BANKS DODGY DEALS CAMPAIGNS
About BankTrack
Visit us
Organisation
Our team
Our board
Guiding principles
Team up with us
Jobs at BankTrack
Our annual reports
Funding and finances
History
BankTrack in the media
Our privacy policy
Donate
2023-03-17 00:00:00
Briefing: The role of financial institutions in decarbonising the steel sector
2023-03-09 00:00:00
Dutch bank ING supports controversial pipeline to import gas from authoritarian Azerbaijan
2023-02-23 00:00:00
Financial institutions need to address steelmaking’s coal addiction
2023-02-07 00:00:00
What COP15 means for banks: meeting the Global Biodiversity Framework requires protecting Indigenous rights and divesting from harmful industries
2023-03-20 08:50:41
Who dares to finance Eni and Exxon’s dangerous Rovuma gas plans in Mozambique?
2023-03-14 14:59:00
New ING policy could spark bank shift away from financing oil and gas infrastructure
2023-02-24 13:46:14
Pego power station conversion plans halted
2022-12-14 11:08:26
HSBC announces it will no longer finance new oil and gas fields
Connect
2022-11-22 00:00:00
Banking on Thin Ice: Two years in the heat
2022-11-17 00:00:00
BankTrack Global Human Rights Benchmark 2022
2022-10-21 00:00:00
Burning forests in the name of clean energy? How banks are failing to exclude the harmful wood biomass industry from finance
2022-06-28 00:00:00
The East African Crude Oil Pipeline (EACOP): Finance Risk Update No. 3
2022-04-05 00:00:00
The BankTrack Human Rights Benchmark Asia
2022-03-30 00:00:00
Banking on Climate Chaos 2022
See all publications
Sections
Banks Dodgy Deals Campaigns
Our campaigns
Banks and Climate
Banks and Human Rights
Banks and Nature
Banks and Pandemics
Our projects
Tracking the NZBA
Banks and Putin's war in Ukraine
Tracking the Equator Principles
Tracking the PRBs
Find a Better Bank
Banks and the OECD Guidelines
Media
News Publications
Fossil Banks No Thanks StopEACOP Forests & Finance Banks & Biodiversity Drop JBS Bank of Coal Don't Buy into Occupation
BankTrack
About BankTrack Visit us Organisation Our team Our board Guiding principles Team up with us Jobs at BankTrack Our annual reports Funding and finances History BankTrack in the media Our privacy policy Donate
Successes Contact BankTrack
Donate Mailing list Facebook Twitter Login
Home › Dodgy Deals ›
Dodgy Deal
Don Sahong Hydropower ProjectLaos

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Lead organisation:
BankTrack
Contact:

Johan Frijns, BankTrack

Last update: 2016-11-01 15:23:00

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Lead organisation:
BankTrack
Contact:

Johan Frijns, BankTrack

Last update: 2016-11-01 15:23:00
Why this profile?

What must happen

Dam construction should stop as soon as possible. If negative impact for the fish populations cannot be ruled out and regional governments cannot reach agreement within the MRC, the project should be cancelled. Banks and investors should abstain from financing this project.

About
Sectors Hydroelectric Power Generation
Location
Website http://dshpp.com/

The 25-metre-high Don Sahong Hydropower Project is currently being constructed in the Mekong river in southern Laos. Less than two kilometres from the Cambodian border, the area named Siphandone (Four Thousand Islands) is known for its aquatic biodiversity. At this part of the Mekong, the water drops 20 metres through a variety of small canals, seasonally creating river islands. The Government of Laos has in the past considered proposing the site as Ramsar-listed Wetland, as the area downstream just across the Cambodian border is recognized as.

The run-of-the-river dam, with a planned maximum capacity of 256 megawatts, has serious environmental and social impacts. The main channel passable year-round by migrating fish will be blocked, which severely threatens downstream fisheries. Therefore, the project is feared to harm millions of residents of the Mekong River Basin in Laos, Cambodia, Thailand and Vietnam. Furthermore, the project perils the last remaining population of the endangered Irrawaddy Dolphins.

The project is estimated to cost USD 500 million and is expected to be completed in the second half of 2019.

