Nam Theun 2 Trip Report and Project Update - BankTrack

Nam Theun 2 Trip Report and Project UpdateThe primary compensation strategy in and aroundthe Gnommalath Plain is the provision of replacementland by using the Regulating Pond andDownstream Channel as the source of irrigationwater for: (i) transforming rainfed paddy into irrigatedpaddy; (ii) bringing new land into irrigated production;(iii) resorting irrigation facilities directlyimpacted by the project; and (iv) the development offish ponds (SDP, Vol 4, Ch. 7, p.16, emphasis added).In its October 2006 report, the Panel of Experts citedthe 2006 Resettlement Action Plan’s belated conclusionthat NT2’s power production regime results in anunpredictable downstream channel flow, “making planningfor irrigation difficult and unreliable” (PoE, 10thReport, p. 28).Furthermore, considering the absence of any biomassclearance plans for the reservoir area, the water in thedownstream channel is likely to be of extremely poorquality and unsuitable for irrigation for at least severalyears beyond 2009. As mentioned previously, this violatesthe Concession Agreement which requires that“... water in the Downstream Channel must at least besuitable for irrigation purposes” (Schedule 4, Part 2,Section 9.1f ).Recommendations:NT2 transmission lines. Photo by Shannon Lawrence, IRN.which they determine that no replacement land isavailable for Project Lands villagers.Additionally, the 2005 NT2 Social Development Planincludes seven pages that detail plans for using thedownstream channel and regulating pond to provideirrigation to affected villages in the area. Downstreamchannel irrigation was a key benefit of the Nam Theun2 project touted at the time of its approval by funderssuch as the World Bank and the ADB. The SocialDevelopment Plan states:■ The Independent Monitoring Agency for theResettlement Management Unit (RMU) shouldurgently undertake a comprehensive review ofProject Lands compensation and mitigation measuresand publicly disclose its findings.■ NTPC and the GoL should: 1) urgently find comparablereplacement land for Project Lands villagers,and 2) detail the livelihood restoration options thatwill replace irrigation for significantly affectedProject Lands villagers.■ NTPC, the GoL, the World Bank and the ADBshould ensure immediate disclosure of theResettlement Action Plans (RAPs) for ProjectLands. 1522