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Home of the Giant Muntjac
ADB Review [ August-October 2006 ]

A vital part of any hydropower project is the water source that will drive the turbines to generate power. In the Nam Theun 2 Hydroelectric Project (NT2), that source is a watershed made up of more than 4,000 square kilometers of forested mountains.

MAINTAINING A PERSPECTIVE Primary forests such as this one in Phou Khao Khouay are major water sources for the hydropower project

This pristine forest in central Lao People's Democratic Republic (Lao PDR), between the Mekong River and the Gulf of Tonkin, is home to some of the region's richest biodiversity and is the site of newly discovered animals—including a dog—sized deer called the giant muntjac. But for years, illegal logging, poaching, and other environmentally degrading activities have threatened the area.

Part of the NT2 project is managing and conserving this spectacular landscape of elephant herds and exotic birds. The Nam Theun 2 Power Company will contribute $1 million annually for 25 years to help establish and maintain the Watershed Management Protection Authority (WMPA), a Lao PDR government entity created solely for this purpose.

"The project will help preserve a primary forest of great international significance that has been at serious risk," said Asian Development Bank (ADB) Energy Economist Duy—Thanh Bui of what is now called the Nakai–Nam Theun National Protected Area. "As the water source for NT2, there is a financial incentive to protect this forest over the long term."

WMPA patrols the forest to ward off poachers and illegal loggers. Its employees also work with the communities living around the watershed to help them manage their activities in the forest in a sustainable way.

According to the joint World Bank/ ADB update report on NT2, released 30 March 2006, WMPA is already having a positive impact on the conservation of the forest. "The performance of the Lao PDR government's WMPA, a key entity for conservation of the protected area, has been impressive," the report noted. "The challenge here is to maintain the momentum in this young organization."

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