In Kathmandu Valley, there is a prolonged shortage of clean drinking water. Rapidly increasing population continue to exacerbate this problem. It has resulted in contaminated shallow wells and aquifers with serious environmental and health concerns. MWSP was therefore implemented to provide Kathmandu Valley residents with sustainable drinking water supply. Although considered the only viable alternative to prolonged water shortage in the capital, it has raised concerns related to social, economic, and environmental issues during its construction. The main arguments relate to land and property acquisition, resettlement and compensation, reduction in river water discharge, deforestation, noise and air pollution, waste generation, soil instability, and erosion, and also social issues due to the influx of workers. On the contrary, employment opportunities, access road construction, market accessibility, trade and investment flows, and development in health, education, and tourism sectors are some of the merits of the project.

This thesis analyses the wide dimensions of the project’s impacts through the exploratory research methodology, particularly in Sundarijal tunnel outlet zone during the construction of the transmission part. The Likert scale survey conducted during the field study explores the project’s effects in social, economic and environmental spheres. It also evaluates the mitigation measures incorporated during the project activities. A SWOT analysis is done to identify and categorize the project’s strength, weakness, opportunity, and threat during its construction

The survey result showed that many of the anticipated project’s impacts were not contained within the acceptable limits. It was largely due to poor implementation of mitigation measures during the project activities. Adverse impacts on biophysical environment, land and vegetation, in particular, were not effectively alleviated with mitigation measures. The survey also found that land acquisition, resettlement, and compensation were critically sensitive and complex issues which were further exasperated by insufficient local participation and consultation in the decision-making process. It is, therefore, highly recommended that mitigation measures be more comprehensive and action specific rather than general requirements for smooth implementation of the project.