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.
World Bank: Lam Takhong Pumped Storage Project
http://web.worldbank.org/external/projects/main?pagePK=104231&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P004799
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”Ēs implementation will be necessary.