01/04/2005– The World
Bank’s decision to support the construction
of the US$1.2 billion Nam Theun II (NT2) hydropower
dam in Laos poses a threat to the environment
and people living in the region, according
to WWF.
On Thursday, the World Bank announced its
decision to partially underwrite borrowing
for the project in the Mekong basin, which
gives a green light to other international
financial institutions to offer more support.
Of the total cost, US$855 million is supposed
to come in loans.
The project will start producing 1,070MW
of electricity in 2009. WWF believes the World
Bank never provided a convincing and rational
explanation of the need for the additional
electricity produced, of which 90 per cent
will be pre-sold to Thailand.
Currently electricity supply in Thailand
outstrips demand. WWF believes that even allowing
for significant growth in demand over the
next decade, any additional needs can be met
more sustainably through energy efficiency
measures and small scale renewable energy
projects.
“The growing number of hydropower projects
in the Mekong basin need proper assessment
of their cumulative impacts,” said Marc Goichot
of WWF’s Living Mekong Programme. “A lot is
at stake as the Mekong is not only a biodiversity
hotspot but is also a major food source for
those living in the region.”
There are more than 1,300 species of fish,
providing a major source of protein for more
than 50 million people who live in the lower
Mekong basin. Dams, such as NT2, have been
identified as a major threat to fisheries.
WWF is particularly concerned that the NT2
dam, which involves a major diversion of water
from the Nam Theun River to the Xe Bang Fai
River, will disrupt the farming and fishing
activities of up to 130,000 people. The global
conservation organization also warns that
the flooding of 40 per cent of the Nakai Plateau
in southern Laos will threaten the already
endangered wild elephant populations.
“We fear that this dam rather than reducing
poverty will only increase human misery and
environmental degradation,” said Ute Collier
of WWF’s Dams and Water Infrastructure Programme.
“We challenge the authorities in Laos and
the World Bank to prove that this is not the
case.”
