Technical Summary Report
On
Improving Hydropower Decision-Making Processes in the
Mekong Basin: Case Studies of Lower Sesan 2 and Kamchay
Dams, Cambodia.
Royal University of Phnom Penh (RUPP)
Department of Environmental Science (DES)
December 2013
1|Page
Table of Contents
1
Summary ............................................................................................................................. 3
2
Key messages and research findings ................................................................................... 4
2.1 Key messages .................................................................................................................... 4
2.2
Key findings ................................................................................................................. 4
2.2.1 Drivers and factors influencing hydropower development in Cambodia .................. 4
2.2.2 Decision making process in hydropower development in Cambodia ........................ 6
2.2.3 Compensation and resettlement Mechanize ............................................................... 8
2.2.4 Cultural and Spiritual Impacts.................................................................................... 9
2.2.5 Shift in Political Support .......................................................................................... 10
3. Key summary of project outputs and outcomes................................................................ 12
4. Budget ............................................................................................................................... 16
4.1 Financial Report Statement and Its Clarification ........................................................ 16
4.2 Financial Report in spreadsheet ...................................................................................... 18
5.
Appendixes. ................................................................................................................... 19
List of Figures
Figure1: Process of Lower Sesan 2 dam Decision Making process ................................ 7
Figure2: Investment Process of Hydropower Project ...................................................... 8
Figure3: Structure of LS2 Dam’s Compensation/Resettlement Committee ................... 9
List of Tables
Table1: Timeline of Political Seats in the National Assembly .................................. 10
Table2: Commune/Sangkat Council Election Result in LS2 Dam Reservoir ........... 11
Table3: Project’s budget releasing Schedules............................................................ 16
2|Page
1 Summary
This a summary final report on research project, namely “Improving Hydropower DecisionMaking Processes in Mekong Basin: Case Studies of Lower Sesan 2 and Kamchay
Hydropower Project, Cambodia”, was under umbrella of the Challenge Program on Water &
Food Mekong (CPWF) and this project has funded by Australian-AID/ Challenge Program on
Water & Food Mekong (CPWF- MeKong). The Department of Environmental Science (DES)
of Royal University of Phnom Penh (RUPP) is a leading of this project which in partnership
with other five academic institutions from China, Lao PDR, Thailand and Viet Nam. The
project commences from August, 2012 and ends 30th December, 2013 respectively.
The research project intends to identify key drivers that hydropower [PH] to understand how
EIAs and SIAs in which influence hydropower decision-making and to identify power
relationship in HP decision-making. It focuses on two hydropower dams as the case study
including Kamchay Hydropower in Kampot province and Lower Sesan 2 dam in Stung Treng
province. The key methods were applied including document review and analysis method,
field observation, number of local and public consultations with different stakeholders, key
informant interview (44 persons were interviewed), focus group discussion (114 persons met)
and household questionnaires (106 samples were selected) to reach its objectives.
Here are key achievable outputs of the research project:
1. Framework Literature Review on Hydropower Project and Development Relevant to
Improving Hydropower Decision-Making Process, by Using the Impact Assessment
Process as a Lens to Understand the Drivers and Enablers of HP Decision Making in
the Basin Project/CPWF.
2. Providing training to RUPP’s students, lecturers and RUPP Research Team on “EIA
Process in Cambodia”;
3. The Review Analysis: A Case Study of Kamchay Hydropower Dam in Kampot
Province;
4. Three volumes of Newsletter:
o 100 hard copies of Newsletter Vol. 1, issued in March 2013 (in English and
Khmer language) on “Improving Hydropower Decision-Making Processes in
the Mekong Basin”;
o 100 hard copies of Newsletter Vol. 2, issued in Sep 12, 2013 (in English and
Khmer language) on “Villagers’ Beliefs and the Belief Practices”;
o 100 hard copies of the Newsletter Vol. 3, issued in Nov 07, 2013 (in English
and Khmer language) on “Compensation Policy and Resettlement Mechanism
for the Affected People in the Lower Sesan 2 Dam”
5. Three-student bachelor’s thesis on “Public participation and compensation mechanism
in Lower Sesan 2 Dam Project”;
6. 100 copies of the video clip on “Hydropower Energy Development in Cambodia”. The
length of the video clip is about 15 minutes;
7. Book Chapter on “The Politics of the Lower Sesan 2 Dam in Cambodia”; and
3|Page
8. Final Project Report on “Improving Hydropower Project Decision Making Processes in
Mekong Basin: Case Studies of Lower Sesan 2 and Kamchay Hydropower Projects,
Cambodia”.
