View Full Version : Off-MekongHydro:EGAT deal dive
The Star: 29th. November 2004
Malaysian construction company Gamuda Bhd will be undertaking a US$550mil (RM2.09bil) hydroelectric power project in Laos.
Prime Minister Datuk Seri Abdullah Ahmad Badawi and Laos Deputy Prime Minister and Foreign Minister Somsavath Lengsavad witnessed the signing of the Nam Theun I hydroelectric power project agreement yesterday between Gamuda and the Laos government.
The project, with a capacity of 450MW, comprises a dam and a power station to be constructed on the lower reach of the Nam Theun River, a short distance upstream of the confluence with the Mekong River. A transmission line will also be built to deliver power to Thailand.
The project is expected to commence by early 2006 and the plant is expected to be operational by 2010.
Gamuda Bhd managing director Datuk Lin Yun Ling, who signed the agreement on behalf of the company, said the project marked the beginning of a major initiative by the company in the “greater Mekong sub-region”, which was a region of huge potential.
Abdullah also held a bilateral meeting with Laos Prime Minister Boungnang Vorachit and a trilateral one with Thai Prime Minister Thaksin Shinawatra and Indonesian President Susilo Bambang Yudhoyono.
Earlier Abdullah, who visited the smart school lab of the Sikhotabong Upper Secondary School here, said he was pleased with the joint efforts of both governments in developing ICT.
The project, implemented by the Multimedia Development Corporation in 2001, is a pilot project based on the Malaysian experience in implementing the smart school concept to help Laos develop ICT competency.
Abdullah also attended the soft launch of the RM100mil Don Chan Palace here, a 14-storey hotel built by Malaysian construction company Sun Holding Co Ltd.
World Bank's happy with Nam Theun II progress (http://www.nationmultimedia.com/2006/11/04/regional/regional_30018030.php) - The Nation, 07 November 2006
The World Bank yesterday expressed overall satisfaction with the controversial Nam Theun II hydro project in Laos despite some delays at the beginning of construction due to serious weather conditions in the middle of last year.
"The construction of the project is now on track to meet some of the key expectation needs, including the date for filling the reservoir within 2008 and the date of the beginning of commercial operation in December 2009," said Ian C Porter, World Bank Country Director for Southeast Asia. The bank yesterday released the latest semi-annual update on the implementation status of the project, prepared jointly with the Asian Development Bank. The update reports overall "satisfactory progress" since the last update was issued in March this year, Porter told a press briefing in Bangkok, which was also conducted via teleconference to Vientiane.
The World Bank sponsored construction of the US$1.4-billion (Bt51.4-billion) hydropower project on the Nakai Plateau in the central region of Laos, one of the world's least developed country's. Most of the electricity produced by the 1,070-megawatt hydropower dam will be exported to Thailand to generate foreign currency for a poverty-reduction scheme in the landlocked country.
The project has a long history of strong opposition from conservationists as the dam will widely affect people and the environment on the plateau and another river basin nearby. Some 6,200 people in 1,200 households on the plateau have been affected. A total of 597 households were removed to resettlement areas a few weeks ago, said Patchamuthu Illangovan, the bank's country manager for Laos. The project company intends to finish the remaining 600 houses by June next year, he said. All the affected people agreed to move on a voluntary basis and most of them preferred to live near their previous home, he added.
The dam has also had a negative impact on wildlife, notably some 140-150 wild elephants living in the area. As the dam's reservoir, which will divide the plateau, could affect their habitat, the company plans to build a corridor to facilitate their crossing. Whether this will work for the elephants and other wildlife is being debated. A consultant team of top field biologists with experience in Laos has been selected to study the matter and will hold a symposium to discuss the plan soon.
Supalak Ganjanakhundee
The Nation
Big Lao dam 'on track'
Construction of the controversial Nam Theun II dam in Central Laos is moving ahead with the structure slowly taking shape, and government officials and local people confident it will create a boom for them.
Three years before it is due for commercial operation, the progress of construction is in the line with the schedule for completion in late 2009, according to the Nam Theun II Company.
Lao Minister of Energy and Mines Bosaikham Vongdara said full-scale work on the project only started in the middle of 2005 and construction was in full swing after receiving support from international finance groups such as the World Bank and Asian Development Bank.
Progress was reported to the second annual stakeholders' forum in Thakhek district, central Khammouane yesterday. Some 350 Lao officials, project officers, plus financiers, affected villagers and conservationists who strongly opposed the project attended the forum.
Khamsy Sisa-ad, a villager from Ban Sob-On in Nakai Plateau, which will be inundated, said her life would completely change as the dam should "release her" from poverty.
Khamsy is among about 6,000 people affected by the project and had to be relocated to a new area, as well as undergo rehabilitation. "I now have good access to transportation and my children have a school for their education," she told the meeting.
The hydropower project has a capacity of 1070 MW, 995 MW of which will to be sent to Thailand - generating annual revenue of more than US$200 million (Bt7 billion) for the cash-strapped Lao economy. Direct revenue over the 30-year concession would be around $2 billion, much of which would be spent on poverty reduction, Bosaikham said. During the construction period, the project would create jobs and additional incomes for 5,000-7,000 local workers, he said.
But international conservationists oppose the project because it has and will damage the environment on the Nakai Plateau and downstream of Xe Bang Fai, where huge volumes of water will be diverted.
They also raised concerns about wildlife in the area, notably scores of wild elephants. Officials said a scheme to save 150 wild elephants was being implemented. - Supalak G Khundee, the nation
http://www.nationmultimedia.com/2007/06/28/national/national_30037982.php
Thuen-Hinboun hydropower dam to increase capacity production
(KPL) The Thuen-Hinboun Power Company will expand its capacity production of electricity to 500 MW from 200 MW by constructing more hydropower dam along Nam Youang river.
