Summary notes on an aid project in an LEDC. Nam Theun 2 Dam.

1. Enviromental:Disadvantages:
-Uses large amounts of energy to build
-Pollution caused by transport of materials
-Rampant logging happening around dam area
-Species of bird may be affected by the
flooding of the 450km area.
-Reservoir will flood area the size of Singapore
LARGE SCALE AID PROJECT IN AN LEDC: NAM THEUN 2 DAM
Background:
Laos is a very poor, landlocked LEDC with few viable industries. Dam began being built in 2003,
completed in 2009 and fully functioning by 2010. Aims to prevent future flooding; provide
hydroelectric power to entire country and provide money by selling electricity to Thailand.
Social: Benefits:
-Creates jobs
-Provides environmentally friendly electricity to
entire country
-New homes which people rehoused to will be
of better quality with running water and
electricity and have a plot of paddy field.
Social: Disadvantages:
-6,000 subsistence farmers uprooted to land
which is heavily leached and infertile.
-100,000 living downstream from dam will also
feel impact as reduced river flow will affect
irrigation systems, the availability of drinking
water and fish migration.
Economic: Benefits:
-Biggest infrastructure ever built in Laos.
-Once built will provide Laos with 1000MW of
power to the whole of Laos, and enough to sell
to Thailand for $150million per year which will
provide money for investments in health,
education and basic infrastructure.
-Annual revenues $80m which should allow
money to be spent on improving standard of
life.
Economic: Disadvantages:
-Costs $1.3bn which is more than Laos’s
annual budget
-Funded by loans from World Bank so Loas
will be in debt for a long period of time
- Compensation plans are behind schedule
and lack funding
-Not certain if profits from dam will ever
reach the poor farmers
Environmental:Benefits:
-Provides hydroelectric energy for the whole of
Laos so not reliant on traditional energy
supplies of fossil fuels which is bad for
environment and price can fluctuate.
-Hydroelectricty has no long term impact on
environment.