation heritage stakeholders can give their views on the
Stage: The assessment and planning for cultural plans that will affect them rather than just being
heritage issues has involved appropriately timed, and given information without any opportunity to
often two-way, engagement with directly affected respond. Examples of two-way processes include
stakeholders; ongoing processes are in place for focus groups, interviews, community meetings, and
stakeholders to raise issues and get feedback. public hearings.
Good practice requires that a process of The timing of engagement must allow for
stakeholder engagement has been followed adequate data collection, analysis and reporting.
in the assessment and planning for cultural Cultural heritage stakeholders should be asked
heritage issues in relation to the hydropower to provide information on areas of concern,
project. Directly affected stakeholders for cultural and these should influence the research design.
heritage would be those who recognise and have These same stakeholders should also be asked
responsibilities for the values of the heritage to provide feedback on the significance of finds
recorded for the hydropower project affected and of potential impacts, and this should inform
area. These ‘cultural heritage stakeholders’ should any avoidance, minimisation, mitigation and
be clearly identified in any project stakeholder compensation plans. Local communities may
mapping. They might be stakeholders only for express values for heritage aspects in contrast to
this issue or stakeholders in relation to many the advice of external experts and any conflicts
issues relating to the project. Cultural heritage in views need to be managed with respect
stakeholders might include project affected and sensitivity. Cultural heritage stakeholder
communities as a whole, or a subset of these engagement needs to be undertaken before
(e.g. living in a particular area, and/or indigenous management decisions have been made and
peoples or an ethnic minority group). They should evidence should demonstrably show that these
include the relevant government department such stakeholder views have been sought and taken
as a heritage agency and could include historians, into consideration to inform cultural heritage
researchers, local interest groups, educational management plans.
institutions, and/or curators for museums or
collections. Stakeholder Support
Appropriate timing, culturally appropriate, and Stakeholder Support criterion – Preparation and
two-way processes are important components of Implementation Stages: There is general support
good practice. ‘Appropriately timed’ means that or no major ongoing opposition amongst directly
engagement should take place early enough affected stakeholder groups for the cultural heritage
so that the project can respond to issues raised, assessment, planning or implementation measures.
cultural heritage stakeholders have inputs before
the project takes decisions, and engagement takes Plans for mitigation of cultural heritage issues
place at times suitable for these stakeholders to arising from the hydropower development should
participate. Cultural heritage stakeholders should be generally supported by cultural heritage
be supportive of the timing of engagement stakeholders. Cultural heritage stakeholder support
activities. ‘Culturally appropriate’ means that may be expressed through community members or
methods of engagement respect the cultures of the their representatives, and may be evident through
cultural heritage stakeholders and allow adequate means such as surveys, signatures on plans,
provisions to fit with the discussion and decision- records of meetings, verbal advice, public hearing
making processes typical for them. Stakeholder records, public statements, government licence,
engagement processes that are culturally sensitive and court decisions. No major ongoing opposition
consider, for example, meeting styles, venues, or temporary opposition that was resolved would
facilitators, language, information provision, the satisfy this criterion.
community’s decision-making processes, time
allocation, recording, and follow-up. Engagement
processes for cultural heritage stakeholders should

Cultural Heritage
Conformance/Compliance of the operating hydropower facility are avoided,
minimised, mitigated and compensated with no
Conformance/Compliance criterion - significant gaps.
Implementation and Operation Stages: Processes
and objectives in place to manage cultural heritage
issues have been and are on track to be met with no To show that plans avoid, minimise, mitigate and
significant non-compliances or non-conformances, compensate negative cultural heritage impacts
and cultural heritage related commitments have from project activities, mitigation measures in the
been or are on track to be met. plans should be able to be directly linked to the
inventory of physical cultural resources identified
for the project, and the assessment of potential
Assessment processes and management measures impacts and risks. The assessment and planning
relating to cultural heritage should be compliant should be informed by appropriate expertise,
with relevant government requirements. These views of directly affected stakeholders, and local
may be expressed in licence or permit conditions knowledge. The assignment of responsibilities and
or captured in legislation. Implemented measures resource allocation for implementation, monitoring
should be consistent with what is in the plans to and evaluation should be appropriate to the
demonstrate conformance with the plans. Cultural planned actions.
heritage commitments with respect to measures
to be taken by the hydropower developer or Compensation should be identified as an area of
owner/operator may be expressed in policies of focus for management action after avoidance,
the developer or owner/operator, or in company minimisation and mitigation measures have all
statements made publicly or within management been identified and committed to where possible.
plans. Evidence of adherence to commitments For cultural heritage, an example of where
could be provided through, for example, internal compensation might be required could be for the
monitoring and reports, government inspections, loss of artefacts which are unable to be moved
or independent review. Variations to commitments and would eventually be inundated under the
should be well-justified and approved by relevant reservoir. Compensation might be in the form
authorities, with appropriate stakeholder liaison. of contributions to the broader cultural heritage
protection and conservation measures in the
The significance of not meeting a commitment is region or country, for example through financial
based on the magnitude and consequence of that contributions to museums, establishment of a
omission and will be context-specific. For example, museum, creation of heritage trust funds, and/or
a failure to demonstrate delivery of a major support for research and expertise to be brought in.
cultural heritage mitigation measure expressed
in the project approval, such as relocation and An evidence-based approach should demonstrate
restoration of an important site, is a significant that negative cultural heritage impacts arising from
non-compliance, whereas a slight delay in delivery project implementation and operation activities are
of a monitoring report could be a non-significant avoided, minimised, mitigated and compensated
non-conformance. with no significant gaps. The developer, owner and
operator should demonstrate that responsibilities
Outcomes and budgets have been allocated to implement
cultural heritage plans and commitments.
Outcomes criterion - Preparation Stage: Plans avoid, Monitoring reports and data in the implementation
minimise, mitigate, and compensate negative and operation stages should clearly track
impacts on cultural heritage arising from project performance against commitments and objectives
activities with no significant gaps. and capture cultural heritage impacts. It should
be possible to provide examples to show how
Outcomes criterion - Implementation Stage: Negative identified risks from the assessment were avoided
cultural heritage impacts arising from project or minimised. It should also be possible to table
implementation are avoided, minimised, mitigated evidence to show that mitigation plans have
and compensated with no significant gaps. been implemented and are being monitored.
Implementation of measures for cultural heritage,
such excavation, signage, protection, relocation,
Outcomes criterion - Operation Stage: Negative should be evident, and monitoring should show
cultural heritage impacts arising from activities how they are achieving their stated objectives.

Public Health
This guideline expands on what is the Labour and Working Conditions guideline.
expected by the criteria statements in the Hydropower projects also have the potential to
provide improvements in public health facilities
Hydropower Sustainability Tools (HST) and health services, which is closely linked
for the Public Health topic, relating to with project benefits (see the Project Benefits
assessment, management, conformance/ guideline).
compliance, stakeholder engagement
and outcomes. The good practice criteria The intent for public health in relation to the
are expressed for different life cycle hydropower project or operating facility is that:
stages.
• the project or operating hydropower facility
does not create or exacerbate any public health
In the Hydropower Sustainability issues;
Assessment Protocol (HSAP), this topic • any ongoing or emerging public health issues
is addressed in P-18 for the preparation associated with the hydropower facility are
identified and addressed as required;
stage, I-14 for the implementation
stage and O-14 for the operation stage. • improvements in public health are achieved
through the project in project affected areas
In the Hydropower Sustainability ESG where there are significant pre-existing public
Gap Analysis Tool (HESG), this topic is health issues; and
addressed in Section 4. • commitments made by the project to implement
public health measures are fulfilled.
This guideline addresses public health issues
associated with the hydropower project. A broad
view is taken on public health to incorporate
Assessment
anything for which one would seek medical Assessment criterion – Preparation Stage: A public
attention, such as sickness, disease, mental health issues assessment has been undertaken with
health, injuries and fatalities. Guidance on no significant gaps; the assessment includes public
occupational health and safety, i.e. the health health system capacities and access to health
of the labour force, is provided separately in services, and has considered health needs, issues and
risks for different community groups.

Public Health
The Environmental and Social Impact Assessment development with regards to public health.
(ESIA) should include a section on public health. These should be distinctly evaluated for both the
While this may not be a national requirement, it construction and operations stages due to the
is an expectation for international good practice. differing nature of risks that can prevail. Public
The scope of the public health assessment should health risks at the construction stage that should
include all communities potentially affected at be considered include disease, injuries or fatalities
all stages of the hydropower project life cycle by from:
exposure to:
• dam failure and natural disasters caused by
• project-related activities and infrastructure at project-external factors (e.g. major landslides,
worksites, camps, storage areas, access roads, floods);
transmission lines, quarries, revegetation and • air, water, and noise pollution, vibrations, and
catchment treatment areas, etc.; exposure to dust and to hazardous materials;
• changes to water flows, including creation of • accidents from traffic, landslides and rock
reservoirs, downstream river flow changes below falls, fires, drowning, blasting or inadvertent
any project infrastructure, spills, emergency detonation of explosives, and misunderstandings
releases, and dam break; with project security personnel;
• interactions of the public with workers and with • communicable diseases, non-communicable
security personnel; diseases, unhealthy behaviour (e.g. drugs,
• changes in amenity, livelihood and lifestyles due alcohol, sexual behaviour), or violent conflict
to environmental and social changes caused by around work camps;
the project, which may include economic and • declines in livelihoods and nutrition due to loss
physical displacement; and of access to land and resources;
• population migration into the project area. • temporary pressure on the existing health
The assessment should establish a clear pre- infrastructure, equipment, human resources,
project baseline with regards to the existing essential drugs, etc. due to the influx of migrants,
workers and others;
public health resources and statistics that
includes those communities potentially subject • loss of public access to health facilities and other
to direct and indirect impacts. The baseline data essential services, for example in the case of road
should include health profiles of potentially closures or transport blockages; and
project affected communities using all available
• mental health issues, which may arise due to
sources of secondary data. Sources to consider
community anxiety and stress.
include previous studies, national and regional
statistics, and police and road authority data.
At the operation stage, besides the risks
Local knowledge and administrative health data
mentioned above, additional public health risks
from the local government, communities, and
that should be considered include disease, injuries
local health care providers should be included.
or fatalities from:
Community data should be disaggregated as far
as possible by cultural, ethnic, socio-economic, • drowning in the reservoir(s) or downstream
gender, age, education, location and other river(s);
characteristics. Data analyses should seek to
understand the different health and safety issues • electrical safety;
and risks for the various segments of those • health risks related to the reservoir, including
communities, which could result in different waterborne and vector-borne diseases (e.g.
impacts and could make certain individuals, malaria) as well as unhealthy water quality for
households and communities more vulnerable human contact or consumption as it affects fish
to impacts. The baseline should describe existing consumption (e.g. bioaccumulation of mercury);
modalities and resources for public health and
services and disaster management. • permanent changes to livelihoods and health-
related behaviour, including nutrition, exercise,
The assessment should include a detailed analysis and access to medicinal plants and traditional
of potential risks and opportunities of the project health services.

Public health opportunities should also be factors (e.g. poor water quality and gastro-
assessed. These may include: intestinal issues), and project social impacts and
public health factors (e.g. negative livelihood
• project ambulances and health facilities that can impacts and increased malnutrition).
be used by local communities;
• investments in public health facilities including The exact nature and duration of monitoring
equipment and staffing; will be specific to the issue and management
measure. For example, an identified risk could
• improved access to health facilities, health be increased malaria. Planned management
knowledge and health education;
measures might include community education
• population health monitoring; and awareness-raising, provision of anti-malarial
• improved road safety through better design and medications and mosquito netting, measures
maintenance, signage, enforcement of traffic to avoid pooling of stagnant water, and regular
regulations; community health checks. Associated monitoring
might include: the number of education
• flood prediction and early warning systems in
close cooperation with disaster management and awareness-raising sessions; the number
authorities; of attendees; the amount of anti-malarial
medications and mosquito netting dispensed; the
• contribution of project reservoirs, inter-basin number of incidents involving pools of stagnant
diversions and other infrastructure to flood water; the frequency of health checks; and the
retention and management;
number of incidences of malaria among the
• emergency preparedness training and community.
infrastructure; and
• improved local waste management, sanitation Assessment
and water treatment.
Assessment criterion - Operation Stage: Ongoing
Assessment or emerging public health issues associated with
the operating hydropower facility have been
Assessment criterion - Implementation Stage: Public identified, and if management measures are required
health issues relevant to project implementation then monitoring is being undertaken to assess if
and operation have been identified through an management measures are effective.
assessment process utilising appropriate expertise;
and monitoring is being undertaken during the
During the operation stage, mechanisms
project implementation stage appropriate to the
should be in place by which emerging public
identified issues.
health issues can be detected and acted on in
a timely manner. Depending on the age of the
Monitoring should be included in the public operating facility and the prevalence of public
health issue management plans for both health issues during its development or in
construction and operation so that monitoring the region, the degree of attention on public
activities are directly linked to the identified health by an operating hydropower facility can
public health issues, risks and planned responses vary considerably. If the operating hydropower
to findings. Monitoring should be designed facility was commissioned relatively recently,
to detect if the issue or risk is evident, and to identification of ongoing or emerging public
verify that management measures are being health issues may take place through follow-up
implemented and are effective. Locations and monitoring programmes that were committed
techniques used for baseline information in the to during project development. The duration of
ESIA should be continued as far as practical. these programmes would be as agreed with the
Monitoring locations, timing, and methodologies project regulatory authorities. For hydropower
should have a logical design with meaningful facilities that have been operating for decades,
indicators relating to both influences on health there may not be direct public health monitoring
(environmental and social) and health outcomes. programmes delivered by the owner/operator.
Where possible, monitoring should seek to link If not directly undertaking the monitoring, it is
project environmental impacts and public health important for the owner/operator to ensure that

Public Health
there are services in place in the area affected • Measures take into account longer-term
by the operating hydropower facility that will be considerations, e.g. community growth,
able to detect any ongoing or emerging public maintenance needs of public health facilities,
health issues relating to operations. maintenance of project measures to reduce risks
such as road signage, handover arrangements
Throughout the operations stage, the owner/ from the developer or owner/operator to the
government, and capacities of local authorities
operator should be monitoring for causative
for ongoing management.
factors relating to operations that could, if not
responded to, eventually lead to public health • ESMP content is developed in a manner
issues (e.g. algal blooms or changed road for which contractor responsibilities can
usage patterns leading to increased hazards). If be easily incorporated into tender and
ongoing management measures are taken by contracting documents in a manner that
shows the contractors must also convey these
the owner/operator to minimise public health
responsibilities to their sub-contractors and
risks, monitoring should be associated with suppliers.
these measures to detect if risks are being fully
addressed. • A programme for surveillance, monitoring and
auditing for all commitments is provided.
Management Adaptive management measures for unpredicted

public health impacts are also ideally included.
Management criterion - Preparation Stage: Plans and These would focus on issues that might
processes to address identified public health issues be identified through the monitoring and
have been developed for project implementation and surveillance, as well as what the response
operation with no significant gaps. would be (including responsible parties and
contingency budget set aside).
Processes are in place to ensure management of Global experience in managing public health
identified public health issues and to meet risks in relation to hydropower projects and
commitments relevant to the project implementation operating facilities has shown a wide range of
stage; plans are in place for the operation stage for potential approaches. In many cases, avoidance
ongoing public health issues management including and minimisation of public health risks can be
handover to local authorities as appropriate. achieved through public safety measures (see
the Infrastructure Safety guideline), various
environmental impact areas (e.g. see the Water
Management criterion - Operation Stage: Measures Quality guideline and the Waste, Noise and
are in place to manage identified public health issues. Air Quality guideline), and social impact areas
(see the Project Affected Communities and
Plans should be included in the Environmental Livelihoods guideline). In addition, measures to
and Social Management Plan (ESMP) in relation address public health risks could include some of
to public health measures to be taken during the following:
project development and operation. The public
health management plans should be separately • Measures to mitigate risks from dam failure and
specified for both the construction and operation natural disasters caused by project-external
stages and include the following: factors, e.g. major landslides or floods: health
infrastructure, equipment and trained human
• All sources and types of potential public health resources to deal with victims of disasters; and
risks and opportunities are outlined. hospital contingency plans.
• Mitigation measures for public health impacts • Measures to mitigate risks from air, water, and
are listed and the objectives are clearly noise pollution, vibrations, and exposure to
explained. dust and to hazardous materials: provision of
personal protective equipment for vulnerable
• Measures to be implemented have a clear community members, such as face masks, ear
timeline, budget, and responsible parties. plugs, or water filters; and temporary relief to
• Measures are culturally-sensitive, e.g. with vulnerable households if necessary, including
respect to traditional medicines and local beliefs. temporary relocation, to avoid health risks from
more intensive construction-related impacts.

• Measures to mitigate risks from accidents • Measures to mitigate risks arising from mental
from traffic, landslides and rock falls, fires, health issues: ensuring appropriate engagement
drowning, blasting or inadvertent detonation and inclusion of those who would be affected
of explosives: removal and treatment of public by project decisions; specialised mental health
safety hazards; appropriate design speeds and prevention and treatment capacity; spiritual
enforcement of traffic regulations (e.g. related ceremonies performed as appropriate to
to speed, seat belts, alcohol, drugs, mobile mitigate community concerns.
phone use, etc.); project driver training; project
vehicle maintenance; community road safety • Measures to mitigate risks arising from
awareness training; fire management plans; temporary pressure on the existing health
drowning risk management (e.g. through infrastructure, equipment, human resources,
signage, warning systems and access restrictions, essential drugs, etc. due to influx of migrant
rescue equipment and staff, community water workers, or loss of access to health facilities:
safety awareness training); flood prediction and avoidance and minimisation of closures of roads
early warning systems; reductions in flooding and other infrastructure through appropriate
risks; support to ambulances and health centres construction management; where necessary,
(including appropriate staff, equipment and bypass and replacement facilities or provision of
medicines); provision of firefighting equipment, alternative transport; timely increase in capacity
boats, excavators and other equipment to local of all health facilities or additional facilities
authorities for accident response. during construction and operation; sharing of
project health facilities with local communities.
• Measures to mitigate risks from communicable
diseases, unhealthy behaviour (e.g. drugs, • Measures to mitigate risks arising from electrical
alcohol, sexual behaviour), or violent conflict safety incidents: community awareness
around work camps: training; guidance, signage, exclusion zones
and other rules to minimise electrical hazards
- medical check-ups and screening for for community members; electrical equipment
immigrant workers at points of entry; and infrastructure undergo regular inspections,
maintenance, upgrades and replacements;
- ensuring capacity of local health centres transmission lines rights-of-way maintained in
for prevention, screening and response to safe conditions; ensuring project capacity to
outbreaks of communicable diseases; respond rapidly to electrical malfunctions.
• Measures to mitigate health risks related to the
- healthy conditions and appropriate reservoir, including waterborne and vector-
medical services (annual screening) borne diseases and unhealthy water quality
provided within camps, and workers for human contact or consumption as it affects
accommodated outside work camps fish consumption (e.g. bioaccumulation of
provided with equivalent conditions and mercury): monitoring of water quality, fish
quality, pathogens, disease vectors, and
services to prevent the spread of
disease outbreaks; community awareness
communicable diseases; training, signage, restrictions on public use as
needed; clinical treatment of disease cases as
- workers trained in appropriate needed; control of floating aquatic weeds and
preventive measures and conduct towards vectors, especially in shallow reservoir areas
local communities; near settlements, by mechanical or chemical
treatment.
- public access to work camps is
• Measures to mitigate risks arising from
controlled; and permanent changes to livelihoods and health-
related behaviour, including nutrition, exercise,
- community-worker interaction is and access to medicinal plants and traditional
monitored and, where necessary, restricted. health services: strengthening of preventative,
promotive and curative health care services and
• Measures to mitigate risks arising from declines community awareness programmes; provision of
in livelihoods and nutritional standard due exercise and recreational facilities for prevention
to loss of access to land and resources: those of non-communicable diseases; community
described in the guideline on Project Affected screening for non-communicable diseases.
Communities and Livelihoods. Special attention
should be paid to vulnerable households and
individuals, such as malnourished and stunted
children, pregnant women, and the elderly.

