Laos

The Nam Leuk dam has caused serious problems for local communities, as documented in a recent report by Lao researcher Phetsavanh Sayboualavan. Based on a visit to seven villages affected by the dam in May 2003, Phetsavanh's report describes increased health problems, food shortages, flooding, destroyed fisheries, dead livestock, illegal logging and corruption associated with the project. The 60 MW Nam Leuk dam was completed in 2000, with funding from the Asian Development Bank. The ADB denies any ongoing problems caused by the project.

When Secretary of State Colin Powell presented the US State Department’s 2003 human rights country reports earlier this year, he obviously hoped that the scandal of US forces’ systematic torture of Iraqi prisoners would never see the light of day. “President Bush regards the defense and advancement of human rights as America’s special calling,” Powell said.

For hundreds of years, Heuny and Jrou indigenous people living in Nong Phanouane and Houay Chote villages have practised rotational swidden farming in their forests on the Boloven Plateau in the south of Laos. Now, government officials have told them that they have to stop swidden farming and will soon be forced to move. The reason? They have the misfortune to live in a watershed which the government declares must be protected because of a proposed hydropower dam.

By Chris Lang Published in Guerrero, D. (ed.) (2003) A Handbook on the Asian Development Bank: The ADB and its operations in Asia and the Pacific Region. Focus Asien no. 16. Asienhaus, Essen. November 2003. Read the full document here  

The Asian Development Bank (ADB) has big plans for plantations in Laos. World Rainforest Movement has obtained a leaked report of a recent ADB mission to Laos which describes how the Bank hopes to attract international pulp and paper companies to invest in Laos. Over the past ten years, the ADB has funded an area of approximately 12,000 hectares in Laos through its $11.2 million “Industrial Tree Plantations Project”. Under its planned “Forest Plantations for Livelihood Sector Project” the Bank intends to finance 30,000 hectares of plantations.

By Chris Lang, published in "Pulping the Mekong" In December 1993, the Asian Development Bank agreed a US$11.2 million loan for an "Industrial Tree Plantations Project" in Laos. Phase 1 of the project, which ran until 2003, aimed to plant 9,600 hectares with fast-growing tree plantations. Phase 2 of the project, "Tree Plantations for Livelihood Improvement" is currently under preparation and will go to the ADB's Board for a decision on funding in October 2003. Under phase 2 the ADB plans to plant a further 10,000 hectares. The project raises several important concerns:

Electricité de France has pulled out of the Nam Theun 2 dam project in Laos. EDF announced its departure on 17 July 2003, a day before the consortium developing the dam, the Nam Theun 2 Power Company, was to have signed a power purchasing agreement with the Electricity Generating Authority of Thailand (EGAT). The French state-owned EDF was the biggest investor in the proposed dam. In June 2001, EDF and Harza Engineering (now Montgomery Watson Harza) formed a joint venture as head contractor to build the dam.

Late last year, some 40 ethnic Hmong men from Ban Phou Khao Khouay marched to the Nam Mang 3 dam site armed with sticks and guns, and demanded to speak with project officials. The villagers were infuriated that they might be evicted from their lands for the project and yet had received no information about where they would be relocated, when they would be moved, or what compensation they would receive. They threatened the foreign contractors, telling them "to pack up and go home" if they failed to answer their questions about resettlement.

The Asian Development Bank (ADB) is funding a US$1.4 million evaluation and due diligence study of the proposed Nam Theun 2 hydropower dam in Laos. Despite the project's massive impacts on forests, under the terms of the Bank's proposed new forestry policy the ADB has no obligation to consider whether the Nam Theun 2 dam project complies with its forestry policy.

The purpose of British colonial forestry in the nineteenth century was to ensure that the colonial state maintained control over the forests in order to ensure a steady supply of timber. The imprint of colonial forestry in the Mekong Region is still felt today, as states continue to wrest control of forests from local communities.

The planned Nam Theun 2 (NT2) dam on the Nakai Plateau in central Lao People's Democratic Republic would be 48 m high and 320 m long, with a capacity of about 1000 megawatts. It would create a 450 km2 reservoir with volume of 3 billion cubic meters. Water from the reservoir would be driven through 40 km long tunnels to a powerhouse located at the base of the Nakai plateau on the Xe Ban Fai River. The size of the project and its location will have a substantial impact on regional biodiversity and people.

Later this year, the Board of the Asian Development Bank will decide whether to fund a project titled "Tree Plantation for Livelihood Improvement" in Laos. A consortium of consultants is currently preparing the project. However, the preparations are taking place without the benefit of an open public discussion. According to Akmal Siddiq, Senior Project Economist at the ADB, "The draft reports produced so far are not ready for public distribution and will only be available after Board approval."