The Nam Nguang river is located at upper part of Thuen-Hinboun river which will be released to Thuen-Hinboun hydropower dam.
A memorandum of understanding on developing the Thuen-Hinboun hydropower expansion project, was signed this month between Thuen-Hinboun Power Company and the Lao Government.
The Nam Nguang hydropower construction project is 700 metres north of Ban Thatsala village of Khamkuet district is opposite of Viengthong district in Bolikhamsay province.
At present the construction of dam have progressed many fields and it is a high possible for the construction next year.
A coordinator project of Thuen Hinboun Power Company, Mr Bounma Molakhasouk said on 18 October that the project has so far paid attention to conduct a survey and other data collection of environment impact and resettlement.
The Thuen Hinboun Hydropower dam produced in 1998 but the Thuen Hinboun Power Company has decided to expand its project due to the Nam Theun 2-dam construction which cause to the water level of Thuen Hinboun dam decreased.
The preparation will kick off early 2008 till to September the construction will be conducted and it expects to be completed by 2010.
http://www.kplnet.net/english/news/edn6.htm
http://www.kplnet.net/english/news/edn6.htm
Thailand signs to buy more Laos electricity
State-run Electricity Generating Authority of Thailand Thursday signed a memorandum of understanding with the Nam Thuen-Hinboun Power Co of Laos to buy more electricity from the land-locked country at 1.82 baht per unit.
The MoU was signed by Kraisri Karnasutra, governor of Egat, and Viraphonh Viravong, director-general of the Laos Department of Energy Promotion and Development.
Under the agreement, production at the plant will be doubled to 440 MW from the present 220 MW, and an expanded electricity production could be generated from March 2012.
Upon completion, the company could supply about 2,572 million units of electricity annually to Thailand, sufficient for the demand of people in the Northeast.
The Laotian company has been selling electricity to Egat since March 31, 1998. (TNA)
Link may expire:
http://www.bangkokpost.com/breaking_news/breakingnews.php?id=122983
See also thread in a thread on Thailand's energy problems:
http://www.angkor.com/2bangkok/2bangkok/forum/showthread.php?goto=newpost&t=2013
Laos plans to develop electricity sector
Vientiane, Nov 20 (VNA) - Electricity sector will play a major role in Lao economic growth, Prime Minister Bouasone Bouphavanh has said.
The Lao PM was quoted as saying ahead of the ASEAN Summit that his country is shaping itself into a "battery" for the region by tapping hydropower.
PM Bouasone Bouphavanh said the Lao economy is expected to achieve a growth rate of close to 8 percent in 2007, according to news reports.
He added that this year, foreign direct investment in Laos will reach around 500 million USD, more than doubling the 200 million USD the previous year, with funds mainly coming from neighbouring China, Thailand and Viet Nam.- (VNA)
http://etna.mcot.net/view.php?id=1405
http://www.vientianetimes.org.la/FreeContent/FreeContent_hydro.htm
Hydropower to affect 50 hectares of rice in north
Fifty hectares of rice field owned by 49 families of Chim Village of Luang Prabang province will be affected by flooding once construction is complete on the Nam Ngum 5 Hydropower Project in 2011.
This was announced at a national workshop on the environmental and social impact assessment, environmental management plan and social action plan of the Nam Ngum 5 Hydropower Project, in Thalat, Vientiane province on November 21.
More than 80 participants, from environmental and government organisations, project representatives, local authorities and representatives from villages to be affected in Xieng Khuang and Luang Prabang provinces, attended the workshop.
“We've been looking into the environmental and social impacts around the area of the hydropower project since 2005, and we've found that Chim village in Phoukhoun district will be the only village to be affected by flooding during the rainy season as a result of the dam being built,” said the head of the Environmental and Social Education team of Dongxai company, Professor Dr Sengdeuane Vayakone.
However, he also confirmed that these villagers would still be able to plant and harvest dry season crops without any trouble.
He said the 120 MW-capacity dam would be located in Phoukhoun district of Luang Prabang province, while a powerhouse would be built in Phoukhoud district of Xieng Khuang province; the dam would receive water from the Ting, Soud and Phat rivers.
He maintained that it would not be necessary to relocate any villagers for the project, but there would need to be more basic infrastructure in the area, such as bridges and roads to allow more people to move between villages.
“The project will greatly benefit locals by creating jobs, supplying water for farming and as a tourism site, not to mention the increased access to electricity in the northern provinces ,” he said.
“All projects involving the development and construction of hydropower dams will have problems involving the impacts of catchment areas, fisheries, village resettlements, and the change in living conditions, among others,” said the Director General of the Environment Department of the Water Resources and Environment Administration, Dr Viengsavanh Douang-savanh.
However, she said, the government had been paying attention to implementing laws and regulations to ensure that the environment and people's livelihoods were not adversely affected, and that there were sustainable solutions to these problems, such as adequate resettlement and compensation policies, and extensive studies to evaluate environmental and social impacts.
She said environmental impact evaluations were necessary to ensure projects would lead to sustainable development and would not destroy the environment.
“As you know, hydropower development is a priority for creating national revenue. Laos has the potential, using its natural and water resources to generate as much as 23,000 MW of electricity,” she said.
The coordi nator of the hydropower construction project and representative of Electricite du Laos, Mr Bounphong Khetdasack, confirmed that the Chinese company Sinhohydro would be carrying out constructions on the dam, at a cost of US$200 million; the company has been granted a 25-year concession over the area, and the Lao government will hold a 15 percent share.
The project is now building a road to access the dam site, and construction on the dam will begin next year, with the aim of being finished by 2011, he said.
“After the construction is complete, more people in the northern provinces will have access to electricity. However, there still won't be enough power to meet local demands because of the increasing development of industrial factories,” he said.
“We have already prepared to give compensation to impacted areas, worth around US$160,000 from our first evaluations, but we will check again to evaluate the final amount needed for compensation,” said the Managing Assistant of the Nam Ngum 5 Hydropower Project, Ms Chanmalay Boupphavong.
