Laos protests innocence as Mekong concerns snowball

Date: 

 July 10, 2012

By: 

 CleanBiz Staff

Tags: 

• Cambodia
• Ch Karnchang
• Eric Baran
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The deputy energy minister of Laos denies his country has ignored agreements with neighboring countries over the building of the controversial USD3.5 billion Xayaburi hydropower dam on the Mekong River.

The project – and others planned for the Mekong and its tributaries – has come under fire from activists, people living along the river and some neighboring countries because of what they saw as an inadequate environmental impact assessment.

Late last month the NGO, International Rivers, published an investigative report saying that Thai construction firm Ch Karnchang Pcl, the main developer of the 1,260 megawatt dam, was continuing with work on the project despite a Laos agreement last December to suspend it.

The deputy minister, Viraphonh Viravong, argues the government had kept its promise, although he admits geological sub-surface surveying was being carried out in the Mekong valley.

"We plan to invite development partners and Mekong River Commission member countries to visit the project site so they can see the actual development for themselves," he told the Vientiane Times daily. "The Xayaburi project will develop one of the most transparent and modern dams in the world."

Another study published in January warned that if 78 hydropower dams scheduled for construction along tributaries of the Mekong River go ahead, they will permanently block critical fish migration routes, with "catastrophic" implications for the world's biggest inland fishery. The authors, writing in Proceedings of the National Academy of Sciences, noted that their paper was the first strategic analysis of these tributary dams.

Around 60 million people in China, Myanmar, Laos, Thailand, Cambodia and Vietnam live along the banks of the Mekong and tributaries and many rely on fish for their livelihoods and food.

The authors made a detailed study of 27 dams where construction is planned between 2015 and 2030, to better understand implications for fish biodiversity, food security and hydropower in the Mekong River Basin. They found that the facilities would stop fish from migrating "between the river's downstream floodplains and upstream tributaries".

Co-author Eric Baran, a scientist at the WorldFish Center in Cambodia, said the lower part of the Mekong basin produces nearly 770,000 tons of fish per year – as much as the combined freshwater catch of Europe and South America.

He said the "ambitious development agendas" of countries in the Mekong region, which include plans for rapid dam construction, could threaten the food security and livelihoods of 70 per cent of the basin's residents.

Xayaburi and other planned projects to dam the mainstream of the Mekong are subject to review by the Mekong River Commission, an advisory body founded by the four lower Mekong countries in 1995 to promote sustainable development along the river.

Plans to dam the Mekong's tributaries, however, are not currently subject to multilateral scruitiny. While most of the planned tributary dams will be built in Laos, the authors of the study say effects on fish biodiversity and availability would also be felt in Cambodia and Vietnam.

In addition, the Lower Se San 2, a controversial dam planned for a tributary in Cambodia, would have "highly detrimental" impacts on fish productivity, and could increase to 85 the number of endangered of fish species in the basin system — up from 9 during the last count in 2000 — and similarly increase the number of critically endangered species to 6, up from 1 in 2000.

Photo Credit: 

 

Nature

 

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Xayaburi in hot water

Concerns are mounting that the US$3.7-billion Xayaburi Dam cannot proceed after the four-member Mekong River Commission delayed the project pending further environmental study.

