Stakeholder Engagement Plan Royal Government of Bhutan Sustainable Hydropower Development Project (P174327) Project Implementing Entity: Druk Green Power Corporation Limited DRAFT VERSION NOVEMBER 11, 2021 Background and Context The Sustainable Hydropower Development Project (SHDP) is a technical assistance project (TA Project) that will support the Royal Government of Bhutan (RGoB) to strengthen the capacity of the power sector agencies to plan and prepare regional hydropower and transmission line projects following international good practices. The TA Project aims to: (i) support the update of the Detailed Project Report for Dorjilung Hydropower Project (Dorjilung HPP), a greenfield hydropower project in the pipeline, to be consistent with the Bhutan Hydropower Guidelines and the World Bank Environmental and Social Framework, and (ii) support capacity building in the power sector in Bhutan. The proposed implementing entity of the TA Project is Druk Green Power Corporation (DGPC) Limited, a state-owned holding company which manages and operates Bhutan's hydropower assets and participates in new hydropower development. Further information regarding the project description, components and activities can be found in the Project Paper on the World Bank website. As part of the TA Project, draft terms of reference (TOR) for updating and completing the environmental and social (E&S) assessment and planning have been developed and will be disclosed on DGPC’s and the Work Bank’s websites. Stakeholder Engagement Plan The scope of stakeholder engagement for the TA Project is limited and has therefore been integrated into the project’s Environment and Social Commitment Plan (ESCP). A Stakeholder Engagement Plan (SEP) will be developed for Dorjilung HPP as part of the deliverables under the TA Project. The SEP will guide meaningful stakeholder consultations on the project, including all E&S documents that will be developed/updated such as Environmental and Social Impact Assessment and Environmental and Social Management Plan, Labor Management Procedure, Resettlement Action Plan and SEP. The finalized documents will describe how the feedback of the stakeholders will be taken into account. The specific stakeholder engagement requirements for the TA project are captured below. For further details on the SEP requirements, please consult the project ESCP document on the World Bank website. MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILE ENTITY/AUTHORITY ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS 1.3 MANAGEMENT TOOLS AND INSTRUMENTS Develop TORs for the updating of the Within 2 months from TA Druk Green Power Environmental and Social Impact Assessment Project effectiveness but Corporation Limited (ESIA) and Environmental and Social before issuing bidding Management Plan (ESMP), including Cumulative documents for the conduct of Impact Assessment (CIA) and submit them to the assessments and planning the World Bank for review and clearance. The ToRs will subsequently be disclosed for stakeholder consultations further outlined in section 10.3 of ESS10. The ToRs will be disclosed prior to issuing the bidding documents for conduct of the assessments and preparation of plans. 1 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILE ENTITY/AUTHORITY 1.4 ENVIRONMENTAL AND SOCIAL ASSESSMENT Update the ESIA and ESMP, including Updated ESIA/ESMP to be Druk Green Power integrating pertinent parts of the CIA into the finalized, approved and Corporation Limited ESIA, according to the TOR agreed in 1.3 above. disclosed prior to the end of the TA Project Disclose acceptable draft E&S documents (ESIA, ESMP, Resettlement Action Plan (RAP), SEP) for stakeholder consultations further outlined in section 10.3 of ESS10. ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE 10.1 STAKEHOLDER ENGAGEMENT PLAN PREPARATION For the TA project, ensure that technical Maintained throughout the Druk Green Power assistance provided incorporates stakeholder implementation of the TA Corporation Limited engagement and information disclosure in a manner consistent with ESS10, including the preparation of a Stakeholder Engagement Plan (SEP) for the Dorjilung HPP. To be completed and delivered Prepare and disclose an SEP for the proposed by the end of the TA. Dorjilung HPP. 10.2 PROJECT GRIEVANCE MECHANISM Design a grievance mechanism for the Dorjilung To be developed and delivered Druk Green Power HPP and describe it in the SEP. by the end of the TA. Corporation Limited 10.3 CONSULTATION ON E&S DOCUMENTS Conduct stakeholder consultations on all E&S When draft documents are Druk Green Power documents (ESIA, ESMP, RAP, SEP) that will be available and prior to finalizing Corporation Limited prepared under the TA project in line with the the E&S documents requirements of ESS10. Describe how the feedback of the stakeholders will be taken into account in the finalized version of the E&S documents. 2