A well-conceived environmental and social safeguards plan, thoroughly communicated to all stakeholders, is essential for the success of any infrastructure project. In Lao People's Democratic Republic, ADB has partnered with Nam Ngiep 1 Power Company Limited (NNP1PC) since 2014 to build and operate a 290-megawatt hydropower generation facility. This collaboration has set a positive example in resettling and empowering more than 500 affected households, predominantly from the Hmong ethnic group, who needed to be relocated. Today, they have access to improved housing, education, and sanitation facilities.

By adopting a collaborative, inclusive, and transparent approach known as Good Faith Negotiations, the project effectively addressed community issues and forged partnerships that support sustainable community development.

This private sector partnership exemplifies a collaborative effort to meet energy needs, stimulate economic development, positively transform affected communities, and promote sustainable practices in Lao PDR.

Transcript

Safeguarding Livelihoods in Lao PDR

Large-scale infrastructure projects drive economic growth and sustainable development in developing countries, but they can also displace communities and affect local culture.

A well thought out environmental and social safeguards plan that is thoroughly communicated to all stakeholders is crucial to the success of any infrastructure project.

In Lao People's Democratic Republic, the Asian Development Bank has partnered with Nam Ngiep 1 Power Company Limited (NNP1PC) since 2014 to construct and operate a 290 megawatt hydropower generation facility. A good practice can be seen in resettling and empowering households affected by the project.

Jocelyn Munsayac, ADB Director of Safeguards, says: "We were very aware that we were impacting around 1,400 households who were at risk of losing their livelihoods. It was very important to establish safeguards to protect the affected communities, their rights, well-being, and livelihoods."  

More than 500 of the affected households, mostly from the Hmong ethnic group, needed to be relocated. Today, they have gained access to improved housing, education, and sanitation facilities.

Resettled resident Yia Vue Thor shares: "In our old village, there was no electricity. We had to use water from the Nam Ngiep river for drinking and carry 20 liters of buckets for daily usage. In case someone got sick and needed to go to the hospital, it was extremely difficult. However, in 2017, we relocated to Phouhomxay village, where the project allowed us to customize our own houses according to our preferences. Now, with asphalt road, transportation to Vientiane or Xiengkhouang provinces is easily accessible. We now have access to electricity, a water system, a health center, and public schools.  We even raise chickens and cows and plant cassava for additional income.  Our lives have greatly improved since moving to our new village."

Another resettled resident Kia Her says:  "The project trained me on sewing. After completing the training, I was able to open my own tailoring shop. With the compensation I received for my old house located in the Nam Ngiep Project’s area, and with additional money from my father, I was also able to establish my grocery store. Living here is much better now, with nearby schools, health centers, and good roads."

Not all affected households chose to move to the resettlement area. Others preferred cash compensation, and were assisted through trainings and extension services to help them improve their lives.

Xiada Lor, a self-resettled resident, shares "I opted for compensation instead. I used the money to construct a house and purchase a farm lot.  Upon my resettlement, the project provided various trainings on fertilizer production and livestock raising."

Masahiko Umesaki, Managing Director of NNP1PC says:  "We understand that it is our responsibility to establish a robust relationship with local people around our project to seek their sustainability as well as our project. Thanks to ADB’s broad-based knowledge and experience built up over many years in Laos, we have improved the livelihood of local people through many consultations to listen to their voices since the early development stage."

Ms. Munsayac added:  "By taking a collaborative, inclusive, and transparent approach through what we call Good Faith Negotiations, we not only effectively addressed community issues collaboratively but also forged partnerships that contribute to sustainable development of communities."

This private sector partnership exemplifies a collaborative effort to address energy needs, stimulate economic development, positively transform affected communities, and promote sustainable practices in Lao PDR.