Lao People's Democratic Republic is a sleepy place(Laos plans a water-powered future ).

By Lawrence Ong
BBC World's Asia Business Report, Laos


*For an Asian capital, Vientiane in the Lao People's Democratic
Republic is
a sleepy place. *


The pace of life in the former French colony is slow, and time often
feels
as if it is standing still. The closest thing to rush hour is the
morning
market with every other stall selling baguette sandwiches.


Just minutes away from the capital, there is even a greater sense of
serenity.


Like Cambodia, Laos is known for its tragic past. During the Vietnam
War it
became the most bombed country in history - and that has left a legacy
of
poverty and underdevelopment.


Four out of five people in this mountainous, landlocked country are
subsistence farmers living hand to mouth.


According to the United Nations Development Programme, Laos is
currently
ranked 133rd out of 177 countries on the Human Development Index.


*Natural benefits *


But Laos is blessed with a long stretch of the Mekong river, and the
river's
tributaries and the country's mountainous landscape offer huge
potential for
generating hydro-electric power.


The Lao government now dreams of becoming the "battery of South-East
Asia",
utilising the country's powerful natural resource to boost its
development.


*What Laos needs is a development strategy to reduce poverty
without
destroying the rivers and resources upon which Lao people depend *
Shannon Lawrence, International Rivers


And with its neighbours such as China, Vietnam, and Thailand all
craving
energy supplies to fuel their surging economies, finding a buyer for
the
power is not a big worry.


Already under construction, the Nam Theun 2 dam is one of the biggest
and
most controversial projects in the region.


Located in the central Lao provinces of Khammuane and Bolikhamzy, the
$1.45bn (£705m) project is being built by a consortium of companies
including Electricite de France (EDF) and the Electricity Generating
Company
of Thailand.


The World Bank and the Asian Development Bank are among the
international
agencies providing the funding and support to the project.


When the project is completed at the end of 2009, neighbour Thailand
plans
to import more than 90% of the power, earning the Lao government
about
$1.9bn over the next 25 years.


*'Lot of thought' *


The World Bank sees this as a model project, and it says that every
step has
been taken to minimise the environmental and social impact.


Peter Stephens, spokesperson at the World Bank, says Nam Theun 2 is a
great
opportunity for Laos to make a lot of money over a long period of time
and
use it to help alleviate poverty.


"It's a project that has seen a lot of thought put into its side-
effects on
the environment and the local communities," he explains.


Mr Sor and his family are amongst the 6,200 indigenous peoples who
have been
forced to move home in order to make way for the dam's reservoir
which
stretches 450-square kilometres (281 square miles).


Their house in Sopia Village is brand new, and the village now has
access to
better roads and cleaner water.


"We are settling down nicely now. When the new land is ready, I will
grow
fruit or vegetables," says Mr Sor.


*Powerful problems? *


But some critics argue that these villagers are among the luckier
ones. They
say that many more families are not getting the compensation they
deserve,
and that question marks remain over their long-term livelihoods.


Non-profit organisations including International Rivers say other
hydro-electric power projects in Laos have left a legacy of destroyed
livelihoods, and seriously damaged the local environment.


"What Laos needs is a development strategy to reduce poverty without
destroying the rivers and resources upon which Lao people depend,"
says
Shannon Lawrence of International Rivers.


"That is the type of initiative the World Bank should be supporting,"
she
added.


For Laos, hydro-electric power is a highly lucrative venture, and it
is
already constructing another 10 dams and considering building up to 70
more.


The government promises to use the money to alleviate poverty.


But with the country consistently rated as one of the world's most
corrupt,
there are serious questions as to whether hydro-electric power
projects will
truly benefit the locals, or simply help make their government richer

Link picturee:
http://groups.google.com/group/amerilao/attach/c9856c64bac373dd/laosdam203.jpg?part=4&view=1

http://groups.google.com/group/amerilao/attach/c9856c64bac373dd/laosdam.jpg?part=5&view=1
.

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