Case study: Nam Theun 2 Dam In Laos

Question 1

What is promised in the project

Answer 1

• largest investment ever in laos (invested by 3 foreign companies, World Bank and Asian Development Bank)
• “poverty-reduction project” worth of 1.45billion dollars
• 1/50 people in Laos will have their income restored

Question 2

What actually happened to the people

Answer 2

• 6,200 people in Nakai Plateau are displaced to land of poor soils, land and forest resources are scarce
• 2/3 of the land they used for farming, fishing and grazing is underwater
• Had to be depended on short term jobs and cash infusion provided by the governments
• Flood risks to tens of thousands people living near Xe Bang Fai river –> destroy rice crops –> compromise food security
• -> suggested to become lake fishers, loggers and cash crop growers BUT Laos’ inputs, skills, markets and longterm training are in short supply

Question 3

What happended to the Dam

Answer 3

• project suffered from lack of qualified staff and support for its social/environmental objectives
• failed to meet social/environmental commitment
• failed to meet engineering deadlines
• host government is unable or unwilling to manage the impacts
• -> big dam will increase poverty ratherr than reduce it