2 Key messages and research findings
2.1 Key messages
“Better cooperation and participation among stakeholders in Cambodia’s hydropower issues
will improve decision-making and benefit sharing processes”
 The failure to ensure meaningful participation among stakeholders is a sign of possible
flaws during the hydropower decision making process including the planning,
operation and handover phases; and eventually, it is a cause of frustration and protest
among affected peoples.
 Ideas toward choosing hydropower as an energy solution have been extensively
debated amongst concerned stakeholders. As a result of these debates, civil society,
affected communities, local and international non-government organizations have
expressed concerns regarding the social, environmental, and economic impacts of
affected communities, especially issues of limited accessible information and fair
compensation and resettlement. In contrast, dam builders and governmental bodies
have attempted to promote electricity supply from hydropower dams as green energy
for national economic growth, rather than adequately and thoroughly address the
environmental impacts.
 For instance, statements from government often emphasize benefits over costs: “we
should not look at a single tree, but the whole forest”; “the impact is the natural
consequence of economic progress and no development can be done without impact
on environment and natural resources”; “there is a need to sacrifice if we want to
develop the country”.
 In three affected communes (Srekor, Kbal Romeas and Pluk) where the Lower Sesan 2
dam is located. Some series of the public consultations and meetings were held by
government bodies to address and express the concerns regarding to dam from local
villagers, but it was noticed that participation and recognition of their concerns were
still challenging. For instance, Lower Sesan 2 (LS2) dam, improvement of
compensation and resettlement were discussed with affected communities to provide
their options to choose of new residential location.
2.2 Key findings
2.2.1 Drivers and factors influencing hydropower development in
Cambodia
Cambodia is expected to have hydropower potential up to 10,000 MW; in which generates
from different essential sources such as there is 50% of which locates on Mekong River’s
mainstream, 40% on its tributaries including Sesan, Sekong and Srepok and other streams and
10% in the southwest of the country (MIME, 2003). Today, O Chum II (1 MW) in Ratanakiri,
Kirirom I (12 MW), Kirirom III hydropower (18 MW) Kampong Speu, and Kamchay
hydropower dam (193 MW) are operating. Hydropower projects are under construction such
4|Page
as Lower Russei Chhrum, Atay and Tatay Hydro1. The approval LS2 dam as Cambodia’s
large-scale is expected to be built in 20142. In addition, at least 12 other hydropower projects
across the country are under the MOUs of feasibility studies 3.
Key drivers and factors that influence the hydropower development are because of, first, it is
an economic growth that needs much more electricity demands. Significant annual economic
growth rates of around 7.8% per year between 1994 and 2010. As a result, RGC has shown its
intension to move the country into upper-middle income country by 2030, by the increase of
industry and service sectors; therefore, these might put more on electricity consumption. Low
electricity supply capacity, high electricity cost, limited rural electrification, unreliable
electricity supply, dependency on imported fuel oil and on electricity imported from
neighboring countries are still challenging for economic growth and development in the
country. Government claims that hydropower development should a move in line with the
regional effort to achieve ASEAN region in targeting by 15% of renewable energy by 2015
(ASEAN, 2012). Similarly, hydropower was expressed in the Cambodia’s national report for
the Rio+20 United Nation Conference on Sustainable Development 2012 as the corner stone
of Cambodia’s energy policy (RGC 2012). As claimed by MIME, the current fuel generation
and certain alternative energy solutions including mini-scale hydropower dam will not help
Cambodia achieve low electricity cost because the cost of construction will be higher (MIME,
2013). Cambodia has been a cash-strapped country; therefore, to develop energy sector, the
government needs involvement from private sectors. However, it was reportedly that the
small scale hydropower projects have not been attractive to private investors as the most of
current investment in hydropower is mainly Chinese’s investors, targeting large scale of
energy investment as dam projects. In addition, the exiting small scale energy sources were
mostly done under the grant charity from the donors, but it is believed that construction cost is
expensive4.
Different perspectives on dam building location on Mekong’s tributaries and mainstream has
been discussed regarding its impacts, for instance; it is believed that there would cause less
negative impacts from dams on Mekong’s mainstream (RGC, 2011). As a result, building
dam on Mekong River’s tributaries is high priority energy option to meet the need of county
highly electricity demands, while the dam on Mekong’s mainstream can be considered to
construct by later of year 2030 (RGC 2013). For instance, Lower Sesan 2 dam would be
constructed by next years due to the dam is located in the Sesan River in Stung Treng
Province, Cambodia5. Finally, in balancing of cost and benefit on dam has been controversial
debating due to how to keep environmental protection and generating an economic growth for
nation. As quote indicated that “We should not look at a single tree, but the whole forest”
(RGC, 2008b), and “Impact is natural consequence of economic progress and no development
can be done without impact on environment and natural resources” (RGC, 2010), “There is a
need to scarify some for the development the country6”.
