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Hydropower in Mekong countries: implications and opportunities Photo Davidvan Cakenberghe/IWMI Photo: :Tom van Cakenberghe/IWMI Tom Brazier/IWMI Hoanh and MK1 & BMZ Project Teams: Sonali, Dennis, Diana, Sanjiv, Matthew, Guillaume, Florence, Soumya, Somphasith, Anousith04/12/2012, IWMI-HQ & partners in SEA Water for a food-secure world www.iwmi.org

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Outline• Problem addressed• What is the science?• How does this relate to development?• What has been achieved and/or proposed Water for a food-secure world www.iwmi.org

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Problem addressed Mekong hydropower • Rapid development in tributaries and mainstream • Emergence of private sector actors • Attention to economic benefits but impacts on livelihoods often overlooked Water for a food-secure world www.iwmi.org

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Problem addressedImplications Basin wide impacts: flow regime, sediment, fisheries - floods and droughts Direct impacts to livelihoods of communities Opportunities • Electricity supply for development • Government & HP developer revenues Water for a food-secure world www.iwmi.org

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CPWF MK1: Optimizing reservoir management for livelihoods • Theun-Hinboun Expansion, Lao PDR • Yali, Vietnam • Lower Se San 2, Cambodia Water for a food-secure world www.iwmi.org

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BMZ: Economic incentives in sloping lands with reservoir development – Benefit sharing, including PESNepal Vietnam Lao PDR Water for a food-secure world www.iwmi.org

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1. Livelihood and Institutions 3. Decision Support System Sub-component 3.1 Sub-component 1.1 Bayesian Characterization of AEZ, Consultation Sub-component 3.3 Resources & Livelihoods Single Reservoir Analysis Modeling Sub-component 3.2 Sub-component 1.2 LUPAS at Farm Policy & Institution & Community Levels Analysis What is the science? MK1 Sub-component 2.1 Sub-component 4.1 Identifying Analysis of Resource Potential Livelihood Use Options Options Sub-component 4.2 Sub-component 2.2 Development of Livelihood Piloting Strategic Plan for Adaptation Water for a food-secure world Use Options 4. Resource2. Alternative Livelihood Options www.iwmi.org & Adaptation Strategies

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What is science? BMZ Framework Water for a food-secure world www.iwmi.org 8

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How does this relate to development?MK1: Piloting livelihoodactivities wetlands for conservation and livelihoods rice-fish systems short duration cassava in semi-flooded land Water for a food-secure world www.iwmi.org

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How does this relate to development?BMZ:• PFES as part of state’s general revenues (20 VND or 0.001 USD/kwh) X 100 billion kwh• Linking HP with forest conservation and livelihoods by promoting forest plantation for smallholder farmers Water for a food-secure world www.iwmi.org

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What has been achieved and/or proposed?Strong partnership with key actorsMK1 – Lao case• Credible, evidence based results from household survey• Livelihoods feasibility through community consultation process.• Hydropower company confident and willing to support piloting of livelihood activities together with project team Water for a food-secure world www.iwmi.org

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What has been achieved and/or proposed? MK1 policy review & institutional analysis: • Inconsistent policy in land- water-environment • Institutional discrepancy between government agencies• Legal plurality: more than one legal orders• Private sector actors as ad-hoc decision makers Water for a food-secure world www.iwmi.org

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What has been achieved and/or proposed? MK1 livelihoods: • Livelihoods before dam & impacts of dam Keosaenkham • Issues of compensation schemes • Options for livelihood diversification (vegetable Nam Gnouang Dam at drawndown area, rice-fish) Typical cross section Water for a food-secure world www.iwmi.org

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What has been achieved and/or proposed? MK1 DSS: EP • Labor allocation for livelihood options Exposure period Least Slope suitability Least Physical access by boat & road Least Most suitable Most suitable Most suitable Accessibility Easy Keosaenkham access 40 35 Division of labour for Fishing 30 25 livelihood activities Dry Season Veg. Livestock KSK Difficult Water for a food-secure world 20 15 Vegetables (wet season) Upland rice access 10 5 0 www.iwmi.org Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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What has been achieved and/or proposed?BMZ: Hydropower decision-making structure/processesHydropower institutions• National: MEM, MPI, MoNRE, EdL/EGAT/EVN• Transboundary: MRC ISHHydropower development procedures• National: power sector planning, IPP guideline, EIA, RAP, PPA• Transboundary: HSAP, MRC SEA Water for a food-secure world www.iwmi.org

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What has been achieved and/or proposed?BMZ: Benefit sharing and PES• State as the sole provider and buyer of ES• Transformation of market- based incentives into state’s tool to control natural resource management• The danger of green grabbing• Environmental management versus people’s livelihoods Water for a food-secure world www.iwmi.org

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What has been achieved and/or proposed?Lessons and challenges:• Beyond irrigation & agriculture water management• No one size fits all• Optimizing HP of national electricity network for multiple water use• Synergizing the state, private sectors and civil societies towards sustainable HP development Water for a food-secure world www.iwmi.org

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Thank you!Water for a food-secure world www.iwmi.org