3rd Mekong Forum on Water, Food & Energy. Presentation from Session 17: Governance, institutions and decision-making about dams.

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The UN classes the Lao People’s Democratic Republic (PDR) as a ‘less developed
country’, something its government is keen to change. It has set its sights on
transitioning into a middle-income country by 2020. A key component of this
strategy is a concerted policy of ‘industrialization and modernization’, including
the development of its significant hydropower potential.
In its 2011-2015 Five-year Socio-economic Development Plan, GoL plans to
develop 10 large-scale dams with a combined capacity of 5,015 MW, at a cost of
US$11.25 billion. These plans perceive hydropower to be a solution to poverty and
development.

3. - Electricity Law in 1997, amended 2008 and 2012;
- Environmental Protection Law 1999 and amended 2013;
- Environmental Impact Assessment Decree 2000 and amended 2010;
- Resettlement and Compensation People Affected by Development project 2005.
- Agreement on the Cooperation for the Sustainable Development of the Mekong
River Basin 1995 (1995 agreement)

4. -District governors can make decisions on dams of 100 KW and below;
-Provincial governors can authorize the construction of dams of between 101 KW and
15 MW;
-Government can authorize the construction of dams of between 15 MW and 100 MW;
-Standing Committee of the National Assembly will, on the government’s
recommendation, authorize the construction of dams with an installed capacity of
higher than 100 MW and/or a reservoir area of 10,000 ha or larger, and/or that will
cause large-scale social and environmental impacts

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Nam Ngum 1 dam built in 1968, former Lao government, no participation of Local
people, and resettled 3200 people in the war time.
Nam Mang 3 dam built in 2005, local people participated, resettled 168 households,
small area of reservoir, linking with irrigation system.
Nam Nhone dam built in 2010, small scale dam, no resettled people, no reservoir
area.
Nam Ngum 2 dam built in 2009, resettled 6100 people to one location, not enough
and poor agriculture land, one purpose dam.
Xayaburi dam, on going construction, 1260 MW, resettled 2 villages.

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The compensation and resettlement
correlates highly with the livelihood
of affected people from hydropower
development project, especially
good agriculture land compensation.
Effective resettlement is complex, it
involves considerations of culture,
livelihood, food security, and
economic and social development.

7. • The dam that linking with
irrigation system is prefer by
downstream people,
• Hydropower often involves
significant social and cultural
impacts – managing these in
terms of resettlement is
difficult. Smaller dams do not
have as many impacts.

8. • Hydropower also offers
significant potential benefits.
For local people, dams can
help facilitate infrastructure
development, basic education
opportunities for children,
health care services, electricity
and transportation facilities.

9. • GoL is working hard to implement the laws and regulations of Lao
PDR and international agreements.
• The GoL is also attentive to constructive comments from NGOs and
experts.

10. - Legislations be amended to be more decentralization.
-Resettlement planning and implementation be enhanced.
-Hydropower dams should be linked with irrigation systems or promoted to be
multi-purpose.
-More consideration should be paid to stakeholder’s comments.
-Developers should be encouraged to use environmental friendly technologies in
dam design and construction.

11. Thank you very much for your attention!