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Job #: 1238462
Title: Expression of Interest for Local Shares as a benefit Sharing Mechanism for Hydropower Projects in Nepal
Location: Nepal



A key benefit sharing requirement in Nepal is the offering of local shares to people impacted by hydropower development. This mechanism is reflected in the Model Project Development Agreement formulated by the Ministry of Energy and requires a project developer to allocate up to 10% of shares to project-affected communities.

The overall objectives of the assignment are to:

(i) Provide detailed analyses of the key study questions raised in the context of the local shares model of benefit sharing being proposed for hydropower projects in Nepal (elaborated below).

ii)Consider the risks, opportunities, and implications for each of the various stakeholder groups (i.e. developers, communities, investors, and government) with a view to recognizing and balancing these different interests/perspectives.

(ii) Offer specific options, good practices, and scenarios for moving forward on current challenges including guidance on delivery mechanisms, timing of delivery, and eligibility criteria.


Scope of work / key lines of inquiry to be covered by the study include:


1. The political context and key drivers for the emergence of the local shares concept as a benefit sharing requirement in the Nepali hydropower sector? (Provide overview).

2. The legal and regulatory basis for the local shares requirement.

3. The risks /benefits / trends in local equity sharing as a mechanism for benefit sharing.

4. Models/delivery mechanisms to be developed for private companies looking to issue local shares.

5. The risks / benefits / challenges of the individual shareholder vs. communal model or a mixed model.

6. Methodologies that can be used for determining eligibility criteria for local shares.

7. Different delivery mechanisms for shares to be made effective and promote good governance.

8. Timing & pricing of share offers.

9. Defining percentage of shares allocated to local stakeholders.

10. Measures needed to transform local communities into informed shareholders.

11. Potential impacts on local communities/vulnerable households and their absorptive capacity/resilience in the event of share price decrease or capital losses.

12. Design measures to promote social inclusion & gender equity as well as reduce the risk of elite capture / exploitation of the local shares process.

13. Support services required to facilitate access / effectiveness of the local shares program.


Strategies for consensus building, engagement and communication.

Organization of the Team

In order to complete the tasks successfully within the period mentioned and conduct the study effectively, the consultant/agency shall organize the team for comprising sufficient number of experts not limited to but including as follows:

(1) Social Experts/anthropologists with demonstrated field experience working in Nepal;
(2) Legal Experts with in depth understanding of GON laws and statutory requirements;
(3) Economic experts with demonstrated experience working in Nepal;
(4) Financial experts with extensive knowledge and expertise in capital markets, designing financial models;
(5) Communications / Stakeholder Engagement specialist with demonstrated field experience in Nepal;
(6) Research assistants and community based facilitators.
The team should be well versed with the local scenario, political and social context and include staff fluent in Nepali to assist with translation of materials. Knowledge of good corporate governance practices is desired.

The team will report to an IFC coordinator for the study and the IFC Team Lead for Hydro Advisory.


The Consultant/firm will be required to submit:

(1) An inception report suggesting detailed approach within 15 days of award of work;
(2) A progress update report every month;
(3) A draft final report within 6 months of award of work;
(4) Final Report with comments incorporated.

Consultative Panel

The study is expected to be supported by a consultative panel chaired by the IFC that will include representatives of key stakeholder groups from the government, private sector, development partners and civil society associated with the hydropower industry in Nepal.

The panel will observe, participate and comment on each phase of the study with a view to discuss, probe and validate the findings of the study, ensure the inclusion of diverse views, and ensure that the study issue is adequately examined from all angles.

The panel is expected to meet three times during the course of the study period and the Study TL would be requested to join the CP meetings with the possibility of other consultants.


The World Bank Group intends to finance the assignment / services described below under the following:
- SDIP II South Asia


Eligibility restrictions apply:
[Please type list of restrictions]


The World Bank Group now invites eligible firms to indicate their interest in providing the services. Interested firms must provide information indicating that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills among staff, etc. for firms; CV and cover letter for individuals). Please note that the total size of all attachments should be less than 5MB. Consultants may associate to enhance their qualifications.

Interested firms are hereby invited to submit expressions of interest.

Expressions of Interest should be submitted, in English, electronically through World Bank Group eConsultant2 (


Following this invitation for Expression of Interest, a shortlist of qualified firms will be formally invited to submit proposals. Shortlisting and selection will be subject to the availability of funding.

Only those firms which have been shortlisted will receive notification. No debrief will be provided to firms which have not been shortlisted.