The Government of the Lao PDR wishes to express its deep appreciation to the participants who took the time to attend the Symposium on Nam Theun 2, held on May 21, 2002, at the Lao Plaza Hotel, Vientiane (see Annex 6.1 for Invitation letter).
The meeting was attended by 179 participants including representatives from the international donor community and NGO's, members from the World Bank's International Advisory Group and the Government of the Lao PDR's Panel of Experts, international and local media as well as representatives from the National Assembly, various ministries and Government agencies, mass organisations and provinces and villages directly concerned by the project and from the investors' consortium (cf. Annex 6.3, List of Invitees and Annex 6.21, List of Participants).
The Symposium was organised by the Government of the Lao PDR in the framework of the "Roundtable process", which it launched in January 2000, for the purpose of creating an in-depth dialogue forum between the Government and its partners in development. The Roundtable process has since become a permanent forum for dialogue on national strategies and policies.
Participants received an important set of documentation, including the latest Detailed Project Presentation with colour maps and photos on environmental and social mitigation measures (July 2002) as well as the last 3 Expert Reports (January 2001, April 2001 and March 2002) of the International Environmental and Social Panel of Experts, respectively of the International Advisory Group on the World Bank's handling of social and environmental issues in the proposed Nam Theun 2 hydropower project in the Lao PDR as well as the
Report of the Dam Safety Panel of Experts (February 2000).
The Symposium was organised along three sessions (see Annex 6.2 - Agenda).
The Opening Session "Nam Theun 2 and the National Development Framework" was co-chaired by H.E. Mr. Somsavat Lengsavad, Deputy Prime Minister and Minister of Foreign Affairs and H.E. Mrs. Kari Nordheim-Larsen, Resident UN co-ordinator and Resident Representative of UNDP.
In a major political statement, the Deputy Prime Minister stressed the crucial importance of the Nam Theun 2 project both from a national and regional perspective. A cornerstone in the Lao PDR's development framework, this project is tapping into the existing national resource potential for the development of a resource base in view of poverty eradication and enhanced regional integration. The Project has been unanimously endorsed by the National Assembly during the Fifth Legislature, on April 11, 2002. The Deputy Prime Minister also stressed some of the main features of the national development framework, in support of the Nam Theun 2 project, namely environmental conservation and growth with equity.
In this respect, the Government's strong commitment to its reform programme, aiming at strengthened macro-economic management as a prerequisite for sustained growth, will prove, the Deputy Prime Minister insisted, a major factor for the project's success. Finally, the Deputy Prime Minister and Minister of Foreign Affairs pointed to various important support programmes such as the World Bank's Financial Management Adjustment Credit (FMAC) and the Financial Management Capacity Building Credit, the IMF's poverty reduction growth Facility (PRGF), and the ADB's Financial Sector Programme Loan (FSPL) 1, 2, and 3. He anticipated the Nam Theun 2 project's implementation as the first real possibility for the Lao PDR to reduce gradually its dependence on Official Development Assistance (ODA). The Deputy Prime Minister's Opening Statement is contained in Annex 6.4 of this Report.
H. E. Mr. Somsavat Lengsavad's Opening Statement was followed by the opening comments by H.E. Mrs Kari Nordheim-Larsen, Resident UN co-ordinator and Resident Representative of UNDP. The Resident UN co-ordinator stressed the significance of this meeting, in the wake of those already held on private sector development and welcomed the continuing availability of the Government to associate its partners to all development issues important for the country. The text of H.E. Mrs. Nordheim-Larsen's intervention can be
found in Annex 6.5.
After the Opening Session, the Symposium got to the heart of the matter, namely the Nam Theun 2 project's "Safeguard Policies and the Protection of the Lao PDR's Interests"; this second part of the Symposium, containing two sessions, was chaired by H.E. Mr. Soulivong Daravong, Minister of Industry and Handicrafts, and Vice-Chairman, Lao National Committee on Energy (LNCE).
