Nam Theun 2 Trip Report and Project Update - BankTrack

International Rivers NetworkVillagers along the NT2 downstream channel. Photo by Henrik Lindholm, SwedWatch.PROJECT LANDS COMPENSATIONMore than 2,500 households are affected by Nam Theun 2 construction activities, including constructionof transmission lines, roads, and project facilities. Households in Gnommalat and Mahaxai nearthe NT2 power station, regulating pond and downstream channel are most severely affected, wheremany households have lost more than 10% of their annual income as a result of land and assets taken by theproject.The downstream channel is27-kilometers long andapproximately 100-meterswide, with access roads oneither side, cutting throughsignificant areas of paddyresources.fields and other village land.The channel also blocksaccess to the forest and villagers’ gardens and rice paddieson the other side. Villagers have lost paddy land,houses, gardens, fruit trees, fisheries, irrigation watersupply and other assets to varying degrees.Disbursement of compensation paymentsbegan only in mid-2006, a yearafter NT2 construction activities startedto impact villagers’ land andDisbursement of compensationpayments began only inmid-2006, a year after NT2construction activities startedto impact villagers’ landand resources, which violatesthe Concession Agreementand the World Bank involuntaryresettlement policy. Two years after constructionactivities started to affect villagers, and also in violationof World Bank and ADB policies and the ConcessionAgreement, Resettlement Action Plans have still notbeen disclosed for Project Lands.19