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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

Trust funds

Another financial mechanism for promoting compliance with environmental and social commitments is a trust fund. WCD recommended that:

'Trust funds can be effectively used either alone or in conjunction with performance bonds to secure financing for ongoing monitoring and auditing obligations throughout the life of the project. These mechanisms also provide an effective means for holding and distributing royalties to fund ongoing initiatives'.(p248)

For example, promoters of the proposed Nam Theun 2 project in Lao PDR have agreed on a funding arrangement whereby payments from the project developer are to be directed to biodiversityconservation as a mitigation measure for environmental impacts of the dam.

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