Laos Finally Called Out over Xayaburi Dam

Laos Finally Called Out over Xayaburi Dam

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By Luke Hunt

January 23, 2013

Vietnam and Cambodia have finally found their voice. After months of obfuscating their position on the Lao government’s insistence on constructing the Xayaburi Dam and blocking the main stream of the Mekong River, leaders from both countries have pushed diplomatic niceties to the side and finally tackled Vientiane on the issue.

The refreshing shift in political tact came on the final day of a meeting among member countries in the Mekong River Commission (MRC), in which leaders from Vientiane could have been forgiven for thinking they had perhaps outfoxed their counterparts in Hanoi and Phnom Penh.

Laos reached an agreement with Vietnam, Cambodia and Thailand more than a year ago to suspend construction of the U.S.$3.5 billion dam while independent studies were to be made on fish migration patterns and the possible threat posed by the dam to food security.

About 60 million people depend on the Mekong River for their livelihoods through a hand to mouth existence.

However, Vientiane ignored what amounted to a moratorium, Thai construction companies went to work immediately at the site and plans for further dams were released. Meanwhile, the Lao government insisted its citizens will prosper through the sale of electricity to neighboring countries produced by hydropower.

At last week’s MRC meeting, Cambodia demanded that all construction be immediately halted and argued that Laos had misinterpreted previous agreements. Meanwhile, Vietnam insisted that no dams be constructed until an agreed upon independent study is completed.

Lao Vice Minister of ­Energy and Mines Viraphonh Viravong attempted to defend his country’s stance, which seems to have the support of Thai construction companies, Chinese lenders and Lao politicians, but few others further afield.

Thai general contracting and infrastructure development group Ch Karnchang — through its 50 percent-owned subsidiary Xayaburi Power Co — has a 29-year concession to operate the dam’s 1,285 megawatt power plant, as well as assurances from Thailand that it will purchase about 95 percent of the electricity generated.

Cambodia and Vietnam are demanding a regional consensus before construction can start.

However, both countries have said little over recent months despite a steady flow of independent reports from Laos and comments made by Lao ministers indicating that the Lao government was proceeding with construction of the dam. In fact, building at the site began in November 2011.

Laos has faced unprecedented international scrutiny over the past year, initially with the Xayaburi Dam, then with its massive borrowing program primarily with China to fund an ambitious infrastructure program. Most recently, the country has come under scrutiny following last month’s disappearance of human rights activist Sombath Samphone.

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A River Trickles Through It: Laos’ Mekong Dam Draws Ire From Downstream Neighbors And Environmentalists

POLITICS:

A River Trickles Through It: Laos’ Mekong Dam Draws Ire From Downstream Neighbors And Environmentalists

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BY Ryan Villarreal | January 19 2013 9:27 AM

Laos’ construction of a hydropower dam on the Mekong River has angered its downstream neighbors and raised concerns about the project’s social and environmental impacts.

Construction of the $3.5 billion Xayaburi Dam began last November. It is the first of 11 projects the Laotian government plans to build along the lower portion of the river, which passes through Cambodia, Vietnam and Thailand.

Laos has drawn criticism from its Southeast Asian neighbors for beginning construction on the Xayaburi Dam without completing the consultation process through the Mekong River Commission, or MRC, an inter-governmental agency comprised of representatives from the four countries that manages the usage and development of the river.

Vietnam’s Deputy Minister of Natural Resources and Environment Hong Ha Tran spoke Wednesday at an MRC Council Meeting in Luang Prabang, Laos, and he questioned the wisdom of beginning the Xayaburi project before a thorough analysis of its impact was completed.

“The launching of the first mainstream hydropower project recently in the Lower Mekong Basin is causing concerns of the governments of the riparian [river-adjacent] countries in the region and the international community about its adverse impacts on downstream areas,” he said.

“While we are still trying to do the research to understand its impacts, each riparian country should show their responsibility by assuring that any future development and management of water resources proposed in the basin should be considered with due care and full precaution based on best scientific understanding of the potential impacts,” he added.

Vietnam has demanded that Laos halt construction on the Xayaburi dam, pending the completion of an environmental impact review agreed upon by the MRC in December 2011.

