Nam Theun II, Laos
A test case for WCD guidelines?
Whether the Nam Theun II dam will be a good or a bad dam remains to be seen. The 1,070 MW hydroelectric project is planned on a tributary of the Mekong river in Laos PDR, and according to its proponents the project will provide much needed revenues to the government of Laos, one of the poorest countries in the world.
The plan includes a 48 m high dam on the Theun River and the inundation of 450 km
2 of the Nakai Plateau. The reservoir borders the Nakai-Nam Theun Biodiversity Conservation Area and the scheme involves the transfer from the Nam Theun river into the Xe Bang Fai river.
- Around 5,700 people will need to be relocated, but a further 120,000 villagers are expected to be affected by decreased fisheries in the Xe Bang Fai watershed.
- The estimated cost of the dam is $1.1 billion - more than three times the country's GNP.
- Most of the electricity will be sold to Thailand under a Power Purchase Agreement signed in November 2003. The terms and conditions of the PPA have not been made public.
- The need for further electricity imports into Thailand is at present non-existent. Today Thailand has installed capacity that exceeds peak demands. There is great concern that Thai citizens will end up paying for energy they do not use, whilst the price Thailand will pay will not be economically viable to Laos.
