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Power Surge THE IMPACTS OF RAPID DAM DEVELOPMENT IN LAOS SeptemberP O W E R S U R2008 G E | I About International Rivers International Rivers is a non-governmental organization that protects rivers and defends the rights of communities that depend on them. International Rivers opposes destructive dams and the development model they advance, and encourages better ways of meeting people’s needs for water, energy and protection from damaging floods. Acknowledgments This report was coordinated and edited by Shannon Lawrence, with significant support and contributions from Aviva Imhof, Carl Middleton, David Blake, Nok Khamin, Ernesto Cavallo, Maurice Campello and Berklee Lowrey-Evans, and assistance from Orawan Yafa, Katy Yan and Joyce Chu. Useful comments and suggestions were provided by Andrew Bartlett and Glenn Hunt. The experiences and insights from other organizations and individuals, many of whom cannot be named here, also proved invaluable. Special thanks to Marcus Rhinelander for permission to use his photos. This report was made possible by the generous support of the McKnight Foundation and the Richard and Rhoda Goldman Fund. This report and additional supporting materials can be downloaded at internationalrivers.org Copyright © 2008 by International Rivers ISBN: 978-0-9718858-7-5 Shannon Lawrence [email protected] Published by International Rivers 1847 Berkeley Way Berkeley, CA 94703 USA Tel: +1 510 848 1155 Fax: +1 510 848 1008 internationalrivers.org Design by Design Action Collective Printing by Wanida Printing, Thailand Cover photo: Girls playing in the Hinboun River, Laos. Photo: David J.H. Blake Contents Abbreviations and Acronyms .........................................................................................................................2 Executive Summary ...........................................................................................................................................3 Table: Summary of Project Impacts ........................................................................................................7 Map: Key Existing and Proposed Hydropower Projects in Laos ..................................................10 Introduction ......................................................................................................................................................11 Hydropower Development in Laos: An Overview ...................................................................................13 Box: Thailand’s Role in the Lao Hydropower Sector .......................................................................14 Box: The ADB: Bankrolling Lao Hydropower ....................................................................................16 Poverty Reduction in Laos: An Alternative Approach .............................................................................18 Case Study One: Nam Tha 1 Hydropower Project ...............................................................................25 Case Study Two: Nam Theun 1 Hydropower Project ............................................................................29 Case Study Three: Theun-Hinboun Hydropower Project and Theun-Hinboun Expansion Project .........................................................................................................35 Map: Key Existing and Proposed Dams in the Nam Theun Basin ................................................39 Case Study Four: Nam Theun 2 Hydropower Project ...........................................................................41 Case Study Five: Nam Ngum River Basin ............................................................................................... 47 Map: Key Existing and Proposed Dams in the Nam Ngum Basin ................................................48 Box: Nam Song and Nam Leuk ...........................................................................................................50 Case Study Six: Sekong 4 and Sekong 5 Hydropower Projects ........................................................55 Map: Key Existing and Proposed Dams in the Sekong Basin .......................................................56 Case Study Seven: Nam Kong 1 Hydropower Project .........................................................................63 Case Study Eight: Xekaman 1 and Xekaman 3 Hydropower Projects .............................................. 67 Case Study Nine: Houay Ho Hydropower Project ................................................................................. 73 Case Study Ten: Xekatam Hydropower Project ...................................................................................... 76 Case Study Eleven: Don Sahong Hydropower Project ........................................................................80 Map: Proposed Don Sahong Dam ......................................................................................................81 Box: Known Fish Migrations through the Hou Sahong Channel ..................................................83 Box: Mekong Mainstream Dams .........................................................................................................86 Conclusions and Recommendations ........................................................................................................ 87 P O W E R S U R G E | 1 Abbreviations and Acronyms ADB Asian Development Bank MDB Multilateral Development Bank AFD Agence Française de Développement MFCB Mega First Corporation Berhard BOT Build-Operate-Transfer MIGA Multilateral Investment Guarantee Agency CA Concession Agreement MoU Memorandum of Understanding CIA Cumulative Impact Assessment MRC Mekong River Commission CNMC Cambodian National Mekong Committee MW Megawatt COD Commercial Operation Date NEXI Nippon Export and Investment Insurance CSG China Southern Power Grid NGO Non-governmental organization EdL Electricité du Laos NNRB Nam Ngum River Basin EdF Electricité de France NPA National Protected Area EGAT Electricity Generating Authority of Thailand NTFP Non-timber forest product EGCO Electricity Generating Company of Thailand NTPC Nam Theun 2 Power Company EIA Environmental Impact Assessment OECD Organization for Economic Cooperation and Development EMMP Environmental Management and Monitoring Plan PDA Project Development Agreement GDP Gross Domestic Product PoE Panel of Experts GEF Global Environment Facility PPA Power Purchase Agreement GoL Government of Laos PSIA Poverty and Social Impact Assessment GTZ German Bilateral Development Agency RAP Resettlement Action Plan GXED Guangxi Electric Power Industry Investigation REMDP Resettlement and Ethnic Minority Design and Research Institute Development Plan ha Hectares RMR Resource Management and Research IEE Initial Environmental Examination SAP Social Action Plan IFC International Finance Corporation SIA Social Impact Assessment JBIC Japan Bank for International Cooperation SMEC Snowy Mountains Engineering Corporation kg Kilogram STEA Science, Technology and Environment Agency km Kilometer THPC Theun-Hinboun Power Company kV Kilovolt UNDP United Nations Development Program LHSE Lao Holding State Enterprise WCS Wildlife Conservation Society LNMC Lao National Mekong Committee WWF World Wide Fund for Nature m Meters WREA Water Resources and Environment Agency m3/s Cubic meters per second All dollar amounts cited are in US dollars. 2 | International RIVers Executive Summary he small country of Laos is undergoing some big changes. As it tries to become the “battery of Southeast T Asia,” Laos’ hydropower industry is booming. Increasing power demand from neighboring Thailand and Vietnam and new investors from Thailand, China, Russia, Vietnam and Malaysia are driving this expansion. Six large dams are officially under construction in Laos and at least 12 more are at advanced planning stages. Laos is also proposing six dams for the mainstream Mekong River. Most of power produced by these hydro projects will Dam developers, consulting firms and construction be exported to countries like Thailand and Vietnam, as companies are benefiting from the lack of resources, well as to Cambodia and China. If favorable contracts capacity and authority of the Lao Water Resources and are negotiated with the buyers of Laos’ hydropower, the Environment Agency (WREA). WREA is supposed to Lao government could earn substantial revenue over the ensure that dams built in Laos comply with the country’s next few decades. But in a country with low government social and environmental laws and policies. However, capacity to monitor the impacts of dam projects, WREA often has not approved the social and environmental where freedoms are restricted, transparency is low, and plans for these dams before their construction begins, and corruption is high, this “flood” of new high-risk hydro dam builders are not being required to provide sufficient projects raises important concerns. Hundreds of thousands funding to address their projects’ negative impacts on Lao of Lao villagers are likely to lose land, fisheries and other villagers. Since WREA does not have the funding or staff resources when these large dams are constructed and Laos to monitor dams during their construction or operation does not have a good track record of managing the social phases, many dam companies will be able to reduce their and environmental impacts of big dams. costs by violating Lao regulations and the commitments The few large hydropower projects now in operation, they made to affected communities. Finally, because such as the Houay Ho
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