Introduction
The Initial Environmental Examination (IEE) is a statutory environmental assessment procedure in Nepal that evaluates the potential environmental impacts of development projects. The legal foundation of IEE lies in the Environment Protection Act, 2019 (EPA 2019) and the Environment Protection Rules, 2020 (EPR 2020). The purpose of IEE is to assess, predict, and propose measures to mitigate environmental effects arising from projects before implementation. IEE applies to medium-scale projects listed in the Schedule of the EPR 2020, including hydropower plants of specific capacity, road construction, irrigation systems, and tourism infrastructure. The Ministry of Forests and Environment (MoFE) and sectoral ministries are the primary approving agencies depending on the project type and investment scale. The IEE process ensures that development is conducted in compliance with environmental sustainability, legal requirements, and social safeguards. Medha Law and Partners Is a leading law firm in Nepal.
1. Legal Framework Governing IEE in Nepal
The IEE process is legally mandated under the Environment Protection Act, 2019. Section 3 of EPA 2019 requires that any project likely to cause environmental impacts must undergo an environmental assessment. The Environment Protection Rules, 2020 outline the procedural requirements, documents, and authorities responsible for IEE approval. Schedule 2 of the Rules lists projects requiring IEE. Sectoral legislation such as the Hydropower Development Policy, 2001, the Forest Act, 2019, and the Local Government Operation Act, 2017 complement environmental laws by requiring project compliance with sector-specific environmental safeguards. Together, these laws establish the regulatory framework for IEE implementation.
2. Objectives of the Initial Environmental Examination
The objectives of IEE include: ensuring that projects integrate environmental considerations at the planning stage, minimizing adverse impacts, and enhancing positive outcomes. The process aims to protect biodiversity, prevent land degradation, and maintain ecological balance. IEE identifies potential environmental, social, and cultural consequences of a project, recommends mitigation measures, and promotes sustainable development. By requiring project developers to conduct IEE, the government ensures that infrastructure expansion and industrial activities comply with legal requirements. IEE also provides a basis for community participation and transparency, creating accountability for developers and safeguarding local interests in development projects.
3. Authorities Responsible for IEE Approval
The approving authority for IEE depends on the type and scale of the project. For projects under central jurisdiction, the Ministry of Forests and Environment (MoFE) grants approval. For sector-specific projects, the concerned line ministry such as the Ministry of Energy, Water Resources and Irrigation, Ministry of Industry, Commerce and Supplies, or Ministry of Physical Infrastructure and Transport has approval authority. At the provincial or local level, respective ministries or local governments may be responsible for IEE approval for smaller projects. The division of authority ensures that environmental oversight aligns with project scope, sector, and jurisdictional responsibility.
4. Projects Requiring IEE in Nepal
Projects requiring IEE are listed in Schedule 2 of the Environment Protection Rules, 2020. These include:
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Hydropower projects between 1 MW and 50 MW capacity.
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Road projects between 5 km and 50 km in length.
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Irrigation projects irrigating up to 2,000 hectares of land.
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Industrial projects with medium-scale production.
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Tourism infrastructure such as hotels, trekking routes, and cable cars.
5. Step-by-Step IEE Process in Nepal
The IEE process follows a defined procedure under EPA 2019 and EPR 2020:
Step 1: Identify project category based on EPR 2020 schedules.
>Step 2: Prepare Terms of Reference (ToR) and submit to the concerned authority for approval.
>Step 3: Conduct field study, baseline data collection, and impact assessment.
>Step 4: Prepare IEE report including mitigation measures.
>Step 5: Submit IEE report with supporting documents to the concerned ministry.
>Step 6: Authority reviews report and seeks public comments.
>Step 7: Approval is granted or denied within prescribed timelines.
This structured process ensures environmental accountability in project planning.
6. Documents Required for IEE Submission
The following documents are mandatory for IEE application:
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Project proposal and feasibility study report.
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Approved Terms of Reference (ToR).
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Draft IEE report prepared by a licensed environmental consultant.
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Maps, blueprints, and layout plans.
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Baseline environmental data and survey results.
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Public consultation records and stakeholder feedback.
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Environmental management plan with mitigation measures.
