The Project is located in a valley which is relatively uninhabited and limited displacement/resettlement is anticipated. As a run of the river project there will be low impact on hydrological regime; there is a small impoundment of water which is not expected to have material impact on aquatic life or flora/fauna.

The Environmental Impact Assessment (EIA) Report dealing with environmental aspects of the Project has been prepared in accordance with Pakistan and AJ&K environmental laws and has been approved by the relevant authorities. An update to the EIA, referred to as Environmental and Social Impact Assessment (ESIA), including development of Resettlement Action Plan (RAP) and Biodiversity Management Plan (BMP) was prepared by Hagler Bailly Pakistan and submitted to the relevant authorities in December 2017. The Environmental approvals from Environmental Protection Agency (EPA) of AJ&K and Punjab were secured in 2012, renewed based on updated ESIA in March 2018 and currently valid till 2024.

The project in the process of registration with the UNFCCC for generating carbon credits and Project Design Documents (PDD) have been prepared and are under validation by a DOE of the UNFCCC.