Public Health
At the same time as managing risks, Appropriate timing, culturally appropriate, and
management plans should seek to incorporate two-way processes are important components
measures that can improve existing public of good practice. ‘Appropriately timed’ means
health issues for local communities. With careful that engagement is early enough so that the
attention to public health issues, risks can be project can respond to issues raised, public
managed and opportunities put in place as health stakeholders can provide inputs before
additional benefits. New health clinics, improved the project takes decisions on these issues, and
access to health services, provision of improved engagement take place at times suitable for
access to fresh water, supply of reliable these stakeholders to participate. Public health
electricity for health clinics and refrigeration stakeholders should be supportive of the timing
needs can all make a difference in public health of engagement activities. ‘Culturally appropriate’
and welfare. Any planned measures for public means that methods of engagement respect
health opportunities should also have clearly the cultures of the public health stakeholders
allocated responsibilities, appropriate funding and allow adequate provisions to fit with the
and resources, objectives and targets, and discussion and decision-making processes typical
monitoring and evaluation provisions. Handover for them. Stakeholder engagement processes
arrangements with responsibilities to different that are culturally sensitive consider, for example,
agencies transferring over time should be clearly meeting styles, venues, facilitators, language,
identified, along with risks, monitoring and information provision, the community’s decision-
adaptive management responses. making processes, time allocation, recording,
and follow-up. Engagement processes for public
health stakeholders should consider gender and
Stakeholder Engagement the inclusion of vulnerable social groups. ‘Two-
Stakeholder Engagement criterion - Preparation way’ means that public health stakeholders can
Stage: The assessment and planning for public give their views on the plans that will affect them
health has involved appropriately timed, and often rather than just being given information without
two-way, engagement with directly affected any opportunity to respond. Examples of two-
stakeholders, including health officials and project way processes include focus groups, community
affected communities; ongoing processes are in meetings, and public hearings.
place for stakeholders to raise issues and get
feedback.
Conformance/Compliance criterion -
Good practice requires that a process of
Implementation and Operation Stages: Processes
stakeholder engagement has been followed
and objectives in place to manage public health
in the assessment and planning for public
issues have been and are on track to be met with no
health issues in relation to the hydropower
significant non-compliances or non-conformances,
project. Directly affected stakeholders for
and public health related commitments have been or
public health should be clearly identified
are on track to be met.
in any project stakeholder mapping. They
might be stakeholders only for this issue or
stakeholders in relation to many issues relating Assessment processes and management
to the project. Directly affected stakeholders for measures relating to public health need to
public health should include those with public be compliant with relevant government
health responsibilities in the government and requirements. These may be expressed in licence
for the developer, public health professionals or permit conditions (such as requiring a health
in the project area, and representatives of the centre to be provided with the project, health
project affected communities. Different health checks for project affected communities, or
issues may have different affected groups sanitation standards to be met in the labour
within the communities and these should be camps) or captured in legislation (such as a
taken into account in the engagement process. requirement for a health impact assessment to be
Representation should be carefully considered undertaken for proposed major developments).
and include those in the community who may Implemented measures should be consistent with
have alternative approaches for health such as what is in the plans to demonstrate conformance
traditional medicines.

with the plans. Public health commitments may Outcomes criterion - Operation Stage: Negative
be expressed in policies of the developer or public health impacts arising from activities of the
owner/operator, or in company statements made operating hydropower facility are avoided, minimised
publicly or within management plans. Evidence and mitigated with no significant gaps.
of adherence to commitments could be provided
through, for example, internal monitoring and
To show that plans avoid, minimise and mitigate
reports, government inspections, or independent
public health impacts from project activities,
review. Variations to commitments should
mitigation measures in the plans should be able
be well-justified and approved by relevant
to be directly linked to all identified public health
authorities, with appropriate stakeholder liaison.
issues and risks. The assessment, planning and
implementation should have been carried out by
appropriately qualified experts. The assignment
of responsibilities and resource allocation for
implementation, monitoring and evaluation
For example, a failure to demonstrate delivery
should be appropriate to the planned actions.
of a major public health mitigation measure
expressed in the project approval is likely to be
An evidence-based approach should demonstrate
a significant non-conformance, whereas a slight
that negative public health impacts arising
from project implementation and operation
a non-significant non-conformance.
activities are avoided, minimised and mitigated
with no significant gaps. The developer,
Public health issues rely on very good
owner and operator should demonstrate
cooperation between the hydropower
that responsibilities and budgets have been
developers and the government health agencies.
allocated to implement public health plans and
Depending on the particular arrangements and
commitments. Monitoring reports and data in
the time period post-project commissioning,
the implementation and operation stages should
responsibilities for public health may have
been fully handed over from the operator
and objectives and capture public health impacts.
to government agencies. Conformance with
It should be possible to provide examples to
handover plans, and adaptations as needed,
show how identified risks from the assessment
should be well-documented, as should longer-
have been avoided or minimised. It should
term agreements if there are expectations of
also be possible to table evidence to show that
continued project support.
mitigation plans have been implemented and are
being monitored. Implementation of measures for
Outcomes public health, such as new or enhanced facilities,
resources and services, should be evident, and
Outcomes criterion - Preparation Stage: Plans avoid,
monitoring should show how they are achieving
minimise and mitigate negative public health
their stated objectives.
impacts arising from project activities with no
significant gaps.
Outcomes criterion - Implementation Stage:

Negative public health impacts arising from project
activities are avoided, minimised and mitigated with
no significant gaps.

Public Health

Biodiversity and
Invasive Species
This guideline expands on what is sustainable over the long-term; that biodiversity
expected by the criteria statements in impacts arising from project activities and from
the operating hydropower facility are managed
the Hydropower Sustainability Tools responsibly; and that commitments to implement
(HST) for the Biodiversity and Invasive biodiversity and invasive species measures are
Species topic, relating to assessment, fulfilled.
management, conformance/compliance
and outcomes. The good practice criteria Biodiversity is the variety of life forms (animals,
plants and micro-organisms), their genes, and the
are expressed for different life cycle ecosystems of which they are a part. Biodiversity
stages. is critical to functioning and maintenance of
the natural environment and has recognised
In the Hydropower Sustainability aesthetic, spiritual, cultural, recreational and
scientific values.
is addressed in P-19 for the preparation An ecosystem is a community of living organisms
stage, I-15 for the implementation in conjunction with the non-living components of
stage and O-15 for the operation stage. their environment (e.g. air, water, soil) interacting
as a system. These biotic (living) and abiotic (non-
living) components are linked together through
Gap Analysis Tool (HESG), this topic is nutrient cycles and energy flows. Significantly
addressed in Section 6. different ecosystems are found in wet versus dry
and hot versus cold areas or regions. A habitat
is an ecological or environmental area that is
inhabited by a particular species of animal, plant,
This guideline addresses the implications of
or other type of organism. The term typically
hydropower projects and operating facilities on
refers to the zone in which an organism lives
biodiversity, ecosystems and habitats, including
and where it can find food, shelter, protection,
specific values or issues frequently associated
and mates and appropriate conditions for
with project development and operations such
reproduction. Examples of various riverine
as threatened species, fish passage, and invasive
habitats include riparian zones (i.e. the shoreline),
species. The intent is that there are healthy,
deep pools, riffles, large woody debris, sand
functional and viable aquatic and terrestrial
bars, gravel bars, backwaters, wetlands, and
ecosystems in the project affected area that are
floodplains.

Biodiversity and
Invasive Species
Aspects of biodiversity that require attention Offsets are measurable conservation outcomes
include the following. resulting from actions designed to compensate
for significant adverse residual biodiversity
• Endemic species, which are unique to a defined impacts from project development. Residual
geographic location. impacts are those that persist after avoidance,
• Keystone species, which provide a key ecological minimisation, and restoration measures have
role such that their loss would lead to severe been taken. Generally, offset measures are not
degradation of the entire ecosystem. within the project site but within a comparable
• Species of conservation significance, which may landscape or habitat type. Biodiversity offsets
be rare, threatened or endangered species or should be designed to: achieve measurable,
ecological communities. These species may be additional and long-term conservation outcomes
listed in national legislation or regulations, as through compensatory actions; achieve ‘no net
well as addressed by international organisations loss’ of biodiversity at a minimum; and ideally
and conventions (e.g. the so called Red Lists of demonstrate ‘like-for-like or better’ outcomes
the International Union for the Conservation of compared with the unimpacted project site.
Nature (IUCN), the Ramsar wetlands convention
and the Convention on Biological Diversity). In
some cases, the project studies highlight species Assessment
at risk that may not yet have formal protection Assessment criterion - Preparation Stage: An
status.
assessment of terrestrial biodiversity; aquatic
• Biodiversity hotspots, which are areas of very biodiversity including passage of aquatic species and
high diversity and/or where many endangered loss of connectivity to significant habitat; and risks of
species are found. invasive species has been undertaken with no
• Ecosystem connectivity and biodiversity significant gaps.
corridors, which are important for species reliant
on a certain size area of habitat for their long- The project Environmental and Social Impact
term survival or reliant on functional migration
Assessment (ESIA) should include evaluation of
routes.
the biodiversity impacts of a hydropower project.
• Alien species, which are species that have been A systematic approach needs to be taken to
accidentally or purposely introduced into an area identify and evaluate biodiversity values and
outside of their natural range, some of which potential impacts and risks associated with the
may be invasive, i.e. spreading to such an extent
project.
that they are a threat to local native species or
ecosystem function.
The preparation stage assessment starts with
• Culturally significant species, which are those establishment of the pre-project baseline,
that have symbolic or practical significance for involving inventories of the terrestrial (land-
communities that will be affected by project- based) and aquatic (water-based) flora and
related changes. fauna, ecological communities and habitat types.
While avoidance of impact is the first approach Terrestrial fauna need to include mammals,
of the mitigation hierarchy (avoid, minimise, birds, reptiles, amphibians, and invertebrates (i.e.
mitigate, compensate), complete preservation without backbones), and terrestrial flora need to
of the original biodiversity conditions is not include trees, shrubs, herbs, vines, grasses, and
a realistic expectation for any hydropower epiphytes (these depend on host plants, such
development. Changes in biodiversity are as orchids and mosses). Aquatic fauna need to
likely due to the physical changes in habitat include fish, amphibians, macroinvertebrates
and ecosystems that accompany a hydropower including crustaceans (e.g. shrimp, crabs), and
development, for instance flowing water (a zooplankton. Aquatic flora need to include
lentic ecosystem) changing to still water (a lotic riparian vegetation, aquatic macrophytes (plants
ecosystem) by creation of an impoundment. that grow in or near water) and algae (including
For this reason, compensation is included as phytoplankton). As far as practical, inventories
good practice for the biodiversity topic, with an should aim to establish the species diversity (i.e.
emphasis on offsets. the variety and abundance of species that inhabit
a region or area) and abundance (the number

of representatives of an individual species in a roadkill due to new roads and more frequent
region or habitat type) within the project area; vehicle movements; introduction of invasive flora
they should also map vegetation and habitat or fauna species; flora or fauna predation and/or
types. exploitation by workers; increased tree cutting by
workers and locals for fuelwood; and the actions
The geographic scope of the assessment of primary suppliers.
should include: the river system upstream and
downstream of the project (downstream as far as The assessment of potential biodiversity-related
the project-induced influence is discernible, see risks during operation should include the effects
the Downstream Flow Regimes topic guideline); caused by: permanent loss of habitat area and
the future reservoir area; off-site activities such species through conversion of land to reservoir;
as quarries, waste disposal areas, transmission impacts due to poor water quality from physico-
line corridors and switchyards; areas utilised for chemically altered water, with many possible
various mitigation measures such as revegetation, sources; impacts due to rapid flow and water level
fish hatcheries and visitor centres; as well as fluctuations; high sediment loads to the river
activities related to off-site impacts within the through land-use changes; low sediment loads
supply chain. to the river through trapping in the reservoir;
impacts to terrestrial species due to aquatic
The baseline should establish important ecosystem changes; terrestrial species loss due
ecosystem, habitat and life cycle aspects of the to drowning during reservoir filling; wildlife
biodiversity present in the area, with particular losses due to unsuitable relocation areas; spread
attention paid to those that may experience of invasive flora or fauna species; reductions
changes due to the hydropower development in diversity or abundance of particular species
or operation. The assessment should note due to shifts in ecosystem balance or dynamics
important interdependencies between aquatic from changes in influencing factors; impacts
and terrestrial biodiversity; the protection to riparian habitats through riverbank erosion;
and management status of legally-protected loss of connectivity in the river system; risk of
project affected areas and any accompanying fish passage facilities mixing fish communities
management objectives and plans; as well as where fish migration was previously naturally
ecosystem services utilised by humans (e.g. food interrupted (due to natural barriers such as
supply, recreation, cultural significance, tourism waterfalls); fish mortality caused by fish passing
relevance, commercial or industrial importance). or pausing through or at the dam and other
project facilities; and over-exploitation of species
The biodiversity assessment should describe all due to increased fishing pressures at new focal
aspects of the ecosystems that will change and points.
the consequences for biodiversity. This includes
the effects of changes in flows, water levels, water Biodiversity-related opportunities should be
quality, food supply, habitats, vegetation cover identified where possible. These may include:
and exploitation patterns. Project activities and employing or working with local communities
locations of physical changes should be clearly to act as wardens for protected areas, monitors
identified and linked to potential impacts. In all of wildlife and protected area regulations,
cases where potential impacts are identified, collectors of monitoring data, and in delivery
the likelihood, significance and severity of of wildlife mitigation measures; research and
biodiversity impacts need to be assessed. development; strategic partnerships; addressing
and mitigating pre-existing negative impacts to
The assessment of potential biodiversity-related biodiversity and ecosystems (e.g. invasive species
risks during construction should include the management); education and awareness; creation
effects caused by: direct habitat loss; altered of new protected areas or an increase in the
flow regimes; disturbance due to noise, water level of protection and/or resources for existing
quality impacts (e.g. polluted discharges areas; improved catchment protection; creation
into the river system); vibration or dust from of expanded or rehabilitated habitat areas; use
excavation, drilling, blasting, or heavy machinery; of innovative technologies such as fish-friendly
construction-related sediment loads to the river; turbines; and expanded fish habitats in reservoirs
loss of habitat connectivity due to removal of providing opportunities for aquaculture and
linking habitat areas or creation of barriers; recreational fisheries.

Biodiversity and
Invasive Species
The biodiversity assessments should be • Fisheries: Catch Per Unit Effort (CPUE) in terms
undertaken using appropriate expertise and local of numbers and biomass by species (which in
knowledge. Experts for biodiversity assessment turn can be used to generate various indicators);
studies may include aquatic ecologists, terrestrial number of full-time, part-time and occasional
ecologists, zoologists, botanists and other fishers; fishing timing and time spent; type of
environmental science professionals. They should gear;
closely liaise with other experts conducting • Fish status, migration patterns and behaviours:
parallel studies, such as in hydrology, water Size or age, health, diet, reproduction, condition,
quality, geomorphology and sociology. species-specific information on migration
patterns (as far as possible this should include
distances travelled, timing, start/end/resting
Assessment places for migration);
Assessment criterion - Implementation Stage: • Benthic fauna: macroinvertebrates monitored
Biodiversity issues relevant to project implementation for community composition, status, distribution
and operation have been identified through an (habitat types) and abundance.
assessment process utilising appropriate expertise; • Aquaculture and reservoir fisheries (when
and monitoring is being undertaken during the applicable): species, production quantity and
project implementation stage appropriate to the value, inputs and costs, profitability;
identified issues.
• Terrestrial plant species: status, distribution,
abundance, etc., normally based on transects or
Assessment criterion - Operation Stage: Ongoing or sample plots;
emerging biodiversity issues have been identified,
and if management measures are required then
• Terrestrial animal species: status, distribution,
and densities through direct observation
monitoring is being undertaken to assess if based on transects, trapping, camera trapping,
management measures are effective. tagging, bat detectors, netting (for birds, bats,
dragonflies, butterflies), searching for signs (e.g.
Biodiversity-related issues determination during dung, feeding signs, footprints, burrows and
the implementation and operation stages should dens), noise monitoring and aural recognition
be based on changes to baseline biodiversity (for birds), active searching and trapping for
that may be or are incurred and the implications herpetofauna (reptiles and amphibians).
of these changes for other social, environmental
and/or economic objectives.
Management
Biodiversity monitoring objectives need to be Management criterion - Preparation Stage: Plans
clearly expressed, linked to risks and impacts, and processes to address identified biodiversity issues
and defined separately for the construction and have been developed for project implementation and
operation stages. The basis for the locations, operation with no significant gaps.
timing, parameters and methodologies adopted
should be clearly explained. Sampling locations
and techniques used for the baseline data The biodiversity section of the project
gathering during the ESIA work should be Environmental and Social Management Plan
continued as far as practical. Parameters used for (ESMP) should contain, at a minimum, the
biodiversity monitoring may be some or all of the following outlined separately for construction
following: and operation:
• Aquatic habitats: river width, depth, gradient, • all identified potential risks and impacts for
current velocity, water quality, substrata biodiversity;
characteristics, instream and riparian vegetation • mitigation measures for all risks and impacts
extent and condition; listed, with objectives and measures of success;
• Terrestrial habitats: extent, condition and • monitoring schedules clearly linked to the risks
community composition; often done with aerial and mitigation objectives;
photo or satellite imagery analysis with ground-
truthing; • reporting schedules and formats;

• budgets and responsible parties, including any • Measures to mitigate the introduction or spread
handover arrangements to different agencies or of invasive flora or fauna species: education
stakeholders over time; and awareness-raising; regulations prohibiting
introductions without a permit; extra care
• audit, review and evaluation provisions. to avoid invasive species being brought in
Ideally, adaptive management measures for with construction equipment (such as in soil,
unpredicted biodiversity impacts will also be ballast, containers or plant materials) through
included. These would focus on issues that wash-downs, sprays, or inspections; routine
might be identified through the monitoring and surveys; treatments to contain invasive species
surveillance and what the response would be spread (e.g. weed management, traps, culling);
management measures for species at risk of
(including responsible parties and contingency
decline due to invasive species; eradication
budget set aside). campaigns.
There is considerable knowledge and experience • Measures to mitigate flora or fauna predation
globally of the mitigation measures that can and/or exploitation by workers: labour colonies
be employed to avoid, minimise, mitigate and located away from forest or wildlife areas;
education and awareness-raising; regulations
compensate biodiversity-related impacts from
which prohibit hunting, fishing, animal
hydropower developments. collections or sale, flora or timber harvesting;
fines issued for violations.
Terrestrial mitigation • Measures to mitigate increased tree cutting by
Measures to address terrestrial biodiversity risks workers and locals for fuelwood: education and
and impacts could include some of the following: awareness-raising; distribution of alternative
cooking solutions (e.g. kerosene oil stoves,
pressure cookers, solar cookers) and fuel sources
• Measures to mitigate direct terrestrial habitat (e.g. construction of LPG depots).
loss: siting and design should minimise loss of
terrestrial habitat to that which is justified by • Measures to mitigate impacts to biodiversity
the project’s technical requirements, prioritising caused by the actions of primary suppliers:
locations for infrastructure that are already suppliers to provide environmentally-certified
modified or degraded; significant floral species products; suppliers to demonstrate that they
retrieved, relocated and replanted where feasible avoid degradation of natural or critical habitats.
prior to impact; seedbanks, nurseries and/or
gardens created; and as a last resort significant • Measures to mitigate impacts to terrestrial
residual impacts can be compensated through species due to aquatic ecosystem changes:
biodiversity offsets. terrestrial biota studies to identify important
life cycle needs relating to aquatic ecosystems;
• Measures to mitigate disturbance due to noise, mitigation measures for flows, water quality,
vibration or dust from excavation, drilling, erosion and sediments and biodiversity designed
blasting or heavy machinery: terrestrial biota to ensure terrestrial biota needs are met.
studies to identify sensitive areas (e.g. near nests)
or times of year (e.g. during migratory, breeding • Measures to mitigate terrestrial species loss due
or hatching/birthing) and appropriate controls to inundation during reservoir filling: Fauna:
to restrict impacts of blasting, drilling or heavy wildlife rescue and relocation programmes;
machinery. compensation of losses through offsets; Flora:
collection and transplanting of important flora
• Measures to mitigate loss of habitat connectivity species in the inundation area; nurseries to
due to removal of linking habitat area or creation propagate flora species lost in the inundation
of barriers by new infrastructure (buildings, area; compensation of losses through offsets.
roads): terrestrial biota studies to identify
species ranges, critical habitat and corridors, • Measures to mitigate wildlife losses due to
and migratory routes; avoidance of important unsuitable relocation areas: wildlife relocation
habitats; creation of new habitat corridors. programmes carefully planned to ensure
wildlife are moved to areas that they are able
• Measures to mitigate increased roadkill due to successfully occupy (i.e. dependencies such
to new roads and more vehicle movements: as elevation range, food supply, and nesting
education and awareness-raising; use of warning sites are considered as well as competition and
signs to avoid roadkill; speed controls, especially crowding factors); species are not relocated to an
at active times for animals (e.g. dawn, dusk); area just outside the reservoir rim, which is often
alert devices on vehicles to deter animals from unsuccessful due to prior occupation by existing
approaching the road; fines for road kills. wildlife ( i.e. competition for territory).

