Water

ADB's Developing Benefits Sharing Mechanisms for People Adversely Affected by Power Generation Projects in Viet Nam, approved in 2005, aimed at developing an institutional and policy framework for sharing part of the economic benefits of hydropower projects with the communities directly or indirectly affected for their socio-economic development and to mitigate long-term environmental impacts. It included a rapid appraisal of three hydropower projects to ascertain the relevance of benefit sharing. Based on the findings, guidelines were prepared so that benefit-sharing could be institutionalized by the Government through an official decree to be issued in 2010 under the provisions of the Electricity Law. The government has requested ADB to help in piloting the proposed guidelines in A Vuong Hydropower Project and in drafting the decree.

This PDA demonstrated that strengthening the benefit sharing mechanism at provincial level improves the impact and sustainability of benefit sharing investment funds. Through this PDA, the Benefit Sharing Council aims to strengthen the institutional arrangements and the capacity of benefit sharing institutions including the Benefit Sharing Council itself, the Fund Management Board and district and commune leaders and officials in affected areas.

In the short-term, the PDA improved benefit sharing in the area affected by the A Vuong hydropower station. In the medium-term the PDA helped Quang Nam develop practical and sustainable benefit sharing institutions and the capacity to develop effective strategic plans for benefit sharing in all hydropower stations in the province. In the long term, the PDA outlined a flexible benefit sharing model and mechanisms that can be adapted by other provinces in Vietnam and other countries.

• Improved benefit sharing for communities in 2 communes in affected area of A Vuong hydropower station
• Improved benefit sharing for all hydropower stations in Quang Nam
• Improved benefit sharing for hydropower stations in Viet Nam

• Final Report (September 2010) [ PDF ]
• Proposal (September 2009) [ PDF ]
• Developing Benefits Sharing Mechanisms for People Adversely Affected by Power Generation Projects in Viet Nam