Nam Theun II Hydropower Project

If built, the project would include a 50 meter high dam on the Theun River, a major Mekong Tributary, with an installed generating capacity of 1070 megawatts (MW). Water from the Theun would be stored in a 450 square kilometer reservoir on the Nakai Plateau and diverted to a powerhouse, before being discharged into another Mekong tributary, the Xe Bang Fai. Both the World Bank and the Asian Development Bank (ADB) are considering providing funding to this project.

The objectives of the project are to: 1) generate long-term net revenues and foreign exchange for the Government of Laos; 2) encourage the use of those revenues in support of economic growth and poverty alleviation; 3) fulfill the Government of Laos’ commitment to supply Thailand with 3000 MW of electricity by 2006; and 4) link hydropower development with environmental and social objectives.

Work has begun on the access tunnel which will be used to excavate the pressure tunnel and pressure shaft between the reservoir and power station.

Although the project has not been built, it has already caused significant environmental destruction, as the military-run logging company has logged more than one million cubic meters of timber on the Nakai Plateau to clear the reservoir area. The project is expected to displace 4,500 indigenous people and severely impact the Xe Bang Fai river on which over 120,000 people depend for all or part of their livelihood. The economic viability of the project is highly questionable as 90 percent of the power will be sold to Thailand, whose generating capacity is currently 43 percent more than peak demand and likely will not need the additional electricity.

Official Documents

Technical Assistance to the Lao People’s Democratic Republic for Preparing the Greater Mekong Subregion: Nam Theun 2 Hydropower Development Project, ADB, November 2003 (ADB website)
Lao Aide Memoire of Communications Mission: Communications and Nam Theun 2: Transparency, Ease of Access, Interaction, World Bank, September 2, 2002 (World Bank website)
Lao PDR, World Bank Mission, Aide Memoire, World Bank Mission on Nam Theun 2, April 1, 2002 (World Bank website)
Nam Theun 2: Presentation by the World Bank Team, Ian Porter, J.Shivakumar, World Bank, August 23, 2001 (World Bank website)
A series of environmental assessments are available on the World Bank’s website

Civil Society Analysis

An Analysis of Nam Theun 2 Compliance with World Commission on Dams Guidelines, by Aviva Imhof, International Rivers Network, May 2001 (IRN website)

Useful Webpages

International Rivers Network’s webpage on Nam Theun 2

World Bank- Robert Anton Mertz, Bank Team leader
1818 H Street, NW room H 9-101
Washington, DC 20433
Tel: +1-202-473-2603, rmertz@worldbank.org

World Bank- Ian C. Porter, Country Director (Thailand)
World Bank Office, Bangkok
14th Floor, Diethelm Tower A
93/1 Wireless Road
Bangkok 10330, Thailand
Tel: +662-577-8311, iporter@worldbank.org

ADB- Rajat Nag, Director General of Mekong Department
6 ADB Avenue,
0401 Mandaluyong City, Philippines
Tel: 632-632-5743, rnag@adb.org

ADB- John Cooney, Mekong Department, Infrastructure Division, Director
Tel: 632-632-6223,
jcooney@adb.org

NGO Contacts

Environmental Defense – Shannon Lawrence
Tel: +1-202-387-3500 ext. 3369
www.environmentaldefense.org

International Rivers Network – Aviva Imhof
Tel: +1-510-848-1155 ext. 312
www.irn.org

Probe International – Gráinne Ryder, Policy Director
Tel: +1-416-964-9223 ext. 228
www.probeinternational.org