Biodiversity and
Invasive Species
• Measures to mitigate reductions in diversity or • Measures to mitigate loss of connectivity in
abundance of particular species due to shifts the river system due to the dam blocking fish
in terrestrial ecosystem balance or dynamics migration and plankton drift: fish passage
from changes in influencing factors: follow-up facilities (where applicable); fish hatcheries;
monitoring and studies identify trends and root catch-and-release programmes; protection of
causes of species reductions and enable the unregulated river systems as offsets.
design of appropriate adaptive management
measures; increased controls or levels of • Measures to mitigate fish mortality due to
protection are implemented for affected species downstream passage through turbines and
or habitats; increased food sources or artificial spillways: fish-friendly turbines; fish bypasses;
shelters are provided for affected species. fish screens; fish-friendly spillway designs;
turbine positioning to minimise barotrauma,
• Measures to mitigate over-exploitation of species i.e. injuries to fish caused by increased water
due to increased hunting or collecting pressures pressure when passing through the turbines;
at new focal points: risk mapping which operating rules for power station releases.
identifies likely focal points of illegal logging
or poaching; education and awareness-raising, • Measures to mitigate loss of downstream
particularly at new focal points; regulations floodplain habitat and/or off-stream waterbody
which prohibit hunting, fishing, animal connectivity: environmental flow approaches
collections or sale, flora or timber harvesting; relating to floods and inundation of off-river
increased surveillance; fines for violations. waterbodies; creation of connecting channels
from the river to the floodplain.
Aquatic mitigation • Measures to mitigate introduction of invasive
Measures to address aquatic biodiversity risks flora or fauna species: strict controls regarding
and impacts could include some of the following: species introductions; careful research ahead of
any aquaculture proposals; physical removal; or
• Measures to mitigate impacts due to altered containment; education and awareness-raising;
flows, including hydropeaking: project siting restrictions on location of facilities in flood-
upstream of a significant tributary; minimum prone locations.
downstream flow releases; seasonally or
monthly adjusted downstream flow releases; • Measures to mitigate over-exploitation of
flow ramp-up and ramp-down rules for power significant aquatic species due to cumulative
station releases; a re-regulation weir (see the impacts of the project (e.g. creation of popular
Downstream Flow Regimes topic guideline for fishing areas where fish concentrate): fishing
further details). regulations and effectively implemented
• Measures to mitigate high sediment loads to the enforcement actions.
river through land-use changes and follow-on
activities: catchment management protection;
erosion treatment; stricter policies on land
Management
degradation and rehabilitation; sediment check Management criterion - Implementation Stage:
dams. Processes are in place to ensure management of
• Measures to mitigate impacts due to loss of identified biodiversity issues, and to meet
species-preferred habitats through conversion commitments, relevant to the project
to reservoir area: protection of unregulated river implementation stage; and plans are in place for
systems as offsets; compensation measures for the operation stage for ongoing biodiversity issues
species affected, such as catching below the dam management.
or in other rivers, or breeding in hatcheries, and
then releasing upstream of the reservoir.
• Measures to mitigate impacts to riparian habitats are in place to manage identified biodiversity issues.
through riverbank erosion, which may be caused
by hydropeaking and aggressive river effects:
During the implementation and operation stages,
well-considered environmental flow releases to
minimise riparian erosion risks; bank protection the biodiversity-related plans developed based
with natural approaches such as placement of on the ESIA assessment work are put into action.
large woody debris; strategic planting of riparian For projects that did not have such thorough
flora species; habitat rehabilitation strategies; biodiversity assessment work as outlined in this
operating rules for power station releases.

guideline, biodiversity management plans can The significance of not meeting a commitment
still be developed based on assessment work is based on the magnitude and consequence of
focussed on identifying issues and risks. that omission and will be context-specific. For
example, a failure to demonstrate delivery of a
The important management requirements at fish passage facility commitment is a significant
the implementation and operation stages are to non-conformance, whereas a slight delay in
ensure that processes are in place that will enable delivery of a monitoring report could be a non-
biodiversity issues to be identified and responded significant non-conformance.
to. Such processes may include: clear statements
of business commitment to biodiversity within an
environmental or sustainability policy; dedicated
Outcomes
staff with biodiversity-related qualifications and Outcomes criterion - Preparation Stage: Plans avoid,
role requirements, and/or partnerships with more minimise, mitigate, and compensate negative
biodiversity-focussed organisations; allocation biodiversity impacts arising from project activities
of budget and resources to enable monitoring with no significant gaps.
and issues identification and response; regular
assessment (e.g. annual) of known and emerging Outcomes criterion - Implementation Stage: Negative
risks, issues and management responses, and biodiversity impacts arising from project activities
decision-making processes to ensure that issues are avoided, minimised, mitigated, and compensated
arising have actions assigned (e.g. through a with no significant gaps.
corporate environment committee).
Outcomes criterion - Operation Stage: Negative

Conformance/Compliance biodiversity impacts arising from activities of the
Conformance/Compliance criterion - Implementation operating facility are avoided, minimised, mitigated,
and Operation Stages: Processes and objectives in and compensated with no significant gaps.
place to manage biodiversity issues have been and
are on track to be met with no significant non- To show that plans avoid, minimise, mitigate
compliances or non-conformances, and biodiversity and compensate negative biodiversity impacts
related commitments have been or are on track to be from project activities, it should be possible to
met. directly link mitigation measures in the plans to
all identified biodiversity values, issues and risks.
Good practice requires evidence that biodiversity The assessment and planning should be informed
measures are compliant with the relevant legal by appropriate expertise. The assignment of
or administrative requirements, which may be responsibilities and resource allocation for
expressed in licence or permit conditions or implementation, monitoring and evaluation
captured in relevant legislation. Compliance should be appropriate to the planned actions.
requirements may relate to, for example,
standards to be met, the frequency and type of An evidence-based approach should demonstrate
monitoring to be performed, and reporting to be that negative biodiversity impacts arising
submitted. Conformance refers to delivering what from project implementation and operation
is in the plans. Commitments may be expressed activities are avoided, minimised, mitigated
in policy requirements of the developer or and compensated with no significant gaps.
owner/operator or in company statements made The developer and owner/operator should
publicly or within management plans. Evidence demonstrate that responsibilities and budgets
of adherence to commitments could be provided have been allocated to implement biodiversity
through, for example, internal monitoring and plans and commitments. Monitoring reports
reports, government inspections, or independent and data in the implementation and operation
review. Variations to commitments should stages should clearly track performance against
be well-justified and approved by relevant commitments and objectives, and capture
authorities, with appropriate stakeholder liaison. biodiversity impacts. It should be possible to

Biodiversity and
Invasive Species
provide examples to show how identified risks
from the assessment were avoided or minimised. It
should also be possible to table evidence to show
that mitigation plans have been implemented
and the outcomes are being monitored.
Implementation of measures for biodiversity, such
as the creation of protected areas, new habitats,
tree planting, fish hatcheries, fish passage facilities,
nurseries, and minimum flow releases, should be
evident, and monitoring should show how these
measures are achieving their stated objectives.

Erosion and
Sedimentation
This guideline expands on what is there may also be a number of social and
expected by the criteria statements in the environmental consequences if these issues are
not managed well.
for the Erosion and Sedimentation topic, This guideline addresses the management of
relating to assessment, management, erosion and sedimentation issues associated
conformance/compliance and outcomes. with the hydropower project or operating
The good practice criteria are expressed hydropower facility. The intent is that erosion and
sedimentation caused by the project or operating
for different life cycle stages. hydropower facility is managed responsibly
and does not present problems with respect
In the Hydropower Sustainability to other social, environmental and economic
Assessment Protocol (HSAP), this topic objectives; that external erosion or sedimentation
occurrences which may affect the project or
is addressed in P-20 for the preparation operating hydropower facility are recognised and
stage, I-16 for the implementation managed; and that commitments to implement
stage and O-16 for the operation stage. measures to address erosion and sedimentation
In the Hydropower Sustainability ESG are fulfilled.
Gap Analysis Tool (HESG), this topic is
Rivers naturally carry sediment loads. These are
addressed in Section 3. typically made up of: bed load, which moves
along the river bottom; suspended load, which is
carried within the water flow throughout the flow
Hydropower projects may fundamentally alter depth (some of which may only be in suspension
the landscape and there are likely to be changes under certain flow conditions); and wash load,
to the pre-existing erosion and sedimentation the portion of the suspended load typically of
patterns in the affected river system. Not only relatively fine material that is transported entirely
can erosion and sediment issues have strong through the system without deposition. Saltation
implications for the longevity of the hydropower refers to when particles on the bed are lifted into
installation and the maintenance costs, but suspension and fall back to the bed.

and Sedimentation
The river form or morphology, the flow rates
Erosion
works, drainage and settling ponds, catchment
and conditions (e.g. water depth, slope and treatment and erosion prevention works,
velocity), and the source of sediments affect the rehabilitation works in disturbed areas, desilting
river’s sediment load and how it is mobilised or chambers, sluice gates, reservoir flushing
where it is deposited. Sediments may be dropped strategies, dredging programmes; and
out by the river due to a reduction in river flow, • locations of other mitigation measure areas
an increase in-channel width, lower current and activities – e.g. reforestation activities, local
velocities, or break of slope; these dropped benefits in relation to erosion and sedimentation
sediments may form alluvial or flood plains. issues.
There are many terms for different types of fluvial
bedforms and landforms, including bars, pools, Assessment
riffles, meanders, oxbow lakes, fluvial terraces,
and islands. Fluvial channels (i.e. river or stream Assessment criterion - Preparation Stage: An
courses) have reaches or lengths of a common erosion and sedimentation issues assessment has
character that can be categorised as straight, been undertaken with no significant gaps; the
meandering, or braided. Anastomosed rivers assessment identifies impacts that may be caused
consist of multiple channels that could be either by the project, issues that may impact on the project,
straight, meandering, braided or a combination and establishes an understanding of the sediment
of these three channel planform types (an load and dynamics for the affected river system.
anastomosed river is considered a landform
feature but not a channel type in itself ). River The project Environmental and Social Impact
morphology is a dynamic process, with change Assessment (ESIA) should include evaluation
occurring over time, and is not one stable or static of the erosion and sediment related impacts of
condition. a hydropower project. A systematic approach
needs to be taken to identifying and evaluating
The geographic scope of erosion and sediments erosion and sediment status and potential
assessment and management must consider: impacts and risks from the proposed project.
Professionals working in this area might include:
• the catchment area for the reservoir in relation to hydraulic engineers, which is a specialty area
sediment yields;
of civil engineering focussed on the flow and
• the reservoir in relation to reservoir slope conveyance of fluids and sediments including
stability and reservoir sediment accumulation; the design and effects of hydraulic structures
• downstream river reaches below the dam and (e.g. bridges, canals, levees); and fluvial
power house in relation to concentrations and geomorphologists, which is a specialty area
loads for sediments in suspension, saltation and of geography focussed on the response of the
bed load as well as channel geomorphological landscape to water movement.
conditions in the river reaches that will be
affected by the project, as far downstream as the Alongside the ESIA, the feasibility studies and
flows are significantly project affected, and the detailed design report for the project will also
implications of changes for other river values address the technical risks relating to sediments.
and uses;
Liaison between the engineering and the
• the construction areas – e.g. reservoir environmental studies should be ensured so that
preparation works, dams (coffer, main, saddle), data and analyses are coordinated and consistent
adits, tunnels, power house, mitigation measures and provide information for both areas of need.
(e.g. a fish passage facility) – to determine the
potential erosion and sedimentation issues; The preparation stage assessment starts by
• locations of ancillary structures and activities establishing of the pre-project baseline. Studies
– e.g. labour camps, offices, concrete batching should establish the current sedimentation
plants, water-supply intakes, material fabrication regime and dynamics of the river to help
areas, supply storage areas, quarries, waste determine possible assessment approaches.
disposal areas, supply transport activities; Baseline studies should utilise appropriate
• locations of erosion or sediment-specific expertise for the erosion and sediment sampling
mitigation measures – e.g. slope stabilisation design, data collection, data analysis and

interpretation. Available sources of secondary including during the low flow season, the onset
data should be identified and included, as well as of the wet season (noting that this is the most
local knowledge and information. More emphasis significant time for sediment transport), and the
should be given to relatively recent secondary high flow season. Ideally the sampling efforts
data and checks should be made to see if there would be continuous throughout the minimum
have been changes in any conditions affecting sampling period of 12 months, with increasing
that data. Primary data should be collected for: sampling frequency during low-frequency,
high-magnitude events such as intense rainfall
• slope stability and erosion risk from locations during the monsoon period. Suspended sediment
in the vicinity of project activities, where land sampling should be done by depth-integrating
disturbance is planned, and in the catchment; methodologies and carried out in representative
• catchment condition (e.g. area, slopes, verticals of the river wherever and whenever
vegetation cover, soil types) to determine possible in accordance with a programme
present and likely future sediment yields into the established by an appropriate expert on
reservoir; geomorphology. In each season, a representative
• instream sediments (concentrations and loads number of samples should be analysed for
of suspended and bedload sediment) using particle size distribution and mineralogic
equipment and materials as per recognised content. Particle size analyses are important for
standards relevant to the sediment types and understanding fluvial geomorphic processes,
amounts; and the potential for scouring and erosion, and for
• river channel geomorphological conditions determination of potential wear on turbines and
in the project construction area and as far other equipment and the need for sediment
downstream as will experience significant flow exclusion devices.
changes from the future project.
Baseline sampling results should be presented
For primary data, a strategic approach should be and described in accordance with any legal
taken to the selection of sediment sampling sites requirements and interpreted with respect to all
to ensure a meaningful geographic spread and relevant environmental standards. During the
to include areas of likely change or sensitivity preparation stage, sampling results should be
to impacts. Instream sediment sampling data used to clearly establish the pre-project baseline
should be collected from a minimum of four conditions and the major influences on the
sampling locations: upstream and immediately results. The results should explain the pre-project
downstream of the future reservoir, and upstream status, trends and issues relating to sediment
and downstream of the next major tributary transport, river geomorphological processes,
downstream of the reservoir (and of the power and river channel condition and integrity. They
station tailrace if located some distance away). should also take into account flow and water
If possible, locations upstream and downstream quality data, surrounding land uses (e.g. locations
of other major tributaries and development of settlements and industrial and agricultural
activities should also be sampled. Ideally, activities), major tributaries, points of land
significant variations in sediment loads from the disturbance or sediment stockpiling, and points
different upstream sub-catchments should be of drainage discharge. Implications of findings
established to inform catchment management for aquatic habitats and life cycle needs, water
interventions that will reduce sediment loads quality, and other uses and values should be
within the future reservoir. identified and described.
During the preparation stage, sampling data The assessment of erosion and sediment related
should be collected over a period of at least 12 risks during construction should include the
months. The number and timing of sampling effects caused by: erosion and sediment run-
trips should be designed to obtain the most off created by direct disturbance of land during
representative data given the factors that construction activities; landslips caused by
could influence the result. For river sampling, road works, excavations and blasting; sediment
this should cover all seasonal conditions of the run-off from excavated waste dumps (i.e. spoil)
region. Timing of sample collection should be and topsoil storage areas; erosion due to poor
sure to capture very different flow conditions drainage design or maintenance; gullying caused

and Sedimentation
by water discharge points or concentrated Analyses for predicting reservoir sedimentation
Erosion
drainage areas; instream changes to channel include numerical models, physical models and
geomorphology due to changes to flows or trapping efficiency assessments. The pattern
sediment movement during construction; and distribution of sediment deposition in the
instream changes to channel geomorphology due reservoir needs to be predicted and linked to
to dumping of excavated materials into or close planning for the live storage over the long-term.
to waterbodies or direct disturbance by heavy It should not be assumed that all sediments will
machinery; and increased sediment run-off into be deposited in the deepest available volume, nor
rivers or streams at vehicle crossing points (e.g. that reservoir life corresponds to sedimentation
bridges, fords). of the dead storage, as patterns of sedimentation
tend to be more complex in practice.
Reservoir filling and project commissioning stage
erosion and sediment risks should include the Erosion and sedimentation opportunities
implications of changed flow regimes on erosion should be identified where possible. These
and sediments in the downstream river and any may include: improvements to pre-existing
potentially adverse impacts, e.g. due to reduced erosion and sedimentation issues in the project
flows or intermittent discharges of sediment- vicinity; improvements to land use planning
laden water. (e.g. retention of forest cover); use of new
technologies, such as for monitoring, slope
The assessment of erosion and sediment related treatment or rehabilitation; use of new land use
risks during operation should include the practices, such as crop rotation, crop choice, or
effects caused by: sediment accumulation in ploughing techniques; and partnerships with
the reservoir over time from catchment sources; community catchment protection or waterway
erosion of the reservoir rim due to steep slopes health monitoring groups.
and/or loss of stabilising vegetation; releases
of sediment-laden water through the low
level release valve or through flushing of the
Assessment
desilting chamber causing issues downstream; Assessment criterion - Implementation Stage:
riverbank or bed erosion due to ‘aggressive Erosion and sedimentation issues relevant to project
river’ or ‘hungry water’ effects (meaning that implementation and operation have been identified
the river’s erosive capacity below the dam is through an assessment process utilising appropriate
enhanced due to sediment being trapped within expertise; and monitoring is being undertaken during
the reservoir); riverbank or bed erosion in rivers the project implementation stage appropriate to the
subject to hydropeaking due to rapid water level identified issues.
changes; riverbank or reservoir rim erosion due
to rapid draw-down of saturated banks leading Assessment criterion - Operation Stage: Ongoing or
to bank slumping; localised riverbed sediment emerging erosion and sedimentation issues have
accumulation due to lower flows at points where been identified, and if management measures are
sediments continue to enter the river; and required then monitoring is being undertaken to
ongoing erosion issues from a lack of, or poorly assess if management measures are effective.
implemented, rehabilitation measures on land
disturbed during construction activities. Erosion and sediment related issues
determination during the implementation and
The implications of long-term temporal changes operation stages should be based on changes to
to flows and to extreme weather events, the baseline erosion and sediment condition and
potentially induced by climate change impacts, processes that may be or have been incurred, as
should be considered in the assessment of well as the implications of these for other social,
erosion and sedimentation. Significant changes environmental and/or economic objectives.
in flow arising from more intense weather events
can create additional risks relating to erosion, Consideration of what is an issue needs to
sediment movement, bank collapse, landslides take into account that there will be landscape
and mudslides. These can, in turn, have public adjustments brought about by the hydropower
safety implications. project that continue for many years until a

new equilibrium is reached, particularly in
the downstream river channels. Negative
Management
impacts are considered to be those erosion and Management criterion - Preparation Stage: Plans and
sediment changes caused by the project that processes to address identified erosion and
present problems with respect to other social, sedimentation issues have been developed for project
environmental and/or economic objectives, implementation and operation with no significant
or externally caused occurrences of erosion or gaps.
sedimentation that impact on the ability of the
project to meet its own social, environmental The erosion and sediment section of the
and/or economic objectives. Environmental and Social Management Plan
(ESMP) needs to contain, at a minimum, the
Erosion and sediment monitoring objectives following outlined separately for construction
need to be clearly expressed, linked to risks and operation:
and impacts, and defined separately for the
construction and operation stages. The basis • all identified potential risks and impacts for
for the locations, timing, parameters and erosion and sediments;
methodologies adopted should be clearly
explained. Sampling locations and techniques • mitigation measures for all risks and impacts
used for the baseline data gathering during the listed, with the objectives and measures of
ESIA work should be continued as far as practical. success;
Parameters used for erosion and sediment • monitoring schedules clearly linked to the risks
monitoring may include some or all of the and mitigation objectives;
following:
• reporting schedules and formats;
• land stability assessments; • budgets and responsible parties, including any
• aerial photo assessments or comparable; handover arrangements to different agencies
over time; and
• reservoir bathymetric surveys;
• riverbed load and suspended sediment • audit, review and evaluation provisions.
concentrations and loads, noting that the Adaptive management measures for unpredicted
mechanisms of transport varies depending erosion and sediment impacts are also ideally
on flow and hydraulic conditions and that included. These would focus on issues that
sampling equipment and its uses are very might be identified through the monitoring and
specialised to transport types and amounts; surveillance and what the response would be
• river channel geomorphology assessments (e.g. (including responsible parties and contingency
descriptions of deep pools, gravel beds, rapids, budget set aside).
riffles, sand bars, in-channel wetlands, riparian
slopes, vegetative cover); There is considerable knowledge and experience
globally of the mitigation measures that can
• riparian zone assessments (riverbanks and be employed to avoid, minimise and mitigate
reservoir rim); and erosion and sediment related impacts from
• observational inspections (e.g. of sediment hydropower developments.
storage areas, rehabilitation areas, drainage
channels). Measures to address erosion and sediment risks
and impacts at the construction stage could
• Where relevant, findings should be compared include some of the following:
to the relevant environmental standards and
interpreted in light of influential factors such • Mitigate erosion and sediment run-off
as flow, water level, season, activities, and created by direct disturbance of land: plans
vegetation cover. are developed prior to disturbance activities
to avoid, minimise and manage erosion
and sedimentation; contouring, drainage,
and settling ponds are employed during

