IFC will take a landscape approach to addressing the complex context of hydropower development in Pakistan. As IFC is a key investor in four on-going hydropower projects, there is real opportunity through this advisory work to lead by example in providing important advice and guidance. It will do so by adopting an inclusive, multi-stakeholder approach to build capacity among local government, civil society, and the private sector to enable the adoption of good international industry practices of E&S standards. The program will also aim to address the overall governance of the entire Jhelum-Poonch watershed including laying foundations for institutional arrangements for integrated river basin management and commission important scientific studies to address data gaps including surveying of tributaries with significant data gaps and conducting environmental flows assessments in the watershed.

The program focuses on two interlinked components over the two year period:

Component 1: Improve and enable application of good practice E&S standards to manage cumulative impacts of the cascade of hydropower projects in the Jhelum-Poonch watershed for sustainable hydropower development and strategic watershed management: Ultimately this effort expects to help local authorities, together with project sponsors, academia, and environmental NGOs, achieve sustainable hydropower development and integrated watershed management of the Jhelum-Poonch Basin. The overall approach agreed includes:

-Creation of offsets in the form of new protected areas in the watershed to secure appropriate conditions for the long term survival of key species .

-Coordination of environmental flow management, focusing on adequate releases from dams, when feasible avoid peaking operation, and coordinated flushing of sediments.

-Preparation of guidelines and procedures for impact assessment, monitoring and adaptive management for all HPP in this watershed.

-Development and strengthening capacity of key institutions, as the strategy will not succeed without strong institutions that have the legal mandate for protection of environment and biodiversity, and

-Design of financial mechanisms to assure long term sustainability.

Component 2: Establish multi-stakeholder platforms (MSPs) to enable capacity in practical E&S risk management and adoption of IFCs Performance Standards. This component will focus on the development of training materials and implementation of training events to provide technical support and capacity development to local government officials, civil society and the private sector (hydropower developers, consultants and EPC contractors) operating in the Jhelum and Indus watersheds. This component provides the necessary foundations for the overall governance work to be implemented under Component 1. Specific areas of support include: (i) good international industry practices (GIIP) on hydropower and understanding of the IFC Performance Standards, (ii) cascade and sediment management, (iii) downstream flow regimes, (iv) biodiversity conservation and strategy implementation, (v) stakeholder engagement, (vi) labor and security issues, particularly in the context of local communities and livelihoods, and (vii) fish ladder, passes, hatcheries and re-stocking practices. IFC will also support the formation of a Hydropower Developers Working Group and promote additionality to potential or existing IFC investment clients to enable the private sector adopt good international industry practices in E&S standards for the hydropower sector.

This will improve the capacity of existing hydropower developers and provide expertise related to good international industry practices. The HDWG will provide a space for the private sector to influence policy by regularly engaging with the government through periodic joint meetings where IFC and the broader WBG is engaging on power sector reforms.