Small Hydro development has been recognized at an early stage to be of considerable importance to the Himalayan kingdoms of Nepal and Bhutan, since no other natural resource is known in these countries of comparable abundance. Electricity from natural resources such as hydro constitutes an environmentally acceptable and a reliable resource. Its utilization is generally considered economic in the long rather than the short term. Austria has been a key player in the early stages of rural electrification in both, Nepal and Bhutan. After more than 20 years of involvement in the sector, it desired to evaluate its own work. The assignment to carry out such evaluation was awarded to an outside consultant in a competitive process, and the present report is the result of the work done under this assignment.