Analysts said the decision at last week's MRC meeting disappointed the Thai market and raised concerns about the outlook of Ch. Karnchang (CK), Thailand's No. 3 construction company by value and the project's developer.
In a joint statement released after the meeting, the commission said Laos, Cambodia, Vietnam and Thailand would ask the Japanese government and other international partners to help assess the impact of planned hydropower dams on the Mekong.
Chaiyatorn Sricharoen, an analyst at Bualuang Securities, sees the possibility of cancellation.
"Although the management of CK has remained confident that the project can go ahead," he said, "we have started to see that the ecosystem and sustainability of the lower Mekong have more weight than the benefits of selling the electricity from the dam."
According to Bualuang, the US Congress, which has influence on the MRC, seems to be opposed to Xayaburi for its possible impact on the environment.
More than 90% of the electricity from Xayaburi, with its capacity of 1,285 megawatts, would supply Thailand. The project is scheduled for commercial operation in early 2019.
CK owns a 57.5% stake in Xayaburi, with PTT Plc and Electricity Generating Plc holding 25% and 12.5%.
Nat Panassutrakorn, an analyst at KGI Securities, said the MRC resolution surprised the market and raised uncertainty about the viability of the project.
"Although the Laotian government has the final say," he said, "there is a political effort behind the scenes and development of Xayaburi is critical to the rest of the planned dams along the Mekong River."
The Xayaburi Dam, in northern Laos, is the first of 11 dams planned for the lower Mekong. Some 60 million people depend on the river and its tributaries for food, water and transportation.
"Currently, it depends on how much the information to be found by the Japanese side can back up the project," Mr Nat said.
CK executives could not be reached for comment. But SouthEast Asia Energy, the company overseeing the engineering works, reaffirmed that the possible impact to the environment was taken into account in CK's study presented to the Laotian government.
"It seems to me that the MRC decision does not directly mention further study of Xayaburi, but the general Mekong River," said Somkuan Watakeekul, SEAN's managing director. "The study we did covers all the concerning aspects, and we invest a lot to minimise environmental impact."
CK shares closed Tuesday at 7.70 baht, up 5 satang, in trade worth 41 million baht.

Source: http://www.bangkokpost.com/business/economics/270662/xayaburi-in-hot-water

Decision looms for controversial Mekong dam

Ministers are expected to pass judgment on the most controversial dam ever proposed for the vast waterway

Jonathan Watts

guardian.co.uk, Wednesday 7 December 2011 17.52 GMT

A 'slow' boat cruises on the Mekong River near the Thai-Laos border town of Huay Xay in northern Laos. Photograph: Voishmel/AFP

The Mekong ministers responsible for southeast Asia's "Mother River" are expected to pass judgment on Thursday on the most controversial dam ever proposed for the vast waterway.
Laos hopes to built a 1,285 MW hydroelectric plant at Xayaburi that would supply Thailand with electricity and open the door to a host of other proposed dams on the Mekong. But until now its plans have been fiercely opposed by Cambodia and Vietnam, which fear the blockage would sharply reduce the water needed for downstream fisheries and irrigation.
Ministers from the four nations meet in Siem Reap, Cambodia, tomorrow to rule on the Xayaburi plan amid demonstrations and petitions by conservationists who warn that the dam could kill off some of the world's most remarkable freshwater species. Arguments between the four member states of the Mekong River Commision have held up the plan, on which a decision had been expected in April.
Laos - one of Asia's poorest nations - is desperate to start the $3.5bn project to generate foreign exchange and accelerate economic development. To meet the concerns of its neighbours, it promised a new study of the environmental impacts. But the study - produced by the Swiss firm, Poyry Energy - has been criticised by conservationists for approving construction even though it acknowledges key information is missing.
"It is astounding that Poyry affirms there are serious data gaps and weaknesses with the project and still gives it the all clear," said Dr Jian-hua Meng, WWF's Sustainable Hydropower Specialist. "Poyry recommends dealing with the critical knowledge gaps during the construction phase. Playing roulette with the livelihoods of over 60 million people would not be acceptable in Europe so why is it different in Asia?"
A coalition of 39 environmental groups have organised protests and run full-page advertisements in Thailand to oppose the Xayaburi, which - they say - threatens the livelihoods of 60m downstream dwellers in addition to some of the world's most remarkable creatures, including catfish the length of cars and stingrays that weigh more than tigers are threatened by the proposed 800m barrier.
It is the second big dam controversy of the year in southeast Asia after Burma halted construction of a hydroelectric plant on the Irrawaddy at Myitsone, which would have supplied power to China.
China also wants to build four dams on the Mekong - which would have a greater chance of approval if the Xayaburi goes ahead. It only has observer status at the commission meeting this week. The outcome remains far from clear. Vietnam has called for a 10-year moratorium on all dams on the Mekong until further detailed assessments of the entire basin. A further postponment of Xayaburi is likely.
Ame Trandem, of the US-based NGO, International Rivers, said another delay of a year or two would not send a strong enough signal. "All the evidence collected so far suggests this dam would have a devastating environmental impact and people's don't want it," she said. "They should be cancelling this project."
• 8 December 2011 update: Ministers from the four countries voted on Thursday to delay a decision on the Xayaburi dam – no timescale was given.

