[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]
dam-l Nam Theun 2 article [fwd]
Forwarded message:
From owner-irn-mekong@igc.org Thu Nov 13 14:13:09 1997
Content-Type: text/plain; charset="us-ascii"
Date: Wed, 12 Nov 1997 22:00:33 -0800
From: nretni@igc.org (Tisha Wheeler)
Message-Id: <v02140b00b09047b2a272@[198.94.3.68]>
Mime-Version: 1.0
Precedence: bulk
Sender: owner-irn-mekong@igc.org
To: IRN-Mekong@igc.org
X-Sender: nretni@pop.igc.org
6 Nov. 1997
The Nation (Bangkok)
"WB Funds Power Project in Laos: Aid despite crisis in 'buyer' Thailand"
The World Bank has given the green light for the controversial Nam Theun 2
hydro-power project in Laos and will prepare a package of loans and
guarantees for the scheme, according to the International Rivers Network.
The US-based non-governmental agency said in a statement the green light
was given despite the economic crisis in Thailand which will be the sole
purchaser of the dam's electricity.
Reduced power demand projections in Thailand make it extremely uncertain
that the Thai electricity utility will buy Nam Theun 2 power at an
attractive price.
"In the midst of Southeast Asia's economic crisis it is foolish for the
bank to push ahead with this highly-risky project," Aviva Imhof, Mekong
programme co-ordinator for International Rivers Network, said.
"It is very likely that it will not produce its expected benefits. The
main risks are that the government of Laos will be further in debted and
the livelihoods of thousands of local people destroyed"
The consortium which hopes to build and operate the 681 megawatt dam is led
by Australian construction company Transfield and Electricite de France.
They have stated that they will withdraw if the World Bank does not
guarantee their investments against actions which may be taken by the Laos
government. The proposed financing package for the dam is expected to be
submitted for approval b the bank's board by mid-1998.
Predictions of the economic benefits of the dam have been steadily
decreasing since the bank first recommended it be built in 1991. At that
time, it was estimated the dam would bring in annual revenue to Laos of
US$176 million. The latest bank-commissioned economic impact study
however, puts the benefit to Laos at under $33 million annually.
Independent experts believe even this figure is likely to be highly
optimistic.
EGAT has not yet agreed to buy power from Nam Theun 2. The Thailand Load
Forecast Committee last month sharply cut its power demand projections for
the period between 1997 and 2011.
According to Thailand's National Energy Policy Office, Nam Theun 2 is not
EGAT's latest power development plan. Nam Theun 2 could be left without a
buyer for its power or be forced to sell it at a price too low to repay its
huge construction costs. "Nam Theun 2 has sucked a huge amount of human
and financial resources, depleting the Laos government's already weak
capacity to deal with its development needs. The ban should surely
understand by now that promoting mega-projects in poor and indebted
countries is a recipe for economic and environmental disaster," Imhof
said.
6 Nov. 1997
Bangkok Post
Saritdet Marukatat
"World Bank to back Nam Theun 2 Dam: opponents warn of fiscal responsibility"
The World Bank has agreed to support construction of the Nam Theun 2 dam in
Laos despite warnings that the project is fiscally and environmentally
unsound.
A bank official yesterday said the decision was reached at the head office
in Washington late last month, but the bank is awaiting assessments by the
Laotian government and developers of environmental, financial and technical
issues before giving a final nod to the project. Conditions attached to
loan approval include compliance with the bank's programme to minimise
environmental and social damage in the remote, once pristine region of
southern Laos.
The preliminary decision, however, enables the bank to prepare a package of
loans and guarantees for the US$1.5 billion project expected to be
submitted to the board for approval in mid-1998, according to the
International Rivers Network, a California-based environmental group which
opposes the project.
Support from the bank is crucial for the developers -- Italian-Thai
Development, Jasmine International and Phatra Thanakit from Thailand,
Transfield of Australia and Electricite de France -- who will not proceed
without the bank's guarantee.
The Nam Theun 2 dam planned for a tributary of the Mekong River has emerged
as one of Asia's major environmental battles. It pits the developers
against conservationists around the world.
The dam, situated 250 kilometres south of Vientiane, will produce 681
megawatts of power, most of which will be sold to the Electricity
Generating Authority of Thailand (EGAT).
Aviva Imhof, regional co-ordinator of the network leading the global
campaign against the dam, fiercely criticised the bank's decision.
"In the midst of Southeast Asia's economic crisis, it is foolish for the
bank to push ahead with this high risk project. It is very likely that it
will not produce the expected benefits," she said in a press release
yesterday.
The high construction costs and uncertain demand from Thailand, which is
facing economic downturn would push Laos into debt trouble, she added.
Environmentalists and conservationists, have repeatedly voiced concern
about the dam, which they fear could destroy one of the richest forest
areas in Laos and Southeast Asia. About 1,000 Laotian households have to
be cleared from the site and flooded area, they added.
But the Laotian government has seen it as a means to generate badly needed
hard currency to finance development projects, and bring the country out of
poverty.
EGAT earlier agreed to purchase 3,000 megawatts from Laos between now and
2006, but the Thai economic collapse has raised strong doubt about the
demand.
But Laos' Deputy Minister to the Prime Minister's Office, Bountiem
Phissamay, recently brushed off doubters and reiterated confidence in
Thailand.
The current economic trouble in Thailand was temporary, while the long term
prospect was secure, said the minister, who is in charge of foreign
investment.
TISHA WHEELER
(Mekong Intern)
nretni@irn.org
"Contact me on all of your Mekong info request needs."
Sawat-dii kha