Water

Dams and Development E-Paper Contents

p. -1 of 74 BACK | NEXT Home Page of Dams and Development Foreword I. Why an e-paper on dams and development? II. Assessing options III. Participatory processes IV. Social impacts V. Environmental impacts VI. Benefit distribution VII. Dam safety and sustainability VIII. Existing projects IX. Improving governance X. What other organizations say XI. ADB, Dams, and Development XII. References Contact Us

Some examples from Canada, Norway, Brazil and Nepal

Canada: The "La Paix des Braves" agreement between the Grand Council of the Cree and the Government of Quebec 'recognizes that the Cree Nation are entitled to a share of the benefits that accrue from the development of natural resources within the entire traditional territory of the Cree Nation. A fundamental part of the Agreement is an annual payment to the Cree Nation, reflecting the total value of production in the forestry, hydroelectric and mining sectors, allowing the Cree people access to the benefits of the resources on their traditional lands. This payment will allow the Cree Nation to undertake economic and community development activities as per the agreement'.

Norway: Municipalities in Norway have for a long time received royalty payments for hydropower projects within their jurisdiction. License fees in connection with watercourse projects were introduced to (i) compensate for common interests, for example any reduction to the value of nature and the environment as a consequence of damage in connection with construction, and (ii) to give a share of the added value which takes place as a result of the exploitation of natural resources. An example of the financing mechanisms available to municipalities including license fees, property taxation and earnings from licensed hydropower is provided in the Glomma and Laagen case study undertaken for the WCD.

Brazil: The following description was taken from the WCD report (Box 4.7): In Brazil, Law No. 7990, dated 28 December 1989, requires that royalties be paid to the federal government for using water for power generation purposes. The royalties paid by each power plant generating more than 10 MW represent 6% of the value of the power produced. The royalties are distributed as follows: 10% to the federal government, 45% to the state(s) where the venture is located and 45% to the municipal districts affected by the venture. The total amount paid out by the Tucurui dam in 1996 reached $19 million, with the total royalties for 1991 through 1996 topping $103 million. The Itaipu dam, in the south of Brazil, pays annually about $13 million in royalties. The royalties are among the leading sources of income for some of the municipal districts.

Nepal: A scoping report prepared for the national dialogue on dams and development notes that 'Sections 5.8, 5.14, 6.1.3 and 6.4.4 of the Hydropower Development Policy of 2001 suggest ways to minimise adverse environmental effects as well as make proper arrangements to rehabilitate displaced families, provide appropriate benefits at the local level while operating hydropower projects, rehabilitate and resettle the affected people as per the standards set by the [Government of Nepal] and provide 1% of the royalty to be received by HMG/N directly to the [Village Development Committee] VDC affected by the project. The Local Self-Governance Regulation makes a provision that 10% of the royalties received by HMG/N from utilising water resources is provided to the affected district.

Sierra Leone: In June 2005, the World Bank approved a loan and partial risk guarantee to enable the completion of the 50 MW Bumbuna Hydropower Project. Communities in the area are expected to benefit from the project through the Upper Seli Community Development Initiative (USDCI). The following text is extracted from the Project Appraisal Document:

Benefit Sharing: USCDI will develop and test an innovative institutional model for the proposed Bumbuna Trust, with the aim of sharing benefits with the indirectly affected population in the area around the reservoir and downstream of the dam. It consists of two activities:

Ward and Community Sub-projects. Communities will receive development benefits, Based on their demands for improved public services, through sub-projects implemented by them in collaboration with ward development committees and in harmony with overall district development plans. Public services could include clearing and rehabilitation of smaller access roads, hand dug community wells and construction of latrines, management of organic waste, rehabilitation of existing school buildings and health centers.

Youth Capacity Building. Young women and men will receive training in marketable trade skills as well as business and life skills, and small grants will be given to community-based youth organizations.

A Catchment Stakeholder Forum will enable a wider group of stakeholders to have a say in the formation of the Trust, and an Advisory Group will provide overall strategic direction for the Trust. USCDI will provide technical assistance for the establishment of the Bumbuna Trust, in addition to its role in helping it develop approaches and processes for benefit sharing.

Further information on the Bumbuna Hydropower Project can be found on the World Bank website.

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