Hydropower dams in Laos: a solution to economic development? The case of the Nam Theun 2 Dam

Abstract

This study evaluates the impacts of hydropower dams on the modernization of Laos since the 1990s with the case study of the Nam Theun 2 Dam. Hydropower development in Laos is as an example of governmental commitment to achieving socio-economic development, and private players and international donor agencies, such as the World Bank and the Asian Development Bank have accelerated the expansion of hydropower dams in the country. The case study of the Nam Theun 2 Dam discloses a strong drive by the public sector for hydropower development, a rapid establishment of hydropower export, and the contribution of dam projects to boosting local economy. Long-term challenges are ahead, including ill-management of environmental issues, little voice from civil society, and a lack of vision for hydropower projects to balance between socio-economic development and environmental protection. It is concluded that the achievements gained through hydropower development in Laos can be offset by social and environmental issues, which should properly be tackled by the government in the near future.