Local Participation on Benefit Sharing of Nam Lik 1-2 Hydropower

Project in Lao PDR

Phoukeo Saokhamkeo2, Linkham Douangavanh1, Somsameu Douangdavong1, Lamchai Sisamack2, Jean-Roland Marguin4, Florence Milan3, and Chu Thai Hoanh3

1National Agriculture and Forestry Research Institution 2National University of Laos 3

International Water Management Institute 4University of Hohenheim

Phoukeo Saokhamkeo(Presenter)

Outline

• Introduction

• Main Focus

• Methodology

• Findings

• Policy Recommendation

1. Introduction• Laos is located in the lower Mekong

River Basin with great potential for hydropower development

• In its country development plan, the government of Laos aimed to create revenue through energy from hydropower development

• Hydropower projects have rapidly developed since the 1990s. To date, there are 14 power-generating dams, 12 more dams under construction, 25 dams are in the planning stage, and 35 dam are under feasibility study

• Each hydropower project tried to provide benefits to impacted people in their living condition

2. Main focus

• Local participation of benefits sharing for poverty reduction and sustainable resources management

• The changes of livelihood and adaptive strategies of affected people under the restriction of natural resources

• Local participation and requirement for sustainable resources management

3. Methodology• Research site

• FGD & survey

4. Main findings 4.1 Local participation on project development • Local people have participated in project activities

since the initiation of the project– Physical survey– EIA, SIA surveys – Construction work

• Local voice considered – Some important demands from villagers were not met– Compensation for loss of small area of land were not

taken into consideration– No power to negotiate for a better land price– Oral agreements between villagers and company were

not implemented – Infrastructure provided were substandard

4.1 Local participation on project (Cont…)• Direct compensation to impacted villagers

– Lost land

– Damage landscape from rock explosion for marble

– Soil erosion

– The damage of agricultural products

• Infrastructure development as community compensation

– Provision of road and bridge

– Replacement of water supply and wells

– Replacement of secondary school

– Provision of broadcasting speakers

4.1 Local participation on project (cont…)

• Fishing Group Association

• Access to reservoir for collecting NTFPs

4.2 Livelihood adaptation

Categories of

activities

Before

dam (%)

After

dam (%)

Upland agriculture 37 23

Paddy rice 86 83

Gardens 39 23

Animal production 53 41

Fishery 32 39

Handicraft 9 17

Laborer 3 15

NTFPs 15 23

Trades 6 17

4.4 Sustainable natural resources management • Committee for NRM

• Provision of US$1.8 million for NRM in 25 years

• Forest classification and land use allocation

• Monitor forest encroachment for agricultural activities in upstream

• Implement reservoir management plans

– Forests and land use planning program

– Village forest management program

– Agriculture promotion program

– Education and tourism program

– Vocational promotion program

• Fishing management

– Classify fishing zones

– Limited fishing equipment

– Fingerling release

5. Policy Recommendation

• The dimension of impacts

– Compensations should take into consideration the loss of livelihood

– Compensations should be provided before the construction of the project starts

• Local participation on project development

– More local participatory on NRM

– Allocate more budget for impacted communities

– Concerned state organization should negotiate on behalf for the local people

5. Policy Recommendation (cont…)• Livelihood adaptation for poverty reduction

– Sustainable funds for agriculture productions and handicrafts

– Training for improved and new production techniques

– Animal production groups

– Access to market for agricultural products

– Good transportation

• Sustainable natural resources management – Grassroots groups should participate in the committee of NRM

– Villagers should be trained on NRM

– Administrative of NRM should be transferred to communities

– Financial support for community NRM

• Government policy and legal framework in place for compensation and benefit sharing

Thank You