Resettlement Policies and Practices in Lao PDR Jointly Presented by: • •
Mr. Daovong Phonekeo, Director General, Department of Energy Policy and Planning, Ministry of Energy and Mines Mrs. Bouakeo Phounsavath, Director of Legislative Division, Department of Environmental and Social Impact Assessment (DESIA), Ministry of Natural Resources and Environment (MoNRE), Lao PDR.
Lao PDR: National Energy Policy and the history Country Background • Population of 6.4 mil or ~27 people/square kilometers; • Per capita GNI of US$ 1,026 and GDP is expected to grow at an average rate of 7.7% during 2011-2015; • Electrification ratio reached 80% or 1,060,413 households in 2012, increased from 19% in 1996; • Per Capita Electricity Consumption of 470 Kwh/a but has been growing at an average rate of more than10% in the last 15 years; • Electricity export ~ 15% of total country’s export revenues; Power sector’s • contribution to GDP is projected to increase to ~16% in 2020; • Installed capacity is 3,200 Mw in 2012 and will be 12,500 Mw in 2020, substantially all • hydro and about 85% is planned for export; • Hydro potentials in Laos is about 26,000 Mw • High demand for electricity supply from neighboring countries, Thailand for 7,000 MW • and Vietnam 5,000 MW, Cambodia 200 MW by 2020 • Hydropower development is, therefore one of the most rapidly growing sectors in Laos • The government of Lao PDR (GoL) is in process of liberating its country from the status • of least developed country by 2020. • National Policy on Environmental and Social Sustainability of the Lao Hydropower Sector was issued in 2006;
Map of Operation Dam and Planned Hydropower in Lao PDR 2012
Total number of Power Projects in Laos
Data Source: Government of Laos (2011a)
Lao PDR: National Energy Policy o
o
o o
Maintain and expand affordable, reliable and sustainable electricity supply to promote economic and social development. Electrification Ratio to exceed 90% by 2020; Improve and expand transmission networks to support the industrialization and modernization policy, and to integrate the power sector in the ASEAN community through its power exchange programs; Tap the country’s large hydropower potentials with the participation of private developers; Promotion of Renewable Energy to reach 30% by 2025 with reasonable feed-in tariff.
The total number of affected people by Hydropower projects in Lao PDR
No.
Name of Project
Theun Hinboun 1 Expansion 2 Selabam 3 Se Xet 2 (State Utility) 4 Se Xet 1 5 Nam Mang 3 6 Nam Lik 1-2 7 Nam Ngum 1 8 Nam Ngum 2 9 Nam Ngum 5 (IPP) 10 Nam Theun 2
Installed Capacity 280 MW 5 MW 76 MW 45 MW 40 MW 100 MW 155 MW 615 MW 120 MW 1070 MW
Total: 2,726 MW
Social Environment / People and household affected by the project # Village 11
7 16 1 16
51
# household
# People
800 4,800 No resettlement No resettlement No resettlement Resettlement = 1,200 Peoples ? 3,127 Resettlement = 3,242 Peoples 1,099 6,234 49 994 1,300 6,200
3,248
25,797
Data Source: www.poweringprogress.org
On-going Efforts to Address the Environmental and Social Challenges Institutional Arrangements: o Ministry of Natural Resource and Environmental (MoNRE Contractual agreement (CA) negotiation and monitoring to ensure that Standard Environmental and Social Obligations (SESOs) are incorporated into the CA and complied ) through Department of Environmental and Social Impact Assessment (DESIA), established to develop and disseminate policies and legal framework and review ESIA compliance o Ministry of Energy and Mines in charge of energy promotion and development promotion and by the project developers. o Provinces through PoNREs and PEMO responsible for SIA and resettlement compliance monitoring and reporting to their respective ministries (MoNRE and MEM)
On-going Efforts to Address the Environmental and Social Challenges Legal framework: o The Environmental Protection Law (EPL), dated 1999 and the Decree on the implementation of the EPL, 2001 o EIA Regulation No 1770, dated 3 October, 2000 o Decree No 192/PM, dated 7 July, 2005 on the Compensation and Resettlement of People Affected by Development Projects o Regulations No2431/STEA for Implementing the Decree 192/PM on Compensation and Resettlement (C & R)of People Affected by Development Projects o Technical Guidelines, 2005 on Compensation and Resettlement in Development Projects. o General Guidelines on Public Involvement in Development Projects (2013) o Decree on the establishment of Environmental Protection Fund (EPF), 2005
Where are we now ?