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Tax clearance and legal registration of project developer.
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Letters of recommendation from local bodies.
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Application form and applicable fees.
These documents ensure that the approval authority has sufficient information to evaluate the project’s environmental feasibility.
7. Timeframe for IEE Approval
The timeframe for IEE approval is clearly outlined in the law. Under Rule 15 of EPR 2020, the concerned ministry must provide approval or comments within 21 days of report submission. If modifications are required, the developer must revise and resubmit the report. The process from Terms of Reference approval to final decision generally takes 2 to 3 months, depending on project complexity and responsiveness of stakeholders.
8. Public Participation in the IEE Process
Public participation is a mandatory component of the IEE process. Developers must hold stakeholder consultations and incorporate community concerns into the IEE report. Notices must be published in national and local newspapers inviting public feedback. Records of consultations, objections, and suggestions must be submitted as part of the application. This requirement ensures transparency, promotes accountability, and provides affected communities a voice in project planning. Incorporating public participation also reduces the likelihood of conflict during project implementation and strengthens the legitimacy of the approval process.
9. Renewal and Compliance Obligations for IEE
Once IEE approval is granted, project developers are required to comply with the approved Environmental Management Plan (EMP). Developers must submit periodic monitoring reports to the approving authority. Non-compliance may result in suspension of the project license under Section 19 of EPA 2019. If project modifications significantly alter environmental impacts, a supplementary IEE or EIA may be required. Renewal of IEE approval is generally not necessary unless the project is delayed beyond the approved timeframe. Continuous compliance monitoring ensures sustainable environmental performance throughout the project lifecycle.
10. Penalties for Non-Compliance
Failure to comply with IEE requirements carries legal consequences under EPA 2019. Non-compliance may result in fines, suspension, or cancellation of project approval. Developers implementing projects without IEE approval may face project closure orders and liability for environmental damage. Penalties include compensation to affected communities and restoration of degraded environments. The strict penalty regime enforces adherence to environmental laws and acts as a deterrent against unlawful project execution.
11. Challenges in the IEE Process
While the IEE framework is well-defined, project developers often face challenges. These include limited availability of baseline environmental data, delays in approvals, and overlapping jurisdiction between central and provincial authorities. In some cases, lack of public awareness reduces the effectiveness of consultations. Small developers may find the process administratively complex due to extensive documentation requirements. Despite these challenges, reforms such as digital application systems, standardized templates, and capacity-building programs are improving efficiency and reliability of the IEE process in Nepal.
12. Conclusion
The Initial Environmental Examination (IEE) process in Nepal is a critical tool for integrating environmental safeguards into project planning and implementation. Mandated under the Environment Protection Act, 2019, and the Environment Protection Rules, 2020, IEE ensures that medium-scale projects comply with sustainability principles. By requiring documentation, public participation, and approval by competent authorities, the IEE framework balances development and environmental protection. Compliance with IEE requirements strengthens investor confidence, reduces project risks, and safeguards ecosystems. As Nepal pursues economic growth, adherence to IEE processes remains central to sustainable development.
FAQs on IEE in Nepal
Q1: Which projects require an IEE in Nepal?
Projects listed in Schedule 2 of the Environment Protection Rules, 2020, such as hydropower plants up to 50 MW, medium-scale roads, irrigation systems, and tourism facilities, require IEE approval before implementation.
Q2: Which authority approves IEE reports in Nepal?
Depending on project type, the Ministry of Forests and Environment or relevant sectoral ministry approves IEE reports. Provincial or local governments may approve smaller projects under their jurisdiction.
Q3: How long does the IEE process take in Nepal?
The IEE process usually takes 2 to 3 months, including Terms of Reference approval, field studies, consultations, and report evaluation. The law requires decisions within 21 days of report submission.
Q4: Is public participation mandatory in IEE?
Yes. Developers must hold consultations, publish notices, and document feedback from stakeholders. This ensures transparency, accountability, and community involvement in environmental decision-making.
Q5: What are the penalties for not conducting IEE in Nepal?
Conducting a project without IEE approval is punishable by fines, suspension, or closure under EPA 2019. Developers may also be liable for environmental restoration and compensation to affected communities.