Source: http://www.guardian.co.uk/environment/2011/dec/07/decision-mekong-dam

Dam report decried

Photo by: Piyaporn Wongruang/Bangkok Post

Construction equipment on a road leading to the site of a controversial proposed dam in Xayaburi province of Laos in April this year.

Mary Kozlovski

Thursday, 10 November 2011   

An environmental group has accused the Lao government of using a report prepared by a consulting firm to “greenwash” the proposed US$3.8 billion Xayaburi hydro-power dam on the Mekong River in a “desperate bid” to gain regional approval for the controversial project.

International Rivers said in a statement yesterday the report, prepared by Pöyry Energy AG - whose parent company is based in Finland - acknowledged uncertainties about the trans-boundary impact of the dam but nevertheless recommended that it be built.

The group said the report stated neighbouring countries’  concerns had been addressed.

“The Pöyry report sidesteps science and relies instead on guesswork, making it an unsuitable basis for decision-making on the Xayaburi Dam,” Ame Trandem, Southeast Asia program director for International Rivers, said in the statement.

Representatives from Pöyry Energy AG could not be reached for comment yesterday.

The Lao government comm-issioned the report in May after agreeing to delay the project following concerns raised by Cambodia, Thailand and Vietnam at an April meeting of the Mekong River Commission, a body established under a 1995 agreement that requires the four countries to consult on projects that could affect the river.

The three countries, along with environmentalists, have expressed concern about the dam’s potential impact on water levels and fish stocks in the Mekong Basin.

According to International Rivers’ statement, the report by Pöyry listed more than 40 scientific and technical studies that still needed to be completed and the group identified 15 MRC requirements the project did not comply with.

Daovong Phonekeo, deputy director of the department of electricity at the Lao Ministry of Energy and Mines, was unable to comment. Other officials could not be reached.

MRC communications offi-cer Surasak Glahan said by email the MRC was still reviewing Pöyry’s report.

Te Navuth, secretary-general of the Cambodia National Mekong Committee, said he had not yet received the report from the Lao government.

Source: http://www.phnompenhpost.com/index.php/2011111052685/National-news/dam-report-decried.html

‘False Claims’ In Dam Report

A report commissioned by the Lao government gives the green light to a controversial dam.

Photo appears courtesy of International Rivers
A caterpillar works on the access road to the Xayaburi dam in Laos in an undated photo.

A new report commissioned by the Lao government makes “false claims” regarding the impact of a planned hydroelectric dam in the landlocked country and should not be used as a basis for proceeding with the project, according to a conservation group.

Despite acknowledging uncertainties about how the Xayaburi Dam would affect riparian communities in Laos and other countries along the Mekong River, the report, released Wednesday by Swiss company Pöyry Energy AG, recommends that the dam be built, falsely claiming concerns about the project have been addressed, the U.S.-based International Rivers said in a statement Wednesday.

“The Pöyry report sidesteps science and relies instead on guesswork, making it an unsuitable basis for decision-making on the Xayaburi Dam,” said Ame Trandem, Southeast Asia Program Director for International Rivers.

“Pöyry claims that the project complies with Mekong River Commission (MRC) guidelines, despite listing over 40 major scientific and technical studies that still need to be completed. It would be irresponsible of Laos and other Mekong countries to support the Xayaburi Dam based on the false claims of this report.”

