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dam-l LS: ADB response on Theun Hinboun



Response from ADB to IRN letter of August 4, 1999, regarding Theun-Hinboun
Hydropower Project, Laos. Original IRN letter follows ADB letter. 

ASIAN DEVELOPMENT BANK, Manila

24 August 1999

International Rivers Network
1847 Berkeley Way
Berkeley CA USA.

Dear Ms. Imhof

Subject: Theun Hinboun Hydropower Project

Reference is made to your letter, dated 4 August 1999. We note your
continued interest in our Project and we confirm that the Bank actively
works with the Government of Lao PDR (GOL) and Theun Hinboun Power Company
(THPC) to ensure that commitments with regard to the environment and social
considerations are implemented in line with the commitment made by them.
You must however appreciate that, generally, GoL and THPC are in a much
better position than the Bank to reply to your detailed queries.

THPC has engaged the National University of Laos (NUOL) to undertake a
study on Project related impacts on the newly defined Project impact zone.
THPC is working with NUOL to complete the study. You may like to follow up
with THPC on the progress of this study.

THPC has informed that they are assisting the concerned villages in respect
of fisheries. THPC is providing fishponds and assistance in dealing with
fishing in the deep water has been looked into. In addition THPC is
considering installing a fish ladder to improve fish passage over the weir.
Further work is presently being carried out by THPC and future measures
will depend on observations regarding migrating fishes past the dam. A
minimum downstream water release of 5 m3/s release has been maintained in
accordance with earlier agreements. The villagers have been provided with
fishing nets and boats and are being trained to record the data regarding
fish catches for future references.

THPC has provided materials to downstream villages for 14 new wells for
drinking water, which were lost as a direct result of the PRoject. THPC is
studying options for alternative water supplies for villages, that never
had appropriate water wells in the past and THPC has signed a contract to
develop 20 ground deep-water wells in the headpond area.

THPC, aside from providing additional wells, also has established a school,
given contributions to schools and established a sericulture project for
villages to increase their livelihood. THPC also has provided new access to
the reservoir through construction of wharves.

THPC has completed six out of nine dry season crossings. The rest is
expected to be taken up in the dry season.

Erosion control work consisting of fortification, reshaping and
revegetation of river banks has been undertaken to mitigate erosion impacts.

You have referred to the Rural Development Study. This study, consisting of
four volumes, is with GoL. We suggest that you contact GoL for the release
of this report.

Concluding, while the Bank endeavors to reply to your detailed queries, it
will be more efficient and expeditious if you were to address these in the
first instance to THPC and GoL, with a copy to the Bank , if you wish.

Best regards

S.W. Bauer
Project Engineer (Energy West)


________________________

IRN letter to ADB:

August 4, 1999									3 pages total

Mr. Sebastian Bauer
Project Engineer
Energy Division (West)
Asian Development Bank
Fax: 632 636 2316

Dear Mr. Bauer

Theun-Hinboun Hydropower Project

It has been eight months now since the Bank’s Special Review Mission to
Theun-Hinboun, and the resulting Aide Memoir. I have a number of questions
regarding the follow-up to the Aide Memoir and would appreciate it if you
could provide us with answers as soon as possible.

1.	According to Paragraph 12, THPC was supposed to “immediately design and
implement a program that will clearly identify Project impacts on all
villages within the newly defined Project impact zone.” It was expected to
consist of a survey form and training of approximately 25 interviewers who
would collect information from all Project-affected villages. It was
scheduled to begin in January 1999 and take eight weeks to complete. Has
this survey occurred? If so, could you please provide us with details of
the survey findings? If not, could you please state why?

2.	This survey was expected to provide information that would allow THPC to
immediately and adequately compensate for loss of gardens, loss of fishing
nets, wells for fresh water and reinstatement of dry season access.
Negotiation and provision of compensation was supposed to begin immediately
after the survey information was collated, and was expected to be completed
in approximately eight weeks. Therefore, negotiation and provision of
compensation should have occurred by the end of May at the latest, allowing
for delays. Has this occurred? Is so, could you please supply us with
detailed information regarding how the process was conducted, who was
provided with compensation and what kind of compensation they were given?
If not, could you please explain why?

3.	According to the Aide Memoir (par. 16), THPC had identified 17 villages
to receive 35 wells for fresh water supply. THPC was to undertake a
comprehensive survey along the lower reaches of the Nam Hinboun to
determine the extent of water supply disruption, and was supposed to obtain
quotations for improving water supplies to all affected villages on the Nam
Hinboun. Has this taken place? Could you please provide us with details
about the results of this survey and the progress on well construction?

4.	What action has been taken to compensate villagers for lost nets due to
increased water flows along the Nam Hai/Nam Hinboun? (par. 20)

5.	Paragraph 21 mentions the preparation of a Fisheries Management Plan and
states that implementation of the portion of the plan devoted to mitigating
direct fisheries impacts caused by the project could begin as early as June
1999. Could you please provide us with a copy of the Plan and details of
its implementation?

6.	Have any wild fish ponds been built in any villages and paid for by
THPC? (par. 22)

7.	What kind of compensation has been given to mitigate for loss of
riverside vegetable gardens or for difficulties now encountered by having
to move the gardens to higher ground? (par. 24)

8.	Paragraph 27 states that the construction of nine dry season crossings
affecting the 26 villages downstream of the tailrace/re-regulating pond
were expected to be completed by March 1999. Have these crossings been
completed?

9.	What steps have project authorities taken to stabilize river banks and
stop extensive erosion along the Nam Hai and Nam Hinboun? (par. 29)

10.	Please provide details on the expanded monitoring program conducted by
EMCO/THPC. How many more villages have been added to long-term
socioeconomic monitoring, and which villages are these? Has another water
quality monitoring station been added along the lower reaches of the Nam
Hinboun? What additional fisheries surveys are taking place? (pars. 32-34) 

11.	Paragraph 37 states that the Monitoring Specialist will produce a
report to be finalized in March 1999 that (i) clearly identifies EMCO’s
terms of reference and lines of reporting/authority; (ii) lays out a
comprehensive monitoring and evaluation program over the mid-term; and
(iii) recommends actions for strengthening the capacity of EMCO. Could you
please provide us with a copy of this report?

12.	Paragraph 44 states that “The Rural Development Study has been
completed and is before Government for consideration.” Could you please
provide us with a copy of the study?

13.	Paragraph 49 states that the Monitoring Specialist will prepare a new
and comprehensive Environmental Management Plan that will guide all
environmental and social monitoring and management during the next 3-5
years. Has this Plan been prepared, and if so, could you please provide us
with a copy?

Finally, I would like to follow up on our outstanding request regarding the
fisheries study by THPC consultant Mr. Terry Warren. This study was
completed in January 1999 and has still not been released to the public.
Can you please provide us with a copy of the study or an explanation as to
why it has not yet been released?

Thank you very much for your assistance.

Yours sincerely


Aviva Imhof
South-East Asia Campaigner

cc 	Mr. E.F. Hourihan, Theun-Hinboun Power Company
	Mr. Viraphonh Viravong, Electricité du Laos
	ADB Executive Directors 
	US Treasury
Mr. Bindu Lohani, ADB
	Mr. Robert Dobias, ADB


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Aviva Imhof
South-East Asia Campaigner
International Rivers Network
1847 Berkeley Way, Berkeley CA 94703 USA
Tel: + 1 510 848 1155 (ext. 312), Fax: + 1 510 848 1008
Email: aviva@irn.org, Web: http://www.irn.org
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