Mekong dam projects will cost more in damages, says MRC report

By Chularat Saengpassa and Pongphon Sarnsamak for The Nation

A recent report from the Mekong River Commission revealed that 12 dams in Lower Mekong River would cause serious problems for the two million people living downstream in Laos, Thailand and Cambodia.

The report entitled “MRC SEA for Hydropower on Mekong Mainstream, Impact Assessment and Discussion Draft” was presented at a regional meeting held to assess the impact of the Mekong River dam projects.

The report showed that if the 12 dam projects went ahead, it would adversely affect poor people living downstream in the three countries. These people live along the river in rural areas and depend heavily on agriculture and other natural resources for income.

According to the report, Laos will have a dam each in Pak Beng, Luang Prabang, Saiyaburi, Pak Lay, Latsua, Don Sahong and Thakho; the Thai/Lao border will have three dams, namely Sanakham, Pak Chom and Ban Koum; while Cambodia will have two dams, namely Stung Treng and Sambor.

The report showed that the Pak Chom and Ban Koum dams on the Thai/Lao border would affect 588,189 people living in Loei province, and 413,140 people in Ubon Ratchathani. It added that these dams would also change the boundary lines between the two countries.

Dam construction projects in Lower Mekong River would also have an adverse effect on the wetlands, ecological system and the economy. Damages to the wetlands would be to the tune of Bt224 million per year, the report said.

The report also showed that the 12 dams would stop 55 per cent of the river from flowing freely. The Mekong would become a huge reservoir and the dams will destroy natural islets, sandbanks and hamper the incubation of freshwater tropical fish and other aquatic animals. Plus the dams will affect Mekong’s more than 40 tributaries.

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Big is beautiful in Laos

By Brian McCartan for Asia Times

BANGKOK – Laos aims to lift itself out of least-developed country status by 2020, but a shift underway from reliance on Western aid to Asian private capital has sparked criticism from development specialists who believe the trend towards large-scale projects is unsustainable and works against the country’s long-term economic goals.

Lao Prime Minister Bouasone Bouphavanh announced new plans to increase foreign investment and reach annual growth rates of over 8% for the next five years at the “Future of Asia” business conference held in Tokyo in May. He said, “From 2011-2015 there are plans by our government to achieve economic growth targets of about 8% or more while at the same time maintaining our stability.”

Towards that end, he announced an overhaul of investment policies and said “we want to develop human resources to cope with this growth and, at the same time, care for and nurture our precious asset – the environment”. Bouasone reiterated the government’s fast growth strategy earlier this month at the World Economic Forum on East Asia in Ho Chi Minh City, Vietnam, where he stated that Laos aimed for “no less than” 8% annual economic growth through 2015.

As part of that plan, the Lao government seeks to promote greater foreign investment in agriculture, electricity generation, alternative energy, hotels and tourism, and logistics and services. It is also promoting expanded investment in infrastructure as part of its plan to transform the country from “land-locked to land-linked” as a trade crossroads in mainland Southeast Asia.

Plans to open a stock exchange this year are also in the works. Officials hope the new bourse will help to finance a mounting mining and hydropower boom driven by foreign investment and a rebound in global commodity prices. The new bourse will be set up though a joint venture with the Korea Exchange and hydropower and mining companies are expected to be the first to list, followed by telecommunications and manufacturing firms.

The World Bank, in its mid-year Lao Economic Monitor, estimated that real gross domestic product (GDP) in Laos will increase from 7% in 2009 to 7.8% this year. The growth is mostly a result of rapid expansion in the natural resources sector, as well as steady growth in agriculture, construction and a rebound in the processing and tourism industries. The multilateral lender has forecast that Lao GDP will average 7.7% per annum between 2011 and 2015.

However, development experts are concerned about the country’s over-reliance on hydropower and other mega-projects to stoke growth

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Nam Mang 1 hydro project goes to planning phase

By Ekaphone Phouthonesy for the Vientiane Times

Lao and Chinese investors have agreed to develop plans to build the Nam Mang 1 hydropower plant in the central province of Borikhamxay in light of positive results from a feasibility study on the project.