The MRC Development Partners, which is comprised of donor governments — including the U.S., Japan, Germany and France — that have invested in the Mekong River’s management, released a joint statement expressing concern about any damming of the river’s main channel, upon which the Xayaburi damn is being built.

“It is our consensus that building dams on the mainstream of the Mekong may irrevocably change the river and hence constitute a challenge for food security, sustainable development and biodiversity conservation,” the statement read, according to a press release from International Rivers, a global NGO that advocates for the conservation and sustainable development of river systems.

Extensive research has already shown that dams are extremely disruptive to river ecosystems and riparian communities on multiple levels.

Damming prevents fish migrations, which downstream communities depend on for food. It also prevents rivers from transporting sediments, “which are critical for maintaining physical processes and habitats downstream of the dam (including the maintenance of productive deltas, barrier islands, fertile floodplains and coastal wetlands),” according to International Rivers.

This has negative implications for farmland and fresh water wells used by communities along river systems.

While these impacts are being considered with the Xayaburi Dam, Laos is relatively free to continue construction unhindered. Under the statutes of the MRC, Laos is obligated to hold consultations with member governments on such projects, but members have no legal framework to prevent it from moving forward with any given one.

“In the absence of an agreement, other countries can disagree if they like, but this can’t stop Laos,” said Jian-hua Meng, a specialist in sustainable hydropower at the World Wildlife Fund, the Guardian reported. “The role of the MRC is now being questioned along with the level of investment put in the organization.”

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Work underway on contested mega-dam: Laos official

Mekong River is so beautiful but will destroyed by dams:

Work underway on contested mega-dam: Laos official

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(AFP)

BANGKOK — Laos has begun work on a controversial multi-billion dollar dam, an official confirmed Thursday, defying objections from environmentalists in its bid to become a regional energy hub.

Construction on the main part of the $3.8 billion hydroelectric project at Xayaburi — stalled for about 18 months over concerns about its impact — formally began after Laos said it had adapted the design to assuage its neighbours’ fears.

“We started working on the river yesterday after a ground-breaking ceremony,” deputy energy minister Viraphonh Viravong told AFP, refuting a previous report that the country’s Prime Minister had said work had not begun.

The project, led by Thai group CH Karnchang, has sharply divided the four Mekong nations — Laos, Vietnam, Cambodia and Thailand — who rely on the river system for fish and irrigation.

Thailand has agreed to buy most of the electricity generated by the dam, but Cambodia and Vietnam have raised fears it could ruin their farming and fishing industries.

Laos has said the project is on course to be completed by the end of 2019.

“The ambassadors of Vietnam and Cambodia were there at the ceremony yesterday,” Viraphonh said, responding to a question over whether Laos’ neighbours had complained about the official start of construction.

Communist Laos, one of the world’s most under-developed nations, believes the dam will help it become “the battery of Southeast Asia” by selling electricity to its richer neighbours.

But environmentalists say the project will be disastrous for the 60 million people who depend on the river for transportation, food and economy.

They fear Mekong fish species will become endangered as vital nutrients are trapped and dozens of species are prevented from swimming upstream to mating grounds.

Urging further study into its likely impact, Li Lifeng of the WWF conservation group on Wednesday said the region should make a stand now or “risk resting the future of the Mekong on flawed analysis… that could have dire consequences for millions of people.”

Vietnam and Cambodia have refrained from criticising the start of construction, and both have backed Laos to stick to a pledge to halt work if a negative ecological impact is detected.

Thai senators, however, were outspoken on Thursday, saying construction should be suspended for at least a decade pending further scientific studies.

“The lives of 60 million people will be wrecked and catastrophically destroyed. It is an act of sabotage to the Mekong River which is the nature’s treasure”, said Senator Prasan Marukpitak, the head of an environment subcommittee.

Copyright © 2012 AFP. All rights reserved

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Laos: pressing ahead with the Mekong dam despite concerns

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by beyondbrics

November 8, 2012 11:14 am

By Jake Maxwell Watts and Nguyen Phuong LinhAs construction starts on a controversial hydropower project in Laos, it becomes clearer by the day that this poor and underdeveloped country is likely to place its ambition to be the “battery of south-east Asia” above any cost to the environment – and that price will be considerable.Construction of a large dam on the Mekong river at Xayaburi began this week despite environmental concerns, which shows a change in attitude from the government that may signal likely endorsement of other foreign-sponsored hydropower projects.

