1. Local Participation on Benefit
Sharing of Nam Lik 1-2 Hydropower
Project in Lao PDR
Phoukeo Saokhamkeo
(Presenter)
Phoukeo Saokhamkeo2, Linkham Douangavanh1, Somsameu Douangdavong1,
Lamchai Sisamack2, Jean-Roland Marguin4, Florence Milan3, and Chu Thai Hoanh3
1National
Agriculture and Forestry Research Institution 2National University of Laos 3
International Water Management Institute 4University of Hohenheim

2. Outline
•
•
•
•
•
Introduction
Main Focus
Methodology
Findings
Policy Recommendation

3. 1. Introduction
• Laos is located in the lower Mekong
River Basin with great potential for
hydropower development
• In its country development plan, the
government of Laos aimed to create
revenue through energy from
hydropower development
• Hydropower projects have rapidly
developed since the 1990s. To date,
there are 14 power-generating dams,
12 more dams under construction, 25
dams are in the planning stage, and
35 dam are under feasibility study
• Each hydropower project tried to
provide benefits to impacted people
in their living condition

4. 2. Main focus
• Local participation of benefits sharing for poverty
reduction and sustainable resources
management
• The changes of livelihood and adaptive strategies
of affected people under the restriction of
natural resources
• Local participation and requirement for
sustainable resources management

5. 3. Methodology
• Research site
• FGD & survey

6. 4. Main findings
4.1 Local participation on project development
• Local people have participated in project activities
since the initiation of the project
– Physical survey
– EIA, SIA surveys
– Construction work
• Local voice considered
– Some important demands from villagers were not met
– Compensation for loss of small area of land were not
taken into consideration
– No power to negotiate for a better land price
– Oral agreements between villagers and company were
not implemented
– Infrastructure provided were substandard

7. 4.1 Local participation on project (Cont…)
• Direct compensation to impacted villagers
–
–
–
–
Lost land
Damage landscape from rock explosion for marble
Soil erosion
The damage of agricultural products
• Infrastructure development as community
compensation
–
–
–
–
Provision of road and bridge
Replacement of water supply and wells
Replacement of secondary school
Provision of broadcasting speakers

8. 4.1 Local participation on project (cont…)
• Fishing Group
Association
• Access to reservoir
for collecting NTFPs

9. 4.2 Livelihood adaptation
Categories of
activities
Before
After
dam (%) dam (%)
Upland agriculture 37
23
Paddy rice
86
83
Gardens
39
23
Animal production 53
41
Fishery
32
39
Handicraft
9
17
Laborer
3
15
NTFPs
15
23
Trades
6
17

11. 4.4 Sustainable natural resources management
•
•
•
•
•
Committee for NRM
Provision of US$1.8 million for NRM in 25 years
Forest classification and land use allocation
Monitor forest encroachment for agricultural activities in upstream
Implement reservoir management plans
– Forests and land use planning program
– Village forest management program
– Agriculture promotion program
– Education and tourism program
– Vocational promotion program
• Fishing management
– Classify fishing zones
– Limited fishing equipment
– Fingerling release

12. 5. Policy Recommendation
• The dimension of impacts
– Compensations should take into consideration the loss
of livelihood
– Compensations should be provided before the
construction of the project starts
• Local participation on project development
– More local participatory on NRM
– Allocate more budget for impacted communities
– Concerned state organization should negotiate on
behalf for the local people

13. 5. Policy Recommendation (cont…)
• Livelihood adaptation for poverty reduction
–
–
–
–
–
Sustainable funds for agriculture productions and handicrafts
Training for improved and new production techniques
Animal production groups
Access to market for agricultural products
Good transportation
• Sustainable natural resources management
–
–
–
–
Grassroots groups should participate in the committee of NRM
Villagers should be trained on NRM
Administrative of NRM should be transferred to communities
Financial support for community NRM
• Government policy and legal framework in place for
compensation and benefit sharing

14. Thank You