Damage from Lao dam is covered up; NGO says

An environmental scientist Murray Watson who originally hired to conduct the environmental impact assessment (EIA) for the Theun-Hinboun Expansion Project in Laos has disclosed the impact of the project on downstream rivers to be much more severe than the Theun-Hinboun Power Company (THPC) has acknowledged.

Instead of accepting Watson's original - and highly critical - report, the THPC ceased communicating with him and hired a Norwegian company, Norplan, to complete the EIA.

Watson stated that while the Norplan EIA claims to be based on his investigations, the EIA comes to different conclusions regarding the risks of the planned expansion project.

"The Norplan EIA seriously under-estimates the risks of the Theun-Hinboun Expansion Project, and understates or ignores the changes already experienced from the Theun-Hinboun Hydropower Project.  They are deceiving the Lao Government and enabling their client to externalize costs," he said in a statement.

His group found that the company's mitigation programs were not promptly and equitably distributed, and that the accumulated uncompensated economic losses to recipient river communities stood at about US$11 million.

The company continued its plan to construct a new dam and reservoir to increase capacity of power production at the Theun-Hinboun hydropower plant. The Expansion Project would double water diversions into the downstream Hai and Hinboun rivers.

Watson's studies concluded that that the Expansion Project would require expensive engineering measures to control additional erosion along the Hai and Hinboun rivers and its devastating effects on the 30,000 people currently living downstream.

Without these measures the project would "definitely seriously impoverish 10,000-15,000 people, [and] probably will moderately impoverish a further 10,000-15,000", he said.

Aviva Imhof, Campaigns Director with International Rivers, suggested the company to haul the project until a credible independent EIA has been completed and until the company has proven that it is capable of restoring the livelihoods of communities affected by the existing project.

The Theun-Hinboun Power Company is owned by Norwegian utility, Statkraft; a Thai company GMS Power; and the Lao government.

The Thai stakeholder who was asked for comments on the allegation has remained silence.

The Theun-Hinboun project commenced operation in 1998. THPC hopes to sign a power purchase agreement with Thai utility EGAT in the coming weeks to sell power from the planned Expansion Project. If the power purchase agreement is signed, THPC plans to start construction on the Expansion Project in mid-2008. 

By Supalak Ganjanakhundee

The Nation