Environmental and social impacts of the project include downstream impacts, impacts on
biodiversity,
resettlement, and reservoir
sedimentation. More details can be found in the Environmental and Social Impact assessment, and in the summary provided for the various impacts below.
Monitoring and Evaluation NT2 has a multi-layer environmental and social monitoring and evaluation mechanism consisting of the following elements: •
The Panel of Environmental and Social Experts) (POE) reports to the government. The POE normally visits Laos at least once per year. • An International Advisory Group (IAG), advising the World Bank. The IAG normally visits Laos at least once per year. • Independent Monitoring Agencies, reporting to the government. The Independent Monitoring Agencies were in the process of being assembled in December 2006. • The Lenders' Engineer The comprehensive environmental and social measures designed to mitigate potential environmental and social impacts could become a "global model", according to a group of social and environmental experts who advise on the project. Bruce Shoemaker, editor of
Dead in the Water, claims that the scientific consensus is that the dam's costs outweigh its benefits and that the dam represents a "complete failure of water governance in [the] Mekong region." According to data in the World Bank publication "Good dams, bad dams", the ratio of area flooded and people resettled per megawatt of installed electricity generating capacity (flooded area of 41
hectare per MW and five persons resettled per MW) is neither very high nor very low, compared to 48 other large dams analyzed. Using this specific analytical framework, Nam Theun 2 could neither be considered a "good" or a "bad" dam.
Downstream impacts in Xe Bang Fai River The flow of water in the Xe Bang Fai (XBF), which received the water diverted through NT2, increased significantly, thus affecting the population living downstream of the release point. The exact number of people affected is disputed. While NTPC speaks of 40,000 affected people, the NGO
Environmental Defense speaks of up to 150,000 people. The impacts have been widely studied and have been discussed with local communities. Negative impacts on the downstream population include the washing away of river bank gardens, changes in
water quality, and impacts on
fisheries. NTPC promised to stop power production when floods occur on the Xe Bang Fai. However, it is as yet unknown exactly how long this flooding period will last for each year. The length of the period affects the project's profitability. Water quality is negatively impacted through fouling of
biomass in the reservoir. Because the impacts are unknown, monitoring systems are included and a commitment has been made to "adaptive management". Livelihood development programs were put in place for the villagers living downstream on the Xe Bang Fai, in districts such as
Mahaxai. The programs are focused on
agriculture,
fish ponds, and
handicrafts to help them generate income beyond that derived from
fishing. The objective is to help villagers generate money from a variety of different sources to compensate for any changes in fishing catches after the river diversion. Affected communities receive
irrigation systems to allow for a second,
dry season rice crop,
drinking water systems, and access to electricity. The provision of this infrastructure is not the responsibility of NTPC, but of the government. According to a joint progress report issued by the World Bank and the ADB in December 2007, implementation of the downstream program – particularly on implementing livelihood programs – was a challenge. Lessons from the 20 villages where the programs have been piloted in a participatory manner are being applied as other villages were included. Micro-credit schemes that are being developed were not yet on a sustainable financial footing.
Downstream impacts on the Nam Theun River There is relatively little information on downstream impacts on the Nam Theun River, where water flows will be significantly reduced. No permanent villages lie along the Nam Theun some 50 km downstream below the dam.
Fishermen and
hunters, however, do use this stretch of the river. Fish diversity and abundance is expected to be affected by reduced water flows and
sediment content. Monitoring of the villages along the river conducted by NTPC has not yet detected any significant impacts to the fishery.
Biodiversity and forests Three existing protected areas on the Nakai plateau (the
Nakai-Nam Theun, the
Hin Nam Nor, and the
Phou Hin Poun National Biodiversity Conservation Areas), together nine times larger (4,106 km2) than the flooded area, are expected to be better managed through significant resources made available under the project – more than 60 times what the government has spent on its entire
national parks system so far. The flooded areas are not considered critical natural habitat. Formerly there was significant
illegal logging in the protected areas, which the government claims has now been largely brought under control despite growing evidence that villagers are using logging to supplement falling incomes. Detailed fish surveys showed that there are no fish
species living only in the stretch of the river that will be inundated. A management plan for the
Asian elephants in the area has been drawn up. A Watershed Management Protection Authority (WMPA) has been established with the specific purpose of protecting the
watershed of the reservoir and the protected areas in it. WPMA will receive US$1M annually from NTPC through the concession period.
Resettlement Seventeen villages and their 6,300 inhabitants moved from the area that became the NT2 reservoir on the Nakai Plateau to custom-built villages built in consultation with the resettled communities. NTPC and the Lao Government have committed to doubling the income of resettled villagers, through livelihood programs, five years after they have been relocated. This means that people who used to make US$410 per household a year in 2005 should make at least US$820 per household a year by 2012. Construction of the villages and major facilities (new roads, water pumps, toilets, schools, mills, and electricity) was completed by mid-2008. Consultations on house design, location, and construction materials were held and continue to ensure the outcomes reflect the needs of the local people. According to a World Bank report, the health of villagers who have already been resettled has significantly improved due to better water and
sanitation, regular health check-ups and the provision of
mosquito nets, as documented by various assessments. Experts are helping the resettled villagers to adopt improved practices to increase agricultural and income
productivity. The report stresses that the pace of the development of the livelihood activities must be accelerated including engaging additional technical assistance to help villagers develop the most effective cropping systems possible.
Reservoir sedimentation At current sedimentation rates, the reservoir has a lifetime of more than five centuries. If substantial
logging occurred in the upstream basin, the lifetime would be accordingly reduced and could affect the financial and economic viability of the project. This would especially be the case if sediments remained in the active storage area in the upper part of the reservoir instead of being washed into the dead storage area closer to the dam in the lower part of the reservoir. The establishment of the relatively well-funded Watershed Management Protection Authority is expected to protect forest cover and thus limit
erosion in the watershed of the reservoir. == See also ==