Report: Economic, Environmental and Social Impacts of Hydropower Development in the Lower Mekong Basin

The Mekong River is the largest freshwater fishery in the world (estimated fish catch 2.1 to 2.5 million tons/year) and the third most bio-diverse river system (with approximately 800 fish species) after the Amazon and the Congo. However, this would change drastically if all proposed hydropower projects are constructed as fish migration routes would be blocked.

This paper focuses on potential economic consequences and is based on the Costanza report which in turn used much of the data, assumptions and projections reported in BDP2 and SEA. The main differences between the Costanza report and BDP2 were the estimated fish value, valuation of ecosystem services and discount rates for natural capital such as capture fisheries and wetlands.

Upper Paunglaung hydropower project opened in Sittang River valley

Myanmar’s 140-MW Upper Paunglaung hydropower project officially opened this week in a ceremony that included officials from the country’s Minsitry of Electric Power and President U Thein Sein.

Located in central Myanmar along the Paunglaung River, the $24 million plant will help meet the country’s demand for power, which is increasing about 15 percent per year. An estimated 50 percent of Myanmar has no access to the power grid.

The hydropower project includes a 1,700-foot long, 322-foothigh “roller-compacted” concrete dam that will impound a reservoir of more than a million acre-feet. It will generate 454 million KWH and the electricity generated will be transmitted through the national power grid.

South Korea and Laos agree to work on hydropower project

South Korean Prime Minister Hwang Kyo-Ahn and his Lao counterpart, Thongsing Thammavong, agreed Monday to work closely on a hydro-power project in the Southeast Asian country, a South Korean official said.

The two sides had planned to sign a deal on the development of Sepon III hydro-power plant at their meeting, though they failed to ink the deal due to differences.

The two sides remain at odds over which country will build a road leading up to the power plant, among other things.

Mekong Region: Asia’s New Growth Center and Strategic Frontier

The Mekong countries of Cambodia, Laos, Myanmar, Thailand, and Vietnam are emerging to be not only the new growth center but also a new strategic frontier in Asia.

With a population of around 240 million and a combined GDP of $664 billion, the Mekong region has geopolitical significance and economic weight. It is located at the junction of the enormous emerging markets of Asia and their combined population of about 3.3 billion.

Myanmar’s landmark election and the likelihood of a peaceful and smooth power transition have drawn more international attention and interest to the Mekong region as a whole. Myanmar is expected to be a key regional actor and now possibly a catalyst of regional peace, democracy, and development.

Stop Sesan Dam, Locals Tell Gov’t

More than 90 percent of people affected by the $800 million Lower Sesan II hydroelectricity project want the government to halt construction of the dam and the area turned into one of the world’s largest eco-tourism reserves, a survey released yesterday by the NGO Forum found.

One of the survey’s authors, Kem Ley, who is also a political analyst, said the compensation and resettlement process was inconsistent and lacked transparency and the whole project was undermined by the lack of community consultation from the beginning.

“About 93 percent of those affected demand the government cancel the construction project because they don’t want to lose their culture and their burial and spiritual lands,” he said.

Ghost town ‘forgotten’ in Chiang Khong border trade

The freshly painted welcome signs at Chiang Khong market are conspicuous, greeting visitors as they cross the border from Laos. Few arrive however, and behind the signs they see only shuttered shops and scattered clothing sellers.

The “new town”, as some business operators called it after the opening of the fourth Thai-Lao Friendship Bridge across the Mekong River in 2013, is now known as a ghost town by locals.
Once a bustling trade development area, the market located just a kilometre from the bridge, has been a flop and doesn’t seem to be able to attract tourists.

But there is a chance the market could be resurrected, after Prime Minister Prayut Chan-o-cha’s government announced Chiang Rai would be the location for the second phase of the Special Economic Zones, set to be launched this year.

The New Mekong: Changes And Expectations

The construction of mainstream dams on the Mekong River pose significant environmental and social impacts for riparian communities in Cambodia and Vietnam. Vietnam National Mekong Committee’s Mekong Delta Study – set to be released in December 2015 – preliminarily predicted that hydropower dams will eliminate approximately 50 percent of fish catches in the region, which poses food security, public health, and economic crises in both Cambodia and Vietnam.