and Sedimentation
disturbance works; rehabilitation measures are • Mitigate increased sediment run-off into
Erosion
implemented at the end of the disturbance rivers or streams at vehicle crossing points
activities. (e.g. bridges, fords): vehicle crossing points
• Mitigate landslips caused by road works, on streams or rivers are designed to minimise
excavations, and blasting: land stability is creation of erosion and sediment run-off,
assessed through geotechnical evaluations e.g. through location, gradients of approach,
during the feasibility studies to inform planning surface sealing, drainage.
of construction activities and potential risks; Measures to address erosion and sediment risks
slope stabilisation works are implemented and impacts at the operation stage could include
where needed; exclusion zones are created and some of the following:
signage employed to warn of worker and public
safety risks; work in areas prone to landslip • Mitigate sediment accumulation in the reservoir
risk is subject to appropriate safety measures; over time from catchment sources: Avoidance
landslips are treated quickly to stabilise and and minimisation: catchment protection,
repair. catchment reforestation, landslip prevention
• Mitigate sediment run-off from spoil dumps measures, sediment check dams, strict
and topsoil storage areas: sediment, spoil and rules on land disturbance in the catchment,
soil storage areas are identified through careful erosion treatment measures, sediment bypass
planning and used according to their capacities; structures. Management: density-current
compaction (where appropriate), bunding, venting (diverting flows within the reservoir
drainage and covers are used when required; carrying higher sediment loads out through
downstream settling ponds are used as needed. diversion tunnels, often combined with
desilting chambers); sediment pass-through
• Mitigate erosion due to poor drainage design or structures (e.g. sluice gates or low level outlets
maintenance: drainage is planned at the outset often left open for the first part of the rainy
for all potential erosion areas according to season to allow release of relatively higher
engineering standards; drainage is maintained sediment concentrations and accumulated
to specified standards; instances of erosion are sediments); sediment flushing (through bottom
treated promptly and incorporate measures for outlet gates used during reservoir draw-down);
avoidance of future incidents. dredging and transport downstream (e.g. by
• Mitigate gullying caused by water discharge barge or pipeline).
points or concentrated drainage areas: water • Mitigate erosion of the reservoir rim due
discharge or concentrated drainage points to steep slopes and/or loss of stabilising
are designed to prevent gullying, for example vegetation: restrictions to reservoir water level
through cement linings and slope protection change magnitude or rates; reservoir slope
works. treatment works; promotion of vegetation
• Mitigate instream changes to channel growth tolerable of water level changes on
geomorphology due to changes to flows or reservoir rim; restrictions to activities on the
sediment movement during construction: reservoir causing wave action and on the
downstream effects of flow changes or reservoir rim causing disturbance.
sediment transport changes are monitored • Mitigate releases of sediment-laden water
and residual flow releases made as needed to through the low level release valve or through
address sediment through-flow needs; channel flushing of the desilting chamber causing
stabilisation works. issues downstream: management plans and
• Mitigate instream changes to channel risk assessments for sediment-laden discharges
geomorphology due to dumping of excavated below the dam; timing of releases avoids
materials into or close to waterbodies or direct periods of high sensitivity to downstream
disturbance by heavy machinery: dumping ecosystems; releases planned when dilution
of excavated materials in watercourses is effects from tributaries can be provided.
prohibited and fines are issued if this practice • Mitigate riverbank or bed erosion due to
occurs; permits according to the approved ‘aggressive river’ effects: sediment bypass
construction plan; controls to manage erosion structures (in suitable conditions) to
and sediment into the downstream river (e.g. periodically divert sediment-laden water past
through settling ponds).

the reservoir, e.g. through a tunnel used for During the implementation and operation
high sediment loads at the start of the wet stages, the erosion and sediment related plans
season; sediment management strategies to developed based on the ESIA assessment work
address reservoir sediment accumulation (listed are put into action. For projects that did not have
above). such thorough erosion and sediment assessment
work as outlined in this guideline, erosion
• Mitigate riverbank or bed erosion in rivers
and sediment management plans can still be
subject to hydropeaking, due to rapid water
developed based on assessment work focussed
level changes: power station release ramp-
on identifying issues and risks.
up and ramp-down rules; maintenance of
minimum flows; riverbank protection works;
The important management requirements at
strategic placement of large woody debris for
the implementation and operation stages are to
bank protection and habitat maintenance.
ensure that processes are in place that will enable
• Mitigate riverbank or reservoir rim erosion due erosion and sediment issues to be identified
to rapid draw-down of saturated banks leading and responded to. Such processes may include:
to bank slumping: reservoir ramp-down rules clear statements of business commitment to
to minimise rapid draw-down; potentially erosion and sediment within an environmental
combined with restrictions on duration of high or sustainability policy; dedicated staff with
water levels to prevent full bank saturation. erosion and sediment related qualifications
or role requirements, and/or a partnership
• Mitigate localised riverbed sediment
with a more erosion and sediment focussed
accumulation due to lower flows at points
organisation; allocation of budget and resources
where sediments continue to enter the river:
to enable monitoring and issues identification
flushing release strategies from the dam or
and response; and decision-making processes
power station; localised sediment extraction
to ensure that issues arising have actions
from the river; erosion management works
assigned (e.g. through a corporate environment
in the catchment(s) that contribute sediment
committee).
loads to the downstream river.
• Mitigate ongoing erosion issues from a lack
of or poorly implemented rehabilitation
measures on land disturbed during Conformance/Compliance criterion -
construction activities: carefully planned and Implementation and Operation Stages: Processes
well-implemented rehabilitation works for and objectives in place to manage erosion and
construction stage land disturbance, with sedimentation issues have been and are on track
follow-up monitoring and further treatment to be met with no significant non-compliances or
when required. non-conformances, and erosion and sedimentation
related commitments have been or are on track to be
met.
Management
Good practice requires evidence that erosion
Processes are in place to ensure management of
and sediment measures are compliant with the
identified erosion and sedimentation issues, and to
relevant government requirements, which may
meet commitments, relevant to the project
be expressed in licence or permit conditions
implementation stage; plans are in place for the
or captured in relevant legislation. Compliance
operation stage for ongoing erosion and
sedimentation issues management.
standards to be met, the frequency and type of
monitoring to be performed, and reporting to be
Management criterion - Operation Stage: submitted. Conformance refers to delivering what
Measures are in place to manage identified erosion is in the plans. Commitments may be expressed
and sedimentation issues. in policy requirements of the developer or

and Sedimentation
owner/operator or in company statements made To show that plans avoid, minimise, mitigate
Erosion
publicly or within management plans. Evidence and compensate negative erosion and sediment
of adherence to commitments could be provided impacts from project activities, it should be
through, for example, internal monitoring and possible to directly link mitigation measures
reports, government inspections, or independent to all identified erosion and sedimentation
review. Variations to commitments should issues and risks. The assessment and planning
be well-justified and approved by relevant should be informed by appropriate expertise.
authorities, with appropriate stakeholder liaison. The assignment of responsibilities and resource
allocation for implementation, monitoring and
The significance of not meeting a commitment evaluation should be appropriate to the planned
is based on the magnitude and consequence of actions.
that omission and will be context-specific. For
example, a failure to install a sediment flushing An evidence-based approach should demonstrate
mechanism required as a licence commitment is that negative erosion and sediment impacts
a significant non-compliance, whereas a slight arising from project implementation and
delay in delivery of a monitoring report could be operation activities are avoided, minimised,
a non-significant non-conformance. mitigated and compensated with no significant
gaps. The developer and owner/operator should
demonstrate that responsibilities and budgets
Outcomes have been allocated to implement erosion and
Outcomes criterion - Preparation Stage: Plans avoid, sediment plans and commitments. Monitoring
minimise and mitigate erosion and sedimentation reports and data in the implementation and
issues arising from project activities and erosion and operation stages should clearly track performance
sedimentation issues that may impact on the project against commitments and objectives, and
with no significant gaps. capture erosion and sediment impacts. It should
be possible to provide examples to show how
identified risks from the assessment were avoided
Outcomes criterion - Implementation Stage: Erosion
or minimised. It should also be possible to table
and sedimentation issues during project
evidence to show that mitigation plans have
implementation are avoided, minimised and
been implemented and are being monitored.
mitigated with no significant gaps.
Implementation of measures for erosion and
sediment, such as bank protection works,
Outcomes criterion - Operation Stage: Erosion and sediment check dams or retention ponds, and
sedimentation issues are avoided, minimised and sediment flushing or bypass mechanisms, should
mitigated with no significant gaps. be evident, and monitoring should show how
they are achieving their stated objectives.

Reservoir
Management
This guideline expands on what is management requirements, power generation

expected by the criteria statements in the operations, maintenance, and multi-purpose uses
where relevant.
for the Reservoir Management topic, Reservoir in this context refers to any artificial
relating to assessment, management pondage or lake used by the project for the
and conformance/compliance. The storage and regulation of water, regardless
good practice criteria are expressed for of whether the hydropower development is
labelled as a storage or run-of-river scheme.
different life cycle stages. All hydropower projects create some sort of
impoundment or water retention behind the
In the Hydropower Sustainability dam wall, which is drawn on through the power
Assessment Protocol (HSAP), this topic station to power the turbines. Reservoirs vary
considerably in character depending on many
is addressed in P-22 for the preparation factors. Reservoirs with little storage capacity may
stage, I-19 for the implementation be called run-of-river, but there is still some water
stage, and O-18 for the operation stage. retention behind a dam wall. Pump storage
In the Hydropower Sustainability ESG projects will have two reservoirs, an upper and
Gap Analysis Tool (HESG), this topic is lower.
addressed in Section 11. Reservoir area refers to the area that is
inundated when the reservoir is at its maximum
operational level, referred to as Full Supply
Level (FSL). There may be a dry buffer zone
This guideline addresses planning for and on the land above the FSL, often defined for
management of environmental, social and land use planning and reservoir management
economic issues within the reservoir area during purposes. The operating range of the reservoir
project planning, project implementation, is the difference in level between FSL and the
and operations of the hydropower facility. Normal Minimum Operating Level (NMOL).
The intent is that reservoir preparation, filling, The reservoir depth over its area is referred to
and operations are well-managed, taking into as the bathymetry. Bathymetric surveys will
account construction, environmental and social show if siltation is reducing the reservoir water

Management
Reservoir
storage area. Active storage is the water above A number of implementation stage activities
the power station intake that can be drawn on to will need to be undertaken for reservoir
generate power. Dead storage is the water stored preparation purposes, and assessments during
in the reservoir that cannot be drawn through the preparation stage should inform the extent
the power station intake. In addition, Reservoir and approach required for these activities.
operating rules will dictate patterns of reservoir Relevant activities might include: resettlement
water level change. planning; clearing of vegetation; retrieval and
appropriate protection for vegetation species that
are recognised to be of value; management of
Assessment contaminated or cultural heritage sites that would
Assessment criterion - Preparation Stage: An be inundated; slope stabilisation and treatment
assessment has been undertaken of the important works; construction of boat ramps; establishment
considerations prior to and during reservoir filling of a vegetated buffer zone; and preparation of
and during reservoir operations, with no significant areas to receive relocated wildlife presently living
gaps. in the area that will be inundated. The timing
of these activities should be carefully planned
During the preparation stage, a number of so that there are no conflicts or interface issues
considerations need to be evaluated and with other aspects of the overall hydropower
optimised with respect to siting, design and project development (see the Integrated Project
planning for the future reservoir. Siting and Management guideline). Worker occupational
design are strongly influenced in the first instance health and safety is an important consideration
by the hydrological resource assessments (see with the activities undertaken in the reservoir
both the Siting and Design and the Hydrological area during the implementation stage (see under
Resource topic guidelines), the analyses of the Management criterion below); because the
electricity generation potential and demand, areas can be remote, vast and in some cases
and by the geotechnical studies conducted to forested, there can be high risks that are not
ensure suitable geology and foundations for managed as closely as those risks on the actual
the future dam. Technical and financial aspects construction worksite.
need to be considered alongside environmental,
social and governance considerations. The Assessments to inform operation stage
location, scale and future operational plans reservoir planning should address: optimising
may give rise to relatively greater (or fewer) power generation; maintenance requirements;
social and environmental impacts compared debris management (particularly an issue in
to other options, and this needs to be carefully monsoon prone parts of the world); multiple
assessed through analyses of alternatives (see the uses (e.g. commercial, recreational); safety;
Siting and Design guideline). Land tenure, land flood management; shoreline erosion; reservoir
acquisition and land compensation processes sedimentation; public access and safety; water
are important governance considerations that quality; biodiversity; invasive species; waterborne
need to be well-understood in terms of roles, diseases; and monitoring.
responsibilities, and social and environmental
consequences. Future land and water resource Assessment
rights and responsibilities for the reservoir and
Assessment criterion - Implementation Stage:
surrounding area need to be clarified at the
The important considerations prior to and during
outset and are likely to differ depending on
reservoir filling and during operations have been
the focal areas (e.g. fisheries, water abstraction,
identified through an assessment process; and
development, recreational uses).
monitoring of implementation activities is being
undertaken appropriate to any identified issues.
Assessments during the preparation stage should
be embedded within the Environmental and
Social Impact Assessment (ESIA) and should Assessments during the implementation stage
separately consider and inform construction beyond those listed for the preparation stage
and operation stage Environmental and Social relate to detailed planning for all implementation
Management Plans (ESMPs). stage activities in the reservoir area as described

above. Timing and rate of reservoir filling in improved water-based transport); public safety;
relation to other management measures is a public facilities; lake level fluctuation patterns;
critical consideration at this stage. Important timber build up; invasive species; recreational
considerations relating to reservoir filling or commercial fishing; reservoir rim erosion;
include: the consequences for dam safety and for flood management; development in the buffer
downstream flow regimes with the rate of filling; zone; and modes of travel around the reservoir
the water quality impacts from decomposition (walking, cycling, boating, vehicles).
of inundated biomass and soil; and community
preparedness and community safety. Modelling Monitoring may be undertaken by a variety
of reservoir water quality undertaken for the ESIA of mechanisms and may include visual
should inform expectations on issues arising with observations, water level recording, water
reservoir filling. Wildlife rescue programmes may quality measurements, reservoir rim stability
be implemented during reservoir filling as faunal measurements, or bathymetric surveys to assess
species will migrate to high ground, which may reservoir sedimentation.
end up becoming islands in the new reservoir
area. Monitoring of effectiveness of rescue efforts,
and the fate of relocated species, is an important
Management
assessment focal area. Management criterion - Preparation Stage: Plans and
processes to manage reservoir preparation, filling
and operations have been developed.
Assessment
Assessment criterion - Operation Stage: Ongoing or Sections of the ESMP should address specific
emerging reservoir management issues have been reservoir related issues that require management
identified, and if management measures are required interventions during either the construction or
then monitoring is being undertaken to assess if operation stage. Specific planning aspects that
management measures are effective. may be addressed could include, for example,
reservoir vegetation clearance, reservoir rim
Mechanisms by which ongoing or emerging stabilisation works, wildlife rescue plans for
reservoir management issues might be identified the reservoir filling period, public safety plans,
could include: risk assessments and management and cultural heritage management plans. The
plans; stakeholders and community engagement reservoir area may be the focus of an ESMP
mechanisms; observations by operations and section or addressed in dedicated management
maintenance staff; hydrological analyses; incident plans for specific actions (e.g. wildlife rescue,
reports; contractor communications; monitoring water quality, resettlement).
programmes; and periodic reviews of specific
consideration areas (e.g. of public access or of Management
notification mechanisms for maintenance related
drawdowns). Management criterion - Implementation Stage:
Measures are in place to address identified needs
The reservoir may have an operational life of during reservoir preparation and filling; and plans are
many decades or even a century. Surrounding in place to manage the reservoir and any associated
communities and developments will evolve over issues for the operating hydropower facility.
that time, as will governance arrangements,
environmental awareness and trends, and societal Management criterion - Operation Stage: Measures
expectations. Emerging risks or opportunities are in place to manage identified issues.
may be in relation to, for example: climate change
related issues; multi-purpose considerations; Management actions during the implementation
leveraging of the reservoir for other industries and operation stages should be consistent
(e.g. tourism, aquaculture, irrigation) or as with relevant plans. Mechanisms should be in
a vehicle for development (e.g. a source of place by which reservoir management issues
clean water, fisheries and other livelihoods, can be identified and addressed. Identification
of ongoing or emerging issues may take place
through follow-up monitoring programmes that

Management
Reservoir
were committed to during project development measures taken by the operators to minimise risks
if the operating hydropower facility was should be evident, such as barriers and signage
commissioned relatively recently. keeping boats sufficiently far away from the
intake.
Once the reservoir is filled and the power
station is operating, reservoir management
considerations are multiple. These may include:
optimising power generation; maintenance Conformance/Compliance criterion - Implementation
requirements; debris management (particularly and Operation Stages: Processes and objectives in
an issue in regions prone to storms and/ place for reservoir management have been and
or flooding); multiple uses (e.g. commercial, are on track to be met with no significant non-
recreational); safety; flood management; compliances or non-conformances, and reservoir
shoreline erosion; reservoir sedimentation; management related commitments have been or are
public access; water quality; biodiversity; invasive on track to be met.
species; waterborne diseases; development
pressures; waste management; transport; and Good practice requires evidence that reservoir
aesthetic issues. Every reservoir’s context, uses management measures are compliant with
and issues are unique and the management the relevant legal and/or administrative
considerations will differ from operating facility to requirements, which may be expressed in
facility. licence or permit conditions or captured in
relevant legislation. Compliance requirements
Reservoir operating rules should reflect agreed
may relate to, for example, standards to be
measures to address generation needs and
met, the frequency and type of monitoring to
balance competing uses, risks and safety
be performed, and reporting to be submitted.
issues. These should include flood and drought
Conformance refers to delivering what is in the
operating rules, and necessary notifications. Any
plans. Commitments may be expressed in policy
operating measures to address environmental or
requirements of the developer or owner/operator,
social values should be embedded and explained
or in company statements made publicly or
in the operating rules.
within management plans. Evidence of adherence
Responsibilities for the different reservoir
management considerations, especially during
the operating stage, are likely to vary from site
to site. Some of these may rest with the operator,
others with national government agencies, and
others with the local council or departmental
level government.
Over time, responsibility for management
of different aspects of the reservoir may be
For example, a failure to demonstrate delivery
passed over to the government or local or other
of a major commitment such as developing
agencies, ceasing to be within the sphere of
infrastructure for public usage (e.g. a public
direct responsibility of the operating facility. In
boat ramp) is likely to be a significant non-
this case, there should be mechanisms for shared
conformance, whereas a slight delay in delivery
information and collaborative management
of a monitoring report could be a non-significant
around the ongoing reservoir management (e.g. a
non-conformance.
reservoir management committee). Management

Water Quality
This guideline expands on what is as required; and commitments to implement

expected by the criteria statements in the measures to address water quality are fulfilled.
Hydropower Sustainability Tools (HST) Hydropower developments may fundamentally
for the Water Quality topic, relating to change water movement along a river, which
assessment, management, conformance/ in turn can generate associated water quality
compliance and outcomes. The good impacts. Water impounded behind a dam can
practice criteria are expressed for either create a new lake or raise the level of an
existing lake. The flow rates and patterns may
different life cycle stages. change significantly. Impoundments can become
stratified (i.e. layered with respect to certain
In the Hydropower Sustainability characteristics such as oxygen and temperature),
Assessment Protocol (HSAP), this topic or stratification patterns in existing deep lakes
can change. Sediments and pollutants may be
is addressed in P-21 for the Preparation transported into the waterway from upstream
stage, I-17 for the Implementation sources (e.g. wastewater discharges, landslips,
stage and O-17 for the Operation stage. agriculture, mining, erosion) or may result from
In the Hydropower Sustainability ESG operation of the infrastructure (e.g. oil spills).
Gap Analysis Tool (HESG), this topic is All of this can change the processes governing
water quality in the lake and downstream. Both
addressed in Section 3. construction and operation stage activities
can be sources of water quality impacts to the
receiving environment, with consequent issues
This guideline addresses the management for ecosystem processes and services as well
of water quality issues associated with the as socio-economic uses and values. Adverse
hydropower project development and the water quality can also cause problems for asset
operating hydropower facility. The intent is that performance and longevity, and a hydropower
water quality in the vicinity of the project or the facility operator may be under pressure to resolve
operating hydropower facility is not adversely downstream water quality issues not caused by
impacted by project activities or activities of the the facility through controlled water releases.
operator; that ongoing or emerging water quality
issues are identified, monitored and addressed