By Panyasith Thammavongsa
(Latest Update November 23, 2007)
Environmental group calls for postponement of new dam deals in Laos
Bangkok - Thailand and Laos should delay signing deals for 1,500 megawatts of hydro-electricity this month until the social and environmental impact from past projects is addressed, the International Rivers Network said Thursday.
Thailand and Laos plan to sign four new power purchase agreements from hydro-electric dams in Laos before the upcoming December 23 general elections in Thailand, which will usher in a new government.
One involves a dam that has already severely harmed the livelihoods of some 30,000 Lao people, while another promises to open up one of the world's 35 "bio-diversity hotspots," the group's Lao program director Shannon Lawrence said.
"Before new project go forward, they should at least meet minimum standards on their previous projects," said Lawrence.
Laos, a land-locked, mountainous country that is ranked among the world's poorest nations, is banking on its abundant hydro-electric resources to pull itself out of poverty.
The government recently said it hopes to turn the country into the "battery" of South-east Asia. To date, neighbouring Thailand has received most of the juice.
Laos currently has six large hydro-power plants in operation, all of them exporting to neighbouring Thailand. Another four projects are under construction and five to 10 more are in the advanced planning stage.
The government, under communist rule since 1975, hopes to attract foreign investment to build 30 new hydro-electric dams by 2020.
While Thailand and Laos agreed in Bangkok last September to implement social and environmental standards on Lao dam projects, their track record on past projects has raised scepticism about their pledges.
For example, the Theun-Hinboun hydropower project, owned by Norway's state-owned Statkraft, the GMS Power Company of Thailand, and the state-owned Electricite du Laos, has ruined the ecology of two rivers in Laos and the livelihoods of 30,000 Lao people living downstream of the dam over the past nine years, according to a newly released report called Ruined Rivers, Damages Lives, compiled by FIVAS, a Norwegian advocacy group.
Now the Theun-Hinboun project is being slated to double its capacity. It is one of the four projects Thailand's is seeking a new PPA with Laos on.
Another is the Nam Theun 1 project, just south of the World Bank-backed Nam Theun 2. Nam Theun 1, operated by Gamuda of Malaysia and the Electricity Generating Company of Thailand, is being constructed in the middle of the Nam Kading National Protected Area, one of the most remote and bio-diverse protected areas left in Asia.
"Given Nam Theun 1's social and environmental costs, many of which cannot be met, this project undermines the sustainable hydro-power pledges made by the Lao and Thai governments in September," said Lawrence.
"The Theun-Hinboun also fails to meet these standards, and as such both projects should be dropped."//dpa
http://www.nationmultimedia.com/2007/12/13/regional/regional_30059005.php
See also previous post before you draw too many conclusions from this one:
Relocation at Laos giant dam nearly completes
Two thirds of the 1,216 households that will be flooded by the reservoir created by the Nam Theun II dam in central Laos have been relocated, the World Bank said Friday.
The relocation of 6,500 people from 17 villages will be completed by May next year, a month before the reservoir is flooded.
Fourteen households in Ban Sob Hia on the banks of the Nam Theun River that earlier refused to move have changed their minds, according to Patchamuthu Illangovan, the bank's country manager in Laos.
These people are Vietic animists who resisted resettlement on grounds they did not want to leave their spiritual land. They claimed the land where they were to move to was not fertile.
The Nam Theun Power Company failed several times to convince them to move. Independent consultants recently spent a week with the villagers.
They have now agreed to move to higher ground near their current homes, Illangovan said.
"After consultation, they now understand the rehabilitation programme and eventually they will move of their own choice," he said in a briefing via teleconference from Vientiane.
The dam, which will have a capacity of 1,070 megawatts and supply Thailand, will have many implications for the environment and society.
As well as the thousands who will be directly affected, many more along the banks of the Xe Bang Fai river will be affected by diversion.
The World Bank, which provided a risk guarantee for the project, requires the company to allocate 10 per cent of its US$1 billion (Bt33.6 billion) construction cost for resettlement and environmental protection.
Companies from China, Malaysia and Thailand are conducting feasibility studies into at least three more dams on the Mekong. The environmental and societal effects of these will surpass those of Nam Theun.
The government of Laos has set the criteria and requirements imposed for Nam Theun II as standard for other dams, said its deputy head of energy Xaypaseuth Phomsoupha.
Dams with installed capacity of more than 50 megawatts and reservoirs bigger than 10,000 hectares must follow the same standards of social rehabilitation and environment protection as Nam Theun II, he said.
By Supalak Ganjanakhundee
http://www.nationmultimedia.com/2007/12/14/regional/regional_30059137.php
http://enews.mcot.net/view.php?id=1927
Laos to export 7,000 MW of electricity to Thailand by 2020
(KPL) The Lao PDR expected to export 7,000 megawatts of electricity to Thailand by 2020. The increasing of electricity power export to Thailand are from the increasing of number of hydropower development project in Laos which is believed that it will help to improve the living conditions of Lao people.
Mr. Saypaseut Phomsoupha, Director General of Energy and Mining Promotion Department, Ministry of Energy and Mining said that the Lao PDR has exported the electricity produced at Nam Ngum 1 to Thailand and currently, a number of hydropower development projects invested by Electricity du Laos and private sector has signed a contract to export their products to Thailand too.
According to Mr. Saypaseut, the Government of Laos and Thailand has signed on 18 December 2006 a MoU to increase the electricity capacity for export to Thailand from 3000 MW to 5000 MW by 2015 and the sides also signed an MoU on 22 December 2007 to increase from 5000 MW to 7000 MW by 2020. The MoU became the good potential for Laos to develop the hydropower sector and create the confidence for foreign investors.
