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dam-l LS: Mekong Basin Dams Claim Lives, Cause Poverty, Bank Warned




                                  Mekong Basin Dams Claim Lives, Cause 
Poverty, Bank Warned

                                  By Bob Burton

                                  SYDNEY, Australia, June 27, 2000 
(ENS) - The Asian Development Bank is being
                                  urged to defer a decision on funding 
of a controversial 240 megawatt hydroelectric
                                  scheme on the Se San River in 
Vietnam until more detailed studies on likely
                                  impacts have been completed. The 
requests came at a major international
                                  conference here on the weekend.

                                  The conference, organized by the 
Australian Mekong Resource Centre, comes at a
                                  critical time for the Asian 
Development Bank, which is negotiating with donor
                                  countries for replenishment funding 
to its concessional loan fund. However, with
                                  dissatisfaction with the performance 
of the ADB increasing, donor countries such as
                                  Australia are pressing for reforms.

                                  Witoon Permpongsharoen from
                                  nongovernmental organization Towards
                                  Ecological Recovery and Regional
                                  Alliance (TERRA) based in Bangkok,
                                  Thailand said the Yali Falls dam in
                                  Vietnam, demonstrates the dangers of
                                  large scale hydropower projects in the
                                  area. The Yali Falls dam is just 20
                                  kilometres (12.4 miles) upstream from
                                  the proposed Se San 3 dam.

                                  A report completed in late May by the
                                  Fisheries Office of the adjoining
                                  downstream province in Cambodia
                                  reveals that the Yali Falls hydroelectric
                                  scheme, funded by the Russian 
government, had caused "serious ecological and
                                  social impacts" to 20,000 people in 
59 villages in the dam affected area.

                                  Since the dam was constructed, 32 
people have drowned as a result of surges in
                                  water flows while deterioration in 
water quality has had major impacts on the health
                                  of downstream users, the report states.

                                  "Although it is not entirely clear 
how many people have died as a direct and
                                  indirect result of changes in water 
quality, local people report that 952 people have
                                  perished since the problems began 
over four years ago, and that water quality has
                                  been the cause of all or most of the 
deaths," according to the Cambodian report.

                                  The ADB, a multi-lateral development 
bank dominated by contributions from
                                  Japan and the United States, is 
facing increasing opposition from within the region
                                  and from international 
nongovernmental organizations for its role in supporting
                                  environmentally and socially 
damaging projects.

                                  In 1992, the ADB established the 
Greater Mekong Subregion (GMS) economic
                                  cooperation program to integrate the 
economies of member countries - Burma,
                                  Thailand, Laos, Cambodia, Vietnam 
and the Yunnan province of China.

                                  Particular emphasis has been placed 
on the studies and projects aimed at
                                  infrastructure development, 
including roads and hydropower plans.

                                  "The rich human and natural resource 
endowments of the Mekong region have
                                  made it a new frontier of Asian 
economic growth," ADB Programs Department
                                  deputy director, Rajat Nag, told the 
conference.

                                  Controversy over the impacts of 
hydropower projects is widespread through the
                                  region.

                                  Permpongsharoen from TERRA told the 
conference the ADB had dismissed
                                  concerns about the Theun Hinboun dam 
in Laos. "There is little for the
                                  environmental lobby to criticize in 
Theun Hinboun - there is no flooding, virtually
                                  no reservoir, and no need to 
resettle anyone," the ADB had claimed.

 
The Nam Theun is one of the largest
 
tributaries of the Mekong River in
 
Laos. The Theun-Hinboun hydro
 
scheme, partly funded by a $US60
 
million loan from the ADB, was
 
approved for construction in 1994.

 
A subsequent Asian Development
 
Bank mission to the area, "admits
 
there 'are major impacts related to
 
the project operation' that include
                                  damage to village water supplies, 
vegetable gardens and fisheries,"
                                  Permpongsharoen told the conference.

                                  "In the first year of the operation, 
the project earned $US16 million for the
                                  government of Laos, only two-thirds 
of the revenue predicted by the ADB and less
                                  than the loan service repayments," 
Permpongsharoen said.

                                  "There is a profound difference 
between what the ADB says and what they really
                                  do. The ADB talk about poverty 
reduction but the people say you are going to
                                  make us poor. You shouldn't allow 
them to use your money for projects that make
                                  people poor," he said.

                                  Fisheries biologist, Terry Warren, 
revealed at the conference that a report he
                                  authored on the impact on fisheries 
as a result of the Theun-Hinboun dam had
                                  been suppressed.

                                  "Earlier environmental impact 
assessment reports," he said, "clearly
                                  underestimated the impacts to fish 
populations and fisheries."

                                                            Warren's 
1998 study found significant impacts on
                                                            fisheries 
which had adversely affected reduced fish
                                                            catches 
for 13 riverside villages. Fisheries are a vital
                                                            source of 
protein for local villagers.

                                                            "To date, 
the Thuen Hinboun Power company, its
                                                            directors 
and the Asian Development Bank appear to
                                                            be 
unwilling to make the final report a public
                                                            document 
whilst at the same time apparently offering
                                                            criticism 
about its lack of clear recommendations,"
                                                            Warren 
told the conference.

                                 Representatives from the Asian 
Development Bank at
                                 the conference were stung by the criticism from
                                  Warren. "It happened on our watch 
and we have got
                                  to do something about it. We can't 
undo what was
                                  done, that was stupid and that 
shouldn't have happened. We are working on the
                                  compensation package and we have got 
the [power] company to agree with us,"
                                  the ADB Programs Department deputy 
director, Rajat Nag, told the conference.

                                  Professor of Economics from 
Chulalongkorn University
                                  in Thailand, Pasuk Phongpaichit, 
told the conference
                                  that opposition to environmentally 
damaging projects
                                  is rapidly escalating in her country.

                                  "At present in Thailand, virtually 
every big project for
                                  an energy plant, dam or waste 
disposal project is
                                  being strongly opposed by a 
coalition of affected local
                                  people, activist NGO's and 
environmental groups," she
                                  said.

                                  "The Mekong countries governments may short
                                  sightedly adopt the ADB's strategy and allow
                                  themselves to be strapped with huge 
public debts from loans for big dams and
                                  other infrastructure projects in the 
name of anti-poverty policy," Phongpaichit
                                  cautioned.

                                  © Environment News Service (ENS) 
2000. All Rights Reserved.