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In 1996, Margules, Groome and Pöyry wrote a "Forestry Report" for the Nam Theun 2 project. In this report they described the development of timber industry (sawmills etc), largely fed by logging from the reservoir area of the proposed dam. Does this timber industry still exist, and if so from where does it currently source its timber?
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We do not know the details of processing associated with logs that may have their origin in the project site, but we are aware of the GP report -- the general concerns it raises have been addressed by the Bank in its forest policy dialogue with Lao PDR. We did look at the GP report in the context of preparing the Forest Policy study in 2000/1 (see link below - pages 15-16) and raised in our report the risk that investors would "pressure the Government of Lao PDR" for wood at the expense of sustainable management. Elsewhere in our report, the Bank addressed generally the problems of revenue mobilization from forestry (pp 23-28). This has been followed up in the Sustainable Forestry for Rural Development (SUFORD) Project by including a sector monitoring component which is intended to establish business-like processes regarding timber sales.
Download the Forest Policy Study
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