Nguyen Huu Thien, from Mekong Wetlands, a non-governmental organisation in Vietnam, said that Xayaburi would be “a very bad precedent for other decisions on this issue.” The largely Thai-funded project is the first of 11 waiting for approval. Nguyen said he expects the other dams to be approved soon.

Laos is a tiny landlocked country of just 6m with a languid Leninist government which increasingly feels it has little option but to invest in hydropower to feed its richer neighbours’ appetites for electricity and fuel its own economic growth. The World Bank calculated in 2010 that Laos could become a middle-income country if it achieved 7.5 per cent growth over the next ten years. Hydropower and mining contributed to 2.5 percentage points of the 7 per cent annual growth between 2007 and 2010, and it looks set to be even more valuable in the next decade.

The final decision to begin construction of the $3.5bn Xayaburi dam was announced on Tuesday by the Lao deputy energy minister – although the prime minister swiftly denied it – as an Asia-Europe trade summit convenes this week in the Laotian capital, Vientiane. The dam has been delayed since 2010 amid concerns that fish stocks and the livelihood of millions would be threatened on the region’s most important river, the Mekong. Environmental groups have been highly critical of research so far into the possible environmental impact, but the government appears unwilling to delay any longer.

International Rivers, a campaign group, has also expressed concern about Laos’s poor record of public sector corruption.

The Mekong River runs from China through Myanmar, Laos, Thailand, Cambodia and Vietnam and is the largest source of freshwater fish in the world, according to the Mekong River Commission. Four dams already exist in the faster moving Upper Mekong, but the Xayaburi dam will be the first to be built in the lower area. The MRC estimated in 2011 that the full hydropower potential of the Lower Mekong Basin was over 30,000 MW (more than enough to power Bangkok) – and less than 10 per cent has been developed so far.

There has been no comment on the dam’s approval from Vietnam and Cambodia yet, which both previously opposed the project, although the Lao energy minister Viraphonh Viravong said that he could “sense that Vietnam and Cambodia now understand how we have addressed their concerns”, referring to amendments to the original plans which try to resolve some environmental issues.

The Thais, meanwhile, have reinforced their support for the project, albeit in an understated way, when the foreign minister Surapong Tovichakchaikul said on Tuesday that “the Thai government is not opposed to the project.”

The Xayaburi dam is a joint venture between Thai companies CH Karnchang, PTT and a state-owned enterprise. Thailand is expected to import around 90 per cent of the power generated by the dam when it is completed in 2019.

Despite rising demand in the region for electricity, particularly renewables, previous investments in hydropower have not always been successful. The Mun River dam in northern Thailand, on a Mekong tributary, went over-budget when it was built in the 1990s and caused widespread environmental damage for little benefit to investors.

Laos clearly has ambitions to be a regional electricity exporter and much foreign investment is being attracted for building projects, but opposition groups may find it difficult in a region where securing economic growth is a priority not easily curbed. In the immediate future, the profits may roll in for Laos, but the eventual price may be much higher.

Related reading:
Mekong river dam decision delayed, FT (2011)
Mekong dam project suffers further setback, FT (2011)

US urges Laos to address mega dam concerns

US urges Laos to address mega dam concerns

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(AFP)

WASHINGTON — The United States urged caution on plans by Laos to build a multimillion-dollar dam that has raised environmental concerns from neighboring nations, saying its impact was still “unknown.”

The $3.8 billion hydroelectric project at Xayaburi, led by Thai group CH Karnchang, has sharply divided the four Mekong nations — Laos, Vietnam, Cambodia and Thailand — who rely on the river system for fish and irrigation.

“Our own experience has made us acutely aware of the economic, social and environmental impacts that large infrastructure can have over the long-term,” the State Department said in a statement that nonetheless recognized the “important role” dams can play in helping advance economic growth.

“The extent and severity of impacts from the Xayaburi dam on an ecosystem that provides food security and livelihoods for millions are still unknown.”