The construction of the Nam Theun II and the Nam Ngum 2 power stations are priority projects for the power supply to Thailand. The Nam Theun II project is now 70% completed while the Nam Ngum 2 is only 43% completed. The projects are expected to be completed and start the export by 2009 and 2011, respectively.
http://www.kplnet.net/english/news/edn5.htm
Unfortunately, I can only bring you the following as an introductory snippet, due to the lack of a subscription:
Construction close to starting on major dam
The main construction phase of the Nam Ngum 3 (NN3) Hydropower Project will begin in October this year in Xaysomboun district of Vientiane province. ......
http://www.vientianetimes.org.la/
http://www.kplnet.net/english/news/edn5.htm
Unfortunately, I can only bring you the following as an introductory snippet, due to the lack of a subscription:
http://www.vientianetimes.org.la/
http://ipsnews.net/news.asp?idnews=40858
SOUTH-EAST ASIA: Lao Dam To Feed Thai Energy Hunger
By Johanna Son and Jaime Lim
BANGKOK, Jan 21 (IPS) - News reports that initial work has begun on the Nam Ngun-3 hydropower project in Laos are a stark reminder of Thailand’s increasing reliance on its neighbours to satisfy its appetite for energy.
While the construction of the Nam Ngun 3 project, located in the Xaysomboun district of Vientiane province, is still at a very early stage, the buyer of the power to be produced by the 440-megawatt plant has been identified -- Thailand.
Thailand is already the biggest customer of electricity from a string of hydropower projects in Laos, a landlocked country keen to earn badly needed revenues. The country has up to 23,000 Mw of hydropower to be tapped from 2006 to 2010, Lao energy officials have said.
Thailand’s 15-year power development plan involves adding more than 32,000 gigawatts of capacity by 2015, including buying more than 5,000 Mw from neighbouring countries. Plans seek to increase the amount of power bought from neighbouring countries from one to two percent now to nine percent by 2020, news reports say.
According to the English-language daily ‘Vientiane Times’, initial construction work, including the building of an access road to the project site, is starting. The main construction phase is set to begin in October, and the 700 million US dollar project is to be completed by 2013. It will have a 28 km transmission line to Thailand.
News of the start of Nam Ngun-3 comes just a few months after Thailand agreed to buy another 2,000 Mw of electricity from Laos, bringing the total to 7,000 Mw by 2015.
These purchase agreements by Thailand are based on assumptions that its energy demand will grow at 5.95 percent annually from 2007 to 2011, going by GDP growth of 5 percent.
But that is exactly where the problem lies, say activists and critics who argue that the questionable [assumptions] are fuelling over-investment in power plants at home and in buying electricity from overseas that this country does not really need.
Thailand's peak electricity demand is expected to rise to 50,223 megawatts in 2021 from 22,684 megawatts in 2007, according to government figures.
Apart from buying electricity overseas, Thailand has been looking to build more power plants at home. The Ministry of Energy has just approved four large power plants in Thailand to produce a total of 4,500 Mw of electricity, according to Tara Buakramsri of Greenpeace, South-east Asia.
‘’One big problem is that the Ministry of Energy’s electricity demand forecasts, which serve as the basis for their approval and ultimate existence of new power plans, are notoriously biased and overestimate how much electricity we need,’’ he wrote. ‘’Every official forecast over a year old -- there have been nine since 1993 -- has predicted demand that has failed to materialise.’’
‘’Forecasts that consistently over-estimate electricity demand causes the government to set inappropriate policy, for example by creating a false sense of urgency to build new power plants,’’ Chris Greacen, an independent energy analyst with the Bangkok-based non-government organisation Palang Thai, has explained.
Chuenchom Greacen of the same group added: ‘’Instead of being self-sufficient by living and consuming within our means, we over-consume and over-produce to the point that we have to rely on resources of our neighbouring countries.’’
Chris Greacen and Buakamsri say that exaggerated load forecasts stem from problems with the power planning process.
Greacen has questioned the ‘’lack of checks and balances’’ in the Power Development Plan (PDP) of the Electricity Generating Authority of Thailand (EGAT), which critics say is inherently structured to get electricity to sell to consumers in the country and not really to encourage conservation.
‘’The PDP is problematic because the monopoly utility’s core business is building and operating big centralised power plants. EGAT is ambivalent about energy efficiency because it earns less money when customers save energy,’’ he has pointed out.
‘’The problem is, while there are committed people in EGAT?s energy-efficiency programme, they are marginalised by an institution incentivised to sell electricity not to save it,’’ Tara wrote, maintaining that Thailand’s reserve margin for electricity is 27 percent, or quite above the official target of 15 percent. Apart from being accused of helping drive Laos’ dam-building trend, Thailand has also been criticised for shunning the environmental and social implications of damming by investing in its poorer neighbour -- where opposition is unlikely to have a voice as it does in Thailand -- while Laos gets the rap for accusations of lack of transparency and trading the livelihood of its people for foreign currency.
But Lao officials stress they need to meet development goals. ‘’According to our surveys, there is room for the development of 70 more hydropower dams in the future, with a combined capacity of 23,000 megawatts,’’ Khammany Inthirath of the state-owned Electricite du Laos was quoted as saying last year.
‘’But we need to protect the environment by conserving our forests, particularly in watershed areas so that hydropower projects will have enough water to produce electricity. We have already committed to exporting 5,000 Mw of electricity to Thailand by 2015, and we have to work hard to fulfill this commitment,’’ he added.
At the forum on Lao-Thai Partnership in Sustainable Hydropower Development in September 2007, World Bank country director for Thailand Ian Porter said the Thai-Lao power purchase deals benefitted the two countries.
‘’The increased flow of clean hydropower from Laos can help Thailand sustain its rapid economic growth and supply power to the 17 provinces in the Northeast -- the poorest region of the country -- at economically attractive rates without adding to local or global pollution,’’ he said.