1
Presentation by Victor Jona on Cambodia Energy Status and Its Development during the 2011 Cambodia
Outlook Conference A Partnership of CDRI and ANZ Royal Bank on 16 March 2011, At Phnom Penh Hotel,
Phnom Penh, Cambodia
2 Cambodia Daily Newspaper, Construction of Lower Sesan Dam to Start in 2014,
http://www.cambodiadaily.com/archive/construction-of-lower-sesan-dam-in-stung-treng-to-start-in-2014-5320/,
(accessed 10 August 2013)
3 Presentation by Victor Jona on Cambodia Energy Status and Its Development during the 2011 Cambodia
Outlook Conference A Partnership of CDRI and ANZ Royal Bank on 16 March 2011, At Phnom Penh Hotel,
Phnom Penh, Cambodia
4 Interviewed with representative officer of MIME on 23 August 2013
5 Interviewed with representative officer of MIME on 23 August 2013
6 Interviewed with representative officer of MIME on 23 August 2013
5|Page
2.2.2 Decision making process in hydropower development in Cambodia
The Law on hydropower development has not been yet formulated, only relevant articles
related to energy, the environment, and agriculture have found in other Laws such as Water
Law, Environmental Law, and Land Law etc. Currently, the Environmental Impact
Assessment (EIA) Law has under reviewed and conducted public consultation process.
Presently, there is limitation of legal legislations, there is no clear guideline for the process of
decision making and bidding on the hydropower project. The study shows that winner of
bidding has the right to start conduction the project feasibility study allowed by the
permission signed the MOU with MIME. Afterward, EIA study of project identified by the
government7 (Suhardiman et al., 2011). As defined in the sub-decree on EIA (1999), initial or
full EIA is required for hydropower project with the capacity of one MW (sub-decree on EIA,
1999) and the article 8 further states that full EIA is required if project tends to cause a serious
impact to the natural resources, ecosystem, health and public welfare. There are two levels of
committees who are reviewing and checking the EIA reports, first an inter-ministerial
committees, composes of different line ministry agencies such MIME, MOWRAM, MOE,
MLMUPC and MPWT etc. Secondly, the internal line departments in Ministry of
Environment to review on the EIA report8. When the proposed hydropower project is
approved by Inter-ministerial Committee, project proponent registers its business investment
at the Cambodia Development Council (CDC)9 to fulfill all necessary required documents.
The selection of dam investment basically refers to the bidding process. For instance, the
Kamchay hydropower project has widely opened for bidding from an international and
national bidder’s applicants and it took in year of 2004 with 17 applicants (SAWAC, 2011,
Carl Middleton and Sam Chanthy, 2008). As a result, the winner was a Chines investment,
namely Sinohydro, co., Ltd. for construction of the Kamchay dam and for the study of EIA
was conducted by SAWAC (SAWAC, 2011). LS2 hydropower project are seen in the longterm hydropower development plan which was developed by MIME. The Lower Sesan 2 dam
identified as first priority with high economic efficiency (RGC, 2013). Government started to
discuss with Vietnamese counterpart in 2006 to seek potential possibility to construct LS2
dam (BankTrack, 2011). In 2007, RGC agreed in principle to allow EVN International Joint
Stock Company conducted the project’s feasibility and made co-investment. The MoU
between MIME and EVN was signed to kick off the environmental impact assessment and the
feasibility study for the project which were set to begin in 2008 (KCC, 2009). The feasibility
study was conducted by Power Engineering Consulting Joint Stock Company 1 (PECC1)
under the cooperation with relevant technical ministries of the Kingdom of Cambodia, and
EIA study was conducted by Key Consultant Cambodia (KCC) under the contract with
PECC-1(KCC, 2009). PECC1 was also known to be responsible for developing the
resettlement and compensation policy (BankTrack, 2011). The project claimed to be built for
5 years from early 2012 to 2017 under BOT basis of only 30 years of operation, and 100% of
the generated electricity will be used in Cambodia including the current 2MW demand in
Stung Treng province which is different from previous intention that 50% of the electricity
will be sold to Viet Nam (TVK, 2011).
