ASi" kUCTURE FlOR DEVELOPMENT

of design modifications reduced the number of
- Box > 0- 410 . . Populatibonresettlement X
and - households flooded from 3,300 (20,000 persons) to
project design: Thailand's Pak Mun only 241 (1,500* persons) while maintaining an achydropower
project
ceptable project return (Box 4.10). By contrast, many
involunta.y displacement e - :=..-.projects are delayed or abandoned as a result of in-
Because of its disruptive and impoverishing
adequate resettlement planning. Construction
avoided or minimized-often by modifying the de-CombasutpeUH
rorjctokthe
sign of a projmect Consider the Pak Mun hy- years longer at twice the planned cost because of
dropower project in Thailand, a projecto construct failure to -address the resettlement issue early on.
a 300-meter-long, 17-meter-high dam, submerging Successful resettlement requires monitoring during
: about .- 60xsquare kilometers Theinitial plansforthe and after project completion with flexibility for con-
:- . . - darn-aimed at maaiigthe proje* s.powerdam-abeneimoded
atbmaximizingtheprouet3,30 powser -tingences. In Indonesia, the Saguling and Cirata
-velds.. To haduoe tis impac the a pr de op tt sign dams in western Java displaced more than 120,000
.and siting were modified. The maximum retention people in the late 1980s, and despite cash compensalevel
of water was reduced from 112 meters to ioo tion many households saw their longer-run incomes
meter,, and the dam was moved upstream from the
. Kaeng -- - Tana rapids to Ban:Hua Heo. These modifi- ; .fdee. An enterprise based on reservoir fisheries
cations reduced the generation capacity somewhat, was launched toprovde employment to 7,500 disbut
they also reducet the number of householdsare- placed persons. The contribution from this employ-
Xquiring resettlment to 241. Even under the new ment t household incomes, and then to the wider
-. design the Pak Mun proect remains in the least- -communty, has been substantial. A recent study in
fcost develpent plan of Thailand's lectricty Cirata found that 59 percent of those who were
.Generating Autority. Compared with a 10 percent
Genratwing opportunity c06th~ cost of capital, Comarhed the discount Wiscth rat10 perent rate required
before the project becomes unattractive is selves to be-better off than befoie.
moved because of the dam now consider them-
: 123 percent
Fostering the success of the Pak Mun prject Condlusion
are four institutional
. ..
features in the Thai
.
policy
~~~~~~~~~~~ImnprDVing
rpUtlr
environment First, the govenment and the Elec- . * . ,
erformance.is oftben diffi--
-.triiy Generating Authority of Thailand are com- cultpolitically, technically, o tionaly, and
mifted to sound environmental poliies and prc adminitrative. Without the fundamentals of good
tics. Second, some local institutions- are well governane--accountability, a predictable and sta-
.tained in dealing with involuntary resetflement ble legal framework openness, and transparency-
ThIrd, lOcal and: iternational nongovernental = even the best efforts can go astray. The institutional
organizations are active-and vocal-in repre-
-- senting fhe intrest a s f f partes.
approaches discussed above are not uniVerSaly ap
project planners are prepared for public scrt-iny plicable, but they do addres specific concerns for
before projectimnplementation. specific tpes of in cture. For example, envi-
____. __ -___-__.___ -__.___-__ .___ -ronmental concems differ greatly across sectors.
Water, sanitation, and power differ m their impacts,
ponents and implemented im sequence, it is usually and even within the power sector, the environmennecessay
to conduct the environental assessment tal implications of fossil fuel generation differ from
on the basis of the overall progra.
those of hydroelectric generation.
Finally, there is a need to achieve a balance be-
R--. ReEM nT. Physical infrastructure typically tween exert and user, between direct and mdirect
requires an extended and undivided. site, whether controls, and between broad goals and those narfor
road, rail, power, or water line rights of way or rowly defined The provision of infastructure often
for water reservoirs. The extreme difficulty of pri- involves comnplex, highly engineered systems -that
vatelybaigaining; parce by parcl, in these cases has require technical expertise but that also must be reled
governments to reserve the right to use eminent sponsive to user needs to be effective. Direct condomain
in order to force the sale of propertyr F- trols, such as plant-specfic, quantity-based emis-
-quently these measures result in the displacement of sion standards, ofteen prove cumbersome and costly,
people Of the 146 World Bank pro irvolving re- while indirect controls, such as price incentives,
settlement of people between 1986 and 1993, more may not offer sufficent control. Infrastructure
than three-quarters were infrastructureprojcts.
should contribute to broad social goals, yet it may
Resettlement is most likely to be successful if be effective only when efforts are narrowly focuse
needs are addressed early and plans are adopted to The choice of instruments and approaches must remininize
avoidable displacement In Thailand's flect sectoral needs and the capacities of implement-
PakMunhydropowerprojectearlyincorporation
ing agencLes.
SB