Beyond Damnation:
Nam Theun 2 and The Future of
Hydropower in the Mekong
Prashanth Parameswaran
Presentation to Hitachi Center for Technology Colloquium
10/19/2011
Agenda
• Overview
• Method
• Key Findings & Recommendations
Overview
The Mekong In Peril?
• Rapidly growing energy
demand and regional
connectivity in the Mekong
region (GMS, ASEAN)
• Hydropower projects affect
Mekong River, which sustains
over 60 million people
• How to reconcile economic
development with social and
environmental imperatives?
• Is Nam Theun 2 (NT2) in Laos a
“model project” in this regard as
touted by WB and ADB?
Nam Theun 2 in Laos
• First conceived 1980s, delayed
until construction in 2005-2010
• Largest private sector crossborder power project ($, 2005)
• Over US$2 bn revenues to
GOL in 25 yrs(7-9% budget)
• Part of GOL plan to become
“battery of Southeast Asia”
despite poor dam record (90s)
• One party, authoritarian,
corrupt government
Method
Project Structure
• Combination of secondary research and 19
interviews covering most Mekong countries
• April – May 2011: Trip preparation
• May – Mid-July 2011: Internship at Singapore’s
Energy Market Authority (EMA)
• Mid July – Sept 2011: Interviews and research in
Thailand, Vietnam, Laos, Cambodia
• Sept – Dec 2011: Produce articles/present findings
• Dec 2011 – January 2012: Second phase of
research focusing on GMS and ASEAN Connectivity
Selected Interviewees
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Energy Studies Institute, Singapore
Diplomatic Academy of Vietnam
Mekong River Commission
Cambodian Trade Ministry
Nam Theun 2 Power Company, Laos
Chulalongkorn University, Thailand
International Rivers
Mae Fah Luang University, Thailand
Former WB & ADB consultants
EarthRights International
Key Findings &
Recommendations
Key Findings: NT2 as a Model?
Yes
No
Revenue Management
Resettlement Plan
Stakeholder Consultation
Lack of Contingency
Planning
Declining Bank Leverage
vs. New Actors
Transparency in Process
Recommendations
Actor
Recommendation
Laos
Strengthen WREA for
project monitoring
Independent review of
dam assessments
Need to increase leverage
post-construction
Focus more on project
asymmetries
Adopt international best
practice standards
Laos
WB/ADB
WB/ADB
New Hydro Developers
The End