7
Interviewed with representative officer of MIME on 23 August 2013
Interviewed with representative officer of MIME on 23 August 2013
9 Interviewed with representative officer of MIME on 23 August 2013
8
6|Page
Figure1: Process of Lower Sesan 2 dam Decision Making
Source, authors 2013
The figure # 2 shows investment process of hydropower project. According to an article 9 of
sub-decree No11 indicates of selection for bidding of development projects including
hydropower. The biding can be done widely international and national applications in the
form of the “opening or closing” bidding process. The selection process run through many
steps negotiation between State and Investors [1], MOU has been established [2], the
feasibility study and EIA were conducted with approval by inter- ministries lines [3] and [4]
and passing through until the construction of the project [8]. The proposed project is approved
by the government of Cambodia through an inter-ministerial meeting at office of The Council
of Ministers and followed by signing of two important documents: Implementation
Agreement (AI) with MIME and MEF and Power Purchasing Agreement (PPA) with EDC10
(Suhardiman et al., 2011). These two documents will help the investor to borrow money from
any interested Bank as usually the investor at these stages do not have the whole budget of the
project’s budget11
10
11
Interviewed with representative officer of MIME on 23 August 2013
Interviewed with representative officer of MIME on 23 August 2013
7|Page
Figure2: Investment Process of Hydropower Project
Source: Authors, 2013
The process of hydropower investment is complex by allegation from different stakeholder’s
regality and illegality forms. For instance, allegation takes place as the way in which
investors firstly engaged with some senior officials for support the investment proposal and
procedure to reach and facilitate the investment process through all stage with line ministries
and institutions to get approval necessary required documents, which will be received by
Council for the Development12. Referring to interview of member of parliament in county
points that intermediary are mostly the relatives of the powerful who works confidentially to
get license without bidding or required experiential procedure and sometime it takes them
only one day to get the work done13. As raised by Middleton (2008) the way the high level
Cambodian politician express their support to the hydropower project are used by all related
governmental institution as instruction on how the decision should be made within their own
authorities (Carl Middleton and Sam Chanthy, 2008). Environmental Impact Assessment
(EIA) is generally seen as complement to the project approval and it is an optional document
for project decision making14. The case of Kamchay hydropower dam is an example where
the BOT agreement was signed in February 2006, while the draft Initial EIA was completed
in October 2006; and moreover, the full EIA report was completed in 2011 the same year the
dam is completed after years of construction.
2.2.3 Compensation and resettlement Mechanize
The compensation and resettlement mechanism for the LS2 dam appears to be clear and wellprepared. The mechanism has been officially established at both national and provincial levels
(See Figure # 3). At national level, the IRC consists of four key institutions: the MEF as
chair, MIME, Hydro Power Lower Sesan 2 Co. Ltd and the Stung Treng Provincial Governor
are the members. This national committee works to approve resettlement action plans and
12
Interviewed with NGO representatives on 19 March 2013
Interviewed with Member of Parliament of Cambodia on 10 April 2013
14 Interviewed with NGO representatives on 19 March 2013
13
8|Page
compensation rates for any project requiring resettlement (Biard, 2009). At the provincial
level, the committee is chaired by Stung Treng Provincial’s Governor and supported by two
technical teams led by relevant provincial departments. The provincial committee plays a
significant role to enforce the resettlement and compensation plans. It communicates with the
two technical teams, which are effective in the operation of the committee, engaging with
affected communities, mapping out potential resettlement sites, serving as liaison with other
stakeholders, and receiving complaints (Field survey 2013).
Figure3: Structure of LS2 Dam’s Compensation/Resettlement
Committees
Source: Field survey, 2013
2.2.4 Cultural and Spiritual Impacts
Culture is known to be a key component of being human. It has been found that culture not
only provides benefits for the living conditions of people but also allows people to generate
more income, and increases happiness, good health and high-yielding crops when it is
preserved (Matthews, 2012; Moul Phath and Seng Sovathana, 2012). The cultural and
9|Page
spiritual impacts of LS2 dam does not seem to be included in the compensation policy.
According to 88% correspondents from upstream villagers (out of 106 respondents)
mentioned that their religion and tradition would be affected if they were relocated because
their Buddhist’s temples, the guardian spirit of their village (‘neakta’), the guardian spirit of
the forest (‘areak’), and their ancestors’ graveyards would be flooded. An official from the
Stung Treng Provincial Hall claimed that cultural losses had already been integrated into the
compensation and resettlement plan. Without concrete resolution, people’s concerns and
alternative solutions would be addressed that lead to more worries of affected villagers.
Therefore, most of the affected people have given their voices, demands in public
consultations, media and local authorities to help them to get good solutions.
