Presentation: Hydropower revenue‐sharing as a mechanism for ...
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Hydropower Revenue‐Sharing as a Mechanism for Watershed Financing in
Lao PDRDr. Stephen Sparkes
Social and Environmental Division Manager for THXP (THPC)
(NORPLAN/Muliticonsult Norway)
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Overview of Presentation
• Hydropower impacts on the environment and mitigation in context of Lao PDR
• Two examples:– Nam Theun 2– Theun‐Hinboun Expansion Project
• Benefit‐sharing options and conclusion
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Hydropower and Conservation • Hydropower and impacts on the environment –negative impacts, loss of land and resources
• Location of projects often in remote areas with high biodiversity values
• Replacement in terms of land difficult• Other options:
– Protection of adjacent areas of higher value– Rehabilitation of degraded forests
• Potential ‘win‐win’ solution: management of catchment forests
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Project Location
Nam Theun 4 dam site proposed
THXP dam and reservoir
Nam Theun 2 dam and reservoir
Theun‐Hinboun dam and Headpond
Nam Theun 1 dam site proposed
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NT2 and Nakai‐Nam Theun Protected Area•World Heritage Catchment proposed with high biodiversity • Critically endangered species (Saola)• Halting commercial logging (WB requirement)• Interventions to protect flora and fauna from enclave villages and outsiders • Lack of funding and management
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Environmental Management ‐ SEMFOP•Management Plan for forest resources with participation of local villagers (livelihoods)
• Access Development and Management• Demographic Management• Forest and Land use Planning (Zoning)• Participatory Biodiversity Monitoring and Management (patrolling and enforcement)
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Social Management ‐ SEMFOP• Village Livelihood Development:
• Irrigated rice• Rainfed crops• Fruit trees• NTFPs•Managed hunting• Tourism
• Community and Social Development:• Schools• Health care• Access infrastructure
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Watershed Management and Protection Authority (WMPA)
• Institutional arrangements for long‐term management of the NNT‐NPA
• Technical Assistance and monitoring • Funding secured through NT2
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Theun‐Hinboun Expansion Project
•Catchment is a mosaic of habitats and forest types• Reservoir highly impacted by swidden agriculture
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THXP Reservoir Area
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Catchment Protection Plan for THXP
• Creation of a new Provincial Protected Area to protect the catchment – reduce erosion and sediment run‐off
• Regeneration and rehabilitation of degraded forests and old swidden areas
• Prohibit reestablishment of swidden• Reduce hunting and trade in wildlife products
through patrolling and education
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Proposed Protected Area
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Ongoing steps at THXP
• Discussion on finalizing boundaries of former village territories (resettled villages)
• Wildlife corridors – movement of animals between habitats and protected areas
• Working with GoL and WCS (IEWMP)• Flora survey for establishing nurseries• Funding from THPC and Env. Protection Fund
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Benefit‐Sharing Options• Direct transfer of funds to local GoL organizations and earmarking funds not an option
• Funding from PPP to specific bodies and agencies to carry out the work – CA obligations
• NT2: One million/year USD to WMPA and also funding via MoF for poverty alleviation and SERF (?)
• THXP: 2.3 million for conservation programs w WCS and then contribution to EPF
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Positive Aspects• Funds available from PPP – CA obligations• Win‐win aspect in terms of catchment management and electricity generation
• Agreements with International NGOs and experts for technical assistance
• Want to see “value” for money and international monitoring of performance
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Challenges• Weak local, regional and national level institutions (within PAFO and between ministries and agencies)
• Unclear responsibilities and funding mechanisms (EPF, SERF, etc.)
• Need for long‐term commitments by qualified groups and organizations as TA
• Difficult to keep out other interest groups (loggers, miners, other hydropower projects, etc.)