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LARGE DAMS The World Conservation Union The World Bank Large dams have been a subject of growing international debate and controversy. They have played a key role in economic development, meeting a variety of purposes, including electricity generation, flood control and irrigation. Yet their adverse environmental, social and even economic impacts are increasingly noted. In 1996 the World Bank Operations Evaluation Department completed an internal review of 50 large dams funded by the World Bank. IUCN–The World Conservation Union and the World Bank agreed to jointly host a workshop in April 1997 to dis- cuss the findings of the review and their implications for a more in-depth study. The workshop broke new ground by bringing together representatives from governments, the private sector, international financial institutions and civil society organizations to address three issues: ■ Critical advances needed in knowledge and practice ■ Methodologies and approaches required to achieve these advances ■ Proposals for a follow-up process involving all stakeholders LARGE Two days of working together achieved a remarkable consensus on how to move forward. Most notably, agree- ment was reached for IUCN and the World Bank to facilitate the establishment a two-year international commis- sion by November 1997. Its mandate is to review the development effectiveness of dams and to develop standards, criteria and guidelines to advise future decision-making. Part I of these proceedings summarizes the workshop DAMS discussion and recommendations for future action. Part II contains a series of overview papers commissioned for the workshop on four key topics: engineering and economics, social and stakeholder issues, environmental sus- LEARNING FROM THE PAST tainability, and future challenges facing the hydro industry. LOOKING AT THE FUTURE Published with financial support from the Swiss Agency for Development and Cooperation. WORKSHOP PROCEEDINGS Gland, Switzerland IUCN–The World Conservation Union & The World Bank Group The World Conservation Union The World Bank The World Bank The World IUCN–The World Conservation Union The World Bank Rue Mauverney 28 1818 H Street, NW CH-1196 Gland Washington, D.C. Switzerland USA Inside Cover 7/31/97¥epp 2/2/99 3:05 PM Page 1 IUCN - THE WORLD CONSERVATION UNION Founded in 1948, IUCN-The World Conservation Union brings together States, government agencies, and a diverse range of non-governmental organizations (NGOs) in a unique membership: 895 members in all, spread across 138 coun- tries. As a Union, IUCN seeks to influence, encourage and assist societies throughout the world to conserve the integrity and diversity of nature and to ensure that any use of natural resources is equitable and ecologically sustain- able. A global secretariat and 35 regional and country offices coordinate the IUCN Programme and serve the Union membership, representing their views on the world stage and providing them with the strategies, services, scientific knowledge and technical support they need to achieve their goals. Through its six Commissions, IUCN draws together over 6,000 expert volunteers in project teams and action groups, focusing in particular on biodiversity conservation and the management of habitats and natural resources. The World Conservation Union builds on the strength of its members, networks and part- ners to enhance their capacity and to promote global alliances in support of con- servation at the local, regional, and global levels. THE WORLD BANK GROUP The World Bank Group is a family of multilateral development institutions owned by and accountable to member governments. These governments exer- cise their ownership function through Boards of Governors on which each member country is represented individually. The World Bank today includes five international organizations: The International Bank for Reconstruction and Development (IBRD) is the largest source of market-based loans to developing countries and is a major catalyst of similar financing from other sources. It lends to governments or to public or private entities with government guarantees. The International Finance Corporation (IFC) supports private enterprise in the developing world through the provision and mobilization of loan and equity financing and through advisory services. The International Development Association (IDA) provides finance on concessional terms to low-income coun- tries. The International Centre for Settlement of Investment Disputes (ICSID) provides conciliation and arbitration services for disputes between foreign investors and host governments. The Multilateral Investment Guarantee Agency (MIGA) provides noncommercial investment risk insurance and tech- nical services to help promote investment flows. THE BOOK - Q 7/25/97 4:44 PM Page 1 LEARNING FROM THE PAST LOOKING AT THE FUTURE WORKSHOP PROCEEDINGS Gland, Switzerland April 11-12, 1997 Editor: Tony Dorcey Co-Editors: Achim Steiner Michael Acreman Brett Orlando The World Conservation Union The World Bank The joint IUCN/World