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Nam Ngum 5 Hydropower Project

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Nam Ngum 5 Hydropower Project NAM NGUM 5 HYDROPOWER PROJECT SINOHYDRO CORPORATION LTD. DONGSAY COMPANY LTD. September, 2007 i Nam Ngum 5 - EIA Main Report Chapter I: Introduction ==================================================================================================== TABLE OF CONTENTS 1.1. GENERAL.................................................................................................................. 1-1 1.2. BACKGROUND ......................................................................................................... 1-2 1.3. NAME AND ADDRESS OF THE PROJECT OWNER ............................................... 1-2 1.4. NAME, ADDRESS AND AFFILIATION OF THE AUTHOR........................................ 1-3 1.5. PROJECT LOCATION............................................................................................... 1-3 1.6. PURPOSE OF THE PROJECT ................................................................................. 1-3 1.7. NEED FOR THE PROJECT ...................................................................................... 1-4 1.8. REGULATORY AND POLICY FRAMEWORK........................................................... 1-5 1.8.1. Institutional and Legal/regulatory Framework ......................................................1-5 ANNEX: MAPS SHOW THE LOCATION OF THE PEOJECT.........................................1-14 DSC Nov. 2007 1-i Nam Ngum 5 - EIA Main Report Chapter I: Introduction ==================================================================================================== CHAPTER I INTRODUCTION 1.1. General The Initial Environmental Examination (IEE) of Nam Ngum 5 Hydroelectricity project was carried out by Dongsay Co Ltd in May-June 2005; the IEE report was approved by STEA in May 2006, with the condition, that further detailed study- Environmental Impact Assessment (EIA), Environmental Management Plan (EMP) and Social Action Plan (SAP) including Resettlement Action Plan (RAP) were to be carried out, despite the IEE report’s conclusion that the project as proposed had “No Significant Impact” to social and environmental conditions of the project area. The additional ESIA study has been conducted in May 2006 which was focused on socio-economic impacts generated by the project especially affected assets within the proposed reservoir area were assessed and confirmed. This EIA report (main report), EMP and SAP (includes RAP) which are in separate volumes, present the findings of the detailed study, reflecting STEA’s regulatory requirement as well as local and international Environmental Protection Laws, Regulations and Guidelines for power project development in the Lao PDR. The main report consists of seven chapters which can be summarized as follows: Chapter I provides the introduction, the background of the project, particular details of the project owner as well as the author of this report. This chapter includes relevant institutional framework, laws and regulations. Chapter II provides the description of the project and project implementation schedule and project cost. Chapter III provides the description of the project areas and baseline data of the physical, biological as well as social economic environment of the area as well as project components, social economic conditions with regards to natural resources, health and livelihood of the affected or adjacent communities with the project area. Chapter IV identifies and provides evaluation of reasonable alternatives for achieving the project goal, while at the same time ensuring that the envisaged impacts are minimized or appropriately addressed. Chapter V identifies an anticipated environmental impacts and mitigation measures. Chapter VI deals with the Environmental Management Plan (EMP). However, the full report of EMP is presented in separate volume. The summary describes compensation measures, environmental monitoring procedure, including specification of budgets as well as institutional arrangement. Chapter VII provides conclusions and recommendation based on investigative, consultative results and others relevant laws and regulations. DSC Nov. 2007 1-1 Nam Ngum 5 - EIA Main Report Chapter I: Introduction ==================================================================================================== 1.2. Background Nam Ngum 5 Hydroelectricity project is one of several hydroelectricity schemes in Lao PDR and as the name indicates, it is one of the six (there is Nam Ngum 4A and 4B) and the last of the hydroelectricity projects in the Nam Ngum river networks. Nam Ngum 3 just immediately down stream from Nam Ngum 5 is currently under investigation for construction and its full supply level is 720 meters above sea level (masl) in comparison with 1,100 masl of