Laotian deputy energy minister Viraphonh Viravong earlier told AFP that the government would hold a groundbreaking ceremony on Wednesday and begin work on the dam later this week.

Building work on the main project has been stalled for about 18 months over concerns relating to its environmental impact.

Viraphonh said some aspects of the dam’s design had been changed to “reassure neighboring countries”, but he insisted that objections would not derail plans to finish the project by the end of 2019.

“We are concerned that construction is proceeding before impact studies have been completed,” the State Department said.

It urged stakeholders to voice their concerns through the Mekong River Commission, whose Mekong nation members have not reached consensus on whether the project should proceed.

The mooted 1,260 megawatt dam, the first of 11 on the key waterway, has become a symbol of the potential risks of hydropower projects in the region.

Communist Laos, one of the world’s most under-developed nations, believes the dam will help it become “the battery of Southeast Asia” by selling electricity to its richer neighbors.

“We have a strong interest in the sustainable management of the Mekong River, and we view our robust engagement as a sign of our strong commitment toward a lasting and positive relationship with the region,” the US statement said.

“We hope that the government of Laos will uphold its pledge to work with its neighbors in addressing remaining questions regarding Xayaburi. We encourage the MRC countries to continue to work together to realize their shared vision of an economically prosperous, socially just and environmentally sound Mekong River basin.”

Copyright © 2012 AFP. All rights reserved.

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Vietnam drops objections to dam that Laos is building on the Mekong River

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By The Associated Press

November 8, 2012 3:20 AM

HANOI, Vietnam – Vietnam has apparently dropped its objections to a dam that Laos is constructing on the Mekong River, saying Thursday that the neighbouring country has made changes in the design to mitigate any negative downstream impact.

Laos officials reportedly said this week that construction of the Xaburi dam was going ahead, and they took several journalists and diplomats to the site of the proposed dam on Southeast Asia’s mightiest river. Construction of approach roads and support buildings has already begun.

Vietnam and Cambodia last year proposed a 10-year moratorium on any dams on the Mekong. They have expressed concern that the dam would kill fish and affect the livelihoods of millions of people living along their stretches of the river, which begins in China and empties into the South China Sea

Vietnamese foreign ministry spokesman Luong Thanh Nghi said Thursday that Laos had decided to build the $3.5 billion dam “after adjusting the project design to mitigate the impact on the downstream.”

The U.S. on Monday criticized the decision to go ahead with the dam, citing feared negative environmental impact downstream.

Opponents say the dam in central Laos would open the door for a building spree of as many as 10 other dams on the 3,000-mile-long (4,800-kilometre-long) river.

Laos is one of Asia’s poorest nations and hydropower is already a key source of revenue. The project will generate electricity for sale to neighbouring Thailand.

Not thing new to us about Lao PDR and Vietnam, we are already known it

Vietnam drops objections to Laos dam on Mekong

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AP /  November 8, 2012

HANOI, Vietnam (AP) — Vietnam has apparently dropped its objections to a dam that Laos is constructing on the Mekong River, saying Thursday that the neighboring country has made changes in the design to mitigate any negative downstream impact.

Laos officials reportedly said this week that construction of the Xaburi dam was going ahead, and they took several journalists and diplomats to the site of the proposed dam on Southeast Asia’s mightiest river. Construction of approach roads and support buildings has already begun.

Vietnam and Cambodia last year proposed a 10-year moratorium on any dams on the Mekong. They have expressed concern that the dam would kill fish and affect the livelihoods of millions of people living along their stretches of the river, which begins in China and empties into the South China Sea

Vietnamese foreign ministry spokesman Luong Thanh Nghi said Thursday that Laos had decided to build the $3.5 billion dam ‘‘after adjusting the project design to mitigate the impact on the downstream.’’

The U.S. on Monday criticized the decision to go ahead with the dam, citing feared negative environmental impact downstream.

Opponents say the dam in central Laos would open the door for a building spree of as many as 10 other dams on the 3,000-mile-long (4,800-kilometer-long) river.

Laos is one of Asia’s poorest nations and hydropower is already a key source of revenue. The project will generate electricity for sale to neighboring Thailand.

© Copyright 2012 Globe Newspaper Company.