Policies

National Policy on Environmental and Social Sustainability of the Hydropower Sector in Lao PDR

Source: JOIN IEA/IRENA Policy and Measures Database
Last updated: 10 April 2017

The National Policy on Environmental and Social Sustainability of the Hydropower Sector in Lao PDR of 2006 is based on the three principles of sustainability: economic, social and ecological sustainability, along a list of criteria detailed in the law.

It applies to all large hydropower dams of more than 50 MW installed capacity or flooding more than 10,000 hectares of land at full supply.

The developer carries all costs incurred by environmental and social safeguard measures following the "user pays" principle. A certain share of the revenues per project will supply general or dedicated funds under the Environment Protection Fund (EPF) to sustain environmental protection activities.

For hydropower development to be sustainable, the projects have to:

  • Submit an Environment Impact Assessment (EIA) report and Environmental Management Plan (EMP);
  • Recognise project-affected communities (as defined in the law) based on various impact assessments and studies;
  • Grant reimbursement to project-affected people according to Environmental Assessment Regulations and the Re-Settlement Decree;
  • Hold free, prior and informed consultations before any project is implemented; 
  • Take an integrated approach to river basin management is mandatory for multiple projects planned to dam a single river, comprising cumulative impacts and their mitigation, an appropriate institutional and ficing mechanism.

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