Main highlights from the update

Main highlights from the July 2008 Nam Theun 2 World Bank Update include:

• Construction activities are on track for the project to begin generating electricity in December 2009. Spillway gates at the Nakai dam were closed on August 7.
• Tunnel diverting the water away from the reservoir closed in April and gates of the dam will close imminently, allowing the reservoir to form.
• Resettlement of 6,200 people in Nakai is completed with villagers living in their new and improved houses, with safe and reliable water supply, electricity, roads and schools.
• Livelihood programs in Nakai aim to allow villagers to double their income in five years. Activities are focused on agriculture, forestry, fishing in the reservoir, livestock grazing and off-farm.
• 86 percent of standing vegetation of the 80 kilometer square area of the reservoir that will be permanently filled with water has been cleared allowing for improved navigation for resettlers. While this clearance contributes to improving water quality, other globally recognized measures to improve water quality have been taken including increasing aeration, adjusting the intake structure design and flushing water out of the dam after the initial filling.
• Protection of wildlife in the areas of the reservoir and the Nakai Plateau is ongoing with wildlife patrols and rescue teams in place as well as elephant management and turtle conservation programs.
• Cash and land compensation payments have been largely completed to those households losing land for project construction, except on cases where grievances have been reported which are being solved.
• Villagers along the Xe Bang Fai are being provided with infrastructure for safe water supply and sanitation, while also developing new livelihood opportunities ahead of time, to prepare them for potential fish losses in the river beginning in December 2009.
• Villagers downstream of the Nam Theun are being closely monitored to ensure prospective cases of protein deficiency are resolved, while also taking part in alternative livelihood programs in case of impacts due to reduced flow in the river.
• The work in protecting and conserving the Nakai-Nam Theun Protected Area continues to make progress on law enforcement, halting illegal logging, poaching and small-scale mining activities, while also achieving the right balance between the livelihoods of people in the area and conservation activities.
• Project continues to be managed openly and transparently, with project documents available to the public, numerous site visits taking place by interested people and high-level of project monitoring by various experts and agencies.
• Government progress on public financial management and revenue management also continues, as eligible programs are assessed to ensure project revenues are destined for poverty reduction and environmental protection programs.