2.2.5 Shift in Political Support
In the election system of Cambodia, there are two important elections: the National Assembly
Election and the Commune/Sangkat Council Election. Since the first National Assembly
Election, the presence of political parties and seats in the national assembly has changed over
time. The first National Assembly election resulted in a government with Co-Prime Ministers,
which was the result of negotiation between the National United Front for an Independent,
Neutral, Peaceful, and Cooperative Cambodia (FUNCINPEC) and the Cambodian’s People
Party (CPP). In 1998, the Sam Rainsy Party (SRP), which split from the FUNCINPEC party,
as the biggest opposition party in Cambodia, won the seats in the National Assembly. The
popularity of the SRP has been increasing from one mandate to another (see Table below).
Table1: Timeline of Political Seats in the National Assembly
Year of election
Seat’s political
party in NA
CPP
1st Mandate in 1993
Remarks
SRP
51
- Co-Prime Ministers from CPP and FUNCINPEC
SRP has not yet formed
2nd Mandate in 1998
64
15
SRP got 15 seats
3rd Mandate in 2003
73
24
SRP got 24 seats
4th Mandate in 2008
90
26
SRP got 26 seats
5th Mandate in 2013*
68
55
- Cambodian National Rescue Party (CNRP) got 55
seats
- CNRP was formed through the merging of the
SRP and Human Rights Party (HRP) in mid-2012
* Preliminary result by NEC in August 2013, (Source: NEC, 2013)
The first Commune/Sangkat Council Election was held in February 2002, and aimed at
establishing and promoting democratic development in Cambodia through decentralization
and de-concentration. This election is held every five years to select the Commune/Sangkat
Chiefs and Commune/Sangakat Councils. Stung Treng province has a total of 34 communes.
10 | P a g e
Referring to the Table 2 below, the result of the 2nd Commune/Sangkat Council Election in
2007 indicated that the 34 commune chiefs were all occupied by the ruling CPP party while
the SRP secured only three positions as first deputy commune chiefs (NEC, 2007). After the
2012 Commune/Sangkat Council Election, the SRP won for the first time the position of
Commune Chief in Srekor, which is one of the seven communes of the Sesan district in Stung
Treng province and one of the three to-be-flooded communes of theLS2 dam. As a result,
294 votes of CPP and 539 votes for the SRP (NEC, 2012), this opposition party was
appointed to administer and govern the two villages as Srekor 1 and Srekor 2 for a five-year
mandate from 2012 to 2016.
Table2: Commune/Sangkat Council Election Result in LS2 Dam Reservoir
Commune Chief Position
Name of commune
Year of 2007
Year of 2012
Srekor (Upstream)
CPP
SRP
Kbal Romeas (Upstream)
CPP
CPP
Pluk (Downstream)
CPP
CPP
Source: NEC, 2007; NEC, 2012
The commune chief has been dealing with certain issues such as solving overlapping land
issues between community with local land economic concession company, and support the
villager networks to have stronger voices in order to seek more interventions to protect natural
resources including forest, wildlife and fish which will be greatly impacted by the LS2 dam.
LS2 dam is the government’s project, there is limitation of roles and authorization to be
applied at the local authorities due to it is under the government’s structure (Field survey
2013). Secondly, compensation and resettlement are main concerns from affected villagers
due to a limited of information sharing and unclear indications on items relating to payment of
property losses. However, there is no significant change in the government’s position towards
the LS2 dam project.
The change of local administrative body exists only in the Srekor commune where there are
two villages that will be totally flooded even though changes were noticed in other communes
which will be partly flooded by the dam through the Commune/Sangkat Council Election.
This also means that the loss of Srekor commune alone will not affect the National Assembly
Election in 2013 because there is only one National Assembly seat in Stung Treng province.
Based on the results of the National Assembly Election announced by the NEC on August 12,
2013, the CPP still occupy the National Assembly seat of the province (NEC, 2013).
11 | P a g e
3. Key summary of project outputs and outcomes
Outputs
Framework Literature Review on
Hydropower
Project
and
Development Relevant to Improving
Hydropower
Decision-Making
Process, by Using the Impact
Assessment Process as a Lens to
Understand the Drivers and Enablers
of HP Decision Making in the Basin
Project/CPWF
Training on
Cambodia”
“EIA
Process
in
The Review: A Case Study of
Kamchay Hydropower Dam in
Kampot Province.
12 | P a g e
Author, year, title/ output
How it links to goal of improving hydropower decision
name, etc.
making processes in the Mekong Basin
Author: RUPP Research Team - This review aims to contribute knowledge of project that
focuses on improving hydropower decision making
Date: 12nd Dec 2013
process by using the impact assessment process as a lens
to understand the drivers and enablers of hydropower
Pages: 38
decision making in the Mekong Basin.