Impacts

Social and human rights impacts

As the Don Sahong dam will block the main channel passable year-round by migrating fish, the downstream fish population is feared to be threatened. Local communities near the dam site and downstream in Cambodia highly depend on both subsistence and commercial fishing. The project hereby undermines food security throughout the Mekong River Basin. No transboundary impact assessments have been conducted.

Additionally, Mega First Corporation Berhad failed to properly inform affected people. Local communities are reported to have received misleading information, while communities downstream in Cambodia have not received any information from the project's developer.

The Don Sahong dam is expected to significantly reduce the amount of migratory fish moving between Laos, Cambodia, Thailand and Vietnam. This forms a huge threat to the food security of millions of people living both up- and downstream of the dam project. The human rights of millions are under pressure, such as the right to life and the right to food. Local residents are already found to be malnourished, and fish is their most important source of protein.

In October 2014, a national and international coalition of NGO's, including International Rivers, filed a complaint with the Human Rights Commission of Malaysia (SUHAKAM), urging the commission to ensure Malaysian company Mega First complies with international human rights standards. Among these are the right to life and livelihood and the obligation to inform affected communities. After initially accepting the complaint, SUHAKAM unfortunately concluded it lacked the mandate for foreign investment projects of Malaysian companies. However, SUHAKAM did recommend Mega First to respect the human rights of people affected by the companies projects.

In February 2016, the United Nations Human Rights Council notified the governments of Laos and Malaysia, as well as the Malaysian company Mega First, of their concerns on alleged human rights violations regarding the Don Sahong dam project. The Council found "[the] right to an adequate standard of living, including the rights to food and adequate housing, the right to the highest standard of physical and mental health, cultural rights and the rights to information and participation appear to be at particular risk, as do the rights of indigenous peoples living in the area". The Council also notedthe lack of regional/international cooperation through the MRC and the lack of proper information being shared with local residents by both the government and the company. Non of the summoned parties have yet responded.

The area expected to be affected by the Don Sahong dam is inhabited by many indigenous people and ethnic minorities. Among them are the Kuy (Kuoy) in Cambodia. As is typical for many indigenous peoples, the Kuy have a strong cultural and traditional relationship with their land and the Mekong river, which is central for their livelihood. Indigenous people are protected by international law, such as ILO Convention 169. Free, prior and informed consent is required for any project to be developed on indigenous territory. Non of the indigenous people about to be affected by the dam has been consulted.


Environmental and climate impacts

The Hou Sahong Channel, in which the Don Sahong dam will be built, is a vital corridor for migrating fish. Over a 100 species are reported to migrate through this channel, of which some are known to travel as far as Vietnam. Blocking the channel threatens migration, feeding and breeding patterns of a huge number of fish and therefore the unique aquatic biodiversity.

Also, the dam threatens the highly endangered Irrawaddy dophin, of which only 85 remain in the Mekong River. A core habitat of these dolphins is located just one kilometre downstream of the dam site. Construction may disturb the dolphins and the dam's impact on fish migration may subduct their only food source. The Don Sahong dam therefore increases the risk of the species' extinction.

Companies

AECOM

United States
Website
Contracted by MFCB to conduct the feasibility study and other consulting services.

Don Sahong Power Company (DSPC)

Virgin Islands, British
Website
Project developer, owner of the concession.

Electricité du Laos

Laos
Website
Signed a Power Purchase Agreement with DSPC in October 2015.

Fishtek Consulting

United Kingdom
Website
Contracted to study, design and improve the dam's fish passages.

Mega First Corporation Berhad (MFCB)

Malaysia
Website
Formed a joint venture in 2008 with IJM Corporation, which sold its part to MFCB in 2010. Since then it owns Don Sahong Power Company for 80%.

Pöyry Energy Oy

Finland
Website
Hired by MFCB in 2012 to review the complete Don Sahong dam design.

Sinohydro

China
Website
Contracted in 2015 as the project's constructor.