‘’In turn, sustainably exploring the use of its hydropower resources will allow Lao PDR to generate much-needed revenue to invest in poverty reduction programmes and thereby achieve its goal of reaching middle income status by the year 2020, while benefiting locally impacted communities.’’
Porter described the Nam Theun-2 power project in Laos -- the largest such project in the country criticised by activists -- as an example of ‘’responsible hydropower development’’. Laos expects to sell over 90 percent of the electricity generated by Nam Theun-2 to Thailand.
EGAT is to buy 220 Mw from Nam Theun-Hinboun, one of the four Lao projects that Thailand agreed to buy power from in October. The others are Nam Theun-1, Nam Ngum-3, Nam Ngieb. Thailand also looks to other neighbours like Burma and Malaysia for electricity but plans to rely on Laos for a good part of its imported power.
There are eight hydropower plants now in Laos, according to the Electricite du Laos website. The site shows 75 planned electric plants, 18 of which have Thailand as the planned market.
‘’Excessive investment in new power plants leads to needless environment and social costs, as well as unnecessarily high electricity bills for captive Thai consumers,’’ Aviva Imhof, campaigns director of International Rivers, said in an email interview.
‘’It is time for the EGAT, Thai developers and investors to ensure that they only support power projects in Laos that meet the same environmental and social standards demanded at home,’’ added Shannon Lawrence, International Rivers- Lao programme director.
(END/2008)
Nam Ngum dams in Laos could hurt thousands: report
A series of dams proposed for the Nam Ngum River basin in Laos would have a serious impact on the livelihood of tens of thousands people due to huge areas being inundated and the blocking of fish migration routes, according to a social and environmental impact report.
The report, compiled by Vattenfall Power Consultant with support from the Asian Development Bank, which will finance the Nam Ngum 3 Hydropower Project, was presented at a meeting in the Lao capital Vientiane Tuesday.
The Lao government plans to build a series of dams in the Nam Ngum basin in Vientiane Province to generate electricity for export - mostly to neighbouring Thailand.
The dams include Nam Ngum 2, which is under construction; Nam Ngum 3, which is being studied, while Nam Ngum 5, Nam Lik and Nam Bak are still in the pipeline.
The study, which considered three scenarios for hydropower and irrigation development, found the projects would block fish migration routes, destroy riverine habitat, and affect water quality.
A serious impact was seen on aquatic ecology.
Water quality in the existing Nam Ngum 1 reservoir would be significantly affected and key migration routes would be blocked by construction of Nam Ngum 2 and Nam Lik, according a summary of the report.
"The existing migration route to and from the Mekong River is the only remaining, unregulated connecting channel in the Nam Ngum Basin, and used by important species such as Pangasids and Cyprinids. The Nam Lik river supports a population of over 30,000 people, many of whom have a strong dependence on fisheries," it said.
"Subsistence farmers, the poor, the landless, ethnically and otherwise marginalised groups with few alternatives are likely to be hit hardest by any impact on habitats and wildcapture fisheries. The new reservoirs (Nam Ngum 2) are mainly expected to have moderate to low potential for reservoir fisheries," said the report, a copy of which was seen by The Nation.
The hydropower sector is developing fast in Laos. The government expects that the Nam Ngum projects could generate between 1,800 and 2,100 Megawatts by 2020.
Laos hopes the projects will generate income for poverty reduction.
However, the hydropower cascade could undermine the Laos' poverty reduction plans, particularly in the absence of any revenue management or legally enforceable contracts to share the benefits from dams with affected people.
"The impact of hydropower development on the rural poor will depend largely on the existence of concrete mechanisms to guarantee affected villagers benefit directly from the revenue earned by hydropower projects through formal benefitsharing mechanisms," the report said.
Environmentalists say the Lao authorities' plans and way of operating lack transparency and have not allowed full participation by local people who might be affected by the projects.
"Decisions have been taken to proceed with hydropower projects even before individual and cumulative environmental and social impacts have been fully assessed," said Shannon Lawrence, the Lao program director for the International Rivers Network (IRN).
"Uncoordinated development and poor basin management pose major risks to local communities, as well as to investors," she said.
No environmental impact assessment or resettlement plan had been disclosed for the Nam Ngum 2 dam, which has been under construction since 2006 - in violation of Laos' National Policy on Environmental and Social Sustainability of the Hydropower Sector, an IRN statement said.
Thai investors include Ch Karnchang, Ratchaburi, Bangkok Expressway Plc and GMS (Thailand), which also have stakes in Nam Ngum 2 and Nam Ngum 3. These projects have a combined installed capacity of 1,075 megawatts.
By Supalak Ganjanakhundee
The Nation
http://www.nationmultimedia.com/2008/01/22/regional/regional_30063073.php
Fourth dam planned on Nam Ngum River
Another hydropower dam is planned for the Nam Ngum downstream after a Chinese company signed a Memorandum of Understanding with the Lao government yesterday in Vientiane to initiate the project.
Under the memorandum, the company will conduct an 18-month feasibility study. If this meets the requirements of the social and environment impact assessment, construction will go ahead, with an operating period of 30 years.
The project, with a capacity of 110MW, will produce electricity for export to Thailand and for consumption in Vientiane , with power generation of 470 GWh per year and annual utilisation of 4,273 hours.
The government was represented by the Deputy Minister of Planning and Investment, Mr Thongmy Phomvisay, and the Deputy Director General of the Department for Promotion and Energy Development, Mr Khamchan Pharayok, who signed the memorandum with the President of the China National Electronics Import and Export Corporation, Mr Cong Ya Dong, and company vice president Mr Chen Xu.
The event was witnesse d by officials from relevant sectors including the Vice Mayor of Vientiane, Mr Bounchan Sinlavong.
The dam site is located at Pak Ngum district in Vientiane , about 60km from the city centre.
Officials said the dam was part of the government's goal to develop hydropower for export to Thailand and in response to economic growth within Laos .