Nam Ngum 5. The development of these projects, once completed the Lao People Democratic Republic (Lao PDR) will be relatively self-sufficient in energy consumption, in particular in the Northern region of the country where current electricity shortfall is supplemented by importing from Vietnam at nearly 20% higher rate than the export tariff (to Thailand). Lao PDR has one of the least developed economies in Southeast Asia, and according to the World Bank president Mr. James D Wolfensen in his recent statement on approving of Guaranty fund for NT2 hydropower project said “Lao PDR has an average income level of less than a dollar a day, and in many rural areas, it is considerably less than that children still suffer malnutrition in many parts of the country, and too many young people receive little or no formal education …” Lao PDR also has one of the lowest per capita rates of electricity consumption in all of Southeast Asia; however in comparison with its neighboring countries Lao PDR has considerable potential for hydroelectricity generation. Lao PDR at its current state of development only 623 Megawatts (MW) of an estimated 18,000 MW of hydropower potential has so far been developed; these hydro electricity developments, however small, have already been a major contributing factor to the country’s economic output for the last decades. Recognizing the disparities and potentials the Lao government is determined to address its socio economic problems –implementing its poverty eradication program and achieving its goal of being out of the Less Developed Country List by the year 2020, by capitalizing on its Hydroelectricity as well as its mineral resource potential. The development concentrates both on export earnings as well as fostering domestic economic activities by electrification expansion (targeted to attain 90% electrification by 2020) in tandem with other infrastructural development throughout the country. As identified in NGPES. 2004, the development of the country’s hydro electrical potential in particular “the rural electrification is essential and shall be an integral part of the national development framework”. The Nam Ngum 5 Hydropower Development Project is identified among others-Nam Mang 3 (completed 2004) and Xeset 2 (started June 2005) and Nam Ngum 3 etc.,in “POWER SYSTEMS DEVELOPMENT PLAN FOR LAO PDR”, as one such potential that can be realized. The pre-feasibility of Nam Ngum 5 was prepared for the Ministry of Industry and Handicrafts, Department of Electricity, and World Bank, by Maunsell Limited of New Zealand, in association with Lahmeyer International of Germany in 1997. 1.3. Name and Address of the Project Owner In accordance to the contract signed on the 22nd April, 2005 and the Amended Contracted signed on the 16th March, 2006 the author of the report is: SINOHYDRO CORPORATION, DSC Nov. 2007 1-2 Nam Ngum 5 - EIA Main Report Chapter I: Introduction ==================================================================================================== Room 313, No. 1 Ertiao, Baiguang Road, Xuanwu District, Beijing 100761, P.R. China. (Representative office in Laos at Ban Phonesavanh Tay, Sisattanak District, Vientiane Capital City, Lao PDR) Tel: in China (86-10) 63416690 in Lao PDR 021-261045 Fax: in China (86-10) 63581797 in Lao PDR 021-312268 1.4. Name, Address and Affiliation of the Author In accordance to the contract signed on the 22nd April, 2005 and the Amended Contracted signed on the 16th March, 2006 the author of the report is: Dongsay Company Ltd (DSC) Phonsa-At Village, Xaysetha District, Vientiane Capital City, Lao PDR Tel: (856-21) 450100, 020-5520990. 020-2200494, 020-5618431. Fax: (856-21) 450100. 1.5. Project Location The Nam Ngum 5 Hydropower Project is located on the Nam Ting, into which Nam Phat and Nam Sout flow. Nam Ting is one of the main tributary of Nam Ngum where the confluent is approximately 15 Km down stream from the proposed dam site, 300 km north of Vientiane Capital City in Lao PDR Refer to maps in Annex 1-1. At the time of the survey, the proposed dam site was only accessible by foot or by boat (during the wet months) from Ban Chim which situates on the upper middle reach of Nam Ting of some 35 Km from Phou Khoun. Powerhouse area locates approximately 12km due east of the dam site on the right bank of Nam Ngum into which the water from the powerhouse is discharged. The powerhouse area is currently accessible (on foot) only via Ban Xiengdet from the main road to Xieng Khouang. Ban Xiengdet situates on the left bank of Nam Ting approximately 10km down stream from the proposed dam site. Ban Xiengdet according to Nam Ngum 3 proposal and from our villagers’ interview will be inundated and the villagers had officially been informed by the authority that they are required to be relocate within a couple of years. 1.6. Purposes
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