Local Participation on Benefit Sharing of Nam Lik 1-2 Hydropower Project in Lao PDR

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1 Local Participation on Benefit Sharing of Nam Lik 1-2 Hydropower Project in Lao PDR Phoukeo Saokhamkeo (Presenter) Phoukeo Saokhamkeo 2, Linkham Douangavanh 1, Somsameu Douangdavong 1, Lamchai Sisamack 2, Jean-Roland Marguin 4, Florence Milan 3, and Chu Thai Hoanh 3 1 National Agriculture and Forestry Research Institution 2 National University of Laos 3 International Water Management Institute 4 University of Hohenheim

2 Outline Introduction Main Focus Methodology Findings Policy Recommendation

3 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

4 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

5 3. Methodology Research site Sampling FGD & survey

6 4. Main findings 4.1 Dimensions of impact on villagers Low impacts than other dam constructions Loss of fixed assets and traditional practices Loss of land use Negative impact from explosions of marble extraction Loss of access to NTFPs for food and income in upstream Loss of community income from rapids Loss of some species of fish, aquatic weed and plants along the river Unannounced release of water from dams damages fishing tools Loss of clean water for consumption Additional expenses for drinking water and water pump The damage from flood (erosion, crops) was not compensated

7 4.2 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

8 4.2 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

9 4.2 Local participation on project (cont ) Fishing Group Association Access to reservoir for collecting NTFPs

10 4.3 Livelihood adaptation Categories of activities % before dam % after dam Upland agriculture Paddy rice Gardens Animal production Fishermen Handicraft 9 17 Laborer 3 15 NTFPs Trades 6 17 Government staffs 5 3

11 4.4 Poverty reduction under the new livelihood strategies 500,000, ,000, ,000,000 1,200,000, ,000, ,000,000 1,000,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000,000 50,000, ,000, ,000,000-50,000, ,130,191, ,072, ,150, ,974, ,170, ,657, ,406, ,908, ,010,000 70,970,000 Before Dam After Dam Rice Crops Animals NTFPs Income Before After Expense 28,180,000 35,094,000 Before After

12 4.5 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 upland agriculture 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

13 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 All lost land should be taken into consideration The impacted villages in other side of river should receive compensation 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

14 5. Policy Recommendation (cont ) Livelihood adaptation for poverty reduction Sustainable funds for agriculture and handicrafts Village development fund Training for improved and new techniques Animal production groups Access to market for agricultural products Good transportation More sources of drinking water Sustainable natural resources management Grassroots groups should participate in the committee Villagers should be trained on NRM Administrative of NRM should be transferred to community Financial support for community NRM Government policy and legal framework in place for compensation and benefit sharing

15 Thank You