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Title page
Contents
Abbreviations 7
Acknowledgements 8
Key Findings 10
Executive Summary 12
Participation of Domestic Companies in the Hydropower Value Chain 13
Hydropower Employment and Skill Development 14
Local Development and Benefit Sharing 15
1. Leveraging Hydropower for Sustainable Development 18
Definition and Scope of Socioeconomic Benefits within This Report 23
Evolution of Sustainable Development in the Hydropower Sector 24
2. The Hydropower Value Chain 28
Domestic Participation in the Hydropower Value Chain 28
Enabling Environment for Domestic Companies to Participate in the Hydropower Value Chain 36
Procurement from Companies in Project Countries 40
3. Hydropower Jobs and Skills 46
Assessing the Skill Gaps in the Hydropower Sector 54
Key Lessons for the Development of Hydropower Education 58
Encouraging the Private Sector to Hire Domestically 73
4. Sharing Benefits with Local Communities 76
Types of Benefits That Can Be Shared 80
Mechanisms for Sharing Benefits 87
Considerations for Selecting and Implementing Benefit-Sharing Mechanisms 90
5. Conclusions and Key Recommendations 112
Leveraging the Hydropower Value Chain to Generate Socioeconomic Benefits 112
Expanding the Workforce with Jobs and Skills in Hydropower 113
Advancing Local Development and Benefit Sharing 114
References 117
Annex 1. Methodology 123
Overall Approach 123
Methods 123
Annex 2. Underpinning Theory of Change 125
Annex 3. Framework for How Stakeholder Groups Benefit 126
Annex 4. Notes on the Cost Breakdown for the Value Chain 129
TABLE 3.1. O&M Staffing Requirements for a Selection of Hydropower Plants 50
TABLE 3.2. Job Categories Created through Hydropower Project Development and Operation 52
TABLE 4.1. Mechanisms to Share Benefits due to Hydropower Development and Operation 87
FIGURE 1.1. Socioeconomic Categories 24
FIGURE 2.1. The Hydropower Value Chain 29
FIGURE 2.2. Localization Potential along the Hydropower Value Chain-in Canada, the Philippines, and Uganda 34
FIGURE 3.1. Hydropower Jobs along the Value Chain, by Skill Level 47
FIGURE 3.2. Estimated Share of Full-Time Equivalents along the Hydropower Value Chain Assuming a 100-Year Lifespan of Hydropower Projects 48
FIGURE 4.1. Motivations for Benefit Sharing 77
FIGURE 4.2. Relationship among Compensation, Livelihood Restoration, and Benefit Sharing 78
FIGURE 4.3. Benefit-Sharing Process Mapped along the Hydropower Value Chain 79
FIGURE 4.4. Uses of Dams/Reservoirs by Purpose according to the International Commission on Large Dams Database 94
Boxes
BOX 1.1. GENERATING GOVERNMENT REVENUE FOR POVERTY REDUCTION IN LAO PDR: NAM THEUN II 21
BOX 1.2. RESOURCES ON SHARING THE BENEFITS OF HYDROPOWER PROJECTS 26
BOX 2.1. PHILIPPINES: NURTURING SOUTH-SOUTH TECHNOLOGY TRANSFER 31
BOX 2.2. UNLOCKING LOCAL MANUFACTURING POTENTIAL IN BHUTAN'S HYDROPOWER SECTOR 35
BOX 2.3. RESULTS-BASED FINANCING STRENGTHENS THE SOCIOECONOMIC OUTCOMES OF THE RENEWABLE ENERGY DEVELOPMENT PROJECT IN VIETNAM 38
BOX 2.4. ROLES OF RENEWABLE ENERGY ASSOCIATIONS IN RWANDA AND VIETNAM 39
BOX 2.5. ENHANCING SOCIOECONOMIC DEVELOPMENT THROUGH PUBLIC-PRIVATE PARTNERSHIPS 42
BOX 3.1. ESTIMATING THE EMPLOYMENT IMPACT OF THE RAMPUR HYDROPOWER PLANT IN INDIA 49
BOX 3.2. EMPLOYMENT IMPACTS OF MICRO-HYDRO PROJECTS IN RURAL COMMUNITIES 53
BOX 3.3. THE COST OF HYDROPOWER SKILL SHORTAGES IN UGANDA 54
BOX 3.4. WEPOWER: A WOMEN'S PROFESSIONAL NETWORK 56
BOX 3.5. INDIA'S SKILL RESPONSE SYSTEM FOR THE HYDROPOWER SECTOR 58
