Nam Theun 2 Trip Report and Project Update - BankTrack

Nam Theun 2 Trip Report and Project UpdateThe Concession Agreement signed by NTPC and theGoL requires that a biomass survey be conducted andused to propose means for “maximising removal of biomassin high biomass areas of the Nakai Reservoir. Thepriority shall be to clear the vegetation in areas whichwill be permanently flooded” (Schedule 4, Part 2,Section 3a). The Concession Agreement also requiresthat “... water in the Downstream Channel must atleast be suitable for irrigation purposes” (Schedule 4,Part 2, Section 9.1f ).Despite these Failure to clear biomasscommitments,will cause water qualityapproved by theWorld Bank, problems downstream.the ADB andNT2’s otherfunders, neither the GoL nor NTPC has plans toremove or ensure the maximum removal of biomassfrom the reservoir. NTPC says it is conducting a studyon water quality optimization during reservoirimpoundment and that “biomass clearance may be partof the answer.” According to NTPC, it has no obligationto clear biomass except where it may impact itsprograms.There is one dry season remaining before reservoirimpoundment and it is unclear what options are leftfor maximizing biomass clearance from such a largearea in such a short period of time. The time for studiesand debate is over, and action must be takenurgently to avoid downstream disaster.Recommendations:■ NTPC and the GoL should commit to clear biomassfrom at least all permanently flooded areas of theNT2 reservoir.■ NTPC and the GoL should implement an independentlyreviewed clearance plan and impoundmentstrategy to minimize downstream water quality problemsin the first years of NT2 operations.NT2 downstream channel. Photo by Henrik Lindholm, SwedWatch.18