Water Quality
The geographic scope of the water quality The preparation stage assessment starts with
assessment and management must consider: establishment of the pre-project baseline.
Baseline studies should utilise appropriate
• surface water, groundwater and drinking water; expertise for the water quality sampling design,
• the catchment area for the reservoir – to data collection, data analysis and interpretation.
determine the present and likely future Available sources of secondary data should
condition and the surrounding influences on be identified and included, as well as local
water quality; knowledge and information. More emphasis
• the reservoir – to determine the water quality should be given to relatively recent secondary
conditions in the reservoir water; data and checks should be made to see if there
have been changes in any conditions affecting
• downstream river reaches below the dam and that data. For primary data, a strategic approach
power house – to determine the present and should be used for the selection of water quality
likely future water quality conditions in the river
sampling sites to ensure a meaningful geographic
reaches that will be affected by the project as far
downstream as the flows are significantly project spread and to include areas of likely water quality
affected; change or sensitivity to water quality impacts.
At a minimum there should be four sampling
• the construction areas – e.g. reservoir locations: upstream of the future reservoir
preparation works, dams (coffer, main, saddle), backwater, in the inundation area of the future
adits, tunnels, power house, mitigation measures
reservoir, immediately downstream of the future
(e.g. fish passage facility);
dam site, and downstream of the next major
• ancillary structures and activities – e.g. worker tributary downstream of the future dam site. If
camps, offices, concrete batching plants, water possible and ideally, more locations would be
supply intakes, material fabrication areas, supply included, such as upstream and downstream of
storage areas, quarries, waste disposal areas,
other major tributaries, townships, development
roads, supply transport activities; and
activities and point-source discharge points as
• mitigation measure areas – e.g. fish hatchery, well as from within significant tributaries. It can
reforestation activities, local benefits. be advantageous to collect water quality data
from locations at which the findings can be linked
Assessment to hydrological data, and where practicable also
to sediment and aquatic biodiversity monitoring
Assessment criterion - Preparation Stage: A water data, as this can help with interpretation of
quality issues assessment has been undertaken with findings.
no significant gaps.
During the preparation stage, sampling data
The project Environmental and Social Impact should be collected over a period of at least 12
Assessment (ESIA) should include evaluation months. The number and timing of sampling
of the water quality impacts of the proposed trips should be designed to obtain the most
hydropower project. A systematic approach representative data given the factors that could
to identifying and evaluating water quality influence the results. For river sampling, this
status and potential impacts and risks needs should cover all seasonal conditions of the region.
to be taken. Professionals working in this area Timing of sample collection should be sure to
can include: water quality specialists; aquatic capture very different flow conditions, including
chemists; geochemists; limnologists, who study during the low flow season, the onset of the wet
stratification in lakes and reservoirs; fluvial season (noting this is the most significant time for
geomorphologists, who study river morphology fluvial transport), and the high flow season.
and sedimentation and need to understand
the interlinkages with turbidity and riverine Water quality sampling results should be
transport of, for example, organic compounds; presented and described in accordance with any
macroinvertebrate taxonomists, who classify legal requirements and interpreted with respect
and count aquatic bugs and understand the to all relevant environmental standards. During
relationships between water quality and the the preparation stage, sampling results should
needs of these species; and aquatic ecologists, be used to clearly establish the pre-project
who study freshwater ecosystems. baseline conditions and the major influences on

the results. Results should explain the pre-project • releases of highly turbid water through the low
status, trends and issues, taking into account level release valve or through flushing of the
flow, season, surrounding land uses (e.g. locations desilting chamber;
of settlements and industrial and agricultural • pollution from permanent offices and project
activities), major tributaries, and points of water infrastructure, such as the power house;
abstraction, treatment and discharge.
• chemical or waste spills from the power station
or surrounding buildings; and
Sources and types of water quality risks that
should be assessed relevant to the construction • turbidity increases due to riverbank erosion in
stage should include: rivers subject to hydropeaking, or ‘aggressive
river’ effects (also known as ‘hungry water’),
• quality standards of water used within worker meaning that the river’s erosive capacity below
camps and for construction site activities; the dam is enhanced due to sediment trapping
within the reservoir.
• sewage and solid waste from worker camps;
• Water quality opportunities should also be
• sewage and solid waste from the increased assessed. These may include:
population attracted to the area;
• addressing pollutants from non-project activities
• dumping of excavated materials into or close to such as sewage, wastes, or contaminated sites;
waterbodies;
• improving water quality compared to pre-
• contaminated surface or groundwater from project conditions;
drilling, blasting, quarrying and stone crushing
activities; and • using new monitoring or treatment technologies
such as increased automation; and
• oil and chemical spills from workshops, storage
areas and during transport. • forming partnerships with community waterway
health monitoring groups.
Reservoir filling and project commissioning stage
water quality risks should include consideration
of the implications of changed flow regimes on Assessment
water quality in the downstream river and any Assessment criterion - Implementation Stage: Water
potentially adverse impacts, for instance due to quality issues relevant to project implementation
reduced flows or intermittent discharges of low and operation have been identified through an
quality water. assessment process utilising appropriate expertise;
and monitoring is being undertaken during the
Sources and types of water quality risks that project implementation stage appropriate to the
should be assessed relevant to the operation identified issues.
stage should include:
Assessment criterion - Operation Stage: Ongoing or
• pollutant inflow to the reservoir or downstream
reaches from surrounding activities; emerging water quality issues have been identified,
and if management measures are required then
• algal blooms during dry periods in areas with monitoring is being undertaken to assess if
surrounding use of fertilisers; management measures are effective.
• stratification and seasonal circulation within the
reservoir; Water quality related issues during the
• reservoir turbidity due to erosion in the reservoir implementation and operation stages should
rim; consider changes to the baseline water quality
condition and processes and the implications of
• release of toxicants (e.g. heavy metals) from these changes for other social, environmental
inundated sediments and contaminants in the
reservoir; and/or economic objectives. Water quality during
the project implementation stage requires a
• reduced oxygenation in the reservoir and particular focus on construction-related issues
downstream; and downstream impacts related to the river
• gas supersaturation in the releases downstream; diversion, whereas the operation stage often
involves longer-term issues, multiple-use issues,
• unseasonal temperatures in the reservoir and in
the releases downstream; and periodic incidents.

Water Quality
Water quality monitoring objectives need to be • reporting schedules and formats;
clearly expressed, linked to risks and impacts, • budgets and responsible parties, including any
and defined separately for the construction and handover arrangements to different agencies
operation stages. The basis for the locations, over time; and
timing, parameters and methodologies adopted
should be clearly explained. Sampling locations • audit, review and evaluation provisions.
and techniques used for the baseline data Adaptive management measures for unpredicted
gathering during the ESIA work should be water quality impacts are also ideally included.
continued as far as practical. In deep reservoirs, These would focus on issues that might
depth-profiles should be undertaken at several be identified through the monitoring and
locations to detect stratification and be linked to surveillance and what the response would be
seasonal and operational variability. Depending (including responsible parties and contingency
on the exact focal area required in relation to budget set aside).
risks, the parameters used for water quality
monitoring may be some or all of the following: There is considerable knowledge and experience
globally of the mitigation measures that can
• physico-chemical water quality characteristics: be employed to avoid, minimise and mitigate
temperature, pH, electrical conductivity, acidity, water quality related impacts from hydropower
clarity, alkalinity, dissolved oxygen in surface and
developments.
sub-surface water;
• turbidity; Measures to address water quality risks and
• metals, which may include: total and dissolved impacts arising from the project site could
iron, manganese, zinc, mercury, arsenic, include some of the following:
cadmium (plus others if known to be of local
concern); • Mitigate insufficient water of appropriate quality
for worker camps and industrial activities: water
• nutrients and carbon (total and dissolved); and quantity and quality needs are thoroughly
• indicators of organic pollution (Biological identified in the design and feasibility studies,
Oxygen Demand (BOD), Chemical Oxygen sources are confirmed as available, and water
Demand (COD), E. coli). supply infrastructure is built into designs
including with treatment facilities if required.
Where relevant, findings should be compared
to the relevant environmental standards and
• Mitigate sewage, solid waste and polluted run-
off from worker camps, workshops, buildings:
interpreted in light of influential factors such as waste and run-off generation is conservatively
flow, water level, season, and activities. (i.e. over-) estimated for construction and
operation stages; well-designed drainage
Management collection points; run-off and wastewater
treatment plants are of an appropriate capacity
Management criterion - Preparation Stage: Plans and with discharge points in high velocity flow areas
processes to address identified water quality issues away from water users.
have been developed for project implementation and • Mitigate run-off from dumping of excavated
operation with no significant gaps. materials: conservative (i.e. over-) estimation
of excavated materials and their volumes;
The water quality section of the Environmental clearly identified dumping areas that as far as
possible avoid steep slopes, riparian zones,
and Social Management Plan (ESMP) needs to
and the risk of materials entering waterbodies;
contain, at a minimum, the following outlined spoil containment and drainage management
separately for construction and operation: measures; closing off of contaminant transport
pathways; machinery access built into designs
• all identified potential risks and impacts for so that compaction, slope stabilisation and
water quality; revegetation are implemented progressively.
• mitigation measures for all risks and impacts • Mitigate contaminated surface or groundwater
listed, with the objectives and measures of from activities such as drilling, blasting,
success; tunnelling, quarrying and stone crushing:
• monitoring schedules clearly linked to the risks sediment traps and settling tanks, along
and mitigation objectives; with well-planned access for machinery

to periodically clean them out, and clearly limiting boat speeds and planning rules limiting
identified dumping areas for any sludge. shoreline development and activities; creation of
• Mitigate oil and chemical spills from workshops a reservoir buffer zone.
and storage areas: fully identified workshop and • Mitigate organic decomposition in the reservoir
storage areas with specific locations for oil, fuel during the early years of operation leading to the
and chemical storage and refuelling, at which consumption of oxygen: clearing of vegetation
bunding of an appropriate volume is provided. and organic materials in the reservoir in
• Mitigate oil spills and leakages in the power identified priority locations prior to inundation.
station: careful estimation of oil needs and • Mtigate risks in shallow lakes in windy, exposed
exploration of minimisation options, such as settings of turbidity caused by resuspension of
equipment choice and design (including water- bottom sediments: mechanisms such as baffles
lubricated turbines), appropriately sized and to direct circulation and ensure adequate water
placed sumps, and regular inspections and flow-through and mixing; wind barriers (built
maintenance of oil-containing vessels. or planted) to reduce wind-induced mixing;
planting and managing appropriately selected
Measures to address externally generated water macrophyte communities (aquatic vegetation).
quality risks and impacts could include some of
the following: Measures to address downstream water quality
risks and impacts could include some of the
• Mitigate catchment area generated pollution: following.
catchment management measures such as
reforestation, protected areas, check dams, • Mitigate downstream gas supersaturation:
drainage works, rehabilitation, and fertiliser use inclusion of stilling basins, spillway design, or
reduction strategies. through structures that favour degassing.
• Mitigate sewage and solid waste from increased • Mitigate inadequate mixing of power station
population attracted to the area: dialogue discharges with water of ambient characteristics:
with the local municipality about capacities of siting of the tailrace discharge point upstream of
existing solid and wastewater collection and a significant tributary.
treatment facilities; partnerships on upgrade or
augmentation measures in a timely manner.
• Mitigate releases of highly turbid water through
the low level release valve or through flushing of
Measures to address within reservoir water the desilting chamber: careful consideration of
quality risks and impacts could include some of the locations, capacities, timing and operating
the following: patterns for use of the low level release valve
and flushing of the desilting chamber and
• Mitigate the formation of reservoir stratification the location of the discharge points to seek to
in relatively deep lakes, potentially leading to minimise highly concentrated pulses released
deoxygenated and unseasonal temperature into the downstream environment.
water released to downstream, and in cases • Mitigate turbidity increases due to riverbank
release of heavy metals in the sediments: erosion in rivers subject to hydropeaking or
reservoir siting and design to minimise the aggressive river effects: built measures to
likelihood and/or degree of stratification; dampen fluctuations such as a re-regulation
reservoir design and operating rules to minimise weir; flow management to dampen fluctuation
water residence time and ensure through-flow; such as minimum flows (to reduce range and
if stratification will occur, selective or multi-level water surface slope of pulses); ramp-down rules;
offtakes incorporated for projects within deep bank protection works.
reservoirs to limit the amount of water drawn
into the power station from cold, anoxic depths;
seasonal management of lake levels to ensure Management
releases of oxygenated water at seasonally
appropriate temperatures; air injection facilities Management criterion - Implementation Stage:
in the power station; aerating turbines. Processes are in place to ensure management of
identified water quality issues and to meet
• Mitigate increased turbidity due to erosion commitment, relevant to the project implementation
of the reservoir rim: reservoir operating rules stage; and plans are in place for the operation stage
governing the rates of water level rise and fall
for ongoing water quality issues management.
to minimise shoreline erosion; reservoir rim
treatment works for erosion prevention; rules

Water Quality
Management criterion - Operation Stage: publicly, or within management plans. Evidence
Measures are in place to manage identified water of adherence to commitments could be provided
quality issues. through, for example, internal monitoring and
reports, government inspections, or independent
During the implementation and operation review. Variations to commitments should
stages, the water quality related plans developed be well-justified and approved by relevant
based on the ESIA assessment work are put authorities, with appropriate stakeholder liaison.
into action. For projects that did not have
sufficiently thorough water quality assessment The significance of not meeting a commitment
work as outlined in this guideline, water quality is based on the magnitude and consequence
management plans can still be developed based of that omission and will be context-specific.
on assessment work focussed on identifying For example, a failure to demonstrate delivery
issues and risks. of a major mitigation commitment such as a
wastewater treatment plant is a significant non-
The important management requirements at compliance, whereas a slight delay in delivery of
the implementation and operation stages are a monitoring report could be a non-significant
to ensure that processes are in place that will non-conformance.
enable water quality issues to be identified and
responded to. Such processes may include: clear Outcomes
statements of business commitment to water
quality within an environmental or sustainability Outcomes criterion - Preparation Stage: Plans avoid,
policy; dedicated staff with water quality related minimise and mitigate negative water quality
qualifications and role requirements, and/or a impacts arising from project activities with no
partnership with a more water quality focussed significant gaps.
organisation; allocation of budget and resources
to enable monitoring and issues identification Outcomes criterion - Implementation Stage:
and response; and decision-making processes Negative water quality impacts arising from project
to ensure that issues arising have actions activities are avoided, minimised and mitigated with
assigned (e.g. through a corporate environment no significant gaps.
committee).
Outcomes criterion - Operation Stage: Negative
Conformance/Compliance water quality impacts arising from activities of the
Conformance/Compliance criterion - Implementation operating hydropower facility are avoided, minimised
and Operation Stages: Processes and objectives in and mitigated with no significant gaps.
place to manage water quality issues have been
and are on track to be met with no significant non- To show that plans avoid, minimise, mitigate
compliances or non-conformances, and water quality and compensate negative water quality impacts
related commitments have been or are on track to be from project activities, mitigation measures in
met. the plans should be able to be directly linked to
all identified water quality issues and risks. The
Good practice requires evidence that water assessment and planning should be informed
quality measures are compliant with the by appropriate expertise. The assignment of
relevant government requirements, which may responsibilities and resource allocation for
be expressed in licence or permit conditions implementation, monitoring and evaluation
or captured in relevant legislation. Compliance should be appropriate to the planned actions.
standards to be met, the frequency and type of An evidence-based approach should demonstrate
monitoring to be performed, and reporting to be that negative water quality impacts arising
submitted. Conformance refers to delivering what from project implementation and operation
is in the plans. Commitments may be expressed activities are avoided, minimised, mitigated
in policy requirements of the developer or and compensated with no significant gaps.
owner/operator, in company statements made The developer and owner/operator should

demonstrate that responsibilities and budgets
have been allocated to implement water quality
plans and commitments. Monitoring reports
and data in the implementation and operation
stages should clearly track performance against
commitments and objectives, and capture water
quality impacts. It should be possible to provide
examples to show how identified risks from the
assessment were avoided or minimised. It should
also be possible to table evidence to show that
mitigation plans have been implemented and are
being monitored. Implementation of measures
for water quality, such as aeration weirs, should
be evident, and monitoring should show how
they are achieving their stated objectives.

Water Quality

Waste, Noise
and Air Quality
This guideline expands on what is Waste management

expected by the criteria statements in the and disposal
Objectives for waste management and disposal
for the Waste, Noise and Air Quality topic,
assessment and management are to ensure that
relating to assessment, management, all wastes are managed responsibly and do not
conformance/compliance and outcomes. cause adverse effects on surrounding or future
The good practice criteria are expressed values and uses. Responsible waste management
for the implementation stage. is consistent with the mitigation hierarchy and
emphasises actions to avoid, reduce, reuse, and
recycle wastes. The scope of waste management
In the Hydropower Sustainability and disposal assessment and management
Assessment Protocol (HSAP), this topic should consider:
is addressed in I-18. In the Hydropower
• Waste types – solid, liquid, chemical, hazardous,
Sustainability ESG Gap Analysis Tool medical, e-waste (electronics), abandoned
(HESG), it is addressed in Section 1. vehicles and infrastructure.
• Waste from excavation activities, which may
be referred to as spoil (typically excavated
materials unable to be reused) and/or muck (a
commonly used term for material excavated
This guideline addresses the management of
from underground). For simplicity, all excavated
waste, noise and air quality issues associated with waste will be called ‘spoil’ in this guideline.
the project. The overall intent is that noise and air
quality in the vicinity of the project are of a high • Waste from project construction areas (e.g.
quality and not adversely impacted by project reservoir vegetation clearing, dams (coffer, main,
saddle), adits, tunnels, power house).
activities, and that project wastes are responsibly
managed. The following guidance provides more • Waste from ancillary structures and activities
detail on (1) waste management and disposal, – e.g. labour camps, offices, concrete batching
and on (2) noise, air quality and also vibration. plants, water supply intakes, material fabrication
Vibration is included because it can be closely areas, supply storage areas, quarries, supply
associated with noise and is an impact area of transport activities.
heightened concern to local communities during • Waste from mitigation measure areas – e.g. fish
the construction stage. hatchery, reforestation activities, local benefits.

and Air Quality
Waste, Noise
• Waste minimisation through design and through within the management plans should identify if
procurement policies, and through reuse and issues are arising and if mitigation measures are
recycling. effective.
• Temporary waste storage facilities.
• Waste transport – vehicles, capacities, operators, Waste management and
maintenance, licensing and waste tracking
systems.
disposal
Requirements for baseline waste management
• Regional waste management facilities
– locations, types, capacities, condition, and disposal information include the following:
operating measures, lining, cover, drainage,
pest management measures and waste • All of the aspects listed under the scope of this
documentation. guideline are addressed using appropriate
expertise.
Noise, air quality and vibration • Relevant existing regional waste management
facilities, activities and capacities are identified
Objectives for noise, air quality and vibration and evaluated in consultation with government
assessment and management are to ensure that authorities with respect to the different waste
there are no adverse effects for surrounding streams. The evaluation should consider if
communities, biodiversity or other values created these can be used or enhanced, or if the project
should develop its own facilities. Evaluations of
by implementation stage activities of the project.
existing facilities should include understanding
The scope of noise, air quality and vibration of responsibilities, permits, tracking systems,
assessment and management must consider: and waste transport operators. If project-specific
facilities are needed, the assessment process
• All project-related activities both on and off the should evaluate the long-term options (e.g.
project sites, including road works. closure or hand-over to local authorities).
• Air emissions from point sources, fugitive sources • Primary data (i.e. sampling) and secondary data
and mobile sources. (i.e. reports) are collected for existing waste
• The activities of primary suppliers. disposal sites intended to be used by the project
to understand capacities and any existing issues,
• The proximity of sensitive receptors, including in such as the quality of run-off. The methodology
the natural and the human environment. used for primary and secondary data capture is
described.
Assessment • Areas are identified for potential disposal of
all types of waste and evaluated based on the
Assessment criterion - Implementation Stage: Waste, particular characteristics of each waste type and
noise and air quality issues relevant to project on social, environmental and financial criteria.
implementation and operation have been identified
through an assessment process utilising appropriate • Waste management and disposal risks at the
construction stage should be identified and can
expertise; and monitoring is being undertaken during
arise due to:
the project implementation stage appropriate to the
identified issues. • Underestimations of waste quantities and poor
planning for waste disposal. This can lead to
increased costs, time delays and potentially non-
The Environmental and Social Impact Assessment compliance issues while reactive management
(ESIA) should include content on waste measures are implemented.
management, and on noise, air quality and
vibration. All compliance requirements should be
• Inappropriate separation, storage, transport and
disposal of chemical, hazardous and medical
well-identified. Baseline data should be collected wastes, leading to toxic chemicals in water and
to understand the pre-project status and project- soils and occupational and public health risks.
related impacts and to inform risk assessment
and development of management plans. All • Inappropriate disposal and management of solid
wastes. This can lead to wind-blown litter, poor
implications for other social, environmental and/
water quality in the run-off, attraction of pest
or economic objectives should be identified species, visual impacts, and public health risks.
and evaluated. Monitoring activities included

