BANKS DODGY DEALS CAMPAIGNS
Sections
Banks Dodgy Deals Campaigns
Our campaigns
Banks and Climate
Banks and Human Rights
Banks and Nature
Our projects
Tracking the NZBA
Banks and Russia
Banks and Steel
Tracking the Equator Principles
Tracking the PRBs
Find a Better Bank
Banks and the OECD Guidelines
Media
News Publications
Raiffeisen Out! Bank.Green End Coal Finance Plastic Banks Tracker Defund TotalEnergies Financial Exclusions Tracker Equator-Complaints.Org Don't Buy into Occupation Banks & Biodiversity Forests & Finance Drop JBS StopEACOP Fossil-Free Finance
BankTrack
About BankTrack Organisation Our team Our board Our annual reports Funding and finances Guiding principles Our history BankTrack in the media Team up with us Our privacy policy Donate Visit us
Successes Contact BankTrack
Donate Mailing list Facebook Twitter Linkedin Login
Home › Dodgy Deals ›
Dodgy Deal
Theun-Hinboun dam expansionLaos

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date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

Aviva Imhof, International Rivers, United States
Tania Lee, International Rivers

Last update: 2015-11-01 14:53:10

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date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

Aviva Imhof, International Rivers, United States
Tania Lee, International Rivers

Last update: 2015-11-01 14:53:10
Why this profile?

What must happen

The Theun-Hinboun Power Company is moving forward in the implementation of ‘relocating' villagers away from the river bank with limited public disclosure of the process, and no independent monitoring system in place. Despite promises in the Concession Agreement to set up a panel of experts to monitor a wide range of environmental and social implications of the THXP, and provide specific recommendations for remedial action as needed, the company has delayed the development of such a panel and failed to make any information about progress on this process public.

The international banks financing this project, including KBC, ANZ and BNP Paribas, should work with the Company to bring the Theun-Hinboun Expansion Project into compliance with the standards outlined in the World Commission on Dams, as well as ADB and World Bank safeguard policies, including in relation to independent monitoring. An independent Panel of Experts with the freedom to look into social and environmental issues related to the project will be key to bringing a level of transparency to the situation of affected communities and ecosystems, while holding the company accountable to proactively address concerns of affected villagers.

About
Sectors Hydroelectric Power Generation
Location
This project has been identified as an Equator Project

The US$585.5 million Theun-Hinboun Expansion 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. Over 7500 people have been displaced to make way for this project. In addition, the dam is now affecting the livelihoods of tens of thousands more people living downstream. Due to increased flooding and fluctuations of the Hinboun River, thousands of villagers are being moved away from the river with minimal support from the company over the duration of 2013-2017. Social programs to adequately support the restoration of these villagers' livelihoods remain unclear, particularly in terms of food security and economic well-being. All have seen a decimation of the fish stocks they once relied upon, as well as losses incurred for crops once grown near the riverbanks, including vegetables and paddy rice. There are no clear plans publicly available outlining the schedules for villages to be moved or providing information about how people will be able to grow sufficient food for their families at the new sites.

The original investment by the Theun Hinboun Hydropower Company to build the Theun Hinboun Hydropower Project, which was completed in 1998, resulted in serious impacts 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 access to clean drinking water as a result of the dam.

Impacts

Social and human rights impacts

The Theun-Hinboun Expansion Project is leading to the displacement of over 7,500 mostly ethnic minority people and negatively affecting 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 is exacerbating the problems faced by villagers downstream who have relied on subsistence farming and gathering forest foods.

Failure to Provide Adequate Livelihood Support for Displaced People
A fundamental problem with the THXP is the lack of adequate and productive replacement land for the displaced villagers. People from villages that have been inundated have been moved into host communities where land and resources are already scarce. The consequent increase in the population in the host villages is already leading to fierce competition over natural resources, and social tensions. A second, but equally significant, problem is the inadequacy of the livelihood restoration measures currently being implemented, which consist of unproven, under-funded experiments in small scale market-oriented farming, livestock raising and artificial fish ponds.

Devastating Downstream Impacts
Theun Hinboun Expansion Project's  impacts on the Nam Hai and the Nam Hinboun are severe as the project doubles water releases into these recipient rivers. The project significantly increases the frequency and duration of flooding along the Nam Hai and Nam Hinboun, is expected to lead to even greater erosion along the riverbanks. Fisheries in the Hinboun River, which have already been severely impacted by the original Theun Hinboun Hydropower Project, are expected to be further decimated. 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. There is in fact no certainty how many people in which villages downstream will be required to relocate as a result of the aggravated flooding, whether there is sufficient land available, and if not, where people will move.

