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For Immediate Release internationalrivers.org/campaigns/nam-theun-2-dam

Development Banks Urged to Review Support for Mekong Dams, 10 Years After Nam Theun 2

Amsterdam/Bangkok/Manila/Prague/Tokyo – Non-governmental organizations are calling on the World Bank, Asian Development Bank (ADB) and European Investment Bank (EIB) to publicly acknowledge the millions of dollars of failed investment in their flagship project, Nam Theun 2. This 1070 MW dam has failed to bring intended development benefits, and instead has unleashed a range of negative impacts on the affected populations in central Laos.

On March 31, 2005, the World Bank approved the provision of US $153 million for the development of Nam Theun 2. Exactly ten years ago, on April 1, 2005, the ADB offered $90 million to the Government of Laos and the Nam Theun 2 Power Company¹, while the EIB and France’s Agence Française de Développement also pledged millions of dollars towards the project. Nam Theun 2 began operations in 2010, displacing over 6,300 indigenous people to make way for the 450 square kilometer reservoir and affecting more than 110,000 people downstream along the Xe Bang Fai River, a tributary of the Mekong River. Over 90% of the electricity generated is exported to Thailand.

According to Tanya Lee, Lao Program Coordinator for International Rivers, „The development benefits outlined in World Bank and ADB promotional material have never been achieved, including protection of the watershed area, accountability in public revenue earnings and livelihood restoration for those displaced and the downstream populations.“

„Over the past ten years, we have carried out systematic research with villagers living downstream along the Xe Bang Fai River and have documented the devastating impacts of the project. Some of the impacts of Nam Theun 2 include a dramatic drop in wild fish catches, flooding of low-lying rice fields, inundation of riverbank gardens used for food cultivation, and recurring skin rashes from the now turbid river water,“ she continued.

These problems are confirmed by the World Bank’s project-specific ratings, which currently evaluates overall implementation progress of the project to be  „moderately unsatisfactory“.² The ADB and World Bank-financed Panel of Experts (POE) has also noted similar problems. In their most recent report, dated December 2014, the POE warned that the Government of Laos had failed to comply with the project’s Concession Agreement by not providing necessary support to the livelihood programs for affected villagers. ³ In addition, the POE has highlighted:

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Jointly Issued by: CEE Bankwatch, Both ENDS, Focus on the Global South, International Rivers, Mekong Watch & NGO Forum on the ADB

Bretton Woods Proj. @brettonwoodspr 

News Lens: ADB, IMF, World Bank to cooperate with China-led Asian Infrastructure Investment Bank, leaders say http://bit.ly/1Nda1Sd 

Media Contacts:
Toshiyuki Doi, Senior Advisor, Mekong Watch | Ph: +66869742941| Email: toshi-doi@mtd.biglobe.ne.jp 

Tanya Lee, Lao Program Coordinator, International Rivers | Ph: +60193746433| Email: tlee@internationalrivers.org

Shalmali Guttal, Focus on the Global South | Email: s.guttal@focusweb.org 

 

Endnotes:
[1] NTPC is owned by a consortium comprising of Electricity de France International (35%) Thailand’s Electricity Generating Company of Thailand (25%), Italian Thai Development Company Limited (15%), and the Government of Lao PDR (25%).

[3] Nam Theun 2 Power Company. Twenty Third Report of the International Social and Environmental Panel of Experts. 29 December 2014. <http://namtheun2.com/images/stories/poe/poe23.pdf> Accessed 1 April 2015.