Asian Development Bank
Nam Theun trip 2 report and project update
Social and enviromental costs of the World Bank's hydropower project in Laos
Authors:
S. Lawrence
Publisher:
International Rivers Network , 2007
This trip report provides information on the implementaiton of the Nam Theum 2 (NT2) agreement with respect to hydropower development in Laos. The report summarises the social and environmental impacts of the hydro project implemented by the World Bank and the Asia Development Bank (ADB) and provides recommendations for resettlement and the restoration of livelihoods.
The report argues that NT2 is ignoring social and environmental programmes while dam construction continues. Livelihood restoration programs for resettled villagers on the Nakai Plateau, villagers along the Xe Bang Fai, and villages affected by downstream channel construction are all at risk. The report concludes that the World Bank’s and ADB's “model” hydropower project is dangerously close to becoming a replica of past dam mistakes.
A summary of major concerns includes:
- livelihood restoration programs are in jeopardy in all project-affected areas
- both the Government of Laos (GoL) and Nam Theun Power Company (NTPC) are backtracking on commitments they made at project approval. The violations include failing to provide irrigation for downstream channel villagers, ensuring biomass clearance of the reservoir, guaranteeing Nakai villagers’ rights to their forest resources, and protecting the Nakai-Nam Theun National Protected Area from logging and mining
- neither the GoL nor NTPC has committed to clear biomass from the reservoir area before it is flooded, despite the fact that leaving biomass to decompose in the reservoir will likely lead to the death of fish in both the reservoir area and downstream, and result in water that is unsuitable for domestic use and irrigation in the downstream channel and along the Xe Bang Fai
- NTPC has failed to disclose resettlement plans in violation of World Bank and Asian Development Bank policies, as well as other key social and environmental documents, such as wildlife surveys and management plans.
The report recommends the following:
- NTPC should commit to develop and implement an interim compensation scheme to address the impacts of NT2 operations on downstream villagers until livelihood restoration programs
yield sustainable results - the GoL, World Bank and ADB should work with villagers and donor partners to develop an integrated rural development plan for the Xe Bang Fai region
- NTPC, the GoL, the World Bank and the ADB should ensure disclosure of the Downstream Livelihood and Asset Restoration Program Phase 1 in its entirety marketing surveys for the Xe Bang Fai, biomass clearance plans and for the Nakai Plateau, and hydraulics and water quality studies for the downstream areas.
