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Local Participation on Benefit
Sharing of Nam Lik 1-2 Hydropower
Project in Lao PDR
Phoukeo Saokhamkeo
(Presenter)

Phoukeo Saokhamkeo2, Linkham Douangavanh1, Somsameu Douangdavong1,
Lamchai Sisamack2, Jean-Roland Marguin4, Florence Milan3, and Chu Thai Hoanh3
1National

Agriculture and Forestry Research Institution 2National University of Laos 3
International Water Management Institute 4University of Hohenheim
Outline
•
•
•
•
•

Introduction
Main Focus
Methodology
Findings
Policy Recommendation
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
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
3. Methodology
• Research site
• FGD & survey
4. Main findings
4.1 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
4.1 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
4.1 Local participation on project (cont…)
• Fishing Group
Association
• Access to reservoir
for collecting NTFPs
4.2 Livelihood adaptation
Categories of
activities

Before
After
dam (%) dam (%)

Upland agriculture 37

23

Paddy rice

86

83

Gardens

39

23

Animal production 53

41

Fishery

32

39

Handicraft

9

17

Laborer

3

15

NTFPs

15

23

Trades

6

17
4.4 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 agricultural activities 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
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

• 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
5. Policy Recommendation (cont…)
• Livelihood adaptation for poverty reduction
–
–
–
–
–

Sustainable funds for agriculture productions and handicrafts
Training for improved and new production techniques
Animal production groups
Access to market for agricultural products
Good transportation

• Sustainable natural resources management
–
–
–
–

Grassroots groups should participate in the committee of NRM
Villagers should be trained on NRM
Administrative of NRM should be transferred to communities
Financial support for community NRM

• Government policy and legal framework in place for
compensation and benefit sharing
Thank You

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Day 1 session 5.1 benefit sharing on nam lik 1 2

  • 1. Local Participation on Benefit Sharing of Nam Lik 1-2 Hydropower Project in Lao PDR Phoukeo Saokhamkeo (Presenter) Phoukeo Saokhamkeo2, Linkham Douangavanh1, Somsameu Douangdavong1, Lamchai Sisamack2, Jean-Roland Marguin4, Florence Milan3, and Chu Thai Hoanh3 1National Agriculture and Forestry Research Institution 2National University of Laos 3 International Water Management Institute 4University of Hohenheim
  • 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 • FGD & survey
  • 6. 4. Main findings 4.1 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
  • 7. 4.1 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
  • 8. 4.1 Local participation on project (cont…) • Fishing Group Association • Access to reservoir for collecting NTFPs
  • 9. 4.2 Livelihood adaptation Categories of activities Before After dam (%) dam (%) Upland agriculture 37 23 Paddy rice 86 83 Gardens 39 23 Animal production 53 41 Fishery 32 39 Handicraft 9 17 Laborer 3 15 NTFPs 15 23 Trades 6 17
  • 10.
  • 11. 4.4 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 agricultural activities 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
  • 12. 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 • 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
  • 13. 5. Policy Recommendation (cont…) • Livelihood adaptation for poverty reduction – – – – – Sustainable funds for agriculture productions and handicrafts Training for improved and new production techniques Animal production groups Access to market for agricultural products Good transportation • Sustainable natural resources management – – – – Grassroots groups should participate in the committee of NRM Villagers should be trained on NRM Administrative of NRM should be transferred to communities Financial support for community NRM • Government policy and legal framework in place for compensation and benefit sharing