The nam theun 2 hydropower project power technology. Compensation and livelihood restauration at nam theun 2 hydropower project page 11 nsedp national socioeconomic development plan nt2 nam theun 2 hydroelectric project ntfp nontimber forest products ntpc nam theun 2 power company limited ntec nam theun 2 electricity consortium paps pav project affected persons. Bruce shoemaker independent researcher the views expressed in these presentations are the views of the authors and do not necessarily reflect the views or policies of the asian development bank adb, or its board of directors or the governments they represent. If completed, the project would displace more than 6,200 indigenous people and negatively affect the livelihoods of up to 100,000 villagers living downstream. The asian development bank is working the lao peoples democratic republic to build the nam theun 2 hydroelectric project nt2. For example, the nam theun 2 hydropower project in laos is partially financed by thai banks through thai bahtdenominated loans and also exports a significant proportion of its energy production to thailand multilateral investment guarantee agency miga, 2006. The diversion of the nam theun river was successfully carried out in march 2006. The nam theun 2 nt2 hydropower project is the largest foreign investment in lao pdr. The scheme diverts water from the nam theun, a tributary of the mekong river, to the xe bang fai river, enabling a generation capacity of 1,070 mw, from a. Case study nam theun 2 session on finance sidharth sinha indian institute of management, ahmedabad project history 1970s. Questioning the poverty reduction and sustainable development model recommendations on the nam theun 2 hydroelectric project in laos 27 june 2017 mekong watch introduction the nam theun 2 nt2 dam, which began commercial operation in 2010, is a hydropower. According to a world bank spokesperson, the nam theun 2 dam has been a project that has seen a lot of thought put into its sideeffects on the environment and the local communities 3. Nam theun 2s development justification hinges on the lao government using revenues from the project to help the project affected people and ensuring that their livelihoods are improved or restored. Operatetransfer structure developed for the project has allowed the gol to undertake nam theun 2 without incurring the financial risk of fully funding the entire project.
The nam theun 2 hydropower project nt2 is a transbasin diversion power plant on the nam theun river in khammouane and bolikhamxay provinces in lao peoples democratic republic. The buildownoperatetransfer structure developed for the project has allowed the government to undertake nam theun 2 without incurring the financial risk of fully funding the entire project. The nakai dam and its auxiliary structures are 50 to 55 % completed in preparation for the impounding of the reservoir in mid2008. The project is seeting the standard for the construction of good dams those that address environmental and social impacts, and steer revenue toward the countrys neediest people. The nam theun 2 nt2 project is a major hydroelectric power scheme in laos. Revenue and expenditure management is central to the achievement of the nam theun 2 nt2 project s development objective. Irrigation department director general, maykong phonephommavong, said the project would supply water to 2,700 hectares of rice fields in 10 villages as well as for cash crop plantations and livestock operations. Aug 18, 2017 finance contract and the ca, and this is alleged to have caused the resettlement implementation period to be extended. Commercial operation of the plant began in march 2010.
Roughly 6,200 indigenous people living on the nakai plateau would be evicted to make way for the nam theun 2 dam and its reservoir. The past ten years have seen tremendous growth within laos as nam theun 2, an expansive, modern hydroelectric project, has progressively emerged as a base for the countrys development and an integral part of the countrys national growth and poverty eradication strategy. Nam theun 2an industrial project and a development project, for poverty reduction in laos jointly implemented by ntpc and the government of the lao pdr 3. Theun hinboun expansion project, nam theunnam kading river basin, lao pdr 17 3. Questioning the poverty reduction and sustainable development model recommendations on the nam theun 2 hydroelectric project in laos 27 june 2017 mekong watch introduction the nam theun 2 nt2 dam, which began commercial operation in 2010, is a hydropower dam constructed in central laos with support from the world bank wb and asian. Nam theun 2 hydroelectric project laos project description the potential for hydroelectric power projects on the nam theun river was first identified in the mid1970s and was the subject of detailed studies during the following decades. Ntpc is the company formed by the lao government and the private shareholders in the nam theun 2 hydroelectric project to build and operate and transfer the project for the first 25 years of its operation. Nam theun 2 resettlement of project affected people in. Nam theun 2 hydroelectric project laos project description. Ntpc is dedicated to running a world class hydropower facility and to improving the living conditions of people in the areas around the project.
