Strategic options Decide not to proceed with the mainstream projects - PDF document

7/13/2010 Strategic options Decide not to proceed with the mainstream projects 1. Defer a decision on whether or not to proceed and in what form and 2. circumstances Proceed with mainstream development on a gradual phased basis 3. Proceed with “rapid” development of all 12 projects 4. Adjustments need to be made before the mainstream HPD are built in the following categories:  Institutional structural innovations LAO WORKING GROUP –  Policy and procedural innovations DISCUSSION POINTS  Additional studies where there are knowledge gaps or uncertainties  Capacities that may need to be strengthened  Actions required to improve management and enforcement MRC SEA of hydropower of the mainstream Mekong River Regional Avoidance, Mitigation and Enhancement Workshop: 28-29 June 2010. STRATEGIC OPTION 1. Decide not to proceed with the mainstream projects IMPACTS ACTIONS AND ADJUSTMENTS NEEDED Regional /National a) Power supply of mainstream not • Economy-wide structural adjustment packages: to mitigate the foregoing or delaying available mainstream projects in Lao PDR. b) Benefits lost from • Reorientation of energy plans away from a dependence on mainstream hydropower. mainstream HP 1. Decide not to proceed with the Accelerate other renewable energy supply alternatives, this alternative is very unrealistic. c) Ineffective use of water • Donor support packages to promote the investigation of alternative energy options: resources potential to mainstream projects help reduce the poverty -Lao PDR: potential for accelerated tributary development - Integration of these options into existing and planned regional programs d) Intensification and improvement of • Donor support for development of key sectors in Lao PDR undeveloped agriculture - Agriculture, mining and manufacturing industry e) Retard the chance to develop modern - Health and education industries - Tourism, improvement of livelihood 1

7/13/2010 STRATEGIC OPTIONS 2. Defer a decision on whether or not to proceed and in what form and circumstances IMPACTS ACTIONS AND ADJUSTMENTS NEEDED a) Dams are deferred for Regional /National reasonable period Economy-wide structural adjustment packages: to mitigate the foregoing or delaying b) Additional studies mainstream projects in Lao PDR. undertaken to inform Reorientation of energy plans away from a dependence on mainstream hydropower. decision/ policy Accelerate other renewable energy supply alternatives, this alternative is very unrealistic. 2. Defer a decision on whether or maker. Possible studies and research in: multiple use of reservoirs, Environmental Flows, a review of c) Impact on regional culture assets sustainability assessment of each dams not to proceed and in what form and national energy plan. Capacity development and public awareness programs at all levels of government and local communities with wide participation. d) Less negative impacts and circumstances of mainstream dam Strategy Option 3. Proceed with mainstream development on a gradual phased basis ACTIONS AND ADJUSTMNETS NEEDED IMPACTS a) Better Regional /National optimization Local Investment maximization: ensure local labor and goods by providing subsidies, training study 3 . Proceed with mainstream programs etc b) Lessons Sustain economic growth and livelihood learned from development on a gradual phased each dam Compensation: compensation payments for affected communities, etc. developmen Benefit Sharing Fund: to fund activities and mainstream projects. From directly from revenues (either t basis on power tariff or water charges) c) To ensure Capacity development and public awareness programs at all levels of government and local knowledge communities with wide participation. gaps and uncertainties Studies and research in: multiple use of reservoirs, Environmental Flows, a review of culture assets regarding HP sustainability assessment of each dam. impacts Catchment Management filled 2

7/13/2010 Strategy dyOption 4. Proceed with “ rapid” development of all 12 projects basis IMPACTS ACTIONS AND ADJUSTMENTS NEEDED Regional /National a) Too ambitious Dam projects will be implemented according to national regional needs and cooperation (GMS, plan! ASEAN) 4. Proceed with “ rapid” b) Very dynamic Local Investment maximization: ensure local and foreign labor and goods by providing subsidies, economic training programs etc development of all 12 projects activities Livelihood adjustment package: Support for alternative fisheries - Reservoir and aquaculture (ineffective production, alternative skills training, micro finance, Re-training programs for control) basis households/employees c) Possible over Compensation: compensation payments for affected communities, etc. supply of electricity Benefit Sharing Fund: to fund activities and mainstream projects. directly from revenues (either on power tariff or water charges) d) Possible oversight of Capacity development and public awareness programs at all levels of government and local social economic communities with wide participation. and Catchment Management environmental circumstance e) Very high debt Strategy option 3: Proceed with mainstream development on a gradual phased basis Would the group like to make a  Sustainable social benefit, and economic growth suggestion for a strategic option?  Minimized environmental impacts  Better optimization study Which strategic option is preferred  Lessons learned from each dam development and why? Reason?  To ensure knowledge gaps and uncertainties regarding HP impacts filled  Dam projects will be implemented according to national / regional needs and cooperation (GMS, ASEAN) 3

7/13/2010 Recommendation for SEA Report  Before finalizing the draft final SEA report, set up national working group for review (technical and financial support needed)  National consultation workshop  Translation of the final SEA report into the four riparian languages  Circulation of the final report to line agencies (e.g. submit final report to policy maker) 4