DR. STEPHEN SPARKES VICE PRESIDENT, STATKRAFT INTERNATIONAL HYDROPOWER, E & S GOVERNANCE

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1 DR. STEPHEN SPARKES VICE PRESIDENT, STATKRAFT INTERNATIONAL HYDROPOWER, E & S GOVERNANCE HYDROPOWER FOR SUSTAINABLE DEVELOPMENT SOCIAL ASPECTS

2 DEFINITION OF SUSTAINABILITY Definition: a mode of human development in which use of the environment provides for needs for the present and future generations (Brundtland Commission) Hydropower leaves a very large footprint and creates rapid change (challenge and opportunity) Need solutions that will work in the long-term: New technologies for intensified agricultural production Facilitate socio-economic trends new skills More efficient use of natural resources Ensure protected areas are patrolled and laws enforced 2 Statkraft presentation

3 CASE STUDY: THEUN-HINBOUN EXPANSION PROJECT IN LAOS MW expansion with 105km 2 reservoir 4300 resettlers and relocation of 8000 people ADB, Lao regulations and Equator principles Extensive social and environmental programs Restoration commitment for all PAPs 3

4 CHALLENGES FOR ACHIEVING SUSTAINABLE HYDROPOWER National legal requirements vs. International standards (IFC, WB, ADB, Equator principles, IHA, etc.) Acquiring funding for pro-active, preventative and development activities prior to investment decisions Qualified personnel on the ground and capacity of local government agencies Internalizing all costs higher standards translates into more resources and higher costs How to measure sustainability? How can a project be environmentally and socially sustainable? 4 Statkraft presentation

5 ENVIRONMENTAL SUSTAINABILITY Environmental monitoring throughout operation = neutral Reforestation Program in catchment = bio offset Legal status of catchment for conservation = Gov t approval Long term relationship conservation NGOs = management of catchment Commitment in terms of funds and outcomes in Concession Agreement

6 SOCIAL SUSTAINABILITY Extension teams at all sites (soc/tech/liv) = interactive Water User Groups and Village Funds = longterm institutional development On-the-Job Training and model farmers = good understanding Private and Gov t involvement = External support for development Income and Human Development Targets = ensure positive and sustainable outcomes Continuous supervision by Project

7 IMPROVED INFRASTRUCTURE Human Development Indicators Baseline 2013 results Project Aims Villages with year-round road access 26% 72% 50% Households with electricity 45% 78% 75% Households with year-round access to improved water source 33% 70% 80% Households reporting toilet use 55% 79% 80% Households reporting women or girls responsible for fetching domestic water (gender indicator) 69% 20% Less than 50% Households within 5 km of a health centre 31% 70% 80% 7 Statkraft presentation

8 IMPROVED FOOD SECURITY AND HEALTH Human Development Indicators Baseline 2013 results Project Aims Households with food security 58% 65% 80% Diarrhea in children under 5 9% 9% Less than 5% Anemia in reproductive age women 53% 39% Less than 30% Wasting in children under 5 (new baseline from 2011) 10% 10% Less than 4% 8 Statkraft presentation

9 INCOME LEVELS AND TARGETS Income Target Level 1 Income Target Level 2 Zone 2 Headpond Zone 3A Nam Hai/Hinboun Zone 3B Upper Nam Hinboun Zone 3C Middle Nam Hinboun Zone 3D Lower Nam Hinboun Zone 3R Relcoated Villages Zone 5 Control Villages Zone 6 Resettlement Sites 10 Lao Poverty Line Statkraft presentation

10 THANK YOU धन यव द

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