Benefits, burdens and risks arising from development of theun hinboun expansion project 20. Ten reasons why the world bank should not finance the. European project 6th framework euwieranet programme. Unless these negative impacts are carefully mitigated, said the bank s nam theun 2 project director, jayashankar shivakumar, the net benefits flowing from the project may not be attractive enough to justify it. The amount of hydroelectricity produced will depend upon the amount and timing of flows released from the nam theun 2 to the downstream theun channel. The world bank claims that the project has been carefully planned so that, unlike past hydro. This claim was the basis for world bank and adb support for nam theun 2. This project is the construction of outlets at the nam theun 2 dam to irrigate cultivation land, not the construction of the dam itself. Nt2 involves the development, construction, and operation of a thousand megawatt transbasin diversion power plant on the nam theun river, a. Ten reasons why the world bank should not finance the nam. Migas guarantee was very important to lowering the projects risk profile, which in turn enabled the government. Nt2 involves the development, construction, and operation of a thousand megawatt transbasin diversion power plant on the. The nam theun 2 hydropower project, or simply nt2, is a hydroelectric dam located on the nam theun river in laos.
Revenue and expenditure management is central to the achievement of the nam theun 2 nt2 projects development objective. Nam theun 2 hydroelectric project in laos duration. Project finance and guarantees june 2005 project finance and guarantees group ida guarantee paves renewed interest in private hydropower the nam theun 2 project largest cross border project financing in east asia since 1995, the development of the nam theun 2 hydropower project nt2 has been a top priority for. Executing agency ministry of industry and handicrafts ministry of energy and mines after 2006 6. The views expressed here are those of the presenter and do not necessarily reflect the views or. The 210mw namtheun hinboun project, partly financed by the asia development bank and nordic aid, is under construction downstream of the proposed nam theun 2 project. Lao pdr and supported by financing from 27 parties including. The nam theun 2 hydropower project, or simply nt2, is a hydroelectric dam on the nam theun river in laos. In 2005, the world bank agreed to support the nam theun 2 hydropower project nt2 in laos, and in 2010 nt2 began diverting water from the theun river into the xe bang fai river. Lao government, backed by commercial lenders and international financial institutions. The vietnam decree provides a framework for equitable sharing of benefits from hydropower resources. The approach to hydropower development at nam theun 2 part 1. The eib cofinanced the project with the world bank, the asian development bank, the nordic investment bank, bilateral agencies afd and proparco and. World bank support for the development of the nam theun 2 nt2 hydroelectric project, located atop the biodiverse nakai plateau in central laos, signals the re emergence of the banks involvement in large scale dam construction initiatives.
It was not until the early 90s that the nam theun 2 hydroelectric project nt2 or the project was. The decree calls for longterm revenue sharing arrangements to. The nam theun 2 project nt2 is developing part of this hydroelectric potential for export to thailand. The scheme diverts water from the nam theun, a tributary of the mekong river, to the xe bang fai river, enabling a generation capacity of 1,075 mw, from a 350 m 1,148 ft difference in elevation between the reservoir and the power station. In 2010, the largest hydropower dam ever constructed in laos, the nam theun 2 nt2 power project, was completed with crucialindeed, dealmakingsupport from the world bank. The multipurpose project was under construction for over a decade. This update1 reports developments since the last annual update to the board dated july 21, 2009 on nt2. The second nam theun nt2 hydroelectric project is an industrial and development investment owned by private shareholders and the lao government, backed by commercial lenders and international financial institutions. Another 120,000150,000 people depend on the xe bang fai and nam theun rivers for their livelihoods. Ida guarantee paves renewed interest in private hydropower. Convert difference in elevation between the reservoir. Benefit sharing from hydropower, the nam theun 2 revenue management framework, and the nam leuk hydropower project in laos. The eib signed a loan agreement in 2005 with the laos government for eur 45 million to help finance the project.
However, the dam reality has differed largely from the underlying development rhetoric. It is based on the findings of a joint nt2 supervision mission mounted by the. Finance contract and the ca, and this is alleged to have caused the resettlement implementation period to be extended. Commercial operation of the plant began in april 2010. Theun hinboun expansion project, nam theun nam kading river basin, lao pdr 17 3. Ministry of finance, the contact point for w and ad, and ngos. The project is seeting the standard for the construction of good dams those that address environmental and social impacts, and. The oneday forum, held may 17, was followed by a visit to the project site on may 18 by over 100. Demand is expected to grow at 56% annually over the period. An example of successful mitigation of foreign exchange risk is the nam theun 2 hydropower project in laos 2.
To access full story content you must be a subscriber. Case study compensation and livelihood restoration at nam. Financing crossborder infrastructure projects currency risk. Nam theun 2 is a key development project for lao pdr. Nam theun 2 power company limited, ppta project preparatory technical. Benefits, burdens and risks arising from development of theun. The oneday forum, held may 17, was followed by a visit to the project site on may 18 by over 100 people from government, development agencies. The nam theun 2 project is to be carried out under the concession agreement between the government of the lao pdr, represented by the committee for investment and cooperation, and acting for and on behalf of the lao pdr as the gol, and a project company established in. The project will have serious impacts on the lives and livelihoods of tens of thousands of rural laotians. Loan number and financing source 2162, ordinary capital resources ocr. Thailand is expecting its electricity energy and peak supply requirements to more than double from current levels by 2020.
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