According to the Ministry of Energy and Mines, two other dams are under construction on the Nam Ngum River . The first on this river was built in 1971, with a capacity of 155MW.
The China National Electronics Import and Export Corporation is a Chinese government-owned company, established in 1980 in Beijing .
Last year, the company signed its first MoU with the Lao government to conduct a feasibility study on the development of a Mekong hydropower project in Paklai district, Xayaboury province, with a capacity of 1,320MW.
The Mekong dam will be one of the largest hydropower projects in Laos , generating electricity for domestic consumption and for export to Thailand .
Laos is positioning itself to be the ‘battery of Asean' by exporting electricity to the region; by 2020 it plans to have 70 dams completed or under construction.
Eleven dams are already generating electricity and MoUs have been signed for an additional 49 projects.
By Somsack Pongkhao
(Latest Update January 29, 2008)
http://www.vientianetimes.org.la/FreeContent/FreeContent_fourth.htm
KPL Lao News Agency report, 07/02/08:
Electricity grid construction assessed
(KPL) A meeting on assessing negative impacts to society and environment of the 500-kw electric transmission line construction of Theun I project was held on Tuesday at the Lao-Japan International Co-operation and Training Centre, Vientiane.
Mr Sisavat Vithasay, the Deputy Head of the Water Resources and Environment Department, Prime Minister’s Office, attended the meeting with a number of concerned officials.
The construction of the 151km-transmission line from Theun I powerhouse in Pakading, Borikhamsay province, to Nabong substation in Pakngum district, Vientiane.
The line will cross 48 villages of four districts of Pakkading, Paksan, Thaphabat, and Pakngum. It is believe to cross forestry conservation and agricultural production land of the ethnic people.
http://www.kplnet.net/english/news/edn5.htm
Tunnel closure takes Nam Theun 2 project nearer completion
(KPL) The Nam Theun 2 hydropower project on 10 April moved one step nearer completion with the sealing of the diversion tunnel which will see the water level start to rise and ultimately fill the Nam Theun 2 reservoir, a process referred to as impoundment.
The tunnel was officially closed in a ceremony that took place at the Nakai dam site in Khamkeuth district, Borikhamxay province, Lao PDR in the presence of Mr. Somsavat Lengsavad
This closure will result in the flooding of 80sq km of land and is the first step in the process of impoundment: The dam gates are scheduled to close in June 2008.
Deputy Director General of the Department of Energy Promotion and Development Mr Sychath Boutsakitirath said the tunnel closure represented an important milestone in the development of hydropower in Lao PDR.
"This step toward the final completion of the NT2 project is one we have been anticipating with some enthusiasm, as it means the project is well on track and impoundment can begin this wet season," he said.
"We are delighted with the progress of the project as it represents a vital contribution to the Lao economy and the Lao people and will playa substantial role in helping the Government meet its poverty alleviation goals."
The tunnel was built to divert the Nam Theun river around the dam construction site so water flow could be better managed during the construction phase. Water will now be released through the dam gates.
The Nam Theun 2 project is 85% complete and on schedule for its planned start of operation in 2009. Commissioning of the Nam Theun 2 hydropower plant is set for the beginning of March 2009 and commercial operations will commence in December 2009.
The tunnel closure follows the agreement by an independent international Panel of Experts (PoE) late last week that the project operators and the Lao Government had met their obligations in the Social and Environmental Management Framework and Operational Plan. In January the PoE outlined several key areas it suggested needed addressing before the tunnel closure and its latest report says it is now satisfied that these requirements have been met or are sufficiently far advanced. The report made special comment that completion of the necessary tasks had been achieved much faster than the panel had anticipated; in fact the PoE noted that the rapid and effective responses by the Lao Government and Nam Theun 2 Power Company (NTPC) had indeed been impressive.
Recommendations included successful resettlement of all affected people, establishment of a reservoir management committee, completion of essential infrastructure and housing, removing of the reservoir biomass, establishment of fishing and agriculture rights, livestock replacement and a protein provision program for 37 villages below the dam.
The PoE, which has been involved in monitoring the Nam Theun 2 hydropower project since 1997, has filed 14 reports to date and they have constantly referred to the Concession Agreement that underpins the project, highlighting the importance of this agreement in achieving the social and environmental outcomes being pursued. The three-member panel routinely submits its findings to the Ministry of Energy & MInes, at the same time referring recommendations to the NTPC where appropriate.
It has stated that it believes NT2 has the potential to be a world class model of a large scale project that could benefit the nation, the people and the environment.
With its installed capacity of 1070 MW, NT2 is the largest hydropower project to be constructed in Lao PDR to date. It is a joint investment between the Government of Laos and foreign investors in the form of a build, operate and transfer (BOT) project. Nam Theun 2 Power Company Limited (NTPC) was established under Lao PDR law, being the owner of the Project. Shareholders are the Lao Holding State Enterprise (25%), Electricity Generating Public Company Limited (25%), Electricite de France International (35%) and Italian-Thai Development Public Company Limited (15%). Financing involved 26 international banks including international financial institutions such as the World Bank, the Asian Development Bank, the European Investment Bank, and Agence Francaise de Developpement.
The bulk of the power generated by the project will be exported to Thailand but 75MW will be earmarked for Lao domestic use.
In the past, more than 6.000 poor peoples used to practice slash-and-burn activities in Nakai plateau. With the support of the Government and NTPC, they have learned new occupations on the basis of the sustainable utilization and management of natural resources. With regard to the Nakai-Nam Theun watershed management, the Project will provide 1 millions US annually to relevant government's agencies for 25 years. Those agencies will have the duty to protect the habitats of wildlife animals and the abundance of the biodiversity of the 4000 km2 Nam Theun 2 Watershed area. The released water from the plant will supply the irrigated areas covering thousand of hectares in Xe Bang Fay, Gnommalath and Mahaxai districts. During the construction phase, a large number of employments were created; technology was transferred thus generating an income of 5000-7000 people every year. Therefore, we can proudly say that apart from being an industrial and business project, the Nam Theun 2 project is also a development project that aims to reduce the poverty in Laos.