• Inadequate liquid waste collection and • Partnerships with other waste generating
treatment facilities, leading to poor water quality, industries in waste disposal and treatment
soil contamination, and public health risks. facilities.
• High waste transport costs due to poor location Monitoring should be embedded within the
choices for waste disposal sites. relevant management plans. Parameters
• Non-compliances in waste transport and commonly used for monitoring relating to waste
disposal management with permit requirements management and disposal include:
and management plans.
• Routine visual inspections for waste disposal
• Land degradation caused by location choices for areas.
spoil dumps, e.g. loss of agricultural land.
• Measurements of key physical characteristics
• Collapse, erosion, sediment run-off and poor of waste storage and disposal areas (e.g. area,
water quality from inappropriate management volume, weight, compaction).
of spoil dumps.
• Inspections of waste register documentation
Waste management and disposal risks at the to understand what is in the waste disposal
operation stage should be identified and may areas, when it was placed there, by whom,
include: any accompanying treatment measures upon
disposal, etc.
• Degradation over time of construction-stage • Water quality measurements at drainage
waste disposal areas due to poor site closure or collection points receiving water from the
poor follow-up management. disposal areas.
• Inability of the local government to sustain • Periodic inspections and tests of spoil dumps
waste management systems developed during to ensure proper management and long-term
the construction stage and handed over to local stability of excavated wastes (e.g. compaction,
authorities. moisture, run-off, slumping, movement of
• Floating debris in the reservoir, often logs and downslope barriers).
vegetation associated with reservoir clearance or
delivered during monsoons. This can cause local
debris back-ups with associated visual, safety,
Noise, air quality and vibration
pest and mechanical risks. Requirements for baseline noise, air quality and
• Abandoned vehicles and infrastructure arising vibration information include the following.
from poor project closure and rehabilitation
measures. • All of the aspects listed under the scope of this
guideline are addressed using appropriate
• Waste management and disposal opportunities expertise for the air quality and noise sampling
should be investigated and might include: design, data collection, data analysis and
• Reduction, reuse and recycling through good interpretation.
site design and forward planning. • Local knowledge and information is included,
• Business opportunities from project waste including from communities in the project
streams (e.g. scrap metal). affected areas.
• Improved regional waste transport and disposal • Primary air quality and noise data (i.e. sampling)
facilities compared to pre-project conditions, if is collected from locations which are meaningful
agreed with local authorities. in relation to the receptors of concern and where
future complaints might be made, and are in
• Use of new monitoring or treatment areas where the construction stage monitoring
technologies, such as high temperature can be compared.
incinerators for hazardous wastes or
instrumentation to monitor the stability of spoil • Air quality and noise sampling data is collected
dumps. for the different seasons and is collected at
different times of day and night according to
• Creation of new land-use areas such as standard methods. The methodologies used
sports grounds through well-planned and for primary and secondary data capture are
implemented landfill with adherence to relevant described.
soil quality standards.

and Air Quality
Waste, Noise
• Air quality and noise sampling results Clear monitoring objectives should be defined
are described according to the national for noise, air quality and vibration for both
environmental standards or recognised the construction and operation stages as well
international standards for any parameters of as the monitoring activities embedded into
concern not in the national standards. Air quality management plans. Parameters commonly used
and noise sampling results are linked to land for monitoring, depending on the focal area,
uses, seasonal and climatic factors, topography
include:
and ground characteristics, wind speeds, etc. to
enable explanation of pre-project trends and
issues. • Air quality: nitrogen oxides (NOx), sulphur
dioxide (SO2), carbon monoxide (CO), particulate
• Where there are highly sensitive receptors and matter (PM), volatile organic compounds (VOCs),
air quality emissions of concern, atmospheric wind speed and direction. Emissions from highly
dispersion models are used. variable processes should be sampled more
frequently or through composite methods
• A pre-project survey is undertaken of the
condition of infrastructure that could potentially • Noise: decibels (dBA)
be at risk from vibration damage, with particular
attention to significant community or cultural • Vibration: ground-movement measurements,
heritage infrastructure. Data collected includes visual inspection and documentation of
visual inspections, photos, and measurements of structural issues (e.g. cracks)
cracks. For monitoring of waste, noise, air quality and
Noise, air quality and vibration risks at the vibration, a logical design should be explained
construction stage should be identified and can for the locations, timing, parameters and
arise due to: methodologies that are clearly linked to risks
and objectives. The locations chosen should
• Noise, air quality and vibration from excavation always include those that are near or at sensitive
activities involving drilling, blasting and/or heavy receptors. Monitoring should be conducted by
machinery. trained specialists using established methods
• Noise and air emissions from crushing plants, and quality control procedures. All findings
aggregate processing plants, concrete batching are compared to the relevant environmental
and fabrication activities. standards and interpreted in light of influential
factors such as climate, topography, soils, wind
• Transport-related emissions and noise. direction and speed, season, and activities.
• Wind-blown dust and toxins from uncovered
waste disposal areas.
Management
• Smoke from burning off cleared vegetation.
• Noise, air quality and vibration at the operation Processes are in place to ensure management of
stage should be identified and may include: identified waste, noise and air quality issues, and to
• Noise and vibration from the power house. meet commitments, relevant to the project
implementation stage; and plans are in place for the
• Vehicle emissions. operation stage for ongoing waste management.
• Hydrogen sulphide releases through the
turbines, due to decaying vegetation and
anaerobic conditions in the reservoir, causing The project Environmental and Social
nuisance odours, corrosion of exposed metals, Management Plan (ESMP) should demonstrate
and discolouration of concrete. that the needs and risks relating to waste,
noise, air quality and vibration have been
• Smoke from burning of floating debris collected well-identified, and that the feasibility of
from the reservoir intake screens/trash racks.
avoidance and minimisation approaches has
• Formation of microclimates in the reservoir area, been fully explored. Risks will vary by site and
such as entrapped fog, colder temperatures or different mitigation measures will be suitable
wind. depending on the project. Plans for minimising
Noise, air quality and vibration opportunities and mitigating actions should be outlined
might include the use of new monitoring or separately for project construction and operation.
impact-reducing technologies, or improved air Processes to manage waste, noise and air quality
quality compared to pre-project conditions.

should be informed by the assessment of issues are treated in wastewater treatment plants or
and compliance requirements. Plans need to septic tanks as appropriate to the scale and
identify actions, time requirements, resource location of wastes generated; procedures for
requirements, responsible parties, monitoring, maintenance are developed and implemented
reporting, and review, as described under the appropriate to the design of the treatment
Environmental and Social Issues Management approach; drainage is designed to appropriate
topic guideline. standards; biosolids are disposed of or reused as
appropriate to the chemical characteristics and
environmental permits
Waste management and • Mitigate risks of high waste transport costs due
disposal to poor location choices for waste disposal sites:
waste disposal sites are located in reasonable
Measures to address waste management proximity to the waste generating activities
and disposal risks could include some of the provided that the environmental and social
following: conditions are suitable; the cost and time factor
for waste transport is considered as part of
• Mitigate risks of underestimations of waste evaluation of potential waste disposal areas and
quantities and poor planning for waste disposal: factored into the project budget and logistics
engineering estimates are made of waste to ensure that illegal waste dumping does not
generation quantities, types and locations occur to save time and costs; relevant contractual
throughout the project construction cycle clauses; awareness-raising, education, training,
in the feasibility studies based on detailed inspections, and waste registers.
analysis of all construction activities and
the labour workforce, with a contingency
• Mitigate risks of land degradation caused by
spoil dumps: areas of good environmental
factored in; project design and construction
condition are avoided for spoil disposal sites;
planning includes measures to minimise waste
spoil disposal sites include backfilling in
generation; spoil disposal is planned for within
quarries where extraction has been finished
the dead storage in the reservoir or in quarry
or in the dead storage of the reservoir that will
areas; agreements on storage areas and new
be inundated; spoil disposal requirements are
waste disposal facilities are reached at the
minimised through reuse as much as possible,
project outset with the local government; land
such as for concrete aggregate, embankment
acquisition for waste disposal is arranged at the
construction, and road base; spoil dump site
project outset.
selection aims to create future quality land-use
• Mitigate risks of inappropriate separation, areas for community benefit.
storage, transport and disposal of chemical,
hazardous and medical wastes: awareness-
• Mitigate risks of collapse, erosion, sediment run-
off and poor water quality from inappropriate
raising; education; relevant contractual
management of spoil dumps: accurate
requirements; waste handling procedures;
quantification of spoil generation and disposal
training; appropriately designed storage areas
requirements taking into account a soil
(which may include being isolated with security
bulking factor of 30-40%; design of the spoil
features, labelling, bunding, etc.); permits;
dump repose angle takes into account ground
scheduled disposal arrangements; appropriate
characteristics; spoil disposal locations are a
waste transport mechanisms; appropriate waste
safe distance from watercourses and avoid risks
disposal mechanisms (e.g. high temperature
of inundation during flood or spill conditions;
incinerators); appropriate disposal of any
use of retaining walls; periodic compaction in
residues; chain-of-custody documentation to the
layers as the spoil disposal area is being filled;
final destination.
diversion of drainage around the spoil disposal
• Mitigate risks of inappropriate disposal and area; contouring; landscaping; afforestation
management of solid wastes: solid waste with suitable plant species; soil binding using
disposal sites with appropriate management biofertiliser technology; monitoring.
procedures including layering, covers,
compaction, contouring, drainage, monitoring,
• Mitigate risks of degradation over time
of construction stage waste disposal
inspections, security, controlled access, pest
areas: monitoring to ensure appropriate
management and signage.
implementation of management procedures
• Mitigate risks of inadequate liquid waste during design and filling of construction stage
collection and treatment facilities: liquid wastes waste disposal areas; continued monitoring

and Air Quality
Waste, Noise
during operation stage, potentially based (oil sprays should be avoided); proper and
on agreement with the local government if regular maintenance of machines and plants;
the facilities were handed over; closure and detection and closure of leakage areas (e.g. for
rehabilitation at the end of the useful life as per fumes); process modifications; use of alternative
an agreed plan. materials (e.g. cleaner fuels).
• Mitigate risks of inability of the local government • Mitigate risks of dust from vehicle traffic on
to sustain waste management systems roads: seal or provide a gravel road surface near
developed during the construction stage over sensitive receptors; restrict construction vehicle
the longer-term: agreements made with the local routes to avoid sensitive receptors; provide
government about the long-term arrangements alternative pedestrian pathways away from
for any waste disposal developments created roads used by construction vehicles; restrict
or expanded during the construction stage; vehicle speeds and hours of travel near sensitive
these may include full handover, developer receptors; ensure vehicle loads are covered;
management or co-management for a fixed implement dust-suppression measures such
period, provision of support funds for a fixed as water sprays on the road (oil sprays should
period, provision of management training, or be avoided); creation of wind barriers around
closure and rehabilitation. sensitive receptors.
• Mitigate risks of floating debris in the reservoir: • Mitigate risks of noise from crushing plants,
log collection campaigns to reduce the quantity aggregate processing plants, concrete batching
of debris reaching the intake; intake protection and fabrication activities, and from vehicles or
screens with scheduled clearing; management other transport modes: locating noise sources
arrangements for disposal of floating debris such within less sensitive areas to take advantage
as provision of firewood or commercial uses (e.g. of distance and shielding; siting permanent
firing a kiln). facilities away from community areas; taking
advantage of the natural topography as a
• Mitigate risks of abandoned vehicles and noise buffer during facility design; selecting
infrastructure: contractual clauses requiring
equipment with lower sound-power levels;
appropriate disposal of abandoned vehicles, and
installing silencers for fans; installing suitable
dismantling and disposal of all infrastructure;
mufflers on engine exhausts and compressor
identification of appropriate disposal areas.
components; installing acoustic enclosures for
equipment; using sound insulation; installing
Noise, Air Quality and Vibration acoustic barriers; limiting the hours of operation
for specific pieces of equipment or operations,
Measures to address noise, air quality and especially mobile sources; rerouting vehicle
vibration risks could include some of the traffic to avoid community areas; planning flight
following: routes, timing and altitude for aircraft flights
(airplane and helicopter) to minimise impact to
• Mitigate risks of air emissions, noise and sensitive receptors.
vibration from excavation activities involving
drilling, blasting and/or heavy machinery:
• Mitigate risks of wind-blown dust and toxins
from uncovered waste disposal areas: location
ensuring adequate distances from sensitive
of waste disposal areas away from sensitive
receptors; restrictions on times of day;
receptors; layering, compaction and cover
restrictions on size of machinery; restrictions
measures to avoid wind-blown emissions; use of
on allowable blasting charges; establishment
topography and vegetation to create screens or
of noise and emission dispersion barriers,
barriers to dispersion of emissions.
such as through the creation of embankments
or retention of natural vegetative screens; • Mitigate risks of smoke from burning off cleared
installation of vibration isolation for mechanical vegetation: rules specifying no burning or
equipment. restricted conditions for burning; arrangements
for reuse of timber debris; chipping of cleared
• Mitigate risks of air emissions from crushing vegetation for later use in land rehabilitation.
plants, aggregate processing plants, concrete
batching and fabrication activities: enclosure • Mitigate risks of noise and vibration from the
of machines and plant areas; air emission power house: siting and design choices to
control devices (e.g. bag filters); covered avoid sensitive receptors; proper and regular
unloading points from crushers; raising chimney maintenance; land contouring and planting of a
heights; water sprays around crushing sites greenbelt to limit effects on sensitive receptors.
• Mitigate risks of vehicle emissions: selection of

newer and/or relatively quiet vehicles; proper Variations to commitments should be well-
and regular maintenance to meet required justified and approved by relevant authorities,
standards; use of cleaner fuels (e.g. with lower with appropriate stakeholder liaison.
sulphur content); fitting vehicles with emission
control devices (e.g. catalytic converters). The significance of not meeting a compliance
• Mitigate risks of hydrogen sulphide releases requirement or commitment is based on the
through the turbines due to decaying magnitude and consequence of that omission
vegetation and anaerobic conditions in the and will be context-specific. For example, failure
reservoir: siting and design choices to minimise to identify, store or dispose of potentially toxic
reservoir biomass and anaerobic conditions; waste is likely to be a significant non-compliance.
initial biomass removal from the reservoir; Failure to identify an opportunity for recycling
management of water and intake levels in packaging materials may be a non-significant
the reservoir to avoid lower-level anaerobic non-conformance.
water passing through the turbines; multi-level
intakes. Outcomes
• Mitigate risks of smoke from burning off Outcomes criterion - Implementation Stage: Negative
floating debris collected in the intake screens: noise and air quality impacts arising from project
rules specifying no burning; arrangements for activities are avoided, minimised and
reuse of timber debris (e.g. in kilns); disposal of mitigated with no significant gaps, and project
non-reusable solid waste into licensed waste wastes managed responsibly.
disposal sites.
• Mitigate risks of formation of microclimates in An evidence-based approach should demonstrate
the reservoir area, such as entrapped fog, colder that negative waste, noise and air quality
temperatures or wind: siting and design choices impacts arising from project implementation
to minimise risks of microclimate impacts; activities are avoided, minimised and mitigated
strategic planting of vegetation to minimise or with no significant gaps. The developer should
avoid effects. demonstrate that responsibilities and budgets
have been allocated to implement relevant
plans and commitments. Monitoring reports and
Conformance/Compliance data should clearly track performance against
Conformance/Compliance criterion - commitments and objectives and capture public
Implementation Stage: Processes and objectives health impacts. It should be possible to provide
relating to waste, noise and air quality have been examples to show how identified risks from
and are on track to be met with no significant non- the assessment were avoided or minimised. It
compliances or non-conformances, and any related should also be possible to table evidence to show
commitments have been or are on track to be met. that mitigation plans have been implemented
and are being monitored. Implementation of
measures for waste, noise and air quality, such as
Assessment processes and management new or enhanced waste management facilities,
measures relating to waste, noise, air quality stockpiling of topsoil, noise buffers, and wetting
and vibration should be compliant with relevant of roads for dust suppression, should be evident
legal or administrative requirements. These may and monitoring should show how they are
be expressed in licence or permit conditions or achieving their stated objectives.
captured in legislation. Implemented measures
should be consistent with what is in the plans Evidence of monitoring may include waste
to demonstrate conformance with the plans. disposal receipts or other such documentation
Relevant commitments may be expressed in which is common for restricted wastes. Evidence
policies of the developer or owner/operator, or of legal requirements may be contained in
in company statements made publicly or within project permit or licence conditions. Evidence of
management plans. Evidence of adherence conformance with plans may be found in an on-
to commitments could be provided through, site complaints register, in records of consultation
for example, internal monitoring and reports, with local stakeholders, or in the results of
government inspections, or independent review. previous audits.

and Air Quality
Waste, Noise

Downstream
Flow Regimes
This guideline expands on what is and there should be evidence that the flow
expected by the criteria statements in the regimes meet publicly disclosed objectives and
commitments.
for the Downstream Flow Regimes topic, A river’s flow naturally varies and has a
relating to assessment, management, characteristic pattern. The flow regime can be
conformance/compliance, stakeholder characterised according to many aspects, such
engagement and outcomes. The good as flow magnitude, duration, frequency, timing,
rates of change, and predictability. The flow
practice criteria are expressed for regime sustains the ecology of rivers and where
different life cycle stages. relevant their associated floodplains, wetlands,
groundwater dependent ecosystems, and
In the Hydropower Sustainability estuaries. The flow regime supports the ecological
processes and associated values that rivers
Assessment Protocol (HSAP), this topic provide to communities and the environment,
is addressed in P-23 for the preparation including: flood attenuation; water purification;
stage, I-20 for the implementation sediment flushing; channel and habitat
stage and O-19 for the operation stage. maintenance; nutrient dispersion; water supply;
In the Hydropower Sustainability ESG wastewater dilution; electricity generation;
and the production of fish and other foods and
Gap Analysis Tool (HESG), this topic is marketable goods.
Hydropower developments result in changes to
various aspects of the flow regime depending
Good practice requires that flow regimes on the project design and operational patterns.
downstream of hydropower project infrastructure These changes relative to the pre-project
should be planned and delivered with an hydrological regime can be, for example,
awareness of and measures incorporated to seasonally reduced flows, seasonally increased
address environmental, social and economic flows, rapid (i.e. hourly) increases and decreases
objectives affected by those flows. Objectives in flows due to hydropeaking, loss of or changes
should reflect important river uses, values and to flood events, and large flow events due to
services. All affected river reaches downstream of spill. For base load stations, discharges can be at
hydropower infrastructure should be considered a consistent flow for long periods; for peaking

