Beyond Damnation: Nam Theun 2 and The Future of Hydropower in the Mekong
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Transcript of 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
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Agenda
• Overview • Method• Key Findings & Recommendations
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Overview
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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?
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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
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Method
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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
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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
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Key Findings & Recommendations
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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
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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
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The End