- This review is to supports the initiation of the project in
Cambodia as well as to provide basic idea surrounding
the hydropower decision making processes in Cambodia
to all project’s partners in order to be ready to get
involved.
Trainer: Mr. Duong Samkeat,- The training focused on establishment of EIA
EIA Department/ Ministry of Department, law and regulations related to EIA, basic
Environment (MoE)
techniques and EIA procedure and implementation of
Environmental Management Plan (EMP)
Date: 14th Dec 2012
- This training strengthens the capacity of participants on
the most important tools which is needed to ensure that
dam are managed and planned to an account for
environmental and social needs.
Author: RUPP Research - The first part of this review shows the driving factor and
Team
enabling environment that the government chooses
hydropower dams as the way to power up the country.
Date: 19th Dec 2013
The second part describes key actors/ institutions
involving decision making processes of Kamchay
Pages: 24
hydropower project and summary of all factors which
influence on the decision making processes will be
figured out in the last part of this study.
- This review is to supports the initiation of the project in
Cambodia as well as to provide basic idea of Kamchay
dam to all project’s partners in order to be ready to get
involved.
Output’s link
http://mekong.waterandfo
od.org/download/mk08_fi
les/mk8_reports_and_out
puts/21%20Dec%202012
%20Framwork%20of%20
LR%20CPWF.pdf
- There are 12 participants
joint
the
training
including lecturers and
students from RUPP and
RUPP Research Team. It
took half a day.
- List of participants is
attached in Appendix 1
http://mekong.waterandfo
od.org/wpcontent/uploads/Litteratur
e-review-and-discussionof-KamchayHydropower-ver9.pdf
Newsletter Vol. 1, issued in March Author: RUPP Research - This volume described about aiming of Improving
2013 (in English and Khmer Team
Hydropower Decision-Making Processes in the Mekong
language) on “Improving Hydropower
Basin which is implemented by Department of
Decision-Making Processes in the Date: 27th Mar 2013
Environmental Science (DES) of Royal University of
Mekong Basin”
Phnom Penh (RUPP)
Pages: 2
- This newsletter is a communication tools to inform and
introduce to the stakeholders and project partners about
the importance of the project.
Newsletter Vol. 2, issued in Sep 12, Author: RUPP Research - This volume focuses mainly on the concern over local
2013 (in English and Khmer Team
beliefs and the belief practices of villagers who are living
language) on “Villagers’ Beliefs and
at the Lower Sesan 2 dam site which is located on the
the Belief Practices”
Date: 12nd Sep 2013
Sesan River at Stung Treng province with the installed
capacity of 400 MW.
Pages: 1
- This newsletter provides an important information of the
people’s concern over the loss of the cultural and
spiritual caused by LS2 dam. It also a suggestion to the
government, responsible government official, and dam
builder to pay more attention to ensure better and fair
benefit sharing.
Newsletter Vol. 3, issued in Nov 07, Author: RUPP Research - The main objective in this article is to illustrate the
2013 (in English and Khmer Team
compensation policy and resettlement mechanism for the
language) on “Compensation Policy
affected people at the Lower Sesan 2 (LS2) dam and to
and Resettlement Mechanism for the Date: 7th Nov 2013
bring to light the local people’s concerns over these
Affected People in the Lower Sesan 2
issues.
Dam”
Pages: 1
- This newsletter provides information about the Pros and
Cons of the existing mechanism of compensation and
resettlement as well as the request from local villagers to
the
responsible
government
institutions
for
improvement.
Bachelor’s
thesis
on
“Public Author: students from RUPP: - This academic study aims to analyse the local people’s
participation
and
compensation - Ms. Thy Simlin
participation before constructing LS2 dam, analyze
mechanism in Lower Sesan 2 Dam - Ms. Phoeuk Reasey
involved institutions’ participation in mitigating the
Project”
- Mr. Long Chamnan
project’s impacts and examine compensation policy for
the affected people
Date: 2013
- Beyond contributing improving the participation and
13 | P a g e
http://mekong.waterandfo
od.org/download/mk08_fi
les/mk8_reports_and_out
puts/Finalfirst%20leaftlet%20for%2
0printing.pdf
http://mekong.waterandfo
od.org/download/mk08_fi
les/mk8_reports_and_out
puts/Newsletter%20vol.2English%20version.pdf
http://mekong.waterandfo
od.org/download/Newslet
ter%20Vol%20311%20Nov%202013in%20Englishfinal%20(1).pdf
Thesis
has
been
successfully defended but
it has not been officially
published yet.
