Existing Solutions

water, energy, balanced development, collaborative behaviour; dam’s capacity expansion project; social and enviromental compensatory measures

policy

The Nam Theun Hinboun is one of the largest dams in Laos, the so-called ‘battery of Southeast Asia’. This run-of-the-river dam was commissioned in 1998, has 210 MW installed capacity, generating some 1,500 GWh per year, 90% of which is destined for the Thai energy markets. The plant exploits the altitudinal variation between the Nam Theun (from which it derives its water supply) and the Nam Hinboun (in to which water is emptied having passed through the plant’s turbines). The dam is currently expanding its operations – the so-called Theun-Hinboun Expansion Project (THXP), which will increase installed capacity by 60 MW.

The plant exploits the altitudinal variation between the Nam Theun (from which it derives its water supply) and the Nam Hinboun (in to which water is emptied having passed through the plant’s turbines).

The Ministry of Energy and Mines, Vientiane, Lao PDR – key Lao government partner in the project.

The Theun Hinboun Power Company, Vientiane, Lao PDR – dam owner and operator.

Statkraft, Oslo, Norway – 20% shareholder in the project.

Electrcite du Laos, Vientiane, Lao PDR – 60% shareholder in the project.

GMS Lao Company Ltd – 20% shareholder in the project.

Affected communities of the Bolikahamxay and Khammouanne Provices, Lao PDR – project affected

RESULTS TO DATE 

Resettlement occurred at four sites around the anticipated inundation area. As indicated above, the approach taken was to open up opportunities for the resettled households across a spectrum of livelihoods options, comprising health, education, agriculture, housing and development infrastructure. Each resettled household received a new house, 1,000 m2 plots for agriculture and livestock, a hectare of land for rice cultivation and a half-hectare of upland fields for the cultivation of cash crops. In addition, resettled communities have been given access to grazing areas, forests, rivers and fish ponds. Their health and education facilities have improved, and they have benefitted from improved access from roads to and from key market towns. Individual households have also benefitted from receipt of tools, technical assistance and other equipment.

 The project invested heavily in the identification of suitable sites for villagers, and resettled villagers were paired with existing villages of the same ethnic group so as to improve the likelihood of integration, and hasten the process of integration. These preparatory studies also established baselines, which underpinned the company commitment to resettled communities. Resettled household livelihoods need to achieve a target of US$1,800, while relocated households a target of US$1,450 for two consecutive years before the company withdraws its support. These targets are 25-40% above existing income levels.

The dam is currently expanding its operations – the so-called Theun-Hinboun Expansion Project (THXP), which will increase installed capacity by 60 MW.

The plant was built with funding from the Asian Development Bank, and therefore subject to its hydropower guidelines and protocols. At the time, these were based on EIAs, with little provision for longer-term social investment and development. Since the dam’s commissioning, however, the Theun-Hinboun Power Company has seen that a commitment to a variety of social and environmental policies are beneficial to its corporate social responsibility profile, the dam’s overall public image (something that matters to shareholders), and its own national profile in Laos. Since its inception, the project has become one of the foremost global leaders in resettlement. Its attention to extensive consultation and preparatory studies has meant that the project has become a national leader in resettlement plans, as well as environmental management. The resettlement plan under the THXP will affect 4,000 people.

At the best of times, hydropower is controversial. One of the areas in which such developments are most critiqued is in the area of resettlement. ‘Livelihood reconstruction’ (as the World Bank calls it) is at the best of times a difficult process. Nam Theun Hinboun has sought to meet the concerns of its critics (and, indeed, the expectations of its shareholders) by embarking on pre-emptive livelihoods reconstruction. Its resettlement and environmental plan has the following objectives:

 -            Identify all direct and indirect impacts of the project.

-            Working closely with technical planners and engineers to avoid and reduce impacts wherever possible.

-            Full mitigation of all unavoidable impacts through compensation, replacement, resettlement and relocation programs.

-            The design of a thorough monitoring system with clear targets for full restoration of all households to be relocated or resettled.

-            Implementation of social programs in close cooperation with project affected people and government organisations through consultations, disclosure or entitlements and reporting to all stakeholders.

-            Implementation of environmental programs to protect the local environment and enhance conservation and reforestation programs to offset and construction and operation impacts.

Implementation of the plan comprised a five-aspect approach:

•  Regional health programs covering refurbishment of existing health posts, vaccination, mother-child care, sanitation, health awareness, and other government health programs not being implemented due to lack of resources.
• The Social Management Action Plan, which included anti-trafficking, your awareness programs, STD awareness, and community strengthening to prepare ‘host villages’ proximate to the construction areas to receive resettled villagers.
• Full asset registration and consultation so as to fully compensate resettled households for land and assets lost as a result of the project.
• Development of a full set of procedures and standards for environmental compliance in preparation for discussions with contractors and for joint site inspection of construction sites.

Uniquely, the project engaged with the World Wildlife Fund (WWF), the World Conservation Society (WCS) and Save the Children (Norway) to bring in fresh ideas and guidance as they implemented their resettlement, environmental and social plans.

Successful resettlement that successfully addresses the matrix of livelihoods, energy, hydropower and food can be achieved provided it is focussed on clear targets, and investment in process and monitoring.

There is no blueprint for successful resettlement, but there are frameworks that can be employed and replicated anywhere in the world.

A strong corporate commitment to social responsibilities is an essential ingredient in this mix.

Dr Alain VIDAL

Director CGIAR Challenge Program on Water and Food

P.O. Box 2075

 Colombo

Sri Lanka

Tel       +94 11 288 0153                   +33 4 67 04 75 77       

Mob     +94 7 73 95 09 32              +33 6 86 07 89 25           

Fax      +94 11 278 4083

e-mail: a.vidal@cgiar.org    

http://www.waterandfood.org