Number Electric Step Amount 1 14 Operational 2 10 Under Construction 3 24 Planning Stage 4 37 MOU Feasibility 85
IEE 2 2 1 4 9
EIA 7 8 14 7 36
TOR
4 5 9
Annex CA 9 3
y However, review of ESIA compliance and on the ground compliance monitoring remain a challenge; y y
y
y
Legal reinforcement and monitoring capacity of the national implementing agencies particularly the provinces are still relatively weak to manage the rapid growth of the hydropower development projects; Lack of independent (third party) monitoring agencies and heavily reliance on overseas TA and expertise; Lack of legal awareness among local people and their participation.
On-going and pipeline projects to strengthen SIA and resettlement management o
o o o o o
o
Lao Social and Environmental Project, (LEnS) 2006-2013 supported by the WB through EPF aiming to assist the GoL (MoNRE, provinces, NUOL, LFNC) to strengthen the management of environmental and social issues associated with the sustainable use of natural resources in Lao PDR. Technical Assistance for Hydropower and Mining Sectors (HMTA) to MEM supported by the WB, 2010-2014. Strengthening Environmental Management Project (SEM II), supported by SIDA, years 2008-2011. Environmental Management support Program (EMSP), supported by Finland (2012 - 2015). Strengthening and Use of Country Safeguards Systems (TA 97566-REG) supported by ADB 2011. Project for Strengthening Natural Resources, Environmental Social Impact Management to be expectedly multi-donor trust funded current under concept discussion. NT2 Hydropower project as a learning model of ESIA and resettlement
Lao experience in resettlement in the hydropower sector in the past decade with the case of NT2
A Cornerstone for Poverty Reduction in Laos Major revenues to GOL during NT2 project operation • Royalties, taxes and dividends increasing from 25 to 140 MUS$ per year, with a total of 2000 MUS$ over the 25 years concession period (as from 2010 7% to 9% of the country budget ) • Revenues to be used for “poverty reduction in Laos” within a “GOL revenue management scheme” • Project transferred to Government of Laos after 25 years of operation by NTPC
Direct benefits for local people • 270 Km of roads built or upgraded • Major improvement in living condition for the 6500 people resettled • A 76 MUSD environmental and social program • Employment for up to 8000 Lao workers during construction • 1 MUS$ per year, paid by the project, for the protection of the NBCA (from FC till end of concession = 31 MUSD in total)
Benefits for Thailand and Lao PDR • Competitive energy • Saving over 200MT of CO2 over the concession period
Legal framework for NT2 Resettlement y y y
GoL Resettlement Policy for NT2 and other GoL Decrees Concession Agreement (CA) Social Development Plans (SDPs) (The parties to the CA agreed that the SDPs would be used for the purpose of identifying and addressing the Project Impacts)
Resettlement Objectives y
y y
Ensure that Resettlers have their income earning capacity enhanced and achieve the Household Income Target; Materially improve Resettler livelihoods on a sustainable basis; Apply special measures to improve the socio-economic status of ethnic minorities and vulnerable persons;
Household Income target (HIT) The greater of: - The then current National Poverty Line, multiplied the number of persons in the household; and - LAK 1,420,800 per person, multiplied by the number of persons in the household ( which is equivalent to USD 1,200 per average household in June 2002) - CA states that HIT should be measured at the end of year 5 of the RIP;
Major improvement of living conditions for families resettled on Nakai Plateau
Livelihoods Support y y y
Agricultural plots - 0.66 ha/household Fisheries, with boats and equipment supplied by NTPC Improved livestock techniques
Livelihoods Support
Village Forestry Association and off-farm income
Public Health Program Infrastructure / equipment / vehicles / medicines Training and capacity building (more than 1,000 people trained) Health education & awareness (more than 30,000 people involved) Public health monitoring and surveillance
Thank You
