Nam Theun 2 helps community: World Bank
Nam Theun 2 helps community: World Bank
Nam Theun 2, the largest hydropower project in Khammuan province, has brought positive change to its local community, according to the World Bank.
The bank, which supported the development of the 1070 MW hydropower plant on the Nakhai plateau, published an analysis last week showing 97 percent of households resettled under the mega-development project met stringent household income targets as specified in the project concession agreement.
Under the 25-year agreement, the project has an obligation to provide support for its resettled community to gain sustainable employment and better incomes so as to move above the poverty line.
In the past most residents in the project area relied on natural resources to get by, which Lao economists and policymakers believed was unsustainable due to increasing population and consumption.
With support from the World Bank, the Lao government green-lighted the Nam Theun 2 project in 2005.
The power plant began commercial operations in 2010, generating large amounts of revenue for the government to reduce poverty, particular in the project area. The project will generate US$2 billion for Laos throughout its 25-year concession.
With revenue from the dam, the government and company have been able to finance the construction of roads and other public infrastructure in the area, creating conditions more conducive to investment.
The government has borrowed money from China to finance the construction of an irrigation system that channels water from the Nam Theun 2 dam to farmland in Khammuan province.
The project is a part of the Lao government's plan to turn the central provinces of Khammuan and Savannakhet into areas capable of producing rice for export.
According to the World Bank, not only have infrastructure and living conditions improved in the resettled community, education and health have also seen progress.
Primary school enrolment rates in the resettlement area leapt from 31 percent in 1998 to almost 90 percent post-resettlement. Residents in the project area find it easier to access healthcare.
The World Bank said it will continue to work closely with the government, Nam Theun 2 Power Company and communities affected by the Nam Theun 2 hydropower project to ensure project obligations are met and people in the project area continue to benefit.
vientiane times
