Nam Theun 2 / Reports

International Rivers' February 2008 Nam Theun 2 report, based on a recent site visit by International Rivers’ staff, shows that shortcomings and delays in programs to compensate villagers and restore their incomes have not been addressed. Furthermore, it is unclear if resettlement infrastructure for more than 6,200 villagers on the Nakai Plateau will be completed on time for reservoir filling to begin in June 2008.

This report, commissioned by CEE Bankwatch Network and written by International Rivers, details how large dams financed by the EIB have damaged communities and the environment and failed to bring promised development benefits.

Halfway through Nam Theun 2's construction, livelihood restoration programs for affected villagers are in jeopardy. IRN visited the area in March 2007 and gathered first-hand information from communities about how the project is affecting their lives.

In June 2006, three IRN staff members visited the Nam Theun 2 hydropower project area. The report from their visit outlines concerns and recommendations concerning downstream channel compensation, the Xe Bang Fai livelihood restoration program, resettlement, salvage logging, biomass clearance, environmental impacts of construction and information disclosure.

An analysis by IRN and Environmental Defense citing the Nam Theun 2 project's non-compliance with six World Bank policies and guidelines.

IRN and Environmental Defense commissioned two experts to review the resettlement plan and the viability of the various livelihood options proposed for the Nakai Plateau communities, as outlined in the project’s Social Development Plan (SDP). The reviewers found that many of the plans are unrealistic and that the Nam Theun 2 Power Company (NTPC) is overly optimistic about the potential productivity of the proposed livelihood options. Despite NTPC’s acknowledgement of many of these risks, the reviewers point to a high likelihood of failure that has not been addressed by the project’s developers.

Because an independent review of the developers’ plans is not possible in Lao PDR, International Rivers Network and Environmental Defense invited several experts in Thailand and the United States to review the November 2004 drafts of the Nam Theun 2 Social Development Plan, Environmental Assessment and Management Plan, and Watershed Management Plan (SEMFOP-1).

IRN and Environmental Defense commissioned this independent review of the Nam Theun forestry development program for Nakai Plateau resettlers. The reviews finds that the feasibility of the forestry development program presented in the Nam Theun 2 project’s Social Development Plan (SDP) is questionable for a number of reasons.

IRN and Environmental Defense commissioned an independent review of the Nam Theun 2 reservoir fisheries predictions in the Social Development Plan (SDP) and the Environmental Assessment and Management Plan (EAMP). A reservoir fishery is one of the primary mitigation features for approximately 6,200 people which currently utilize the area to be flooded by the Nam Theun 2 reservoir.

IRN and Environmental Defense examine Nam Theun 2’s compliance with the WCD’s seven strategic priorities. The analysis shows that the project fails to comply with six of the seven strategic priorities outlined in the WCD report.