The result of THXP will be even greater food insecurity amongst people who  are already suffering as a result of the existing Theun-Hinboun project, making life unbearable for many Hai and Hinboun residents. Now, many young people in the downstream villages say they believe that the only sustainable future is one in which they migrate to nearby towns in order to earn cash incomes to raise their own family and support the older generation.

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.


Environmental and climate impacts

The Theun-Hinboun Expansion Project mitigation plans underestimate the risks to fish stocks downstream of the project in the Theun-Kading River and the Hai and Hinboun rivers. Baseline studies of fisheries have never been done, and as displaced villagers are attesting, artificial fish ponds do not offer the kind of food security as wild fisheries catches once did. 

At the site of the reservoir, a section of the surrounding forest area has been designated as a new national protected area. However, given the increased access to the area created by the construction process and road development, conservation of the forests remains in question.

Financiers
Institution type
Finance type
Year

Click here to read the press release of the Exim Bank of Thailand October 8th, 2008.

Click here for more information about the financial structure of the project.

Companies

Cavico

Vietnam
Website

GMS Power

Thailand
Website

Norplan

Norway
Website

PB Power

United States
Website

Statkraft

Norway
Website

Sweco

Sweden
Website
No companies
News
BankTrack
Partners
Blog
External
Blog
BankTrack news BankTrack blog Partner news Partner blog

Lao Dam Commences Operation Amidst Controversy

Thousands of Villagers Living in Hinboun Valley Face an Uncertain Future
2013-01-10 | Vientiane, Laos | International Rivers
BankTrack news BankTrack blog Partner news Partner blog

Theun Hinboun expansion project marks breakthrough

2010-11-23 | Laos | Phonsavanh Vongsay
BankTrack news BankTrack blog Partner news Partner blog

Villages make way for new hydro project

2010-08-05 | Vientiane
BankTrack news BankTrack blog Partner news Partner blog

The Forgotten Downstream Victims of Large Dams

2010-06-18 | The Huffington Post
BankTrack news BankTrack blog Partner news Partner blog

Laos Plans First Overseas Bonds to Fund Power Plants

2010-05-19 | Bloomberg
BankTrack news BankTrack blog Partner news Partner blog

Greenwashing Hydropower: The Problems with Big Dams

2010-02-01 | World Watch magazine
Blog
BankTrack news BankTrack blog Partner news Partner blog

Theun Hinboun hydropower plant expansion progresses

2009-12-08 | Vientiane, Laos | International Rivers
Blog
BankTrack news BankTrack blog Partner news Partner blog

Banks must prove they give a dam

By Mark Zirnsak, Sydney Morning Herald
2009-11-27 | Australia | International Rivers
BankTrack news BankTrack blog Partner news Partner blog

Banks must prove they give a dam

2009-11-27 | The Age, BusinessDay
Blog
BankTrack news BankTrack blog Partner news Partner blog

"Sustainable Finance" undermines food security of Lao communities

ANZ, BNP Paribas and KBC investment in Theun-Hinboun dam violates Equator Principles and Lao law
2009-11-17 | Laos | International Rivers
BankTrack news BankTrack blog Partner news Partner blog

Must be forced to move 4000 indigenous

2009-11-13 | (English translation with Google-translate of Norwegian article) | Tekniskukeblad
Blog
BankTrack news BankTrack blog Partner news Partner blog

Må tvangsflytte 4000 urfolk

Statkrafts vannkraftprosjekt i Laos vil få alvorlige følger for over 50 000 mennesker, og 4000 urfolk blir tvangsflyttet, ifølge internasjonale organisasjoner.
2009-11-13 | Norway | International Rivers
Resources
Documents
Images
Videos
Links
2014-06-27 00:00:00

Failure to Restore: An Assessment of the Impacts of the Theun-Hinboun Hydropower Dam Projects on Downstream Communities in Laos

NGO document
2014-06-27 00:00:00 | International Rivers
2013-11-12 00:00:00

Letter from BankTrack et al to THXP on panel of experts, 2nd letter

Correspondence
2013-11-12 00:00:00 | BankTrack et al
2010-11-06 00:00:00

Voluntary approach will not resolve dam conflicts

NGO document
2010-11-06 00:00:00 | International rivers
2010-09-27 00:00:00

Theun Hinboun Power Company's Grievance Procedure

Company document
2010-09-27 00:00:00 | THPC
2010-09-27 00:00:00

THPC's complaint form

Company document
2010-09-27 00:00:00 | THPC
2010-09-27 00:00:00

THPC's Complaint Policy

Company document
2010-09-27 00:00:00 | THPC
2010-09-04 00:00:00

Trip report to THXP by United Church of Australia, August 2010

NGO document
2010-09-04 00:00:00 | United Church of Australia
2010-08-01 00:00:00

