LAO Nam Theun 2 Watershed Protection 20 Feb 2012

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    Payment for Ecosystem Service

    in Lao PDRThe case of Nam Theun 2Watershed management andProtection

    Khamla Phanvilay

    Bangkok, 23 February 2012

    Contents

    PES in Laos/Laws and regulations

    Values of Ecosystems

    Watershed Protection Case of Nam Theun 2

    Issues and Challenge

    Risk and Opportunities

    Take home messages

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    PES in Laos and Legal framework

    Basic laws and regulations supports the PESinitiatives are in place

    Legal framework

    DOCUMENT DATEConstitution 28May2003ContractLaw 27July1990Water&WaterResourcesLaw 02November1996ElectricityLaw 17May1997EnvironmentalProtection Law 26April1999StateAssetsLaw 15October2002LandLaw 05November2003PromotionofForeignInvestment Law 15November2004NationalHeritageLaw 09December2005SecuredTransactionsLaw 25May2005StateBudgetLaw 16January2006WildlifeLaw 24December2007ForestryLaw 15January2008Lawsrevision(forest,land,environment) Dec.2012

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    PES in Laos: Challenges

    Meaning and definitions has not yet inconsensus among sectors

    Limit knowledge on PES among technicalministries and departments of small groups ofparticular individuals

    Push and Pull between development and

    conservation and protection of ecosystem

    Estimated Economic Value of Forest Ecosystem Servicesin Lao PDR

    Source: Majella, 2010

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    Valuing methods

    Market price

    Forest Carbon Offsets

    Biodiversity Conservation to Livelihoods

    Habitat Hectares

    Fisheries and Aquatic Resources

    Pr o d u c t ivit y M e t h o d

    Ecotourism

    Drinking Water Supply

    Fisheries and Aquatic Resources B e n e f it Tr a n s fe r M e t h o d

    (required data and sucessful case of the country)

    Integrat ion of PES, REDD+, CDM

    One is not enough three are more complicated

    Legal framework and long terms strategy requiretime and patience but development is not

    Stakeholders awareness especially local peopleto understand and truly participate

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    Nam Theun 2 Watershed

    Background informat ion of Nam Theun 2

    Investment cost: 1.3 Bil. USD

    Reservoir size: 450 sq. km on Na Kai Plateau

    Watershed water diversion: From Nam Theun toSe Bang Fai

    Displacement: 6,200 inhabitants

    Downstream impacts: 100,000 Villagers

    Social and Envt Mgt. Framework andOperational Plan Fund: 1 Mil. USD per annum.

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    Sample Case: Na Vang and Na Haovillages

    Who will pay and how to calculate?

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    Changing lanscape and connect ion

    Women always active and alert tochange

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    New settlement

    Cattle bank inside PA

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    The compensation for theresettlement of inundated areas

    The agricultural land lost due to inundation.Participation Land Use Planning (PLUP) has beencarried out to allocated permanent (paddy) toaffected households with the quota of 1 ha perhousehold.

    It is foreseen that the gravity irrigation will beprovided by the project.

    .

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    Job opportunities

    Creating jobs in isolated protected areas, so farvillagers get benefits from Conservation by

    Collecting NTFPs and sources of protein fromwildlife,

    Wage labour by participation to PA patrolling butvery small and limited to individuals and groups.

    There is a study on ecotourism is planned

    Livelihood Opportunit ies:

    Livelihood opportunities in the Watershed andProtected Areas are about the job and incomeopportunities.

    Agricultural based livelihood system has beenpromoted but this system provide less incentive interm of income, fish can be potential but no investoris interested in this business yet.

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    Risk and challenges

    Leakage of valuable timber species (Dalbergia spp)illegal hunting are widespread

    Law enforcement is weak, crossborderencroachment is still among the activities that needimprovement by WMPA

    Capacity to cope with developmentand conservat ion Capacity and understand of local people to cope with

    new development, development under conservationmeasures

    The model development not yet materialized.

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