beyond damnation: nam theun 2 and the future of hydropower in the mekong
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Beyond Damnation: Nam Theun 2 and The Future of Hydropower in the
Mekong
Prashanth ParameswaranPresentation to Hitachi Center for Technology Colloquium10/19/2011
Agenda
• Overview • Method• Key Findings & Recommendations
Overview
The Mekong In Peril?• Rapidly growing energy demand
and regional connectivity in the Mekong region (GMS, ASEAN)
• Hydropower projects affect Mekong River, which sustains over 60 million people
• How to reconcile economic development with social and environmental imperatives?
• Is Nam Theun 2 (NT2) in Laos a “model project” in this regard as touted by WB and ADB?
Nam Theun 2 in Laos• First conceived 1980s, delayed
until construction in 2005-2010• Largest private sector cross-
border power project ($, 2005)• Over US$2 bn revenues to GOL
in 25 yrs(7-9% budget)• Part of GOL plan to become
“battery of Southeast Asia” despite poor dam record (90s)
• One party, authoritarian, corrupt government
Method
Project Structure
• Combination of secondary research and 19 interviews covering most Mekong countries
• April – May 2011: Trip preparation• May – Mid-July 2011: Internship at Singapore’s
Energy Market Authority (EMA) • Mid July – Sept 2011: Interviews and research in
Thailand, Vietnam, Laos, Cambodia• Sept – Dec 2011: Produce articles/present findings• Dec 2011 – January 2012: Second phase of
research focusing on GMS and ASEAN Connectivity
Selected Interviewees
• Energy Studies Institute, Singapore• Diplomatic Academy of Vietnam• Mekong River Commission • Cambodian Trade Ministry • Nam Theun 2 Power Company, Laos• Chulalongkorn University, Thailand• International Rivers • Mae Fah Luang University, Thailand• Former WB & ADB consultants• EarthRights International
Key Findings & Recommendations
Key Findings: NT2 as a Model?
Yes No
Revenue Management Resettlement Plan
Stakeholder Consultation Lack of Contingency Planning
Transparency in Process Declining Bank Leverage vs. New Actors
RecommendationsActor Recommendation
Laos Strengthen WREA for project monitoring
Laos Independent review of dam assessments
WB/ADB Need to increase leverage post-construction
WB/ADB Focus more on project asymmetries
New Hydro Developers Adopt international best practice standards
The End
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