Nam Theun 2 Trip Report and Project Update - BankTrack

International Rivers NetworkVillagers living in temporary houses in Ban Done resettlement village. Photo by Shannon Lawrence, IRN.CONCLUSIONNam Theun 2 has reached a critical stage. Will the commitments made by NTPC, the GoL, the WorldBank and the ADB be kept? Or will villagers once again bear all the costs of misguided hydropowerdevelopment in Laos?The World Bank and the ADB assured their shareholdersthat Nam Theun 2 would reduce poverty, thataffected villagers’ livelihoods would be restored, andthat the project would bring development to Laos. TheWorld Bank and the ADB have so far failed to ensurecompliance with their safeguard policies and deliver ontheir promises. At the time of project approval, theWorld Bank and the ADB committed to enforcingtheir loan and guarantee agreements with the GoL andNTPC and to take action when these agreements areviolated. Now is the time for action.NTPC and the GoL have also backtracked on thecommitments they made at project approval. Some ofthese broken promises constitute violations of theConcession Agreement. The gaps in planning, budget,and political will surrounding NT2 are now evident,and are threatening the livelihoods of more than 1 in50 Laotians. NTPC and the GoL should clear biomassand address water quality threats, deal with budget andplanning failures in livelihood restoration programs, anddisclose social and environmental documents. Urgentaction is required if NTPC, the GoL and Nam Theun2’s funders hope to avoid a repeat of past dam disasters.29