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NAM THEUN 2 DAM (OVERVIEW (Aims (Supposed to generate revenue for the Lao…
NAM THEUN 2 DAM
OVERVIEW
In 2005, the World Bank and the Asian Development Bank approved $40 millions in guarantees and loans for the Nam Theun 2 Hydropower Project in central Laos
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Aims
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The funds it would provide for protection of the globally significant Nakai-Nam Theun National Protected Area
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BENEFITS
SOCIAL
Tesettled families now enjoy better local infrastructure because of the project, including electricity, roads, and schools.
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ENVIRONMENTAL
The establishment of the relatively well-funded Watershed Management Protection Authority is expected to protect forest cover and thus limit erosion in the watershed of the reservoir.
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LIMITATIONS
SOCIAL
Approximately 6,200 indigenous people living on the Nakai Plateau have been resettled to make way for the reservoir
ECONOMIC
Dramatic reductions in fish catch and declining rice yields (due to water quality) threatened the income stability for the local fisheries
The Bank instituted a Downstream Program to blunt these impacts, but the program was handed over to the Lao government after less than three years of operation and terminated prematurely when the funds ran out.
People on the Nakai Plateau still have no source of sustainable livelihood, threatening their food security
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Laos would be tied in debt to the World Bank for a very long time, considering its level of development and economic growth
ENVIRONMENTAL
Tens of thousands of people living downstream along the Xe Bang Fai River have already suffered impaired water quality
The reservoir has opened up access to the area, exacerbating logging and poaching
Increasing sedimentation rate that is caused by substantial logging (could reduce the lifetime of the dam)
To date, the Lao government has failed to meet its contractual obligations to support communities living downstream of Nam Theun 2 and to assume responsibility for supporting resettled communities from the Nam