Mekong transboundary impacts addressed amid growing concerns about Sanakham dam’s impacts

Thailand’s Deputy PM Gen Prawit Wongsuwan has officially addressed the issue this week at the high-level meeting of the regional river governing body, Mekong River Commission, as the regional stakeholders forum was almost simultaneously told of potential adverse impacts from the latest Lower Mekong dam project, Sanakham

Thailand’s Deputy PM Gen Prawit Wongsuwan addressed transboundary impacts in his speech delivered during the virtual 27^th MRC Council conference, held simultaneously across the four Mekong countries on Thursday.

His point has just resonated with the state’s concerns about Vietnam’s impact during the first Xayaburi dam project almost ten years ago.

Transboundary impacts by hydropower development in the Lower Mekong are generally feared and made vocal by civil organisations.

Deputy PM Gen Prawit said Thailand stands ready to support the efforts to keep the balance between economic development and the health of the environment and people’s livelihoods following the vision of the Mekong countries and the organization of MRC set for the next ten years, especially when rapid river development over the years have resulted in changes in the river including water fluctuations, which have affected people’s livelihoods.

Thailand is also aware of the need for cooperation among member countries and other development partners to promote partnership for sustainable development in the Mekong Basin.

“It also supports benefit sharing from equal and fair use and access to water resources, and last but not least is the wish to “mitigate transboundary impacts” through good river governance and dialogues based on the principle of One Mekong, One Spirit,” said Deputy PM Gen Prawit.

Sanakham’s challenge

The council meeting came amid heightened pressure from the progress of the sixth dam project on the Lower Mekong, at Sanakham.

Developed by Datang (Lao) Sanakham Hydropower Company, a subsidiary of China’s Datang International Power Generation Co. Ltd., with an estimated cost of around US$2.073 billion, the 684 MW dam is located near the Thai-Lao border, only about 2 km away.

According to the MRC, the project is expected to begin in 2020 and finish in 2028. The electricity it generates is set for export to Thailand.

The Lao government submitted the project for formal prior consultation under the MRC’s Procedures for Notification, Prior Consultation and Agreement (PNPCA) in September last year, shortly after the fifth project in Luang Prabang, further upstream in Luang Prabang Province of Lao PDR, a World Heritage Site.

Its prior consultation process began in late July, following the COVID-19-related delay and Luang Prabang’s prior consultation procedures.

Dr Somkiat Prajamwong, Secretary General of Thailand’s National Water Resources Office and chair of the MRC’s Joint Committee, comprising senior water resources officials from the member countries, said the member countries are expected to hold national stakeholder forums to gather views on the project in accordance with established procedures. Still, Thailand has not yet held any such meeting, as it requires additional information from the project developers to accompany the consultations.

The country is particularly concerned about likely changes of landscapes caused by the project, which would be located on a river bend. This would critically cause severe erosion and affect the thalweg in the river, which forms the border between the two countries. So, it wishes to hear more about the issue before bringing it to the consultation forums, he said.

That, he said, would mean there would be no limited six-month consultation timeframe for the Sanakham project, unlike previous projects. If the project developer and Lao PDR proceed with the project and cause impacts, Thailand would consider enforcing specific articles of the Mekong Agreement that require reparation and rehabilitation for the affected parties, marking the first time such measures are applied.

Meanwhile, it had proposed a condition that hydropower development in the Mekong should not harm the environment or people’s livelihoods, as part of future electricity purchase agreements to be added to the draft MRC Hydropower Development Strategic Plan, planned for submission to the MRC Council for consideration. However, the proposal was opposed by some member countries and was withdrawn from the schedule for further reviews and consultations at the last minute, according to the source.

“It’ s a simple logic, any development projects should not pose harm or cause impacts on others. The Mekong Agreement’s articles (8,9) also address about this clearly although some would say the projects are under their sovereignty,” said Dr. Somkiat.

Stakeholders forum

The MRC has organised the regional stakeholders forum for the Sanakham project, even though member countries have not yet completed national consultations or even begun the process, as in Thailand.

During the forum, held online on Wednesday, the project developer and the Lao government were asked to broaden the impact assessment and develop additional measures to mitigate potential adverse impacts.

They were also questioned whether their claimed standards over the project were valid.

The participants also raised their concerns about the project and made several recommendations to make prior consultation more meaningful and to ensure potential negative project impacts are addressed.    

They viewed the developer’s proposed mitigation measures as insufficient. They suggested that additional measures, including compensation mechanisms to address changes in livelihoods, be implemented alongside up-to-date data and studies.  

MRC Secretariat Chief Executive Officer, An Pich Hatda, said prior consultation for the Sanakham dam would require a shift in emphasis due to the dam’s proposed location and characteristics. 

“Strong mitigation measures for the Sanakham project are more important than ever,” Dr Hatda said, adding that construction activities and impacts that are usually only local could have transboundary effects.

The MRC member countries, he said, have just agreed to explore “a regional funding mechanism” to support livelihoods and ecosystem restoration projects throughout the Lower Mekong Basin.

Vice Minister of the Lao Ministry of Natural Resources and Environment, Bounkham Vorachit, said in her opening remarks that her country welcomed stakeholders’ comments and suggestions on measures to improve the project. 

“We will spare no effort to ensure that serious issues are addressed before we proceed to implement the project,” she said.