Flow Regimes
Downstream
stations, flows can fluctuate rapidly on timescales daily patterns that differ from the pre-project
of hours. Where diversions have occurred from river flows. For hydropower projects involving
one river basin into another, power stations can diversion of water out of one river into another,
deliver prolonged periods of higher than natural the effects on flow regimes both out of the
flows while dewatering or reducing flows in the diversion river and into the receiving river should
river system downstream of the diversion point or be carefully evaluated as they will result in the
diversion structure. diversion river having lower than pre-project
average flows and the receiving river having
The most common mitigation measure to higher than pre-project average flows. In all
minimise the impacts of altered flow regimes cases, the evaluation of downstream flows should
resulting from hydropower developments has be for the downstream river distance for which
been through the design of rules governing flow changes can be attributed to the project,
the downstream flow releases. These rules informed by hydrological modelling (see the
are commonly known as ‘environmental Hydrological Resource topic guideline).
flows’, although in some regions terms such as
‘minimum flows’, ‘riparian flows’, or ‘compensation There is no specific methodology that must be
flows’ might be used. used in reaching a downstream flow regime
commitment. Traditionally, there have been
four broad categories of “environmental flow”
Assessment determination methodologies. In order of
Assessment criterion - Preparation Stage: An increasing sophistication, time and cost, these
assessment of flow regimes downstream of project are: hydrological index, hydraulic rating, habitat
infrastructure over all potentially affected river simulation and holistic methods. International
reaches, including identification of the flow ranges good practice requires that scientific approaches
and variability to achieve different environmental, are embedded within interactive frameworks that
social and economic objectives, has been undertaken are objectives-oriented and involve stakeholder
based on relevant scientific and other information engagement. These use scientific analyses as
with no significant gaps. necessary to match elements of the flow regime
to identified objectives that reflect important
For hydropower projects at the preparation stage, river uses, values and services.
good practice requires that the effects on flow
regimes downstream of project infrastructure Downstream flow regime studies should focus
have been evaluated, as well as mitigation on trade-offs among competing ecological,
measures to address impacts. Ideally this process social and economic objectives, and seek to
starts early to inform the evaluation of project optimise the outcomes for the lowest impact
alternatives. The results of these evaluations and highest benefit. Examples of ecological
should be within the Environmental and Social flow objectives include: increasing habitat
Impact Assessment (ESIA) and informed by availability for nominated species, e.g. critical
many specific study areas within the ESIA. This spawning areas for fish species; enhancing the
assessment should be information-based and population of a threatened species; or providing
consider environmental and social aspects in flows to trigger biological responses such as fish
addition to economic factors. Options for flow migration. Examples of social flow objectives
ranges and variabilities should be considered in include: ensuring water user safety; managing
terms of their implications for diverse objectives flood risks; supporting navigation needs; or
and issues identified by the studies and by maintaining water levels for irrigation pumps.
stakeholders. Examples of economic flow objectives include:
providing sufficient water availability to maintain
Of importance is that all potentially affected local industries (e.g. irrigation, aquaculture,
river reaches are considered as often attention is sport-fishing, rafting); and maximising electricity
only given to the dewatered reach between the generation.
dam and power station. For hydropower projects
with water storage capabilities, the releases out The approach taken needs to be proportional
of the power house may have seasonal or even to the significance of the flow changes and the
sensitivity of the flow-dependent aspects of

the downstream river system. Of importance is basis, identifying the characteristics of the
that a methodological and defensible process flow regimes that are most significant to
is followed to determine the link between flows maintenance of negatively affected aspects
and objectives. Regardless of the exact method
used, a logical 12-step approach with the steps
Stage 3: Cost-Benefit Analysis of
grouped into four stages is reflective of good Impact Mitigation Options
practice, as follows. 8. Identification of the mitigation options that
could address those affected aspects based on
Stage 1: Characterising the data analysis, research and consultations, and
including water management, infrastructure,
Downstream Flows and or other management actions
Associated Values 9. Cost-benefit analyses of mitigation options
1. Review of available maps, aerial photos and following the mitigation hierarchy (avoid,
satellite images of the river system, catchment minimise, mitigate, compensate), and
areas, major tributaries, and confluences including compensation options for significant
downstream of the project to characterise the residual downstream impacts that cannot be
flow network and significant features (other mitigated
projects, land-uses, townships, protected 10. Stakeholder discussions on priority
areas) approaches
2. Review of climate, meteorological data and
hydrological data to form a view regarding the Stage 4: Mitigation Commitments
major pre-project flow characteristics in the
11. Downstream flow commitments are designed
catchment and downstream river
on a reach-impact basis
3. Review of the storage and operational
12. Supplementary commitments are defined
characteristics of the project to identify the
to further address downstream impacts that
implications for downstream flows
are not resolved through flow management
4. Definition of significant reaches (i.e. river
measures, such as bank erosion protection
sections) downstream of the project from a
works or the creation of off-stream watering
hydrological perspective (e.g. one reach is
areas for stock
likely to be between the dam and tailrace,
or more than one reach if a major tributary
comes into this section of the river or there are Assessment
other significant influences on flows; another
Assessment criterion - Implementation Stage: Issues
reach between the tailrace and the next major
in relation to flow regimes downstream of project
tributary; another reach between the first and
infrastructure during the project implementation
second major tributary downstream of the
stage have been identified and assessed; and
tailrace)
monitoring is undertaken to assess effectiveness of
5. Identification of important river uses, values
flow management measures or any emerging issues
and services in each of the downstream river
during project implementation.
reaches based on analysis of existing data, plus
consultations with project affected people
and other stakeholders based on stakeholder Assessment criterion - Operation Stage: Ongoing or
mapping emerging issues relating to the operating hydropower
facility’s downstream flow regimes have been
identified, and if management measures are required
Stage 2: Defining Project Impacts then monitoring is being undertaken to assess if
6. Design and implementation of more focussed management measures are effective.
data collection to evaluate the sensitivity
of existing uses, values and services to flow For hydropower projects at the implementation
changes expected by the project or operation stage, a permit or licence to operate
7. Development of pre-project and post-project has been issued which may or may not require
flow relationship analyses for important river dedicated releases to meet non-generational
uses, values and services on a reach-by-reach objectives (i.e. objectives other than for electricity

Flow Regimes
Downstream
generation). The implementation stage may need Management
particular consideration if for example a river will
be dewatered for a long period while the newly Management criterion - Preparation Stage: Plans
created reservoir fills. and processes for delivery of downstream flow
regimes have been developed that include the flow
Mechanisms by which ongoing or emerging objectives; the magnitude, range and variability of
issues with the downstream flow regimes could the flow regimes; the locations at which flows will be
be raised might include stakeholder engagement verified; and ongoing monitoring; and where formal
processes, grievance mechanisms, or follow- commitments have been made, these are publicly
up monitoring programmes. Of importance disclosed.
is that the developer or owner/operator has
processes in place that enable identification and Management criterion - Implementation Stage: In the
evaluation of issues arising with regards to the case that a need to address downstream flow regimes
downstream flows, and that these areas are not has been identified, measures are in place to manage
ignored or dismissed. Hydropower facilities are identified downstream flow issues; and where formal
long-lived assets and over time the downstream commitments have been made, these are publicly
community and the river values and other uses disclosed.
evolve, the science improves, and expectations
of and demands for more water for social or
environmental needs can increase. Cumulative Management criterion - Operation Stage: In
impacts through later developments may also the case of a need to address downstream flow
raise the need to consider downstream flow regimes, measures are in place to address identified
regimes from the hydropower facility. The downstream flow issues; and where formal
experience of changed flow regimes may also commitments have been made, these are publicly
draw attention to issues or concerns that had not disclosed.
previously been considered.
Management plans for downstream flow
If there are issues and concerns with downstream regimes should be incorporated into the
flow regimes below hydropower infrastructure, Environmental and Social Management Plan
the owner/operator should show that options to (ESMP). Where commitments are made for
address these issues have been fully considered. dedicated downstream flow release regimes
It is not essential that all issues raised must be below hydropower infrastructure, these should
addressed through dedicated flow releases. be well-documented with respect to a number
There may be ways that the owner/operator can of aspects (e.g. objectives, flow magnitude,
help meet the needs of other users or values timing, seasonal variations, where measured,
without unduly impacting on the generation follow-up monitoring) and be publicly disclosed.
needs, and this should be explored. Non-flow Ideally, management plans will allow for later
related solutions to downstream flow issues adaptations to be made based on findings from
have been exhibited in many places around the monitoring programme and determinations
the world. Examples of built solutions include: on whether the flow regime is meeting the
artificial spawning channels; off-river water objectives.
storages; riverbank protection works; and habitat
enhancement measures. Determinations on downstream flow regimes
can result in power station or dam operational
If commitments are made to delivery of specific rules. These may take various forms, such as:
downstream flow regimes, monitoring should be guaranteed minimum flows; caps on maximum
undertaken to verify delivery of commitments flow releases; constraints on water level draw-
and that the objectives are being met. The down or ramp-up rates; provision of periodic
methods, frequency and location for this flushing or flood flows; flood or drought
monitoring process should provide information management rules; and rules in relation to spill
that enables a determination on delivery and events. Operational rules may include some or all
effectiveness of downstream flow commitments of these considerations and may be specified for
and whether the objectives are being realised. year-round or be conditional, e.g. by season or to
Monitoring should be periodically reviewed be met under certain natural inflow or climatic
to confirm that the data is meaningful and the
monitoring programme is effective.

conditions. The location at which delivery of Good practice requires that a process of
committed flows is guaranteed should be clear stakeholder engagement has been followed in
and tied into the monitoring commitments. the assessment and planning for downstream
flow regimes.
It is important to consider the mechanism for
delivery of the flow regime commitments from During the project preparation, the social impact
a design perspective. Measures include, for assessment and any stakeholder mapping
example, through turbines, a pipe in the dam, should identify directly affected stakeholders
gates or valves, a dedicated ecological power for downstream flow regimes. Stakeholders
house, or a re-regulation storage. Whatever who are directly affected might include riparian
mechanism is chosen, its design would ideally residents and land owners, irrigators, people who
allow for later adaptations in flow release draw water for stock and domestic purposes,
characteristics given that knowledge, values and local government agencies (water suppliers),
needs are likely to change over time. government regulators, fishermen, other
recreational users, and tourism businesses.
A commitment should be made in writing
to recognise its formality and be within an ‘Appropriately timed’ means that:
appropriate document signed by a recognised
representative of the party who will deliver on • engagement should be early and frequent
the commitment. Legal and/or administrative enough so that the project can respond to the
requirements and court decisions are considered issues raised;
formal commitments. The formality of a • stakeholders can respond before the project
commitment can be demonstrated by how it takes decisions; and
has been recorded, documented, witnessed
and publicised by the party responsible for its
• engagement takes place at times that are
suitable for people to participate (e.g. with
implementation.
respect to seasonality or time of day).
Public disclosure is demonstrated if members Stakeholders should be supportive of the timing
of the public can access information on the of engagement activities. Communities need
commitment if they would like to do so. This sufficient time to receive information, discuss
may involve access to the actual document that it openly with the project representatives,
records the commitment (either posted on a and finally go through their own community
website, distributed, or made available on request dialogue processes before forming a consolidated
to interested parties), or public notification community view to relay back into the evaluation
via a media release or website about the main processes.
provisions of the commitment. If there was a
one-off notification, information may later be ‘Two-way’ means the stakeholders can give their
hard to access. In this case, some effort should be views on considerations for downstream flow
made by the owner/operator to ensure awareness regimes rather than just being given information
of and ease of accessibility of information by without any opportunity to respond. Examples
stakeholders over time on downstream flow of two-way processes include public meetings
regime commitments. and hearings, public comments on studies and
options assessment documents, interactive
participation in workshops, negotiation,
Stakeholder Engagement mediation, and focus groups.
Stage: The assessment and planning process for Processes in place for stakeholders to raise issues
downstream flow regimes has involved appropriately could include, for example, a contact person and/
timed, and often two-way, engagement with directly or a “contact us” space on the company website,
affected stakeholders; ongoing processes are in place periodic public briefings or question/answer
for stakeholders to raise issues with downstream flow opportunities, or participation of company staff
regimes and get feedback. on stakeholder or catchment committees.

Flow Regimes
Downstream
Feedback on stakeholder issues could be Outcomes
demonstrated by means such as emails,
records of telephone conversations, written Outcomes criterion - Preparation Stage: Plans for
correspondence, meeting minutes, media downstream flows take into account environmental,
releases, or provision of responses to frequently social and economic objectives, and where relevant,
asked questions on the company website. Ideally agreed transboundary objectives.
a register is kept by the owner/operator of source,
date and nature of issues raised, and how and Outcomes criterion - Implementation and
when each was addressed and resolved. Operation Stages: In the case that a need to address
downstream flow regimes has been identified and
Further and more detailed guidance relating commitments to downstream flow regimes have
to good international practice stakeholder been made, these take into account environmental,
engagement processes can be found in the social and economic objectives, and where relevant,
Communications and Consultation guideline. agreed transboundary objectives.
Conformance/Compliance Of utmost importance is that the downstream

flow releases are meeting objectives that reflect
Conformance/Compliance criterion - Implementation not just economic or financial interests but take
and Operation Stages: In the case that a need into consideration environmental and social
to address downstream flow regimes has been objectives important to stakeholders, as well as
identified, processes and objectives in place to transboundary objectives if relevant. Objectives
manage downstream flows have been and are on should be clear and data should demonstrate that
track to be met with no significant non-compliances these objectives are being met.
or non-conformances, and downstream flow related
commitments have been or are on track to be met. Transboundary objectives would be relevant if
the downstream effects of the hydropower facility
Good practice requires evidence that cross into a different jurisdiction than that in
commitments to downstream flow regimes are which the reservoir, dam and power station are
met. These should be separately considered for found. If this is the case, then processes to assess
the implementation versus operation stages and make determinations on downstream flow
given that different issues may be relevant. regimes should take into account transboundary
stakeholder interests and objectives. There may
Commitments may be expressed in regulatory be existing agreements in place establishing
requirements for addressing downstream flow common objectives for management of the
regimes, in relevant policy requirements of the shared river system, or these may be developed
developer or owner/operator, or in any relevant alongside preparation of the project. Any existing
commitments made either publicly or within transboundary river management agreements
management plans. Evidence of adherence should be well-integrated into the assessment
to commitments could be provided through, and decision-making on downstream flow
for example, internal monitoring and reports, regimes.
The significance of not meeting a commitment is

based on the magnitude and consequence of that
omission. For example, a failure to demonstrate
delivery of a downstream flow commitment may
be a significant non-compliance, whereas a slight
a non-significant non-conformance.

Climate Change
Mitigation and Resilience
This guideline expands on what is and that it is resilient to the effects of climate
expected by the criteria statements in change and contributes to wider adaptation to
climate change.
the Hydropower Sustainability Tools
(HST) for the Climate Mitigation and Climate change, as defined by the
Resilience topic, relating to assessment, Intergovernmental Panel on Climate Change, is
management, conformance/compliance, a change in the state of the climate that can be
stakeholder engagement and outcomes. identified by changes in the mean and/or the
variability of its properties, and that persists for
The good practice criteria are expressed an extended period, typically decades or longer.
for different life cycle stages.
Mitigation
Climate change mitigation is defined as human
Assessment Protocol (HSAP), this topic intervention to reduce the sources or enhance
is addressed in P-24 for the preparation the sinks of GHG and other substances which may
stage, I-21 for the implementation contribute directly or indirectly to climate change.
stage and O-20 for the operation stage. For hydropower, climate change mitigation
potential rests in the ability to provide clean
energy with lifetime low GHG emissions.
Gap Analysis Tool (HESG), this topic is
addressed in Section 12. Hydropower developments can contribute to
reducing grid emissions by displacing fossil
fuel generation and improving the feasibility
of variable renewables through grid reliability
This guideline addresses the estimation and services: flexible generation, ramping capability
management of the project’s greenhouse gas and energy storage. Nonetheless, the decision
(GHG) emissions, analysis and management of to significantly alter a river catchment by
the risks of climate change for the project, and introducing a reservoir is not one to be
the project’s role in climate change adaptation. taken lightly. The flooding of terrestrial land
The intent is that the project’s GHG emissions are dramatically alters the natural state of the
consistent with low carbon power generation, catchment and with it, the natural GHG cycle.

Climate Change
Mitigation and
Resilience
When land is inundated to create a reservoir, part Hydropower systems, with their ability to store
of the flooded organic matter is decomposed water behind dams in freshwater reservoirs, can
by bacteria in the sediments and water column, provide a number of services (e.g. water supply,
releasing carbonic GHGs – carbon dioxide (CO2) irrigation, and flood and drought management)
and methane (CH4). Natural lakes, rivers and that allow for a higher systemic resilience and
wetlands as well as some other land types also capacity to adapt to climate change. Climate
naturally emit or absorb GHG as part of their change adaptation is the process of adjustment
natural carbon and hydrological cycle. When to actual or expected climate and its effects. In
estimating GHG emissions from a project, it is human systems, adaptation seeks to moderate or
therefore important to assess the difference avoid harm, or exploit beneficial opportunities. In
between pre- and post-impoundment emissions some natural systems, human intervention may
from the portion of the river basin influenced facilitate adjustment to expected climate and its
by the reservoir (including emissions from effects.
construction and operations activities), as well
as the natural emissions that are displaced to or Overall, planning hydropower systems from
away from the reservoir site due to hydrological a long-term, climate-resilient perspective
and other changes. will ensure that future generations inherit
infrastructure that will not be compromised by
climate change and will be able to provide a
Resilience range of climate adaptation services.
Hydropower systems are characterised by their
longevity and are traditionally designed on
the basis of long-term historical hydrological
Assessment
data and forecasts. Hydropower projects are, Assessment criterion - Preparation Stage: For climate
nonetheless, susceptible to the impacts of climate mitigation: power density has been calculated; if
change due to their dependency on precipitation power density is below 5 W/m2, net GHG emissions
and runoff, and exposure to extreme weather (gCO2e) of electricity generation have been
events. For example, changes in the timing or estimated and independently-verified; if power
seasonality of rainfall and subsequent stream density is below 5 W/m2 and estimated emissions
flows could impact operations and expected are above 100 gCO2e/kWh, a site specific assessment
revenues, depending on the seasonal pattern of of GHG emissions has been undertaken; and an
energy demand or competing water uses. assessment of the project’s fit with national and/or
regional policies and plans on mitigation has been
Hydropower climate resilience is the capacity undertaken.
of a hydropower project or system to absorb
the stresses imposed by climate change, and For climate resilience: an assessment of the project’s
in the process evolve into greater robustness, resilience to climate change has been undertaken,
maintaining the capacity for adaptation. which incorporates an assessment of plausible
climate change at the project site, identifies a
Climate resilience analysis in hydropower
range of resulting climatological and hydrological
connects climate science and engineering
conditions at the project site, and applies these
to incorporate climate risk management
conditions in a documented risk assessment or
into hydropower project appraisal, design,
stress test that encompasses dam safety, other
construction and operation, resulting in more
infrastructural resilience, environmental and social
robust and resilient processes. However,
risks, and power generation availability; and an
measuring the impacts of climate change at
assessment of the project’s potential adaptation
local level still carries high uncertainty inherent
services and fit with national and/or regional policies
to actual climate change predictions. Therefore,
and plans for adaptation has been undertaken.
the sector is building new approaches and
methodologies to guide hydropower companies
to address climate-related risks, and to propose
measures to address these risks during the
lifecycle of a project.

Assessment criterion - Implementation Stage: intensity of the project (i.e. not including
For climate mitigation: power density has been emissions in the past when the reservoir was
calculated; if power density is below 5 W/m2, net initially formed) should be compared with
GHG emissions (gCO2e) of electricity generation have systems emissions intensity (i.e. greenhouse gas
been estimated and independently-verified; if power emissions associated with the local, regional or
density is below 5 W/m2 and estimated emissions are national grid to which the project is connected).
above 100 gCO2e/kWh, a site specific assessment of
GHG emissions has been undertaken. GHG emissions from reservoirs could evade to the
atmosphere through various pathways:
For climate resilience: an assessment of the project’s • Diffusive flux: in water bodies, CO2 and CH4 will
resilience to climate change has been undertaken, diffuse slowly from the sediment, up through the
which incorporates an assessment of plausible water column, and eventually be emitted;
climate change at the project site, identifies a
range of resulting climatological and hydrological • Bubbling: because of the higher insolubility
of CH4, bubbles of CH4 can accumulate in
conditions at the project site, and applies these
the sediment when production rates are high
conditions in a documented risk assessment or enough. Those bubbles are then periodically
stress test that encompasses dam safety, other liberated in the water column and to the
infrastructural resilience, environmental and social atmosphere. This phenomenon tends to occur in
risks, and power generation availability. shallow littoral areas;
• Degassing: many reservoirs exhibit a thermal
Assessment criterion - Operation Stage: power stratification, where warmer surface water
density has been calculated; if power density is and colder deep water create a strong
below 5 W/m2, estimates of net GHG emissions physical barrier called the thermocline, which
(gCO2e) of electricity generation are calculated and substantially slows the diffusion of gases from
independently verified, and periodically updated; the deeper part of the reservoir to the surface.
As deep and anoxic water layers and sediments
if power density is below 5 W/m2 and estimated
will lead to higher methane production, these
emissions are above 100 gCO2e/kWh, a site-specific bottom layers can sustain high dissolved
assessment of GHG emissions is undertaken and methane concentrations. Therefore, when dams
periodically updated. release water from low-level outlets, degassing
occurs (i.e. excess methane is released to the
For climate resilience: an assessment of the project’s atmosphere by the sudden pressure drop after
the water leaves the outlet).
resilience to climate change is undertaken and
periodically updated; this assessment of project A number of factors that may influence GHG
resilience incorporates an assessment of plausible emissions from reservoirs include the following:
climate change, identifies a range of resulting
climatological and hydrological conditions at • Water quality (phosphorus content). The GHG
the project site, and applies these conditions in dynamics of aquatic systems is highly influenced
a documented risk assessment or stress test that by the metabolic activity, which is in turn a
encompasses dam safety, other infrastructural function of the nutrient availability, in particular
phosphorus, because it is the nutrient most-
resilience, environmental and social risks, and power
often limiting biological production in aquatic
generation availability. ecosystems;
• Reservoir age. Carbon in soil and biomass
Mitigation decreases as it is transformed into GHG and
released to the atmosphere. Therefore, the rate
The first step towards good practice for climate of emissions generally decreases with age of the
change mitigation is to assess GHG emissions reservoir.
intensity – this is the grams of carbon dioxide
• Reservoir location, environmental conditions
equivalent per kilowatt-hour of electricity and climate;
generated allocated to hydropower over the
lifetime of the hydropower asset, assumed to be • Temperature. Higher temperatures directly
100 years. A project with low emissions should increase the bacterial activity leading to
have less than 100 gCO2e/kWh. For projects decomposition of organic matter. Also, higher air
temperatures may influence the development of
commissioned before 2004, the current emissions
a thermal stratification;