Pages: 67
Video clip on “Hydropower Energy Author:
Development in Cambodia”
Team
RUPP
Date: Nov 2013
Book Chapter on “The Politics of the Author:
Lower Sesan 2 Dam in Cambodia”
Team
RUPP
Date: Dec 2013
Pages: 14
Final Project Report on “Improving Author: RUPP
Hydropower Project Decision Making Team
Processes in Mekong Basin: Case
Studies of Lower Sesan 2 and Date: Dec 2013
Kamchay
Hydropower
Projects,
14 | P a g e
compensation, this thesis represents more involvement
from the young generation to build their capacity in the
area which is part of the human resource needed for good
governance in hydropower in Cambodia.
Research - This video is intended to raise awareness of the demand See in Appendix 2
of electricity for economic development and illustrate the
government’s policy to support this electricity
development paradigm and the impacts of hydropower
dams in Cambodia.
- This video raises the awareness of hydropower
development in Cambodia among all stakeholders. The
video tries to close the big gap of different perceptions
regarding hydropower in Cambodia because of the lack
of information and as a result to gain synergy from the
cooperation of stakeholders. As for community, this
video provides more information so that they can
participate in a more effective manner. All of this
eventually contributes to better planning and
management of hydropower in Cambodia.
Research This paper has selected the LS2 dam as a case study and See Appendix 3
it sets out to answer the following questions: Does
Cambodia need dams? What are the attitudes of the civil
society towards dams? Who are LS2’s investors and
what are their roles? How does the hydropower
investment process take place in Cambodia? What are
the key concerns over the LS2 in terms of its impact and
benefit sharing? How and what are the compensation and
resettlement plans? What are the cultural losses and what
can be done to mitigate these? How are natural resources
used politically to gain power and support?
Research - The main objectives of the project are: 1) to identify key See Appendix 4
drivers that influence hydropower (HP); 2) to understand
EIAs and SIAs influence on HP decision-making; and 3)
to identify ‘power in relation’ in HP decision-making
- This report provides lesson learnt and findings from the
Cambodia”
15 | P a g e
Pages: 73
case of Kamchay to LS2 dam related to decision making
process by illustrating the past and current
implementation. This report argues that there must be
better participation from all relevant stakeholders in all
decision making processes to ensure better benefit
sharing.
4. Budget
4.1 Financial Report Statement and Its Clarification
This is a financial statement and its clarification of the project on “Improving Hydropower
Decision-Making Processes in Mekong Basin. This project has selected two case studies as
1) operated hydropower dam known Kamchay Dam and 2) Lower Sesan 2 dam. In addition,
this project commences its activity in August 2012 to ends at 31st December, 2013
accordingly. The project has received the financial support by Australian-AID through the
Challenge Program for Water and Food (CPWF- Mekong) with total amount of grant budget
is 100,000 USD$ for entirely of project’s implementation in which led and implemented by
the research team at Royal University of Phnom Penh (RUPP), Department of Environmental
Sciences (DES). In addition, the project implementation has collaborated with Fisheries
Administration in terms of providing technical inputs, advises and facilitating to the project’s
research team.
Under the project signed agreement on the release of payments shall be made to project at
RUPP/DES within the following budget schedules.
Table3: Project’s budget releasing Schedules
1
2
3
4
Paid on return of the signed Award Letter. These funds
are to cover the first five months activities of the
Project (100% of 2012 budget)
Paid following satisfactory assessment of progress after
5 months of 2012 project implementation. (45% of
2013 budget)
Paid following satisfactory assessment of progress after
6 months of 2013 project implementation. (45% of
2013 budget)
Paid on acceptance of the Project Completion Report
and an external audit report. (10% of 2013 budget)
50,000 USD$
22,500 USD$
22,500 USD$
5,000 USD$
With this regard, RUPP’s project would be delighted to report and clarify about project’s
budget receiving and its expenditure in the duration of the project’s implementation which
starts from Aug 2012 to 31th December 2013.
A. There are three recording of the project’s budget installation into the RUPP’s bank
account as present in the following:
 On 6th September 2012, DES/RUPP project received budget with amount of
50,000 USD (100% of 2012 budget), from The D Foundation for Doing Good [
Siam Commercial Bank Public Co., Ltd, BangKok/Thailand], in which transferred
to the Foreign Trade Bank (FTB), with Trans code: 6621, Trans No.010- 00523, to
RUPP’s Account A/C: 010-30-063-000530-9, with account name Royal
University of Phnom Penh, for the first installation in the period of five months
from August to December, 2012 (Bank- Credit Advice, 2012).