This project started its overall construction in mid 2005 after received the official support from the international financial institutions. Up to now, the construction has been conducted for 33 months out of the 55 scheduled months and the construction works are 85 % completed,” Mr Bosaikham Vongdara, Minister of Energy and Mines, said.
The Nam Theun 2 Project and the Lao Government have accomplished the implementation of the socio-environment programs (infrastructure construction, sustainable livelihood program for resettled people, downstream livelihood development program, the water sources protection and biodiversity program, the salvage logging programs) to be implemented fully in accordance with the conditions stipulated in the Concession Agreement. Last week, after accomplishing their mission conducted between 25 March -5 April 2008, the independent Panel of Expert on Environment or POE, who have been monitoring and assessing the project implementation so far, have agreed and supported the closure of the tunnel to be held on 10 April 2008 as planned.
The tunnel closure is the first step for reservoir impoundment before moving towards the closure of the dam gates in mid June 2008. The trial beginning of production in early March 2009 and the official beginning of production in December 2009 will constitute important milestones of the success of the Nam Theun Project construction.
http://www.kplnet.net/english/news/edn2.htm
Nam theun dam reservoir set to be flooded
By Supalak G khundee
The Nation
Published on June 19, 2008
Conditions said to have worsened for moved villagers
The operator of the Nam Theun II hydropower dam in Laos plans to shut the dam's watergates in a week or so to fill its reservoir, amid concerns it is behind in its livelihood programme and it lacks environment protection.
The flooding of the 450 square kilometres is to reserve water for generating 1,070 megawatts of electricity, to be mostly sold to Thailand next year.
The project directly affects 6,200 people living in the Nakai Plateau where the dam is located.
They have been relocated from villages that will be submerged soon.
Their living standards initially improved when they were moved, but as the dam is about to start operations their conditions have worsened.
The 13th report by the International Environmental and Social Panel of Experts (POE) in February said overall living standards had fallen. Most villages appear affected and the conditions can be expected to stagnate or decline further during most of this year because of delays in implementing a "livelihood programme".
The POE was employed as an adviser to the Laos government to monitor social and environmental impact at the dam.
"A further decline is likely if the dam shuts because the settlers will be unable to cultivate draw-down areas for rice during the rainy season this year," it said.
"Buffaloes are dying of disease and there are cases of starvation at many villages and a drop in employment opportunities associated with the construction of the project," the report said.
General concerns for filling the reservoir are biomass clearance and water quality.
Decomposing biomass in flooded areas could spoil water quality. Degraded water quality was observed as levels of dissolved oxygen dropped.
The dam's developer has cleared 1,500 hectares of biomass but shortly before filling the reservoir, an additional 1,500 hectares also required clearance but that has not been done, said conservationist Shannon Lawrence, director of the International Rivers' Lao Programme.
Decomposing matter is not the only problem associated with dams. In many cases, hydropower dams can emit greenhouse gas, contributing to global warming, she said.
Previous studies suggested that the world's largest dams emit 104 million tonnes of methane annually from reservoir surfaces, turbines, spills and water downstream.
This implied the dams are responsible for at least 4 per cent of the total warming.
However, a report from the Nam Theun II developer argued that the dam would offset the use of gas-fired plants, which translates into a saving of over 520 million tonnes of carbon dioxide over a century.
There are many problems in downstream areas raised by the panel of experts and they had not yet been addressed by the developers, Lawrence countered.
Due to its design, the hydropower plant would not release water from its turbine to the same river but to another basin at Xe Bang Fai where some 25,000 to 120,000 people could be affected.
High water levels caused by the dam could result in flood, which takes place every two or three years in the basin.
The dam developer allocated US$ 16 million (Bt534 million) in total resources to help relieve the impact but it may not be adequate.
The real cost should be $80 million to$100 million, said Lawrence .
The panel of experts urged the Asian Development Bank, one of the major financiers, to commit more resources with emphasis on flood management and dry season irrigation.
Another group from 300 to 400 households who lost more than 10 per cent of their productive land to the construction have not yet obtained land compensation since the dam developer could not find new plots to replace old ones.
The second option, which takes time, is to find a new site and develop an irrigation system.
Lawrence alleged that a scheme allowing the developer to take people's land before replacing it is against the World Bank's regulations.
The bank is heavily involved in the project since it provided its risk guarantee.
There remains a group of affected people in some 40 villages living downstream who are off the radar screen of the project and do not qualify for compensation, Lawrence said.
The immediate impact could be serious as the flow of water in the Nam Theun River will quickly drop when the dam shuts the flow.
The impact on aquatic species, animal and vegetation, which villagers depend on, will be substantial, he said, as there is no clear plan to help them.
http://www.nationmultimedia.com/2008/06/19/politics/politics_30075906.php
See 2 previous posts to get some idea of the lack of forethought that these numerous projects may entail
Two article below:
Laos to generate electricity over 3 billion kw/h by 2008
(KPL) Laos plans to increase electricity production over 3,700 million Kw/h in 2008, according to the Ministry of Energy and Mining.
Electricity will be distributed throughout country more than 1,400 million Kw/h worth US$75.54 million totally to ensure domestic consumption and goods production, especially in remote areas and focal development areas.
Over 60% of households countrywide will gain access to the electricity system and plans to export over 1.9 billion Kw/h which draw over US$91 million in this year, said Ministry of Energy and Mining.
At present, many hydropower construction projects are being constructed namely Nam Thuen II, Seset II, Nam Ngum II, Sekhaman III, Nam Lik �, Nam Ngum V, Nam Ngone, Nam Thuen I and Nam Ngum III.
