Mekong Watch CATFISH TALES
TOPIC: WORLD BANK AWARE OF NEGATIVE IMPACTS OF LAM TA KHONG PUMP STORAGE
PROJECT (THAILAND)
DATE: 20 September 2003
WORLD BANK CONCERNED ABOUT NEGATIVE IMPACTS OF LAM TA KHONG PUMP STORAGE
PROJECT
On September 3rd, Mekong Watch inquired to Japan's Ministry of Finance
(MOF) about the World Bank's position on the negative impacts on villagers
as a result of the Lam Ta Khong Pump Storage Project in Thailand. MOF
explained that the World Bank is very concerned about the negative impacts,
and is considering taking steps to encourage the Electricity Generating
Authority of Thailand (EGAT), the project implementer, to take action.
While this is welcome news, both MOF and the World Bank need to understand
that stronger steps are still necessary. Background information follows.
WHAT IS THE LAM TA KHONG PUMP STORAGE PROJECT?
The Lam Ta Khong Pump Storage Project is located in Nakhon Ratchasima, in
central Thailand. It was the first (and so far only) pump storage dam
constructed in Thailand. The development and feasibility studies for this
project were done in 1991 by the Japan International Cooperation Agency
(JICA).
In 1994, the Japanese government provided 18.2 billion yen (approx 170
million US dollars), and the World Bank provided 100 million US dollars in
financing. Construction was supervised by the Electric Power Development
Co., Ltd (EPDC). Construction was completed in 2001 with an installed
capacity of 500MW.
NEGATIVE IMPACTS OF THE LAM TO KHONG PROJECT
As part of this project, a reservoir was built on the top of a large hill
by blasting away slabs of rock, and a tunnel was drilled from the top
reservoir to another reservoir at the base of the hill. This blasting work
continued over a period of 2.5 years, and the dust from the blasting rained
on nearby villages. Since then, villagers have developed serious
respiratory disorders and other health problems, some resulting in
death. Crops have been damaged, and cows and other domestic animals have
also become sick and died.
FAILED MITIGATION MEASURES
To minimize environmental damage, an Environment Mitigation and Development
Plan was made for this project in 1992, but most of it has not been
implemented. In cases where parts of the mitigation plan were implemented,
affected people did not benefit. For example, the mitigation plan
recommended blasting be done only once a day to prevent dust
pollution. In actual practice, blasting occurred twice a day. A measure
that was actually implemented was the construction of a pond for water
supply, since the project would decrease availability of ground water. The
water in this pond was so muddy, however, that it could not be used even
for bathing, much less drinking.
AFFECTED PEOPLE CALL FOR A STUDY OF DAMAGES
Residents affected by the dust pollution from blasting have requested that
EGAT, the project implementer, take steps to determine the precise cause of
the deterioration in villagers' health and other damages, and to implement
necessary remedial measures. As a result of the residents' requests, a
government committee was established in 2001 to look for solutions to the
problems. EGAT, however, refused to provide any funding for a survey into
the health impacts, paralyzing the committee. Hence, no measures have been
implemented to resolve problems.
Affected people and NGOs have demanded that the World Bank and the Japan
Bank for International Cooperation (JBIC) apply more pressure on EGAT to
fund the government committee to conduct a fair study on the impacts of the
project on villagers' health. The World Bank and JBIC promised to convey
the people's concerns to EGAT, but have not moved much further than
this. While they could conduct their own surveys, they have instead
stopped at watching what EGAT will do (or not do) next.
RECENT DEVELOPMENT
Upon inquiry by Mekong Watch, Japan's Finance Ministry has made it clear
that the World Bank is aware of the environmental impacts of the Lam Ta
Khong dam. In order to continue monitoring the project after completion,
the World Bank is now requiring EGAT to report periodically to the World
Bank on the steps it is taking to deal with the environmental impacts of
the project. MOF also explained that it is urging the World Bank to
disclose the currently classified Implementation Completion Report, as well
as the periodical reports that EGAT is supposed to submit.
The villagers affected by the Lam Ta Khong project have suffered tremendous
damage, and EGAT has failed to respond to their claims. As a start, the
World Bank and JBIC must step up pressure so that EGAT will support a fair
survey of the impacts on the villagers. The World Bank and JBIC themselves
should also disclose relevant information. Only then will we know if the
Environment Mitigation and Development Plan will be helpful, and even then,
independent monitoring of the Mitigation Plan’s implementation will be
necessary.