The first session "Development and Safeguard Policies" was introduced by the Chairman, H.E. Mr. Soulivong Daravong who started by stressing that the symposium is a logical continuation of an unprecedented process of consultation that began a long time ago in order to involve stakeholders and partners in development in this vital undertaking, the Nam Theun 2 project.
He defined as the main purpose of this symposium to take stock of the situation and to show the tremendous efforts deployed throughout the years to prepare a state-of-the-art project, in view of ensuring the greatest possible success for the implementation of the Nam Theun 2 project. The project, he said, incorporates social and environmental assessments that are a model for major infrastructure projects.
He highlighted the fact that the symposium takes place at a decisive moment for the country's future. The Nam Theun 2 project is an essential part of the development framework, defined to achieve the country's 2020 goal, i.e. exiting the Group of LDCs. He reminded that the national development framework is firmly in place with the National Poverty Eradication Programme (NPEP) as a central piece of this framework, and that the reform programmes, in matters of public sector reforms, including public finance, the restructuring of the financial sector and the public enterprise reforms as well as the improvement of forestry management, and others, are well in place. A Poverty Eradication Fund has also been established to be funded by part of the project's revenues.
The Minister emphasised that private sector involvement is essential in the implementation of this project, based on the "BOOT" principle (meaning BUILD-OWNOPERATE- TRANSFER) - something that is in the country's best interest at its present state of development. He also reflected the generally accepted view of this project being considered as a model case for co-operation between Government and private sector.
In promoting a project of this magnitude, the Chairman said, the Government had taken every possible step to ensure that it is conceived, built and managed according to the latest state-of-the-art principles, out of the duty to the Lao population and in complete agreement with international concerns regarding the safeguarding of the world's environment and the need for sustainable human-centred development. In doing so, the Government of the Lao PDR has set new standards in mitigating social, environmental, resettlement and conservation problems and the participation/consultation process between the central government, provincial authorities, local communities, NGOs and other partners in development has been outstanding, and is recognised as unique.
To ensure the strictest possible monitoring according to the World Bank's guidelines in matters of dam building, the Minister specified, three internationally recognised, fully independent, expert panels are continuously scrutinising the entire process of the project development. These are an International Advisory Group, a Panel of Social and Environmental Experts as well as a Dam Safety Panel of Experts. The project's technical, financial and economic mastering represents a model case with regard to the design and implementation of safeguard policies and environmental conservation of the highest quality.
The Chairman insisted that today the Nam Theun 2 project is considered as an ideal project, since it will reinforce decisively the country's still very limited resource base, contribute markedly to the enhancement of sustainable economic growth conducive to poverty eradication, and the integration of the region. In a word, he said, the Nam Theun 2 project epitomises the very essence of the country's development efforts - in perfect harmony with the Millennium Development Goals.
The Minister concluded by stressing that the Government of the Lao PDR has gone to great lengths to satisfy and accommodate many requirements and concerns raised by its partners in development. The time has thus come, he mentioned, to make the point, on the basis of what has already been achieved by the Government and its partner NTEC, in order to proceed further with the project so that the Lao PDR can honour its commitments regarding the commissioning of electricity exports to Thailand by the year 2008.
There is a need for the Government, he reminded the participants, to have certainty and predictability in its partnerships with private investors, with other governments of the region as well as with its development partners as a sound basis for continued growth, including that of foreign investment. Finally, he restated the Government of the Lao PDR intimate conviction that the implementation of the Nam Theun 2 project will markedly contribute to the strengthening of co-operation and integration in the region, and answer the expectations of harmonious regional development - a project based on a comprehensive development framework, where resource development, growth with equity and environmental conservation are the most conspicuous features of the Lao PDR's approach to poverty eradication. See Annex 6.6 for the Chairman's presentation.