The Lao government hired Pöyry Energy AG in May to undertake a three-month evaluation of the project’s compliance with the MRC’s requirements for Mekong Mainstream Dams after the regional body decided in April to defer any decision on the U.S. $3.8 billion project to the end of 2011.

The MRC, which consists of Laos and neighbors Thailand, Vietnam, and Cambodia, concluded at the time that the potential for damage to rice farming and fishing communities along the river warranted the suspension of work on the dam.

In early September, the Lao government announced that the Pöyry report would be presented to neighboring governments as part of a plan to begin full construction on the dam before the end of the year.

Sulasak Krahan, a public relations officer for the MRC, told RFA in an interview that his organization had received a copy of the report and was in the process of reviewing Pöyry’s findings.

“The MRC has received the report on Xayaburi dam project and our experts are now reviewing it. The review is expected to be completed soon and the MRC will inform the public of our findings.”

While Laos has yet to publicly disclose the report, a leaked copy has recently been widely circulated.

Report shortcomings

International Rivers said it has identified at least 15 “fundamental” MRC requirements with which the Xayaburi Dam still does not comply.

“The Pöyry report avoids mentioning many of these requirements, and instead proposes unproven mitigation measures without having basic data about who, what, when, and how much will be impacted,” International Rivers said.

In particular, the group noted the report’s lack of provisions for an MRC requirement that the dam include safe passage for at least 95 percent of key fish species. Instead, it said, Pöyry promoted technologies that have never been applied on the Mekong River or used successfully in any tropical river.

“Fishery experts from around the world have concluded that no technology exists to effectively mitigate the impacts mainstream dams would have on the world’s largest inland fishery,” International Rivers said.

The river conservation group said it found several other shortcomings in the Pöyry report, including analysis of ecosystems, sediment flows, and dam safety.

Critics of the dam say it would destroy the river’s ecology and disrupt the livelihood of riparian communities that rely on it for their livelihood.

They also fear that proceeding with the Xayaburi dam would give a green light to construction on as many as 10 other hydropower projects planned for the lower Mekong.

Several groups have issued warnings that any dam built in the area may be at risk of collapse because the site is prone to earthquakes.

In the report, Pöyry falsely claims that a regional prior consultation process on the Xayaburi is already complete and that the Lao government can make a unilateral decision on whether to proceed on the dam, International Rivers said.

“Pöyry incorrectly asserts that the Lao government is not required to respond to the concerns of other governments and the MRC about the project’s transboundary impacts before the dam’s construction begins,” it said.

Map showing the proposed Xayaburi dam project.

Government push

International Rivers said that the Lao government had been working hard to push the dam project forward—proceeding with construction on access roads and work camps despite the lack of a regional agreement.

“It’s not surprising Laos has commissioned Pöyry as their hired gun given their long history of involvement in controversial projects in the Mekong region and their close ties to the Xayaburi Dam’s main builder, Ch. Karnchang,” Trandem said in the statement.

“Poyry and Ch. Karnchang are currently working together on another hydropower project in Laos, the Nam Ngum 2 Dam. It comes as no surprise that Pöyry would give its business partner a positive review, despite strong evidence to the contrary.”

With plans to build a total of 70 hydropower projects, Laos hopes to become “the battery” of Asia.

International Rivers said that as the first Mekong mainstream dam to undergo the MRC’s prior consultation process, the Xayaburi will set the bar for how decisions are made on all 11 dams proposed for the river.

“Over 40 million people, or two-thirds of the population in the Lower Mekong Basin, are involved in the Mekong’s fisheries at least part-time or seasonally. The future lives of many depend on governments’ willingness to say no to the Xayaburi Dam,” it said.

A decision on the Xayaburi Dam is expected to be made at the upcoming MRC Council meeting, scheduled for Dec. 7-9 in Siem Reap, Cambodia.

Reported by RFA’s Lao service. Translated by Max Avary. Written in English with additional reporting by by Joshua Lipes.
Source: http://www.rfa.org/english/news/laos/dam-11092011164208.html