Representatives from the Saytha Construction Company, Sichuan, China-based Dongfang Electric Corporation and Hong Kong-based C (Far East) Industrial Ltd signed a project development agreement for the dam with Deputy Minister of Planning and Investment Thongmy Phomvisay on Thursday.

Attending the signing ceremony were Standing Deputy Prime Minister Somsavat Lengsavad, Borikhamxay Governor Khampan Philavong, ministers, senior government officials and representati ves of the investing companies.

The dam will proceed to the planning stage after the feasibility study showed that the project site, located on the Nam Mang in Thaphabath district, about 105km from Vientiane, holds potentiasxl for hydropower generation.

According to the agreement the joint venture will now set out a project development plan covering investment and marketing, as well as a plan to address any negative impacts of the project on the environment and local community.

The government will grant a concession agreement for the company to build the plant if it sees that the project will benefit both the country and local community.

According to an early estimation by the company, the Nam Mang 1 hydropower plant will cost about US$90 million to build. The installed generation capacity of the plant would be 57 megawatts, and the dam would generate more than 200GWh of power annually.

The investors plan to sell power to Electricite du Laos, the only state owned power enterprise, which holds a monopoly on the supply of electricity in Laos.

Although Laos has built a number of hydropower power plants in recent years, it still faces electricity shortages as most of the major plants in the country export power to Thailand and Vietnam.

Insufficient electricity supply is one of the main barriers to the expansion of the power-hungry processing industry in Laos, and the government has a policy to encourage local investors to build mini hydropower plants to supply the domestic market, as power consumption is growing rapidly due to increasing foreign investment and economic growth.

Laos has the potential to generate a total of about 26,500MW from hydropower sources, excluding the mainstream Mekong River, of which about 18,000MW is technically exploitable.

Less than two percent of the country’s hydropower potential has been developed over the past 30 years, according to the Department of Energy Promotion and Development, Ministry of Energy and Mines.

Laos has 10 hydropower plants in operation and another 17 plants in the planning stage, while 45 more are undergoing feasibility studies.

[Ed-Apols for full quote]

Source Vientiane Times

Mainstream Dams Threaten the Mother of all Rivers

Let us be reminded…

International Rivers | Shannon Lawrence and Carl Middleton | June 1, 2007

In 1994, the Mekong Secretariat (the precursor to the Mekong River Commission, or MRC) produced a study of “run-of-river” hydropower schemes for the lower Mekong. The study proposed nine projects that would produce a total of 13,350 megawatts of electricity (most of which would be exported to Thailand) and displace an estimated 57,413 people. IRN responded then with an analysis that stated: “The report attempts to give the impression that these projects are small dams without storage reservoirs. In fact, what is proposed is a staircase of dams 30 to 60 meters high with reservoirs covering more than 600 kilometers of the 1,800 kilometers studied. The six dams and reservoirs recommended are on a comparable scale to the Bonneville Dam on the Columbia River in the US Northwest. Such massive dams cannot be considered ‘run-of-river’ projects.”

The Mekong Secretariat study failed to adequately consider the significant impacts the proposed dams would have on fisheries throughout the Mekong River basin, such as blocking migration routes and inundating spawning grounds. According to IRN’s review, the study also ignored the downstream impacts on the Mekong Delta, failed to assess the water quality impacts of the dam cascade, and included inaccurate resettlement estimates.

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International Rivers Online

The Mekong River: How much more can it safely yield?

Jeremy Bird, CEO of The Mekong River Commission writes a special report for The Nation in Bangkok and publishes this in the midst of a regional meeting of stakeholders in Chang Rai, Thailand.

Although not providing any particular answers it does suggest a framework of what questions we should be asking with regards to the viability and sustainability one of the most important watersheds on the planet.

Much can be gained economically by Basin governments in the Lower Mekong. Besides fisheries, hydropower is a renewable energy source and has the potential to generate large amounts of revenue for governments to use in social development programmes; the Mekong agricultural industry is worth billions and there is much potential for increasing water storage and irrigation systems; and the Mekong and its tributaries are vital links for transport and commerce in the region.

