Dhap dam project site is situated within the national conservation area, namely, Shivapuri Nagarjun National Park. So, environmental concern is very high in this project area. An environmental impact assessment (EIA) study was carried out and got approved before initiating the construction of project. A construction environment management plan (CEMP) has been prepared by the contractor and construction works have been carried out complying the plan and also ADB environmental guidelines. As the trees and bushes were cleared from the dam construction site, Compensatory plantation as per government laws has been provisioned. Accordingly, about 90000 tree plants are to be planted which is planned to execute by SNNP office on the behalf of PIIU for which an agreement has been made among the parties