This paper sheds light on the Theun-Hinboun Expansion Project in central Laos, demonstrating its impacts on vulnerable people. The Project started construction in 2008 and is expected to be completed in 2011. The paper shows that it is a dam and diversion project, which will displace a group of indigenous people from their lands in the reservoir area. The project also will displace or negatively affect another group of people living downstream, on project construction lands, and in resettlement host villages.
The paper indicates that the project is in violation of Lao government resettlement law in numerous instances. Moreover, it finds that:
- the project will significantly increase the frequency and duration of flooding, causing even greater erosion along the riverbanks, and almost completely decimating fisheries in the river
- there is no clarity as to whether land is available for all the villagers that will need to move, nor where that land is located
- the related company is failing to provide a food allowance and other assistance to the displaced persons
- no detailed cost estimate for resettlement in the downstream areas.
In order to ensure that the serious problems facing the affected communities are being resolved, the paper recommends the following actions:
- the involved banks should conduct a mission to the project site to review the social and environmental impacts of the project and the food security of the affected communities
- after the mission, they should ensure that the concerned company is bringing the project into compliance with Lao law and the “Equator Principles”, and specify a strict timeframe for doing so
- they should also withhold disbursements to the company until the project is brought into compliance
- the Norwegian partner should reconsider its involvement and consider selling out entirely.