SMEC

Australia
Website
SMEC New Zealand is contracted by MFCB for a range of engineering and consulting services.
No companies
News
BankTrack
Partners
Blog
External
BankTrack news BankTrack blog Partner news Partner blog

Laos' thirst for Mekong River dams imperils fishing, farming

2016-08-08 | Associated Press
BankTrack news BankTrack blog Partner news Partner blog

Don Sahong Dam Casts Wide Shadow Over Mekong

2016-07-08 | The Bangkok Post
BankTrack news BankTrack blog Partner news Partner blog

Human Rights Commission Report Highlights Lack of Accountability in Don Sahong Dam Project

2016-04-27 | Earth Rights International
BankTrack news BankTrack blog Partner news Partner blog

Laos leader claims “no impact” from Don Sahong dam

2016-03-14 | Southeast Asia Globe
BankTrack news BankTrack blog Partner news Partner blog

Mega First Corp’s hydropower plant in Laos is 10% completed

2016-02-05 | The Malaysian Reserve
BankTrack news BankTrack blog Partner news Partner blog

Is Laos Building a New Illegal Dam on the Mekong River?

2015-10-27 | The Diplomat
BankTrack news BankTrack blog Partner news Partner blog

Laos dam threatens fishermens' livelihoods

2014-09-30 | Al Jazeera
BankTrack news BankTrack blog Partner news Partner blog

Cambodian Activists Board Boats to Protest Dam Construction in Laos

2014-09-11 | Radio Free Asia
BankTrack news BankTrack blog Partner news Partner blog

Mekong river hydroelectric dam threatens livelihoods and endangered species in landlocked Laos

2009-03-13 | The Guardian
Resources
Documents
Images
Videos
Links
2016-02-16 00:00:00

UNHRC Communication sent to governments of Laos and Malaysia and Malaysian company Mega First

Other document
2016-02-16 00:00:00 | United Nations Human Rights Council
2015-11-01 00:00:00

The Don Sahong Dam. Gambling with Mekong Food Security & Livelihoods

NGO document
2015-11-01 00:00:00 | International Rivers
2014-02-05 00:00:00

Don Sahong Dam Brief

Very high risk for Cambodia
NGO document
2014-02-05 00:00:00 | WWF
2014-01-01 00:00:00

Trial and Error Too Risky for the Don Sahong Dam: A Technical Review of the Don Sahong’s 2013 Environmental Impact Assessment

NGO document
2014-01-01 00:00:00 | International Rivers
2013-01-15 00:00:00

Environmental Impact Assessment - Don Sahong Hydropower Project

Company document
2013-01-15 00:00:00 | National Consulting Company Laos
2013-01-15 00:00:00

Resettlement Action Plan - Don Sahong Hydropower Project

Company document
2013-01-15 00:00:00 | National Consulting Company Laos
2009-08-01 00:00:00

The Don Sahong Dam: Potential Impacts on Regional Fish Migrations, Livelihoods and Human Health

Other document
2009-08-01 00:00:00 | Ian G. Baird

Don Sahong Dam - International Rivers

2016-06-15

Laos dam plan threatens existence of rare dolphin

2016-07-27 13:04:00

Impacts of the Don Sahong Dam

2016-07-06 16:03:39

Don Sahong Dam - International Rivers

Save the Mekong Coalition

Send feedback on this profile
Sections
Banks Policies Dodgy Deals Campaigns
Our campaigns
Banks and Climate Banks and Human Rights Banks and Nature Banks and Pandemics
Our projects
Tracking the NZBA Banks and Putin's war in Ukraine Tracking the Equator Principles Tracking the PRBs Find a Better Bank Banks and the OECD Guidelines
Media
News Publications
Fossil Banks No Thanks StopEACOP Forests & Finance Banks & Biodiversity Drop JBS Bank of Coal Don't Buy into Occupation
BankTrack
About BankTrack Visit us Organisation Our team Our board Guiding principles Team up with us Jobs at BankTrack Our annual reports Funding and finances History BankTrack in the media Our privacy policy Donate
Successes Contact BankTrack
Vismarkt 15
6511 VJ Nijmegen
The Netherlands
Tel: +31 24 324 9220
Contact@banktrack.org
Donate Mailing list Facebook Twitter
©2022 BankTrack
BankTrack is a registered charity in the Netherlands (ANBI) - RSIN 813874658
Find our privacy policy here

Stay up to date

Sign up now for all BankTrack's news


Make a comment

Your comment will be reviewed, before being posted