Further Study on the Impact of Xayaburi Hydropower Project

In a MRC press release, the emphasis is placed on “Further study on the impact of Mekong mainstream development to be conducted.” The Council Members, comprising Mr Lim Kean Hor, Cambodian Minister of Water Resources and Meteorology; Mr Noulinh Sinbandhit, Lao Minister of the Ministry of Natural Resources and Environment; Mr Preecha Rengsomboonsuk, Thai Minister of Natural Resources and Environment; and Mr Nguyen Minh Quang, Vietnamese Minister of Natural Resources and Environment, agreed in principle to approach the Government of Japan and other international development partners to pursue further studies.

The agreement was made in response to the outcome of a verbal discussion by the four Prime Ministers of the MRC Member Countries (Cambodia, Laos, Thailand and Vietnam) at the third Mekong - Japan Summit held on the sidelines of the 19th ASEAN Summit in Bali, Indonesia in November 2011. At the Bali meeting, the four national leaders discussed the need for conducting a further study for the sustainable management and development of the Mekong River and its related resources. At the Council meeting on December 8, 2011, the four ministers made this conclusion to discuss the prior consultation process for the proposed Xayaburi hydropower project along with other administrative and management matters.

 

Mr Lim Kean Hor, MRC Council Member Chairperson and Cambodian Minister of Water Resources and Meteorology, said: “The outcome today demonstrates the Member Countries' continued commitment to work together in the regional spirit of the Mekong Agreement to bring about economic development without compromising the sustainability of livelihoods of their peoples and the ecology. Further study will provide a more complete picture for the four countries to be able to further discuss the development and management of their shared resources.”

 

The outcome achieved at this meeting is a significant progress compared to the MRC Joint Committee Special Session in Vientiane, Laos on April 19, 2011.

 

At that meeting, the member states could not reach agreement on whether further studies should be conducted on hydro projects, because of differences of opinion regarding Xayaburi. The Joint Committee members then agreed to refer the matter to the Ministerial Council of the MRC to discuss. The member states failed to come to a common conclusion to proceed with the Xayaburi hydropower project and they agreed that a decision on the prior consultation process for the proposed Xayaburi hydropower project be tabled for consideration at the ministerial level.

 

The 1995 MRC Mekong Agreement established the Procedures for Notification, Prior Consultation and Agreement (PNPCA), which states that Member Countries must notify the MRC’s Joint Committee in the event they wish to engage in any major infrastructure developments (such as hydropower schemes) on the mainstream Mekong or tributaries, particularly if those developments may have significant trans-boundary impacts on people or the environment downstream. In September 2010, the MRC received notification of the Xayaburi hydropower development project from the Government of Laos. The US$3.5 billion Xayaburi hydropower project, with a capacity of 1,260 MW, is one of 10 hydropower dams on the mainstream of Mekong River in Laos. The Xayaburi dam is located approximately 150 km downstream of Luang Prabang in northern Laos. Plans call for a dam 810 m long and 32 m high, with a reservoir area of 49 km2 and live storage of 225 million m3. The primary objective of the Xayaburi dam project is to generate foreign exchange earnings for financing socio-economic development in Laos. The developer is Ch. Karnchang Public Co. Ltd. of Thailand who negotiated a tariff agreement with the Electricity Generating Authority of Thailand (EGAT) in July 2010. In total, Laos plans to build 55 dams on the Mekong River in an attempt to become an energy provider for Asian nations, including Thailand and Vietnam. Strong supporters for the Xayaburi hydropower project are Laos (investor) and Thailand (the biggest beneficiary from the energy source).

 

Since the notification from the Government of Laos, the member countries have conducted national consultations with related stakeholders, including potentially affected communities to gauge their views and perspectives on the project. The MRC Secretariat also commissioned a team of environmental experts to review documents including the Environmental Impact Assessment submitted by the Government of the Laos.

In Vietnam, scientists actively raised their voices and presented scientific analysis on adverse impacts caused by the project on the environment of beneficiary countries of the Mekong River to the MRC. The Ministry of Science and Technology commissioned a State-level scientific study assessing the impacts of hydropower systems in the upstream of Mekong River, particularly Xayaburi, on the sustainable development of the Mekong Delta. The Mekong River Commission of Vietnam plans to carry out research on the impacts of hydropower development on the mainstream of Mekong River on the Mekong Delta of Vietnam in January 2012. Vietnam necessarily cooperates with related agencies and gathers experts with international research experience to make research results scientific and objective enough for MRC countries to admit when they compare with theirs.

 

The decision on December 8 of the Mekong River Commission Council Members is the chance for member states to have more time to study and present scientific arguments to the Government of Laos to make proper adjustments to the project which is important to these four Mekong countries.