BOX 3.6. .REGIONALLY IMPORTANT HIGHER EDUCATION PROGRAMS IN HYDROPOWER 60
BOX 3.7. ADVANCING DIVERSITY, EQUITY, AND INCLUSION IN BRAZIL'S HYDROPOWER SECTOR 61
BOX 3.8. NURTURING TALENT FOR A HYDROPOWER FUTURE IN THE UNITED STATES 62
BOX 3.9. TRAINING TO ACCOMPANY THE REHABILITATION OF AFGHANISTAN'S NAGHLU HYDROPOWER PLANT 64
BOX 3.10. PROFESSIONAL DEVELOPMENT IN HYDROPOWER TO ADVANCE WOMEN'S CAREERS 65
BOX 3.11. A PUBLIC-PRIVATE EDUCATION INITIATIVE IN MARDIN, TÜRKIYE 67
BOX 3.12. HYDROPOWER TRAINING IN ZAMBIA AND BEYOND 68
BOX 4.1. BENEFIT SHARING WITHIN THE WORLD BANK' SENVIRONMENTAL AND SOCIAL FRAMEWORK 78
BOX 4.2. THE MULTIPURPOSE NYABARONGO II HYDROPOWER PLANT, RWANDA 82
BOX 4.3. PRIORITIZING LOCAL HIRING AND GENDER DIVERSITY IN COSTA RICA'S HYDROPOWER DEVELOPMENT 84
BOX 4.4. SOCIOECONOMIC BENEFITS OF THE ITAIPU HYDROELECTRIC DAM 85
BOX 4.5. SUSTAINING LONG-TERM IMPACT DUE TO BENEFIT-SHARING INITIATIVES THROUGH EDUCATION-INSIGHTS FROM THE NAM THEUN II PROJECT 90
BOX 4.6. IMPACT OF THE KALIGANDAKI, A HYDROELECTRIC PROJECT ON TOURISM IN MIRMI, NEPAL 96
BOX 4.7. CONTRIBUTION OF MULTIPURPOSE DAMS TO NATIONAL ECONOMIC DEVELOPMENT IN THE UNITED STATES 97
BOX 4.8. WATER MANAGEMENT: SRIRAM SAGAR IN THE GODAVARI BASIN, INDIA 98
BOX 4.9. ISSUING LOCAL SHARES IN HYDROPOWER PROJECTS IN NEPAL 100
BOX 4.10. AVOIDING ELITE CAPTURE IN THE EASTMAIN DEVELOPMENT IN CANADA 101
BOX 4.11. RUSUMO FALLS PROJECT: FOSTERING EQUITABLE COLLABORATION FOR REGIONAL PROSPERITY 104
BOX 4.12. LOM PANGAR PROJECT: UNINTENDED CONSEQUENCES AND THE NEED FOR ADAPTIVE MANAGEMENT 105
BOX 4.13. PLANNING FOR POST-CONSTRUCTION EMPLOYMENT FOR LOCAL PEOPLE: THE CASE OF THE NACHTIGAL HYDROPOWER PROJECT IN CAMEROON 107
BOX 4.14. EMPOWERING COMMUNITIES THROUGH SUSTAINABLE INFRASTRUCTURE IN BRAZIL 108
BOX 4.15. CREATING A NEW SOURCE OF INCOME FOR FARMERS IN COSTA RICA FROM ECOLOGICAL SERVICES 109
Photos
PHOTO 1.1. Community Consultation in Lao PDR 20
PHOTO 2.1. Construction of the 140 MW Tanahu Hydropower Project in Nepal, employing 900 workers, 50 percent local hires 32
PHOTO 2.2. Construction Workers at the Trung Son Hydropower Project in Vietnam 37
PHOTO 3.1. Dispatcher at the Energy Transmission Control Center in Kazakhstan 46
PHOTO 3.2. Staff Operating the Nam Theun II Powerhouse Facility in Lao PDR 51
PHOTO 3.3. A Shopkeeper near the Bandipur Municipality Substation in Tanahun District, Nepal 52
PHOTO 3.4. Training Program Offered by the Kafue Gorge Regional Training Centre in Zambia 65
PHOTO 3.5/PHOTO 3.6. Staff Operating the Nam Theun II Facility in Lao PDR 71
PHOTO 4.1. Child Health and Welfare Program Implemented Courtesy of the Nam Theun II Hydropower Project in Lao PDR 80
PHOTO 4.2. School Constructed because of the Rampur Hydropower Project in India 81
PHOTO 4.3. Young Women Receive Computer Training in Pakistan 84
PHOTO 4.4. Community consultation for a micro hydro project in the Philippines 91
PHOTO 4.5. Women-led micro hydro system in the Philippines 93
PHOTO 4.6. Remote community in the Philippines receives electricity for the first time from a community-run micro hydro installation 103
PHOTO 4.7/PHOTO 4.4. School in a Resettlement Village near the Nanai Reservoir 106
Annex Figures
FIGURE A2.1. Three-Phased Approach to Maximizing the Socioeconomic Benefits of Renewable Energy 125
FIGURE A3.1. Framework for How the Government Realizes Benefits 126
FIGURE A3.2. Framework for How Developers/Operators Realize Benefits 127
FIGURE A3.3. Framework for How Communities Realize Benefits 128
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