Bank initiative on Large Dams was implemented with financial assistance from the Swiss Agency for Development and Cooperation. THE BOOK - Q 7/25/97 4:44 PM Page 2 LARGE DAMS: Learning from the Past, Looking at the Future The designation of geographical entities in this book, and the presentation of the material, do not imply the expression of any opinion whatsoever on the part of IUCN or the World Bank Group concerning the legal status of any country, territory, or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries. The views expressed in this publication do not necessarily reflect those of IUCN or the World Bank Group. This publication has been made possible in part by funding from the Swiss Agency for Development and Cooperation. Published by: IUCN, Gland, Switzerland and Cambridge, UK The World Bank Group, Washington, D.C. The World Conservation Union The World Bank Copyright: © 1997 International Union for Conservation of Nature and Natural Resources and the International Bank for Reconstruction and Development/the World Bank Group Reproduction of this publication for educational or other non-commercial purposes is authorized without prior written permission from the copyright holder provided the source is fully acknowledged. Reproduction of this publication for resale or other commercial purposes is prohibited without prior written permission of the copyright holder. Citation: IUCN - The World Conservation Union and the World Bank Group. July 1997. Large Dams: Learning from the Past, Looking at the Future. Workshop Proceedings. IUCN, Gland, Switzerland and Cambridge, UK and the World Bank Group, Washington, DC. v. + 145 pp. ISBN: 0-8213-4028-X Layout, cover Robert Dorrell design by: Cover photos: Clockwise from top right: (1) Pakistani settler and irrigation canal in the Tarbela Dam area, Pakistan; (2) Construction site at the Pangue Dam, Chile; (2) Spillway construction at Victoria Dam, Sri Lanka; (4) Tarbela Dam, Pakistan. All photos courtesy of the World Bank Group Produced by: IUCN US, Washington, DC IUCN Global Policy and Partnership Unit, Gland, Switzerland Printed by: Reproductions, Incorporated. Gaithersburg, Maryland. Available from: IUCN Publications Services Unit 219c Huntingdon Road, Cambridge CB3 ODL, United Kingdom Tel: +44 1223 277894; Fax: +44 1223 277175 E-mail: [email protected]; www: http://www.iucn.org A catalogue of IUCN publications is also available The World Bank 1818 H Street, NW, Washington, DC 20433, USA Tel: 202-477-1234; Fax: 202-477-6391 E-mail: [email protected]; www: http://www.worldbank.org The text of this book is printed on 50% recycled paper made with 30% post-consumer waste. THE BOOK - Q 7/25/97 4:44 PM Page 3 LARGE DAMS: Learning from the Past, Looking at the Future TABLE OF CONTENTS Preface ii List of Invited Workshop Participants iii PART I: SUMMARY REPORT OF THE WORKSHOP 0.0 Summary Contents 3 1.0 THE WORKSHOP: ORIGINS, PLANNING AND PROCEEDINGS 4 1.1 Growth of Controversy 4 1.2 World Bank Review 4 1.3 World Bank Partnership with IUCN-The World Conservation Union 5 1.4 Preparations for the Workshop 5 1.5 What Happened? 8 2.0 MAJOR CONCLUSIONS AND RECOMMENDATIONS 9 2.1 A World Commission 9 2.2 The Proposed Agenda 11 2.3 Implementation Strategy 11 3.0 EPILOGUE 12 PART II: OVERVIEW PAPERS 4.0 ENGINEERING AND ECONOMIC ASPECTS OF PLANNING, DESIGN, OPERATION AND CONSTRUCTION OF LARGE DAM PROJECTS by Engelbertus Oud and Terence Muir 17 5.0 SOCIAL IMPACTS OF LARGE DAMS by Thayer Scudder 41 6.0 ENVIRONMENTAL SUSTAINABILITY IN THE HYDRO INDUSTRY by Robert Goodland 69 7.0 MEETING HYDRO’S FINANCING AND DEVELOPMENT CHALLENGES by Anthony Churchill 103 8.0 HYDROPOWER: A NEW BUSINESS OR AN OBSOLETE INDUSTRY? by Anthony Churchill 111 APPENDIX A A.1 CRITICAL ADVANCES NEEDED IN KNOWLEDGE AND PRACTICE 121 A.2 METHODOLOGIES AND APPROACHES FOR ASSESSMENT 124 APPENDIX B B.1 INTRODUCTORY REMARKS by David McDowell 127 B.2 INTRODUCTORY REMARKS by Robert Picciotto 130 B.3 MCDOWELL-WOLFENSOHN CORRESPONDENCE 134 APPENDIX C C.1 LIST OF PAPERS AVAILABLE TO THE WORKSHOP PARTICIPANTS 139 C.2 BIOGRAPHIES OF THE REFERENCE GROUP 141 THE BOOK - Q 7/25/97 4:44 PM Page 4 LARGE DAMS: Learning from the Past, Looking at the Future THE BOOK - Q 7/25/97 4:44 PM Page 5 LARGE DAMS: Learning from the Past, Looking at the Future PREFACE Working in partnership towards sustainable development is an often-cited objective. The workshop on large dams jointly organized by IUCN - the World Conservation Union and the World Bank Group has been acknowl- edged by all involved as a promising example of learning and cooperation. Together we decided to tackle one of the “big debates” in sustainable development. For far too long conflict and controversy have prevented constructive dialogue and objective assessments. Given the many differing per- spectives on large dams, a great challenge remains in interpreting their development effectiveness and applying the lessons learned to future decisions on whether dams have a major role to play in land, water and energy development and how particular dams should be selected, constructed and operated.