Climate Change
Mitigation and
Resilience
• Carbon stock (i.e. the quantity of carbon present • Pre-impoundment GHG emissions from the
in the soil, in flooded biomass or that which is catchment, which represent the emissions
transported to the reservoir from upstream river balance from the landscape before the
catchment) and type of landscape flooded. For impoundment of the reservoir. Site-specific
example, peatland would most likely have higher assessments or a pre-impoundment baseline
methane emissions than woodland or grassland should be based on measurement across
on mineral soil. sufficient spatial and temporal extent and
resolution;
• Depth and shape of the reservoir, flow
rate and water residence time. Deep and • Post-impoundment GHG emissions from the
anoxic water layers and sediments provide the catchment, through diffusive flux from the lake,
conditions for methane production. In shallow bubbling in littoral areas, degassing downstream
areas, methane can be released directly from the of the outlet, and construction activities.
sediments to the atmosphere through bubbling.
Moreover, inflow and bathymetry influences the
• Unrelated anthropogenic sources (UAS). These
result from human activity occurring within
water retention time in the different parts of the
or outside the reservoir, which is unrelated
reservoir, which determines the time available
to the creation of the reservoir itself. The
for biological processes to occur (including
purpose of considering UAS is to separate the
decomposition of organic matter).
anthropogenic sources of nutrients, carbon
• Depth of the intake structure. Reservoir and direct GHG emissions via inflow water
outflows can draw water from various depths of (e.g. industrial effluents, wastewater treatment
the water column, depending on the particular plants effluents, directly discharged sewage
configuration of a dam. When the intake is and drainage water, fertiliser leachate, and
located in the deeper layer of a stratified organic wastes (e.g. from a farm or a sawmill))
reservoir, degassing may occur. from those occurring directly from inundating
the landscape. The estimation is based on land
Power density (i.e. the watts of capacity per use, population, and known point sources in the
square meter of flooded area) is a predictor of catchment area;
emissions intensity. The recognised relationship
between power density and emission intensity • Emissions from construction and ongoing
operational activities. These account for fuel and
indicates that projects with a power density
power use in transportation, manufacture of
above 5 W/m2 will exhibit emissions intensity supplies (e.g. cement), and construction of the
below 100 gCO2e/kWh. dam, associated facilities and transmission lines.
The power density calculation should include the • The life cycle of the water body of at least 100
average reservoir area (the area of flooded land, years;
net of the pre-impoundment water body) and the • The allocation of emissions between electricity
capacity of the power facilities in the project fed generation and other services provided by
by this water body. A number of facilities should multipurpose projects. These services include
be included where they are part of one project or flood control, fisheries, irrigation, navigation,
scheme being developed (for example, a scheme recreation and water supply. They can be ranked
of two facilities in a cascade, or a project with as primary (i.e. operating rules are designed
to maximise these services for part or all of
main and ecological power plants).
the year), secondary (i.e. places operational
constraints on the operating level of the
To quantify the net emissions from a reservoir, reservoir for part of or the whole year) or tertiary
emissions before, during and after the reservoir’s (provides benefits, but has little or no impact on
formation have to be estimated. In other words, the operation of the reservoir).
net GHG emissions in gCO2e per kWh per
year should be estimated using a recognised Overall, the conceptual equation to determine
tool such as the G-res Tool or through site- net GHG footprint can be:
specific calculations. In order to make claims
on the results of estimations, these need to be [Net GHG footprint] = [Post-impoundment
independently-verified. For example, G-res Tool emissions] – [Pre-impoundment emissions] –
results should have to be verified by the G-res [Unrelated anthropogenic sources emissions]
Expert Committee. Recognised tools or site- + [Construction emissions]
specific calculations should take into account:

If estimated emissions are above 100 gCO2e/ • Based on a) and b), establish plausible
kWh, a site-specific assessment is required. climatological and hydrological scenarios for the
This should include soil and water sampling project site.
using strategically located monitoring stations
An assessment shall comprise a stress testing and
to capture the reservoir’s heterogeneity
future climate change scenarios development
(upstream reach; along the longitudinal axis of
in an approach of decision-making under
the reservoir, in vegetated and non-vegetated
uncertainty. A risk register that documents the
littoral zones; in embayments in the reservoir;
risks by climate change impacts enhances the
close to the reservoirs outlets and from water
process. The outcomes of the stress test will
passageways; and in the river downstream of
set out the range of potential risks and hazards,
the reservoir outlets). Moreover, the sampling
and assess the probability and magnitude of the
frequency should take into account seasonality,
impacts. The results will be the basis to identify
the timing of the operations, and the timing of
and prioritise measures to avoid, minimise and
anthropogenic sources.
mitigate the risks and impacts of the plausible
climate change scenarios.
Finally, a project should fit with national or
regional policies and plans by providing
The risk assessment shall use the following
generation with similar emissions as cited in
project characteristics as inputs: meteorology and
policies and plans or the project is below baseline
hydrology (e.g. potential higher floods); geology/
power sector emissions. In some jurisdictions
seismic/geotechnical/geohazard (e.g. major
there may be more stringent requirements for
landslides at the project site); final site selection
emissions than values in the scoring statements,
and type of project (e.g. access roads); dam height
and the project should fit with the requirements
and reservoir size (communities living around
applying currently.
the development area which may limit reservoir
size); installed capacity (long term energy needs
National or regional policies and plans relevant
of the country may be unclear); health, safety,
to mitigation may include NDCs (nationally
environment and social aspects (e.g. limited
determined contributions), national climate
baseline data).
change strategies, NAMAs (nationally appropriate
mitigation actions), or national climate change
Environmental and social risks refer to the
mitigation plans.
increased risk for the local environment and
communities that result from the project within
Resilience a context of a changing climate. For example,
For climate resilience, good practice should downstream environmental flows may not be
include an assessment that combines analytical feasible with decreased in-flows resulting from
climate science and hydropower engineering climate change.
to incorporate climate risk management into
Climatological conditions at the project site
hydropower project design, construction and
refers to annual averages, seasonal averages,
operation.
and ranges of temperatures and precipitation,
A resilience assessment should look for plausible changes in the type and seasonal distribution
climate change scenarios using all available of precipitation, and extreme weather events.
secondary information, and following a Changes in these conditions will have effects on
sequential approach such as: hydrological and other conditions including:
• Baseline information. Obtain all relevant • precipitation and stream flows;

historical climatological and hydrological data • altered seasonal patterns of precipitation and of
for the project area, and identify observed run-off due to temperature changes;
climatological and hydrological trends, including
extreme events at a river basin scale; • glacial melt or altered timing of glacial melt;
• Obtain data from global, regional or basin-scale • intensity of floods and droughts;
climate models relevant to the project area for • presence of ice (resulting in ice jams or affecting
all available scenarios, and assess the degree of infrastructure such as power lines);
consistency between them;

Climate Change
Mitigation and
Resilience
• frequency or magnitude of landslides; Design measures:
• sediment transport. • Reservoir siting and design to minimise water
The project may have opportunities to provide retention time, the extent of the shallow
adaptation services to the local environment area, the degree of flooded organic matter or
stratification;
and communities. For example, these services
may include the provision of water for irrigation, • Selective or multi-level offtakes incorporated for
drought and flood preparedness programmes, projects with deep reservoirs to limit the amount
flood early warning systems, and community of water drawn into the power station from cold,
infrastructure such as water supplies. To achieve anoxic depths (i.e. below thermocline, where
methane production may occur);
good practice, such services should be assessed.
Moreover, in this regard the project should fit • Increase oxygen concentrations through
with national policies, plans and commitments reservoir design to minimise water residence
on adaptation (for example national adaptation time;
plans). • Aair injection facilities in the power station;
• Increasing power density with further expansion.
Management
Management criterion - Preparation Stage: For Construction measures:
climate mitigation: if GHG emissions estimates • Optimising construction vehicle use and
assume design and management measures, there are movement, particularly for large scale excavation
plans to put these measures in place. and filling;
• Driver training in efficient vehicle operation;
For climate resilience: the project design is based on • Optimising transport efficiency for materials
plausible climate change scenarios; and structural delivery, waste disposal and construction
and operational measures are planned for design, workers travel;
implementation and operation phases to avoid or
• Minimise energy used in temporary site
reduce the identified climate risks.
buildings;
• Procurement policies accounting for the CO2e
Management criterion - Implementation Stage: footprint – both embodied and operational. For
If GHG emissions estimates assume design example: requiring, as a condition of tendering,
and management measures relevant to the all suppliers to state the carbon footprint of their
implementation stage, these measures are in place; materials, products and services.
measures relevant to the
• Water use management: water quantity and
implementation stage are in place to avoid or reduce quality needs are thoroughly identified in the
the identified climate risks. design and feasibility studies;
• Waste management and reduction: mitigate
Management criterion - Operation Stage: For climate sewage, solid waste and polluted run-off from
mitigation: if GHG emissions estimates assume worker camps, workshops, buildings;
management measures, these measures are in place.
• Well-designed drainage collection points: run-
off and wastewater treatment plants are of an
For climate resilience: measures are in place to avoid appropriate capacity with discharge points in
or reduce identified climate risks. high velocity flow areas away from water users.
• Biomass clearance should be carefully assessed
before being used as a default mitigation
Mitigation measure for preventing GHG emissions. A large
part of GHG emissions stems from carbon
For projects with emissions estimated at more
trapped in soil, whereas tree trunks do not decay
than 100 gCO2e per kWh, design, construction rapidly thus retaining the embedded carbon.
and operational measures should be identified Apart from the possible GHG emission reduction,
to lower emissions below this figure. Examples of the biomass removal assessment should take
such measures include: into account the commercial value of the
biomass as well as possibly improved water
quality and future use of the reservoir for fishing
and other ecosystem services.

Operational measures: • Powerhouse: increased flood defences for
the powerhouse; relocation of powerhouse;
• Seasonal management of reservoir operations relocation of spillway to ensure floods are
to ensure releases of oxygenated water at discharged downstream of powerhouse;
seasonally appropriate temperatures.
increased civil works to be adaptable for future
• Water quality management measures, such additions of electro-mechanical equipment (e.g.
as: catchment management measures such space in the powerhouse for additional turbines
as reforestation, protected areas, check dams, and generators);
drainage works, rehabilitation, fertiliser use
reduction strategies. • Electro-mechanical equipment: installations of
variable speed turbines or turbines with higher
• Mitigate sewage and solid waste from increased efficiency for a wide range of discharges; install
population attracted to the area through
dialogue with the local municipality about corrosive-resistant turbine blades (corrosion is
capacities of existing solid and wastewater more aggressive at high temperatures).
collection and treatment facilities; and • Downstream flows: design environmental flow
partnership on upgrade or augmentation capacity with potential for varying discharge
measures in a timely manner. rates; design fish passage systems with
potential varying discharge rates.
Resilience • Reservoir management: detailed reservoir rim
Climate resilience is relevant to both existing stability assessment for slope stabilisation in
and new projects. As such, resilience should areas more vulnerable to landslides due to
be built into hydropower developments at the changes in precipitation and runoff patterns.
planning, implementation and operation stages. • Transmission lines: reassessment of
Examples of design or structural measures are transmission towers location; design tower
listed below (following a possible construction foundations for greater stability uncertainty;
sequence): amend specification of conductors to be more
resilient for a range of temperatures.
• Access roads and camps: suitable pavement
materials and additional construction joints For new and existing projects, non-engineering
for temperature variations; increased drainage or functional measures should be considered.
systems to cope with increased runoff; additional Examples of such measures may include the
landslide hazard assessment and slope following:
protection for increased risk of slope instability;
revised route selection; more robust assessment • Operations: plan for revised optimal minimum
of camp location. operating level; change operating rules such as
• River diversion works: ensuring temporary revised reservoir level limits in order to provide
structures, such as cofferdams, diversion an increased flood storage buffer; revise
tunnels are designed for higher return period, monthly operating rule curves.
or for estimated increase inflow. • Reservoir management: restricting the
• Dam structure: additional flushing, sediment development of land within the zones
management facilities, and raising of dam crest susceptible to flooding; protect or remove
to increase live storage, for increased sediment vulnerable areas.
load; increase spillway capacity (considering • Multipurpose services: identifying the impacts
increased probable maximum flood); additional of climate change upon the various users of
spillways; reassess dam design to allow water within a watershed (e.g. less rainfall in
overtopping with provision of dam toe erosion the watershed could increase water demand
protection (in concrete dams); additional from the reservoir for irrigation, leading to
upstream parapet or wave wall on dam reduced electricity generation); modifying legal
crest; provision for future increase of storage agreements between various governments,
capacity and full supply level raising; additional stakeholders and other identities that have an
construction joints, change of concrete mix, impact upon the operation of the watershed;
and concrete temperature control to cope with improving technologies used to coordinate the
increasing temperatures. interaction of various hydro projects as well as

Climate Change
Mitigation and
Resilience
the global operation of complexes involving Public disclosure of emissions calculations is
several watersheds; modifying rules that important for credibility. Public disclosure of
have an influence upon recreation, irrigation, power density refers to the disclosure of the
water supply and industrial water abstraction; details of the calculation, demonstrating how the
reassess type of scheme (base load/ peaking calculation conforms to the definition of power
and run-of-river/ storage) to address changing density above and public information on the
water and energy demand levels. project design.
• Environmental and social risks: disaster
preparedness and response plans for affected Processes in place for stakeholders to raise issues
communities, guaranteed downstream flows, at any point in the life of the project or operating
enhanced flood management or drought- facility may be through a formal grievance
response programmes. mechanism, or through less formal means. These
could include, for example: a contact person and/
or a ‘contact us’ space on the company website;
Stakeholder Engagement periodic public briefings or question/answer
opportunities; participation of company staff
Stakeholder Engagement criterion - Preparation on stakeholder or catchment committees; and
Stage: For climate mitigation: power density regular meetings and issue-raising mechanisms
calculations, estimated GHG emissions, and / or developed in liaison with local government
the results of a site-specific assessment have been authorities.
publicly disclosed.
Feedback on stakeholder issues could be
For climate resilience: plans for the management of demonstrated by means such as emails,
climate risks have been discussed with stakeholders. records of telephone conversations, written
correspondence, meeting minutes, media
releases, or provision of responses to frequently
Stakeholder Engagement criterion - Implementation asked questions on the company website. A
Stage: For climate mitigation: power density widely used good practice for developers and
calculations, estimated GHG emissions, and / or the owners/operators is to keep a register of source,
results of a site-specific assessment have been date and nature of issues raised, and how and
publicly disclosed. when each was addressed and resolved. Closure
of issues back with the stakeholder who raised
For climate resilience: ongoing processes are in place them is essential.
for stakeholders to raise issues and get feedback on
the management of climate risks. Conformance/Compliance
Conformance/Compliance criterion -
Stakeholder Engagement criterion - Operation Stage: Implementation and Operation Stages: processes
For climate mitigation: power density and objectives relating to climate change mitigation
calculations, estimated GHG emissions, and / or and resilience have been and are on track to be
the results of a site-specific assessment are publicly met with no significant non-compliances or non-
disclosed. conformances, and any mitigation-related and
resilience-related commitments have been or are on
For climate resilience: ongoing processes are in place track to be met.
for stakeholders to raise issues and get feedback on
the management of climate risks. During implementation and operation, the
project should be in conformance with the
In stakeholder engagement, it is important objectives and commitments set out in the
that plans for the management of increased management plans, and any broader corporate
dam safety,environmental and social risks, and commitments. For example, if the license for
adaptation services have been discussed with the project or the lender’s requirements refer
stakeholders. For example, the provision water to mitigation or resilience measures, then these
supply, irrigation, flood preparedness programs, measures are followed.
or early warning systems.

Evidence of adherence to commitments could Consistency with low carbon power generation
be through, for example, internal monitoring may be demonstrated by alignment with national
and reports, government inspections, or plans for mitigation, and: a power density greater
independent review. Variations to commitments than or equal to 5 W/m2; or net emissions
should be well-justified and approved by intensity that is less than internationally-
relevant authorities, with appropriate liaison with recognised thresholds at the time of the
stakeholders. assessment (such as less than 100 gCO2e/kWh); or
emissions reductions at the system level. Projects
Significance of not meeting a commitment is commissioned prior to 2004 can demonstrate
based on the magnitude and consequence of consistency with low carbon generation by
that omission, and will be context-specific. For showing that current emissions intensity is
example, a failure to demonstrate delivery of a lower than current emissions at the system level.
resilience commitment such as increasing flood System emissions shall mean greenhouse gas
defences for the power house is a significant non- emissions associated with the local, regional or
compliance, whereas a slight delay in delivery of national grid to which the project is connected.
a monitoring report could be a non-significant
non-conformance. In the preparation stage, a project’s fit with
national or regional policies and plans is
demonstrated when, for example, its generation’s
Outcomes emissions are similar to emissions cited in policies
and plans, or the project is below baseline power
Outcomes criterion - Preparation Stage: For climate
sector emissions. In some jurisdictions, there may
mitigation: the project’s GHG emissions are
be more stringent requirements for emissions
demonstrated to be consistent with low carbon
than values in the scoring statements, and the
power generation, and the fit of the project with
project should fit with the requirements applying
national and regional policies and plans for
currently.
mitigation can be demonstrated.
Good practice requires that the above should
For climate resilience: plans will deliver a project be demonstrated with the following evidence:
that is resilient to climate change under a range of power density calculation; results of G-res Tool
scenarios; and the fit of the project with national and application or other tool; verification report on
regional policies and plans for adaptation can be G-res Tool application; climate change studies
demonstrated. in the region; analysis of plausible climate
change, and conditions at the project site; risk
Outcomes criterion - Implementation Stage: For assessment or stress tests; national and regional
climate mitigation: the project’s GHG emissions policies and plans on mitigation and adaptation;
are demonstrated to be consistent with low carbon feasibility study; operational plans; environmental
power generation. and social management plans; results of the
assessment of climate change adaptation
services; disaster preparedness and response
For climate resilience: plans will deliver a project that plans; minutes of meetings with stakeholders;
is resilient to climate change in under a range of and evidence of public disclosure.
scenarios.
Outcomes criterion - Operation Stage: For climate

mitigation: the project’s GHG emissions are
demonstrated to be consistent with low carbon
power generation.
For climate resilience: findings of the climate change

assessment indicate that the project is resilient to
climate change.

About the tools
The Hydropower Sustainability Tools define
international good and best practice in sustainable
hydropower development and are used to assess
the sustainability of individual projects.
HydroSustainability.org
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First published December 2018.

This edition published May 2020.

© 2018 International Hydropower Association Limited.

Hydropower Sustainability Guidelines on Good International Industry Practice | 1

Purpose The definitions and examples that have emerged

Organisations may choose to reference

2 | Hydropower Sustainability Guidelines on Good International Industry Practice

Hydropower Sustainability Guidelines on Good International Industry Practice | 3

4 | Hydropower Sustainability Guidelines on Good International Industry Practice

Hydropower Sustainability Guidelines on Good International Industry Practice | 5

6 | Hydropower Sustainability Guidelines on Good International Industry Practice

Hydropower Sustainability Guidelines on Good International Industry Practice | 7

8 | Hydropower Sustainability Guidelines on Good International Industry Practice

Hydropower Sustainability Guidelines on Good International Industry Practice | 9

10 | Hydropower Sustainability Guidelines on Good International Industry Practice

Hydropower Sustainability Guidelines on Good International Industry Practice | 11

This guideline expands on what is transparency, integrity and accountability issues;

12 | Hydropower Sustainability Guidelines on Good International Industry Practice

This guideline addresses corporate and external • gaps, uncertainties or contradictions in

Hydropower Sustainability Guidelines on Good International Industry Practice | 13

Corporate governance requirements also need to

14 | Hydropower Sustainability Guidelines on Good International Industry Practice

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16 | Hydropower Sustainability Guidelines on Good International Industry Practice

Hydropower Sustainability Guidelines on Good International Industry Practice | 17

This guideline expands on what is Environmental Assessment (SEA) of a national

18 | Hydropower Sustainability Guidelines on Good International Industry Practice

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20 | Hydropower Sustainability Guidelines on Good International Industry Practice

Hydropower Sustainability Guidelines on Good International Industry Practice | 21

22 | Hydropower Sustainability Guidelines on Good International Industry Practice

Hydropower Sustainability Guidelines on Good International Industry Practice | 23

24 | Hydropower Sustainability Guidelines on Good International Industry Practice

Hydropower Sustainability Guidelines on Good International Industry Practice | 25

26 | Hydropower Sustainability Guidelines on Good International Industry Practice

Hydropower Sustainability Guidelines on Good International Industry Practice | 27

This guideline expands on what is economic settings, so care needs to be taken to

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30 | Hydropower Sustainability Guidelines on Good International Industry Practice

Hydropower Sustainability Guidelines on Good International Industry Practice | 31

During operations, the project should establish

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34 | Hydropower Sustainability Guidelines on Good International Industry Practice

Hydropower Sustainability Guidelines on Good International Industry Practice | 35

In the Hydropower Sustainability

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38 | Hydropower Sustainability Guidelines on Good International Industry Practice

The significance of any non-compliance is linked

Hydropower Sustainability Guidelines on Good International Industry Practice | 39

This guideline expands on what is of water availability can lead to overinvestment in

40 | Hydropower Sustainability Guidelines on Good International Industry Practice

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42 | Hydropower Sustainability Guidelines on Good International Industry Practice

Hydropower Sustainability Guidelines on Good International Industry Practice | 43

44 | Hydropower Sustainability Guidelines on Good International Industry Practice

Hydropower Sustainability Guidelines on Good International Industry Practice | 45

This guideline expands on what is Hydropower asset types relevant to this

46 | Hydropower Sustainability Guidelines on Good International Industry Practice

Hydropower Sustainability Guidelines on Good International Industry Practice | 47

Condition assessment ratings inform refinements