Theun-Hinboun expansion project Laos

If built, the Theun-Hinboun Expansion Project would displace up to 4,800 people and effect another 48,441 people living downstream on project construction lands and in host villages. The project involves a 65-meter high storage dam on the Nam Gnouang  River and a doubling of capacity at the existing Theun-Hinboun hydropower plant, resulting in a doubling of the amount of water diverted into the Hai and Hinboun  Rivers.

The existing project (the Theun Hinboun Hydropower Project), was completed in 1998, and has had a serious impact on the lives and livelihoods of around 30,000 people living downstream and upstream of the project who have lost fish, rice fields, vegetables and drinking water as a result of the dam.

In 1998 the Theun-Hinboun Hydropower Project (the project preceding the Theun-Hinboun Expansion Project) started operation. This existing project, diverts water from the Theun-Kading River to the Hai and Hinboun Rivers, and has affected around 30,000 people living in more than 62 villages. Impacts have included decimation of fisheries, particularly downstream along the Hai and Hinboun Rivers and in the headpond area, increased flooding leading to massive rice paddy abandonment, inability to cultivate dry season riverbank gardens, and impairments to domestic water supply.

Fluctuating water levels and stronger flows have caused serious erosion along the Hai and Hinboun Rivers leading to loss of fertile agricultural land, riverbank gardens and vegetation. Flooding has become increasingly severe over the last nine years, a problem linked to water releases from the dam and increased sedimentation. Villagers have experienced repeated loss of wet season rice crops, leading to widespread paddy field abandonment, with no compensation paid to villagers.

The increased flooding has also caused water contamination and skin diseases; drinking water scarcity; death of livestock from drowning and disease; loss of fruit and other trees and plants; temporary food shortages and loss of income; and difficulties with access and mobility for many families. The fluctuating water levels in the Nam Hai would appear to have led to the deaths of several people in recent years, including that of a young child of five.

The Mitigation and Compensation Program that was developed in 2001 to resolve the project’s impacts has had limited concrete successes after six years of implementation. Ten years into project operation, communities are worse off then they were before project development.

Although the problems of the Theun-Hinboun Hydropower Project have up to date not been solved, in 2008 the Theun Hinboun Hydropower Company started the construction of the Theun-Hinboun Expansion Project, which will only increase the existing problems.

It is irresponsible for the Theun-Hinboun Power Company to move forward with this project when the plans for mitigation and compensation are so woefully inadequate, and when there can be little faith that the Company has any hope of restoring, let alone improving, livelihoods. The Theun-Hinboun Power Company should suspend plans for the Theun-Hinboun Expansion Project until it can be proven that the Company is capable of restoring the livelihoods of those affected by the existing project.

The Equator Principle banks, KBC, ANZ and BNP Paribas, financing this project should work the Company to bring the Theun-Hinboun Expansion Project into compliance with the Equator Principles and Lao National Policy; Environmental and Social Sustainability of the Hydropower sector in Lao PDR.

The Theun-Hinboun Expansion Project will displace up to 4,800 mostly ethnic minority people and negatively affect another 48,441 people living downstream, on project construction lands and in host villages. The extra erosion, sedimentation and aggravated flooding from additional flows in the Hai and Hinboun Rivers could be disastrous and require massive resettlement. The resettlement plan and EIA – written by Norwegian consultancy Norplan are of such a low professional standard that their proposed mitigation measures will not address the dam’s impacts or restore villagers’ livelihoods.

Resettlement Woes
A fundamental problem with the THXP is the lack of adequate and productive replacement land for the displaced villagers. Reservoir villages will be moved into three host communities where land and resources are already scarce. The consequent quadrupling of the population in the host villages will lead to fierce competition over natural resources, inevitably lowering living standards for all involved. A second, but equally significant, problem is the inadequacy of the livelihood restoration measures proposed in the resettlement plan, which are unclear, unproven and under-funded.

Downstream Disaster
THXP’s impacts on the Nam Hai and the Nam Hinboun will be severe as the project doubles water releases into these recipient rivers. The project will significantly increase the frequency and duration of flooding along the Nam Hai and Nam Hinboun, will cause even greater erosion along the riverbanks, and will almost completely decimate fisheries in the Hinboun River. Yet despite the fact that seven years of THPC’s environmental and social mitigation activities have failed to address the devastating impacts of the existing Theun-Hinboun project, the RAP makes the optimistic assumption that the impacts from the new THXP can be managed and livelihoods restored. There is no justification for this assertion.

The increased flooding along the Hai and Hinboun will make life unbearable for many residents. THPC does not appear to know how many people will be required to relocate as a result of the aggravated flooding, which villages will be most affected, whether there is land available, and if not, where people will move. The resettlement plan states that preference will be given to relocating people within their village territory, but fails to consider the extra pressure on land and resources that will occur as a result.

The result of THXP will be even greater rice and protein deficiencies amongst households that are already suffering as a result of the existing Theun-Hinboun project, making life unbearable for many Hai and Hinboun residents.

Double standards for resettlement compensation
THPC created two different categories for displaced persons; 'Resettlement' and 'Relocation'. According to THPC, 'resettlement' families define as: families who have to move more than 100 meters and who will be separated from their cultural and social communities. This are displaced communities around reservoir area. 'Relocation' families define as: people who don't have to move more than 100 meters and who will not be separated from their cultural and social communities. This are displaced communities along the side of Hin and Hinboun Rivers.

Relocation families have to move their houses by themselves and THPC will provide only pillars, roof, and nails for their new houses and will clear the new replacement land. However, there is no international standard differentiating resettlement and relocation and Performance Standard 5 of the Equator Principles requires companies to offer displaced persons choices among feasible resettlement options, including adequate replacement housing (paragraph 16). This is clear violation of Performance Standard 5.

The Theun-Hinboun Expansion Project’s EIA underestimates the risks of poor water quality episodes during construction and operation of the new reservoir, especially in the early years of biomass decomposition.

The release of water low in dissolved oxygen could cause fish kills downstream of the project in the Theun-Kading River and the Hai and Hinboun rivers.

THPC does plan to clear the above-ground biomass from the reservoir area before inundation, but the current plan calls for burning the biomass, which will cause air pollution, release toxic mercury, and accelerate the release of nutrients trapped in the biomass. These nutrients, which will be concentrated in the ash, will support the sudden growth of excess algae and bacteria in the reservoir water, which in turn will trigger a cascade of water quality problems including greatly reduced dissolved oxygen, fish kills, and the release of toxic chemicals from the reservoir sediments. To avoid additional water quality impacts caused by burning, the biomass should be cut and removed where it could ideally be mulched for use in the area.

The World Commission on Dams found that women and ethnic minorities were disproportionately affected by dam projects. As women are often responsible for ensuring the sustainable livelihoods of their families, impacts on these livelihoods through destruction of fisheries, flooding of agricultural land and forests, and displacement often result in women bearing a disproportionate share of the costs. It is women who are often left with the burden of caring for their families, finding alternative land and water sources and alternative livelihoods when these are taken away through the development of destructive dam projects.