Nam Theun 2 Trip Report and Project Update - BankTrack

Nam Theun 2 Trip Report and Project Updateand increased flooding cause major income losses forvillagers that multiply sometimes exponentially yearafter year. 13Recommendations:Boys fishing in the Xe Bang Fai. Photo by Shannon Lawrence, IRN.(2005-2014). It is not clear how that amount wasdetermined. According to the Panel of Experts 11 , morethan $1 million of the $16 million will be spent onconsultants. Using NTPC’s figure of 75,000 affectedpeople (versus the 120,000 affected people identifiedby independent experts 12 ), that leaves only $200 perperson for compensation and mitigation.Considering the scale of Nam Theun 2’s projectedimpacts on the Xe Bang Fai region and the number ofaffected villages, NTPC’s Downstream Program budgetseems to be entirely inadequate to compensate morethan 120,000 villagers for a lifetime loss of the fisheriesthey depend on, let alone to provide livelihood alternativesand flood and erosion protection. Experience atthe nearby Theun-Hinboun Hydropower Project hasproven that fisheries declines, erosion, sedimentation,■ Because NTPC’s livelihood programs are not likelyto be successful for at least several years, NTPC mustprovide interim compensation to ensure that villagersare not left stranded once power production startsand their incomes plummet. NTPC should committo develop and implement an interim compensationscheme to address the impacts of NT2 operations ondownstream villagers until livelihood restoration programsyield sustainable results. Additional fundingwill be required, as the $16 million budget is likely tobe inadequate to deal with the scale of anticipateddownstream impacts.■ The GoL, the World Bank and the ADB shouldwork with villagers and donor partners to develop anintegrated rural development plan for the Xe BangFai region.■ NTPC, the GoL, the World Bank and the ADBshould ensure disclosure of: 1) the DownstreamLivelihood and Asset Restoration Program Phase 1in its entirety; 2) marketing surveys for the Xe BangFai; 3) biomass clearance plans and for the NakaiPlateau; and 4) hydraulics and water quality studiesfor the downstream areas.16