Protecting rivers and rights: Ten years after the World Commission on Dams report

Other document
2010-08-01 00:00:00 | International Rivers et. al.
2010-08-01 00:00:00

Protecting rivers and rights: ten years after the World Commission on Dams report

NGO document
2010-08-01 00:00:00 | International Rivers et.al
2009-12-21 00:00:00

THPC response to International Rivers and BankTracks report October 2009

Correspondence
2009-12-21 00:00:00 | Theun Hinboun Power Company
2009-12-21 00:00:00

THPC response to "Expanding Failure"

Company document
2009-12-21 00:00:00 | Theun Hinboun Power Company
2009-12-09 00:00:00

Three development finance institutions join the Theun Hinboun Expansion project (Lao PDR)

Company document
2009-12-09 00:00:00 | Theun Hinboun Power Company
2009-12-01 00:00:00

PFI chapter on THXP

Other document
2009-12-01 00:00:00 | Project Finance International
2009-12-01 00:00:00

Theun-Hinboun dam expansion project

Key findings site trip International Rivers November 2009
NGO document
2009-12-01 00:00:00 | International Rivers
2009-10-05 00:00:00

Expanding Failure

An assessment of the Theun-Hinboun Hydropower Expansion Project’s compliance with Equator Principles and Lao law
BankTrack publication
2009-10-05 00:00:00 | International Rivers, BankTrack
2009-06-02 00:00:00

Cavico to build tunnel for Laos' 280-MW Theun-Hinboun Expansion

Other document
2009-06-02 00:00:00 | Hydro Review
2008-10-08 00:00:00

EXIM Thailand Extends Syndicated Loan with Seven Thai and Foreign Banks to Lao PDR’s Theun-Hinboun Hydropower Extension Project

Other document
2008-10-08 00:00:00 | EXIM thailand
2008-09-20 00:00:00

Power Surge: The Impacts of Rapid Dam Development in Laos

NGO document
2008-09-20 00:00:00 | International Rivers
2008-04-30 00:00:00

Executive Summary of EIA and EMMP

Company document
2008-04-30 00:00:00 | THPC
2008-04-30 00:00:00

Final EIA

Company document
2008-04-30 00:00:00 | THPC
2008-04-17 00:00:00

Review of Resettlement Action Plan for Theun-Hinboun Expansion Project

NGO document
2008-04-17 00:00:00 | International Rivers
2008-04-17 00:00:00

Review of Environmental Impact Assessment for Theun-Hinboun Expansion Project

Other document
2008-04-17 00:00:00 | David J.H. Blake, International Rivers
2007-11-23 00:00:00

Ruined Rivers, Damaged Lives

NGO document
2007-11-23 00:00:00 | FIVAS

Theun-Hinboun Expansion Project - Laos

2009-03-23
Various pictures

Laos - Theun River Basin

2009-03-18
Map of Nam Theun 2 and Theun-Hinboun Expansion Projects

G: Interview downstream Theun Hinboun river

subtitled interview downstream Theun Hinboun river, May 2009, Laos
2009-11-12 10:11:54

F: Interview village in project land

subtitled interview village in project land, May 2009, Laos
2009-11-12 10:10:21

E: Interview village 2 downstream Theun Hinboun river

subtitled interview village 2 downstream Theun Hinboun river, May 2009, Laos
2009-11-12 10:08:54

D: Interview village downstream Theun Hinboun river

Subtitled interview village downstream Theun Hinboun river, May 2009, Laos
2009-11-12 10:07:03

C: Interview Resettled village part 2

Subtitled interview resettled village part 2, May 2009, Laos
2009-11-12 10:04:15

H: Extra footage project site THXP

Additional footage about project site THXP, May 2009, Laos
2009-11-12 10:00:27

I: Extra footage THHP

Additional footage about THHP, May 2009, Laos
2009-11-12 09:57:51

J: Extra footage different uses of the river

Additional footage about different uses of the river, May 2009, Laos
2009-11-12 09:55:54

K: Extra footage the Theun Hinboun river

Additional footage about the Theun Hinboun river, May 2009, Laos
2009-11-12 09:50:53

