A report released today by International Rivers documents
the Asian Development Bank's
dam-building activities in the Mekong
watershed. The report, released to
coincide with the ADB's 30th
anniversary meeting in Fukuoka, Japan,
states the ADB has been
"seriously deficient" in quantifying
and even recognizing
the impacts of the dams it has funded in the
region.
The report calls for the Bank to impose a moratorium on
all
funding for energy projects in the Mekong region until it has
studied
renewable energy and energy efficiency options.
Bank-financed
studies have identified the potential for over
50 large dams on the
Mekong River and its tributaries. The ADB
has conducted feasibility and
engineering studies, has directly
financed projects, and has mobilized
resources from other aid
donors and the private sector.
According
to the report, the ADB:
- is failing to adhere to its own
policies in the Mekong region,
particularly those on energy, public
participation and consultation;
- is subsidizing private companies
vying to build dams in the
region as hydropower projects are uneconomic
for the private
sector without public assistance;
- has failed to
recognize the impacts of dams on the rivers,
fisheries, forests and
livelihoods of local communities, and
has failed to provide adequate
compensation for those affected;
- has used consultants to conduct
feasibility studies, environmental
impact assessments and basin studies
who consistently exaggerate
the benefits of dams and downplay their
costs;
- has failed to respond adequately to criticisms of its dam
projects and continues to downplay their impacts.
The report
makes a number of detailed recommendations on existing
and proposed
projects. International Rivers, together with representatives from
other non-governmental
organizations, will be presenting these
recommendations to Bank staff and
Executive Directors in Fukuoka.
Non-governmental
organizations in Japan and from
the Asia-Pacific region are planning a
series of activities to
coincide with the 30th anniversary meeting of the
Asian Development
Bank's Board of Governors in Fukuoka, Japan, from May
9-13. The
focus for the activities will be "Questioning the ADB at
30."
For Further
information:
Satoru Matsumoto, Mekong Watch Network, Japan +81 92
846 8585
The ADB's
Role in Dam Building in the Mekong
EXECUTIVE SUMMARY
The Asian Development Bank is a key player in the push to build
dams
in the six countries of the Mekong watershed. The Bank-financed
energy
sector study for the region has identified the potential
for over fifty
large dams on the Mekong River and its tributaries.
A number of these
have been approved and are under construction,
others are in the
pipeline. Yet many projects are proceeding on
the basis of feasibility
studies and environmental impact assessments
that ignore or dismiss the
impacts of these projects on the rivers,
forests and livelihoods of local
communities in the region.
The Bank is basing its dam-financing
activities on the energy
sector study conducted by Norwegian hydropower
consultants Norconsult
in 1994. The outcomes of the study reflect
Norconsult's hydropower
bias, recommending a series of dams and
transmission interconnection
projects for the region. There is no
assessment of the potential
for renewable energy or energy efficiency in
the region, contrary
to Bank policy. Despite these flaws the Bank is
steadily implementing
the recommendations of the Norconsult study.
To date, the Bank has financed the following dam projects and
studies
in the Mekong watershed:
- Xeset Hydropower Project
in Lao PDR ($19.5m, approved
1984)
- Nam Song Hydropower
Project in Lao PDR ($31.5m, approved
1992)
- Nam
Theun-Hinboun Hydropower Project in Lao PDR ($60m,
approved 1994)
- Nam Leuk Hydropower Project in Lao PDR ($52m, approved
1996)
- Xe-Kong/Se San and Nam Theun River Basins Hydropower Development
Study ($2.5m, approved 1996)
- feasibility study for the Phuoc
Hoa Multipurpose Water
Resources Project in Vietnam ($600,000,
approved 1996)
- Stung Chinit Water Resource Development Study
in Cambodia
($800,000, approved 1996)
In the next 3 years,
the Bank is considering financing the
following projects:
- Phuoc Hoa Multipurpose Water Resources Project in
Vietnam
($80m, 1998)
- Two power transmission and distribution projects in
Vietnam
($225m, 1997)
- A hydropower project in Vietnam ($150
million, 2000)
- a feasibility study for the Sekong 5 Hydropower
Project
in Laos in1997, and possibly a loan for construction in
1999
- Nam Mang 3 dam and diversion project in Laos ($15m,
1998)
- a prefeasibility study of a hydropower project in 1998 in
Cambodia, followed by a loan at a later stage.
The ADB has been
seriously deficient in quantifying and even
recognizing the impacts of
existing projects like Nam Leuk and
Nam Theun-Hinboun on local
communities and has failed to provide
adequate compensation. The Bank's
response to criticism has been
to either ignore or downplay the impacts.
In the case of Nam Leuk,
the Bank has established an independent Panel of
Experts who are
only expected to monitor the project during the
construction phase
and not during the actual operation of the dam. The
Bank should
accept responsibility for cleaning up these existing projects
before financing any additional dams in the region.
RECOMMENDATIONS
Energy Sector Study
The Bank should finance a new energy sector study that considers
all the supply and demand-side options for energy in the region.
The
study should be undertaken by competent, independent and
unbiased
consultants, and must be available for external review
by
non-governmental organizations, academics and other interested
parties.
- Until such a study is completed, the ADB should impose
a
moratorium on all funding for energy sector projects in the region.
- Theun Hinboun Hydropower Project
- The ADB should immediately establish a fund to compensate
local
people for losses due to the project.
Nam Leuk Hydropower
Project
- The Bank should establish an independent
committee to determine
fair compensation for affected villagers. The
committee's findings
should be open to review by both the villagers
concerned and
other interested parties.
- The Terms of Reference
for the Panel of Experts should be
expanded and the Panel must have the
power to make binding recommendations.
Xe-Kong/Se San and
Nam Theun Basins Hydropower Development
Study
- The ADB
should assess the cumulative ecological and social
impacts of the
projects currently under construction or scheduled
to begin soon in the
Xe-Kong/Se San and Nam Theun Basins. No
further projects should be
proposed on these basins until a competent
assessment based on
empirical evidence is completed and made
publicly available.
For further information,
contact:
-
Dr. Guy Lanza, (413) 545 5226, glanza [at] fnr [dot] umass [dot] edu, Dr.
Lanza's seven-page report is available from International Rivers
