NT2 Questions 1.1

Has the World Bank made a decision to support the Nam Theun 2 project? What criteria has the Bank used to inform its decision-making about the project?

The Executive Directors of the International Development Association (IDA) and the Board of Directors of the Multilateral Investment Guarantee Agency (MIGA) approved World Bank Group support for Nam Theun 2 on March 31, 2005. In accordance with the Bank’s "Decision Framework" -- agreed to with the Lao government -- the project was presented to the World Bank’s Board of Executive Directors only after an extensive due-diligence process, when Bank staff were satisfied that sufficient progress had been made to ensure that the project:

1. Is embedded in a development framework, characterized by concrete performance, that aims to reduce poverty and protect the environment.

2. Is technically, economically, and financially sound and adhere to the Bank’s safeguard policies.

3. Has greater understanding and wider support within the international donor community and global and local civil society.

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