L: Extra footage village life

Additional footage about village life, May 2009, Laos
2009-11-12 09:48:27

M: Extra footage fishing

Additional footage about fishing, May 2009, Laos
2009-11-12 09:46:24

N: Extra footage growing rice

Additional footage about growing rice, May 2009, Laos
2009-11-12 09:43:18

O: Extra footage processing rice

Additional footage about processing rice, May 2009, Laos
2009-11-12 09:41:35

B: Interview Resettled village part 1

Subtitled interview resettled village part one, May 2009, Laos
2009-11-12 09:33:44

A: Still waters, deep trouble; how Equator bank commitments sink in Lao dams

This video shows how the Theun Hinboun Expansion Project in Laos is threatening the livelihoods of more than 50.000 local people.
2009-11-11 10:34:03

International Rivers Theun-Hinboun page

Power Surge: The Impacts of Rapid Dam Development in Laos

This report of International Rivers chronicles the social and environmental debt created by the dam-building boom in Laos.

Save the Mekong

The Save the Mekong coalition is a network formed of local and international groups and ordinary people who all share a concern about the future of the Mekong River.

The Theun Hinboun Power Company

Updates

2013

2013-01-14 00:00:00 | Latest update

The Theun Hinboun Power Company (THPC) commenced operation of the Expansion Project on 10th January, jeopardizing the livelihoods of tens of thousands of people. The project, consisting of a new dam on the Nam Ngouang River and the doubling of capacity at the existing Theun-Hinboun powerhouse, will double the amount of water being diverted into the Hai and Hinboun Rivers, causing extensive flooding and other impacts. 

The Theun-Hinboun Expansion Project will exacerbate the effects of the first dam and force many people living downstream along the Hai and Hinboun Rivers to move to new relocation sites away from the river. For many villagers, this will make living off the land increasingly impossible. Already several villages have been relocated to new sites downstream and interviews with these villagers reveal that people are worried about how they will grow rice and feed their families in the future. Land shortages abound and many villagers have been given poor quality land that cannot sustain rice cultivation. Thousands more people are expected to be relocated in the coming five years due to project-induced flooding. According to Lao laws, these villagers have the legal right to know when and where they will be moved. However, there are no clear plans publicly available outlining these details or providing information about how people will be able to grow sufficient food for their families at the new sites.

2009

2009-12-14 00:00:00 | Latest update

Financial close was achieved on October 10, 2008 after which construction started. The filling of the reservoir is planned to start in 2011, the Commercial Operation Date (COD) for the Nam Gnouang power plant is set for 2012. In 2009 the first villages around the reservoir area were moved to new resettlement sites.

In May 2009 BankTrack and International Rivers conducted a fieldtrip to the region. The results of this report are summarised in the report 'Expanding failure' and indicate that the Theun Hinboun Expansion Project is not in compliance with the Equator Principles and Lao national law.

On November 12, 2009, the Theun Hinboun Power Company (THPC) signed new loan commitments valued at US$112,5 million with 3 Development Finance Institutions, proparco of France, FMO of the Netherlands, and DEG of Germany (together the DFIs). The loans will fund the Theun Hinboun Expansion Project, joining into the existing US$600 million finance plan approved in October 2008.

On December 7, 2009, the Theun-Hinboun Power Company (THPC) started diverting the Nam Ngouang River to block the waterway for the construction of the dam. The diversion will direct water through a tunnel before it re-connects about 300 metres further on in Thasala village. The diversion is part of construction work and marks a new stage in the project.

Send feedback on this profile
Sections
Banks Dodgy Deals Campaigns
Our campaigns
Banks and Climate Banks and Human Rights Banks and Nature
Our projects
Tracking the NZBA Banks and Russia Banks and Steel Tracking the Equator Principles Tracking the PRBs Find a Better Bank Banks and the OECD Guidelines
Media
News Publications
Raiffeisen Out! Bank.Green End Coal Finance Plastic Banks Tracker Defund TotalEnergies Financial Exclusions Tracker Equator-Complaints.Org Don't Buy into Occupation Banks & Biodiversity Forests & Finance Drop JBS StopEACOP Fossil-Free Finance
BankTrack
About BankTrack Organisation Our team Our board Our annual reports Funding and finances Guiding principles Our history BankTrack in the media Team up with us Our privacy policy Donate Visit us
Successes Contact BankTrack
Vismarkt 15
6511 VJ Nijmegen
The Netherlands
Contact@banktrack.org
Donate Mailing list Facebook Twitter Linkedin
©2023 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