However, there are also challenges associated with population growth and climate change. Similarly, if basic livelihoods are to continue to be met by water resources of the Basin, future developments need to be planned carefully. The rural poor should naturally also benefit in the long-term from economic growth underpinned by any larger-scale development of water resources. But this can be achieved only through strategies that make use of targeted benefit- sharing mechanisms.

What is needed is an integrated analytical approach that examines the distribution of benefits, costs and the effects of development on the river system. What, for example, would be the economic and social benefits of a hydropower scheme, compared to the value of a potential reduction in fisheries that it could cause? And how to reconcile the gains to one group and the losses to another? How will salinity intrusion and agriculture downstream be affected if water is used for irrigation upstream? Because the river system is trans-boundary, all of these issues have international implications and need to be resolved through the framework of regional cooperation.

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Xiaowan hydropower project to start operation

Interfax-China reported that China Huaneng Group plans to start operation of the first generation unit of its Xiaowan hydropower project in southwestern China Yunnan Province on September 25th.

As per report, Huaneng plans to put two of the CNY 24.1 billion project generation units into operation this year. The project which features six 700 megawatt generation units is built on the middle reaches of the Lancang River. Construction started in 2002 and is scheduled to be completed by 2011.

Half of the project electricity output will be transmitted to Guangdong Province while the rest will be consumed locally.

(Sourced from Interfax-China)

Count down to June 18 Save the Mekong launch! Sign the online petition today!

On June 18, representatives from the Save the Mekong coalition will meet Thailand’s Prime Minister and hand him a petition urging the region’s governments to abandon plans to build 11 big dams on the Mekong River’s mainstream.

These dams, if built, would block the major fish migrations that feed and provide income for millions of people.

Over the past three months, partners of the Save the Mekong coalition have worked hard to gather over 10,000 postcards with signatures and personal messages from citizens in the Mekong countries and around the world. Another 2,500 people have signed the online Save the Mekong petition.

We’re making a final push to collect as many signatures as possible to send a clear message to the region’s decision-makers.

Please help this effort and sign the petition – by Wednesday June 17 – urging the Prime Ministers of Cambodia, Laos, Thailand and Vietnam to keep the Mekong flowing freely.

Visit http://tinyurl.com/Save-the-Mekong to sign the petition.

Thanks for you support,

Save the Mekong Coalition

See http://www.savethemekong.org for more information

Mekong body starts evaluating mainstream dams

saigon-gpdaily.com.vn

“The MRC is faced with perhaps its most important strategic challenge since the Mekong Agreement was signed in 1995 because of increased interest in building hydropower dams in the mainstream of the lower Mekong River Basin,” said Mr. Bird.

While there are already 3,235 MW of electricity being generated by hydropower on Mekong tributaries – and dams with an operational capacity of 3,209 MW are under construction, what is new is the interest of the private sector in seriously considering developing hydropower schemes on the mainstream.

The Mekong is one of the most active regions in the world for hydropower with eight existing or planned Mekong mainstream dams in Yunnan Province in China, where the Mekong is called the Lancang River, and 11 proposed by Cambodia, Laos and Thailand – all in various stages of investigation or feasibility study.

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The Sleeping Dragon Awakes: China’s hydropower developers in SE Asia

November 1, 2008 | Carl Middleton, International Rivers

Chinese hydropower developers and financiers have figured prominently in the renewed push for hydro development in the Mekong Region. This feature article published in the journal Watershed introduces the new hydropower proponents, describes the regional context that has seen warming relations between Chinese and the Mekong Region’s political and business elites, and discusses the implications of China’s growing role.

Download the full article or the text-only version from this page.

Download the latest, and back issues of the excellent Watershed journal from this page.

Vietnam voices worry over Mekong hydropower

Thanh Nien Daily – Vietnam
A planned hydropower development in the lower Mekong River could negatively impact the livelihoods of many Vietnamese who rely on fishing and irrigation in the area, a Vietnamese official said at a conference last week.

The Mekong River flows through six countries with the upper stream running through China and Myanmar. Cambodia, Laos, Thailand and Vietnam fall in the lower half of the river. …

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