Use of decision support systems to improve dam planning and dam ...

enefits. To get a sufficient understanding requires a holistic evaluation that integrates inputs from a range
of different disciplines, all of which may use a number of DSSs. Of course, it is essential that biophysical
information is produced in such a way that it is possible to predict both likely ecological impacts and, in
turn, the likely social implications (positive and negative). Such understanding can only be obtained if local
communities are actively involved throughout the process (see Section 6.1).
6.6 Improving mechanisms for compensation and benefit-sharing
The primary beneficiaries of dams often live far away from where the dams are located. Those who live
closer to the dam either upstream or downstream, are the most likely to be adversely affected. Too often, in
project planning and implementation, the national interest has been the primary consideration and local
concerns are neglected.
Ensuring equitable outcomes from development requires that measures are developed to sufficiently offset
any negative impacts. As the WCD noted, the construction of a dam should be a development opportunity
for all (WCD 2000a). This means ensuring stable improved livelihoods of all affected people. However, in
the past the focus has generally been on immediate compensation and relocation and, even when this has
been done well, little thought has been given to how livelihoods are best enhanced and supported in the long
term. A key component, almost never considered, is how to retain stable social structures, particularly in
displaced communities.
One way to address adverse impacts is to go beyond simple compensation and to share some of the benefits
generated by a dam with the communities directly affected. A number of benefit-sharing mechanisms have
been developed. These enable communities to gain directly from the dam. Benefit-sharing mechanisms can
be either non-monetary or monetary. The former are generally included in compensation policies and include
mechanisms for community development, for example, access to irrigated land, guaranteed employment
generated by the project or improved access to services (e.g., schools and clinics). Monetary benefit-sharing is
based on the premise that dams may generate a significant economic return that can be shared with projectaffected
communities either directly (i.e., revenue-sharing) or indirectly (i.e., development funds, equitysharing,
taxes paid to local authorities, preferential electricity or water fees). Increasingly, novel approaches
to benefit-sharing, including those that promote local development (e.g., dam proponents providing
solar panels for rural electrification), are being considered and in some instances (though rarely in Africa)
implemented (UNEP 2007).
Benefit-sharing mechanisms are clearly stipulated in the legislation of some countries. For example,
article 43 of the Constitution of Ethiopia (revised in 1995) defines the rights of all Ethiopians to
participate in national development and to be consulted with respect to policies and projects affecting
their community. It further states (article 44) that all people who are displaced or whose livelihoods
are adversely affected as a consequence of State Programs have the right to commensurate monetary or
alternative means of compensation. Hence, project plans must include “attractive” compensation and
incentives to the affected population. This is usually interpreted to mean a package that improves or
at least restores the social and economic base of those affected. Although these principles have been
formalized within the country’s civil code the effectiveness of on the ground implementation is not
always as good as it might be (see Appendix 1, Compensation and benefit-sharing)
In some places, dam proponents have negotiated partnership agreements directly with concerned
communities on the basis of a wide variety of mechanisms. For example, Hydro-Québec in Canada routinely
negotiates business agreements with local communities for all new hydropower projects. However, such
arrangements are rare in Africa.
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