On the other hands, the plan will push forward to expand other construction hydropower and power plants projects including Thuen Hin Boun, Hongsa lignite power plant, Nam Nhiep I and Nam Sim, northern area rural power distribution and rural electrification projects.
Under the annual plan, the installation of 115kv power grid connecting from Ban Hard of Laos to Cambodia border checkpoint should be promoted to operate.
The installation of transmission line connects from Seset I dam to Saravan province would also be built.
For the installation of transmission line runs from Borikhamsay to khammouan and Savannakhet provinces must be constructed as plan.
The power grid installation project stretches from Xieng khouang-Samnuea- Oudomsay-Phongsaly and Luang Namtha-Bokeo are also preparing for construction.
http://www.kplnet.net/english/news/edn8.htm
Nam Ngum dams in Laos could hurt thousands: report
A series of dams proposed for the Nam Ngum River basin in Laos would have a serious impact on the livelihood of tens of thousands people due to huge areas being inundated and the blocking of fish migration routes, according to a social and environmental impact report.
The report, compiled by Vattenfall Power Consultant with support from the Asian Development Bank, which will finance the Nam Ngum 3 Hydropower Project, was presented at a meeting in the Lao capital Vientiane Tuesday.
The Lao government plans to build a series of dams in the Nam Ngum basin in Vientiane Province to generate electricity for export - mostly to neighbouring Thailand.
The dams include Nam Ngum 2, which is under construction; Nam Ngum 3, which is being studied, while Nam Ngum 5, Nam Lik and Nam Bak are still in the pipeline.
The study, which considered three scenarios for hydropower and irrigation development, found the projects would block fish migration routes, destroy riverine habitat, and affect water quality.
A serious impact was seen on aquatic ecology
Water quality in the existing Nam Ngum 1 reservoir would be significantly affected and key migration routes would be blocked by construction of Nam Ngum 2 and Nam Lik, according a summary of the report.
"The existing migration route to and from the Mekong River is the only remaining, unregulated connecting channel in the Nam Ngum Basin, and used by important species such as Pangasids and Cyprinids. The Nam Lik river supports a population of over 30,000 people, many of whom have a strong dependence on fisheries," it said.
"Subsistence farmers, the poor, the landless, ethnically and otherwise marginalised groups with few alternatives are likely to be hit hardest by any impact on habitats and wildcapture fisheries. The new reservoirs (Nam Ngum 2) are mainly expected to have moderate to low potential for reservoir fisheries," said the report, a copy of which was seen by The Nation.
The hydropower sector is developing fast in Laos. The government expects that the Nam Ngum projects could generate between 1,800 and 2,100 Megawatts by 2020.
Laos hopes the projects will generate income for poverty reduction.
However, the hydropower cascade could undermine the Laos' poverty reduction plans, particularly in the absence of any revenue management or legally enforceable contracts to share the benefits from dams with affected people.
"The impact of hydropower development on the rural poor will depend largely on the existence of concrete mechanisms to guarantee affected villagers benefit directly from the revenue earned by hydropower projects through formal benefitsharing mechanisms," the report said.
Environmentalists say the Lao authorities' plans and way of operating lack transparency and have not allowed full participation by local people who might be affected by the projects.
"Decisions have been taken to proceed with hydropower projects even before individual and cumulative environmental and social impacts have been fully assessed," said Shannon Lawrence, the Lao program director for the International Rivers Network (IRN).
"Uncoordinated development and poor basin management pose major risks to local communities, as well as to investors," she said.
No environmental impact assessment or resettlement plan had been disclosed for the Nam Ngum 2 dam, which has been under construction since 2006 - in violation of Laos' National Policy on Environmental and Social Sustainability of the Hydropower Sector, an IRN statement said.
Thai investors include Ch. Karnchang, Ratchaburi, Bangkok Expressway Plc and GMS (Thailand), which also have stakes in Nam Ngum 2 and Nam Ngum 3. These projects have a combined installed capacity of 1,075 megawatts.
By Supalak Ganjanakhundee
The Nation
http://www.nationmultimedia.com/2008/01/22/regional/regional_30063073.php
See previous post, which gave no indication that the following might happen
Delays force Egat to cancel laos electricity deals
By Watcharapong Thongrung
The Nation
Published on July 25, 2008
The Electricity Generating Authority of Thailand (Egat) has cancelled a deal to buy electricity from four hydropower plants in Laos after the developers faced a 30-per-cent hike in construction costs and could not proceed with the projects as planned.
"This will delay the feed of power into the system, and Egat may need to adjust electricity rates upwards, in line with higher costs. However, the purchase price must not exceed Egat's power-generating cost," governor Sombat Sarntijaree said yesterday.
The Nam Thuen 1, Nam Ngum 3, Nam Ngieb and Nam Ou plants have agreed to sell a combined 2 gigawatts to Thailand, but they are expected to delay exports by one year to 2014.
Laos will need to submit a new proposal for power purchases from the four plants or even new projects, Sombat said.
The Energy Ministry said earlier that the Lao government planned to propose selling power from three or four small plants in the lower Northeast with a combined capacity of 1GW.
Thailand and Laos agreed to the supply of 7GW. While Egat's memorandum of understanding with the four now-stalled plants covered 2GW, the countries are negotiating for the rates of the remaining 5GW.
As domestic capacity expansion grows tougher on environmental concerns, Thailand is looking to buy power from her neighbours, including Cambodia.
Sombat said the Cambodian government recently sent a list of potential developers and that Egat would select the one offering the lowest quote, which must be below Egat's generating cost.
The interested parties are a consortium of Electricity Generating and Italian-Thai Development and a consortium of the Charoen Pokphand Group and local investors.
A 7.2GW coal-fired power plant in Koh Kong, Cambodia, is expected to start supplying power in 2016.
http://www.nationmultimedia.com/2008/07/25/headlines/headlines_30078961.php
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