16 | P a g e



On 20th March, 2013, RUPP/ DES project received second transferred budget with
amount of 22, 500 USD$ (five months of 2012 project’s implantation -- 45% of
2013 budget), from The D Foundation for Doing Good [ Siam Commercial Bank
Public Co., Ltd, BangKok/Thailand], which transferred into the Foreign Trade
Bank (FTB), with trans- code: 6621, Trans No. 010-000516 , to RUPP’s bank
account A/C: 010-30-063-000530-9 with account name Royal University of
Phnom Penh, for second installation in the period of five months from Jan to June,
2013 ( Bank- Credit Advice, 2013).
On 29th July 2013, RUPP/ DES project received third transferred budget with
amount of 22, 500 USD$ (6 months of 2013 project implementation—45% of
2013 budget) from The D Foundation for Doing Good [ Siam Commercial Bank
Public Co., Ltd, BangKok/Thailand],, which transferred into the Foreign Trade
Bank (FTB), with Trans- code: 6621, Trans No. 010-000493, to RUPP’s bank
account A/C: 010-30-063-000530-9 with account name Royal University of
Phnom Penh for third installation in the period of six months from July to
December, 2013 ( Bank- Credit Advice, 2013).
In December, 2013, RUPP/DES will expect to receive the last budget with amount
5,000 USD$ as the 10% of 2013 budget.
The project budget expenditures are strictly utilizing and managing based on the research
budget proposal items. The summary the main budget expense is describing in the excel sheet
in attachment below:
The total received budget is 95,000 USD$ with three installations (See, Bank- Credit
Advices), for the RUPP project’s implementation, which commends from August, 2012 to
ends December 2013. In the project’s contract the total grand budget was 100, 000 USD$.
The budget has been categorized into the budget category as present below:
1. Personnel Expenses : ( project staffs, Technical Advisor)
2. Project Activities : (Workshops, consultations, Capacity building – training, and
Environmental Awareness and media)
3. Research Expense : ( Transportations, Accommodations, Enumerators and
Evaluation)
4. Office equipment’s: (table, chairs, and computers… etc.
5. Consumable: (Office supplies and field work supplies)
6. Communication: ( email, phone, copied and media)
7. Meeting and Conferences: (Science meeting and Mekong Forum Conferences).
To clarify how the budget was spending during the project’s implementation. As it stated
early above, the research project budget was categorized into 7 budget items in order to spend
it in a right way and transparency. According to financial report shows that there is slightly
different expenditure of the budget categories, due to actual spending in project’s activities,
below is the detail of budget items spending.
 The project activities and research expenses were over spending for key research
activities such as field work of data collection, public consultation; overnight stays at
the research sites; especially at the villages, to obtain in-depth data collection. More
17 | P a g e
expenditures were spent on more number of students (RUPP) has involved in the
project as key research numerators and assistants.
Science meeting and Mekong forum conferences was a bit over spending because of
extract of the research team members were covered by project budget.
In contract, the rest of budget categories including of office supply, consumables and
communications were less actual spending.


4.2 Financial Report in spreadsheet
Financial Report on Research Grant of RUPP/DES Research Project
The improving hydropower decision making process in the Mekong Basin: The case study Lower Sesan 2
and Kamchay Dam in Cambodia.
Budget ( USD$)
Actual ( USD$)
Balance (USD$)
Receipts
Fund received:
Date: 6 September 2012
50, 000 USD$
Date: 20 March 2013
22, 500 USD$
Date: 29 July 2013
22, 500 USD$
Total:
Other income Earned:
Budget Category
95,000 USD $
N/A
Budget VS. Expenses
Approved Budget Amount
Actual Expenditures
for project's period
Balance
1. Personnel
38400
38400
0
2. Project Activities
18000
18950
950
3. Research expense
24000
24800
800
4. Office supply
5100
5450
350
5. Consumable
4500
6650
2150
6. Communications
1300
1480
180
7. Meeting and Conferences
3700
4270
570
95,000.00
100,000.00
5,000.00
Total
Fund balance: Over Expense
5,000.00 USD$
Represented by
Cash in Bank
n/a
Cash on hand
n/a
Advance payments
n/a
This amount of 5,000.00 USD$, will be requested as the final 10 % of project completion report and an external
audit report. The separated Invoice of this amount of the budget will be attached for the request to D Foundation
on Doing Good.
18 | P a g e
5. Appendixes.
1. Video clip about hydropower development in Cambodia
2. Book Chapter on “The Politics of the Lower Sesan 2 Dam in Cambodia”
3. Final Project Report on “Improving Hydropower Project Decision Making Processes
in Mekong Basin: Case Studies of Lower Sesan 2 and Kamchay Hydropower Projects,
Cambodia”
19 | P a g e