PAKBENG HYDROPOWER PROJECT SIA-Social Impact Assessment September.2015 SIA -Social Impact Assessment CONTENTS Page 1 INTRODUCTION ................................................................................................................ 1-1 1.1 Background .................................................................................................................... 1-1 1.2 Purpose of the SIA ......................................................................................................... 1-3 1.3 Rationale of SIA ............................................................................................................ 1-4 1.4 Scope of Investigation ................................................................................................... 1-5 1.5 Methodology .................................................................................................................. 1-5 1.6 Identification of Social Impact Area and Social Groups ............................................... 1-6 1.7 Lessons of Recent Hydropower Development in Lao PDR .......................................... 1-8 1.8 Selection of Alternative & Impact Avoidance ............................................................ 1-11 1.9 Social Terminology Used in the Report ...................................................................... 1-11 1.10 Plan of the Report ........................................................................................................ 1-12 2 PROJECT DESCRIPTIONS ................................................................................................ 2-1 2.1 Introduction ................................................................................................................... 2-1 2.2 Project Location ............................................................................................................. 2-2 2.3 Project Features ............................................................................................................. 2-3 2.4 Project Component ........................................................................................................ 2-4 2.5 Projected Affected Areas ............................................................................................... 2-7 2.6 Dam Safety .................................................................................................................... 2-9 2.7 Project Cost.................................................................................................................... 2-9 3 SOCIAL POLICY AND REGULATORY FRAMEWORK ................................................ 3-1 3.1 National Social and Economic Development Plan ........................................................ 3-1 3.2 Compensation and Resettlement ................................................................................... 3-3 3.3 Environmental & Social Impact Assessment ................................................................ 3-5 3.4 Hydropower Environmental and Social Sustainability ................................................. 3-8 i SIA -Social Impact Assessment 3.5 Ethnic Groups ................................................................................................................ 3-9 3.6 Cultural and Archaeology ............................................................................................ 3-12 3.7 Tourism ........................................................................................................................ 3-13 3.8 Other Lao Laws Relevant to SIA ................................................................................ 3-14 3.9 Safeguard Policy of the World Bank ........................................................................... 3-14 3.10 International Principle and Best Practice ..................................................................... 3-15 a) Equator Principles ........................................................................................................... 3-15 b) World Commission on Dams – Criteria and Guidelines ................................................ 3-16 3.11 Regional Agreement .................................................................................................... 3-17 4 MACRO SOCIAL BASELINE CONDITION ..................................................................... 4-1 4.1 Global Social Issues....................................................................................................... 4-1 4.1.1 General Social and Environment Situation ............................................................ 4-1 4.1.2 Food and Agriculture ............................................................................................. 4-2 4.1.3 Energy and Climate ................................................................................................ 4-2 4.1.4 Economic Trends .................................................................................................... 4-2 4.1.5 Transportation and Communications Trends ......................................................... 4-3 4.1.6 Conflict and Peace .................................................................................................. 4-3 4.1.7 Health and Society ................................................................................................. 4-3 4.1.8 Environment Trends ............................................................................................... 4-4 4.2 Social and Environment Issues in Asia and the Pacific................................................. 4-5 4.2.1 Urban Access .......................................................................................................... 4-5 4.2.2 Deforestation/Desertification ................................................................................. 4-6 4.2.3 Water ...................................................................................................................... 4-6 4.2.4 Overfishing ............................................................................................................. 4-6 4.2.5 Global Warming ..................................................................................................... 4-7 4.2.6 Air Pollution ........................................................................................................... 4-7 4.3 Social and Environmental Issues in the Lower Mekong Basin (LMB) ......................... 4-8 ii SIA -Social Impact Assessment 4.3.1 Population Increase ................................................................................................ 4-8 4.3.2 Forest and Wetland Resource ................................................................................. 4-8 4.3.3 Water Quality of the Mekong River ..................................................................... 4-10 4.3.4 Fishery and Aquatic Environment ........................................................................ 4-10 4.3.5 Climate Change .................................................................................................... 4-11 4.3.6 Sediment Transport and Trans-boundary Issue .................................................... 4-11 4.4 Investigation of Pak Beng HPP Climate Change ........................................................ 4-12 4.4.1 Introduction .......................................................................................................... 4-12 4.4.2 Greenhouse Gas .................................................................................................... 4-13 4.4.3 Depletion of Fossil Fuel ....................................................................................... 4-15 4.5 Country Social and Environmental Status ................................................................... 4-16 4.5.1 Socio-economics of the Lao PDR ........................................................................ 4-16 a) Macro Economics ........................................................................................................ 4-17 b) Foreign Direct Investment ........................................................................................... 4-18 c) Inflation & Wage ......................................................................................................... 4-18 d) Banking & Currency Exchange ................................................................................... 4-19 e) Fiscal Situation ............................................................................................................ 4-19 f) Environmental Outlook ............................................................................................... 4-19 4.5.2 Socio-economic Development Achievements ..................................................... 4-22 4.6 Navigation on the Mekong River ................................................................................ 4-24 4.6.1 General Navigation Condition ............................................................................. 4-24 4.7 Provincial & District Socio-economic Condition ........................................................ 4-34 5 SOCIAL BASELINE CONDITION IN THE PROJECT AREA ......................................... 5-1 5.1 Socio-economic Conditions of Upstream Directly Affected Communities .................. 5-1 5.1.1 Identification of Directly Affected Villages ........................................................... 5-1 5.1.2 Demography, Ethnicity & Religious Beliefs .......................................................... 5-2 5.1.3 Housing