Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date 06 Apr 2006
PDS Updated as of 24 Jul 2014

Project Name LAO: GMS NAM THEUN 2 HYDROELECTRIC PROJECT
Borrower/Equity Investment Name NAM THEUN 2 POWER COMPANY LIMITED
Country Lao People's Democratic Republic
Project/Program Number 37910-014
Status Approved
Geographical Location Bolikhamsai and Khammouane Provinces in Central Lao.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector and/or Subsector Classification Energy
/ Large hydropower generation
Strategic Agendas
Drivers of Change
Gender Mainstreaming Categories

Project Sponsors

Edf International
Electricity Generating Public Co.,
Government Of Laos
Italian-Thai Development Public

Financing

Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
PS7210Political Risk Guarantee
(Fully Disbursed)
50,000
PS7210Private Sector Loan
(Fully Disbursed)
50,000
TOTAL USD 100,000

Summary of Environmental and Social Issues

The Project involves three ADB safeguard policies on involuntary resettlement, indigenous peoples, and environment. It also involves operational provisions in sector and thematic policies such as forestry, water, energy, and gender and development. The key safeguard documents are (i) the environmental assessment and management plan (EAMP), which assesses project impacts and details plans to minimize, mitigate, or compensate for these impacts; (ii) the SDP, to manage social impacts, including those related to resettlement, health, gender, and downstream impacts and to address special issues related to ethnic minorities; and (iii) the social and environment management framework and operational plan (SEMFOP), to manage the NNT NPA, including its corridors. The Government, NTPC, and IFIs also prepared the summary environmental and social impact assessment, cumulative impact assessment (CIA), and NT2 contributions, safeguard due diligence on the Thai transmission lines, social and environment cost benefit analysis, and capacity assessment. All NTPC obligations, including those related to social and environmental mitigation, are detailed in the safeguard documents and summarized in schedule 4 of the concession agreement.

Environmental Aspects
The Project involves three ADB safeguard policies on involuntary resettlement, indigenous peoples, and environment. It also involves operational provisions in sector and thematic policies such as forestry, water, energy, and gender and development. The key safeguard documents are (i) the environmental assessment and management plan (EAMP), which assesses project impacts and details plans to minimize, mitigate, or compensate for these impacts; (ii) the SDP, to manage social impacts, including those related to resettlement, health, gender, and downstream impacts and to address special issues related to ethnic minorities; and (iii) the social and environment management framework and operational plan (SEMFOP), to manage the NNT NPA, including its corridors. The Government, NTPC, and IFIs also prepared the summary environmental and social impact assessment, cumulative impact assessment (CIA), and NT2 contributions, safeguard due diligence on the Thai transmission lines, social and environment cost benefit analysis, and capacity assessment. All NTPC obligations, including those related to social and environmental mitigation, are detailed in the safeguard documents and summarized in schedule 4 of the concession agreement.
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation and Consultation

ADB has promoted the informed participation of the Government, civil society, and other stakeholders in an open and inclusive manner. Throughout implementation, consultations have been carried out with project-affected people in the major impact zones: Nakai Plateau, project land areas, downstream Xe Bang Fai, downstream of the dam, among others. Information on the compensation and resettlement plans, and livelihood options have been presented to the project-affected people by trained community and district facilitators through media they can understand, including radio broadcasts in minority languages, visual materials together with verbal explanations, site visits to proposed and pilot resettlement areas, and open discussions. The project design was adjusted to accommodate concerns of the project-affected people, such as location of the plateau resettlement area, village layout, housing design, and types of crops under the livelihood program as well as livelihood options for project lands and downstream areas. Resettlement is ongoing and making progress. Measures to mitigate environmental impacts related to construction activities are being implemented and closely monitored. Significant consultations were carried out with affected persons and international community prior to Board presentation and approval. Stakeholder workshops are organized annually, the last of which was held on 29 -30 October 2008.

During Project Design
During Project Implementation

Description

1

Objectives and Scope

The Project includes the development, construction and operation of a 1,070 megawatt (MW) trans-basin diversion power on the Nam Theun River, a tributary of the Mekong, in the central region of the Lao People's Democratic Republic (Lao PDR). A 450 square kilometer reservoir will be formed on the Nakai Plateau by constructing a dam 39 meters high northwest of the plateau. Water from the reservoir will drop about 350 meters to a powerhouse. The Project will divert about 260 cubic meters of water per second through a power station to the Xe Bang Fai River Basin, also a tributary of the Mekong. The water discharged from the power house will be released to the Xe Bang Fai through a 27 kilometer channel and a regulating pond. The Project will export 5,354 gigawatt-hours (GWh) of electricity to Thailand and will provide revenue to the Lao PDR through taxes, royalties, and dividend. About 200 300 GWh will be supplied to electricity consumers in the Lao PDR. The Project is structured as a build-own-operate-transfer, with a concession period of 31 years, of which the operating period is 25 years. At the end of the concession period, the project facilities will be transferred to the Government free of charge.

Project Rationale and Linkage to Country/Regional Strategy

ADB s country strategy and program for the Lao PDR aims to promote sustainable economic growth and development through infrastructure investments. Specifically, ADB will continue to help to develop the country s energy resources, including hydroelectric power resources in a sustainable manner.

Outputs and Implementation Progress

Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Status of Development Objectives
Will be evaluated upon completion of the project.
Material Changes

Business Opportunities

Date of First Listing
Consulting Services
Procurement
Procurement and Consulting Notices
http://www.adb.org/projects/37910-014/business-opportunities

Timetable

Concept Clearance 19 May 2003
Fact-finding
Management Review Meeting 28 Feb 2005
Approval 04 Apr 2005
Last Review Mission 15 Feb 2004 to 16 Feb 2005

Milestones

Approval No. Approval Signing Effectivity Closing
Original Revised Actual
Private Sector 7210 04 Apr 2005 03 May 2005 03 May 2005 03 Oct 2010

Contacts and Update Details

Responsible ADB Officer Christine Genalin C. Uy (cguy@adb.org)
Responsible ADB Department Private Sector Operations Department
Responsible ADB Divisions Infrastructure Finance Division 2
Executing Agencies

Links

Project Website http://www.adb.org/projects/37910-014/main
List of Project Documents http://www.adb.org/projects/37910-014/documents