Friday, January 18, 2013

Vietnam and Cambodia tell Laos to stop $3.5bn Mekong River dam project

Vietnam and Cambodia tell Laos to stop $3.5bn Mekong River dam project
Food security issues lead to disagreement over concerns that dam will
hit livelihood of tens of millions
Reuters, The Guardian, Friday 18 January 2013 07.50 EST

Vietnam urged Laos to halt construction of a $3.5bn (£2.2bn) hydropower
dam on Mekong River pending further study, environmental activists said
on Friday.

Cambodia, downriver from the Xayaburi dam, accused Laos of failing to
consult on the project, activists said. The Mekong River commission
(MRC), made up of member states Vietnam, Cambodia, Laos and Thailand,
held a three-day meeting in northern Laos to discuss river development

The dam in northern Laos, the first of 11 planned for the lower Mekong
River running through south-east Asia, threatens the livelihood of tens
of millions who depend on the river's aquatic resources, activists say.

"Vietnam requested that no further developments on the Mekong mainstream
occur until the ... dams study agreed upon at least year's council
meeting is completed," International Rivers, an NGO devoted to river
conservation, said in a statement.

"The Cambodian delegation asserted that Laos had misinterpreted the
Mekong agreement." Officials from Cambodia and Vietnam were not
available for comment.

The MRC is bound by treaty to hold inter-governmental consultations
before dams are built. But members have no veto.

"In the absence of an agreement, other countries can disagree if they
like but this can't stop Laos," said Jian-hua Meng, a specialist in
sustainable hydropower at the World Wildlife Fund. "The role of the MRC
is now being questioned along with the level of investment put in the

In December 2011, MRC member states agreed to conduct new environmental
impact assessments before construction proceeded, but last August Ch
Karnchang PCL, the Thai construction company behind the project, said it
had resumed work.

A groundbreaking ceremony in November signalled the formal start of
construction, said Meng.

Ch Karnchang's 50%-owned subsidiary, Xayaburi Power Co, has received a
29-year concession from the Laotian government to operate the dam's
power plant and Thailand is set to buy 95% of the electricity generated.

Milton Osborne of the Lowy Institute, an Australian foreign policy
thinktank, said Xayaburi marked a turning-point that would enable others
to build their own dams, including Cambodia.

He described as a "monstrous disaster" a proposal for a Chinese power
company to build a dam at Sambor in northeastern Cambodia, on a
tributary of the Mekong. "It would be so disastrous, blocking one of the
main fish migratory systems," he said.

Laos, Thailand, Vietnam and Cambodia share the lower stretches of the
2,500-mile (4,000km ) Mekong. Activists say dams could threaten food
security in Cambodia and Vietnam.

The river provides up to 80% of the animal protein consumed in Cambodia
and sediment and changes to river flow threaten the Mekong Delta, which
contributes half of Vietnam's agricultural GDP.

Cambodia approved its own hydroelectric dams in November.

A second Cambodian project, the Lower Sesan dam in northern Stung Treng
province, is a joint venture between Cambodian, Chinese and Vietnamese
companies. Campaigners say it would reduce the fish catch in a country
with malnutrition issues.

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