The Chairman's presentation was followed by a Synoptic presentation of the main technical and economic features of the Nam Theun 2 project. This presentation was made by Dr. Somboune Manolom, Chief of Cabinet, Ministry of Industry and Handicrafts (MIH) and Chairman of the Co-ordinating Committee for the Development of Electric Power (CDEP) in the Lao PDR (cf. Annex 6.7 for complete set of Dr. Soumboun's slide show). Dr. Somboune's comprehensive presentation of the project's main technical and economic features was followed by a Presentation of Social and Environmental Issues involved in the project, made by H.E. Mr. Noulinh Sinbandhit, Vice-president of the Lao Science, Technology and Environment Agency (STEA). STEA's vice-president stressed the various documents and studies addressing these issues, namely the "Social Development Plan and the "Environmental Assessment and Management Plan (EAMP)" - both documents are constantly up-dated, in particular the "Ethnic Minorities Development Plan" and the "Resettlement Action Plan" which are part of the Social Development Plan. A new revision of the EAMP will be released in September 2002 (cf. Annex 6.8 for complete text of this presentation).
After the Coffee/Tea break, several experts as well as the World Bank's Project Director made concise interventions in order to complete the presentation of relevant information and so to ensure a meaningful discussion on development and safeguard Policies. Professor Lee Talbot from the Panel of Experts analysed the main social and environmental impacts, while Dr David McDowell from the International Advisory Group gave an overview of project impacts with emphasis on Xe Bang Fai. The text of these two interventions are contained in Annexes 6.9 and 6.10.
Mr. Jayashankar Shivakumar, Project Director, from the World Bank (WB) traced the World Bank's involvement in this project since 1988, presented a very favourable project appreciation with respect to its size, efficiency, equity, innovation, synergy and opportunity aspects, outlined the basic conditions for a possible Bank support for this project (cf. Annex 6.11 -'World Bank Involvement, past, present and future' and Annex 6.17 - 'Decision Framework for Processing the Proposed Nam Theun 2 Project').
After these interventions, a lively and very emphatic discussion took place, whose main elements are summarised in Chapter 3 of this Report.
After lunch, the second session of the second part of the Symposium was devoted to
issues linked to "Protecting the Lao PDR's Interests".
Presentations by Mr. Xaypaseuth Phomsoupha, Vice-chairman of the CEDP and Chief of the Secretariat of the LNCE on the protection of the Government's Interests via the NT2's Concession Agreement (CA) and Power Purchasing Agreement (PPA) - see Annex 6.15 - and by Mr. Paul Cargill, Solicitor, on some important details of the Concession Agreement - see Annex 6.16 - lead to another round of discussion and questions and answers period, whose essence is captured in the next chapter of this Report.
At 4.30 pm, the Chairman, H.E. Soulivong Daravong, Minister of Industry and Handicrafts, "captured the momentum" by summarising the symposium's main lessons. He expressed his satisfaction with a very enriching and promising day, and conveyed the Government's sincere gratitude to all participants for their active and open participation. He stressed that through the Nam Theun 2 development several partnerships of strategic importance have emerged such as a regional partnership, exemplifying in particular the Lao- Thai partnership in the power sector; a remarkable partnership with the private sector, lead by Electricité de France, cemented over the whole 12-year development process; a partnership with the donor community, as well as a partnership, ensured through an exemplary and unprecedented public consultation and participation process, within the country and with all people affected by the project implementation.
He mentioned the broad agreements that, according to him, have been reached during the debates: on the outstanding intrinsic qualities of the project; the extremely high standards that have been set for its implementation for the benefit of the country and the population and the region; the exemplary mitigation process for the social and environmental issues; the guaranties for a vastly improved livelihood for the 800 families that will be affected; the convincing development framework of which this project is an integral part in views of the achievement of the Lao PDR's 2020 goal.
The Chairman also reiterated the Government's total embracement of the international concerns regarding the safeguarding of the world's environment and the need for sustainable human development - which led, he said, to the Government's wish to set new standards in these fields and which meant that the project is considered a model case of its kind.
Finally, before closing the meeting, he indicated that other meetings, nationally and internationally will follow, in order to show that the Government wishes to "associate as many constituencies as possible to this fundamental endeavour for our country in order to show that the Lao PDR is extremely responsible in all its development undertakings".
For complete text of Concluding Remarks "Capturing the Momentum" by the Symposium's Chairman please refer to Annex 6.18.
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