Note No. 33 March 1998 Use of Public Consultation in the Nam Theun 2 Hydroelectric Project Introduction The project is expected to generate sizable revenues (about $33 million p.a. in 1996 dollars The purpose of this note is to describe the over a period of 30 years),1/ but would also public consultation program to date for the have substantial social and environmental Nam Theun 2 (NT2) hydroelectric project and impacts, including the relocation of 4,500 people share lessons learned regarding the process and and the inundation of 450 km2 of the Nakai methodologies that were used. Plateau, 30 percent of which is forested and home to several important species. Recognizing The Lao PDR is a large, sparsely populated the existing concerns of the national and inter- country with rugged terrain, limited infrastruc- national community, the need for transparency ture, and a weak manufacturing base. Poverty in the development of this project and World is widespread with nearly 50 percent of the Bank Group requirements, the GoL and the population living below the poverty line. The Nam Theun Electricity Company (NTEC) have options available to provide substantial export implemented a comprehensive program of earnings to help fuel long-term economic public consultation. This is the first time this growth are limited to the export of natural process has been used in Lao PDR in a large resourcesparticularly hydroelectricity and private sector infrastructure project. Given that tropical hardwoods. Lao PDR has a tradition of centralized decisionmaking, the implementation of this The Government of Lao PDR (GoL) has elaborate and complex public consultation requested financial support from the World program constituted a very constructive step by Bank Group for the proposed NT2 project. The the GoL. main features of the project are a 50 meter high dam on the Nam Theun river, a 450 km2 im- IDA's role in the public consultation process poundment reservoir, a 681 MW powerhouse, is to work in partnership with the public and and transmission lines to connect NT2 to the private sectors and civil society to facilitate Thai grid. The dearth of options for economic infrastructure development which is both development, outstanding energy commitments socially and environmentally sustainable. to the Electricity Generating Authority of Specifically: Thailand (EGAT), and magnitude of export income and government revenues that could be assisting the governmentthrough technical generated by the project make Nam Theun 2 a assistance funded by UNDP and the United potentially important project in Lao PDRs Nations Economic and Social Commission development. for Asia and the Pacific (ESCAP)to develop generic guidelines on public 1/ Economic Impact Study by Louis Berger International. involvement to provide clarity for private This note was prepared by Kathryn McPhail, Social Development Department and Christian Callieri, Consultant. For more information, contact the author at the World Bank, 1818 H Street, NW, Washington DC 20433, USA, Telephone: 202-473-3675, Fax: 202-522-3247. The views expressed in this note are those of the author(s) and do not necessarily reflect the official policies of the World Bank Group. sector investors and strengthening the Strategy government's capacity to monitor and review what the private sector commits to Given the wide range of stakeholders, undertake; public consultation in NT2 has taken place at working with the private sector several levels: local, regional, national and consortium, NTEC, to provide guidance on international. With the international profile of World Bank Group policy objectives and this project, an unusually high percentage of benchmarks by which compliance will be the budget was allocated to national/interna- monitored; and tional consultation. strengthening civil society by creating Local, regional and national consultations opportunities for public consultation and were carried out within two parallel study seeking opportunities for partnership programs. The GoL program is designed to between governments, the private sector determine the feasibility and sustainability of and NGOs. the project and includes the: Objectives Analysis of Alternatives Study; Economic Impact Study; and The objectives of public consultation in Nakai Nam Theun Catchment Area Social NT2 are to ensure that stakeholders are identi- and Environmental Action Plan. fied, key social and environmental impacts are established, and a process of stakeholder NTEC is implementing the other program, consultation and involvement in project design which is designed to meet the social and and implementation is put in place. The added environmental requirements of the GoL and transparency, resulting from the process of financial institutions. This includes the: public consultation, is expected to help meet important social and environmental quality Environmental Assessment (EA) and assurance objectives, which should reduce Management Plan; and costs. Resettlement Action Plan (RAP). Box 1. Stakeholders in the Different Studies Directly Affected Indirectly Affected Studies Coordinated by GoL Analysis of Alternatives Affected communities, govern- NGOs, private companies, EGAT, ment, provincial officials international donors NNT Social and Environmental Affected communities (paying Community development and Action Plan attention to gender, ethnicity and environmental NGOs, news media, age), provincial officials, govern- international donors, transboundary ment, BPKP, transboundary conservation areas, NTEC Economic Impact traders NGOs, international donors Affected communities, Lao PDR, government, Thailand, EGAT Studies Coordinated by NTEC Environmental Assessment Community development and and Management Plan Communities (including down- environmental NGOs, international stream), community-based donors, news media, transboundary organizations, traditional authori- conservation areas, NTEC ties, government, BPKP Resettlement Action Community development and Plan Affected communities, host environmental NGOs, international communities, representatives of donors, news media, transboundary local communities, government and environmental NGOs, NTEC 2 At the international level, an International the consultation. Local consultation in some Advisory Group was established. This was the villages benefited from having smaller meet- first time that IDA has engaged five ings in which more homogeneous groups internationally recognized independent experts gathered (for example, women or youth) to with the objective of consulting broadly to discuss issues. In other cases there was inad- assess proactively how the Bank is handling equate translating and interpreting, resulting environmental and social issues in the in inadequate comprehension of the messages preparation of the project. being delivered. Furthermore, many of the field teams carrying out the consultation were Methodologies composed mostly of male Lao officials, which did not represent the target population and Local/Regional Levels sometimes prevented a process of meaningful Independent experts indicate that commu- consultation. nities in the areas most likely to be affected by the NT2 have been extensively informed and The majority of the target population is consulted during the development of this illiterate, so the use of visual materials was project, in compliance with directives 4.01, essential. Some of the materials used included 4.20, and 4.30 of the World Bank Group. Good aerial maps, cross sections and schematics, coverage of villages has been achieved to which were often little understood by the inform villagers about the project, its impacts villagers. This reinforces the need for ad- on their lives, and the options that they may equate and meaningful communication tools. have for compensation or mitigation of nega- A strategy of testing materials and of checking tive impacts. Furthermore, original project comprehension among local people is essential design and compensation programs have been to ensure that communities understand the modified as a result of the consultation pro- reality of the project so that methods can be cess. fine tuned or changed if necessary. Finally, the importance of a strategic plan guiding the In order to conduct meaningful local consultation process and oversight by senior consultation it is essential that information is social scientists should not be underestimated. provided in such a way that it is understand- able to all stakeholders, including women and National Level other vulnerable groups, and to ensure that all One of the landmark activities in the NT2 stakeholders are heard. The methodologies public consultation program has been to hold a applied in NT2 to achieve those objectives series of national workshops. Three work- include the use of: shops have been held to date for the studies coordinated by the GoL and two each for the culturally, gender and generationally environmental assessment and the resettlement diverse teams of Lao people with training action plan. Each workshop has used external in public consultation methods to carry out facilitation. There were logistical problems in the consultation; the initial workshops due to the inexperience of the GoL in organizing and managing events local groups such as the Lao Womens of this nature. For example, invitations to the Union to aid in information dissemination; workshops were not sent four weeks in ad- oral, written and visual information to vance as recommended. The lack of sufficient reach all groups; and lead time meant that some NGOs and other interested groups were unable to attend. In participatory rural appraisal techniques, some cases TORs or other relevant information such as solicitation of verbal information were not sent early enough, which limited the through semi-structured household ability of participants to develop their ideas interviews and focus groups and map and comments. drawing. To improve the level of discussion and to However, in some cases village meeting achieve more objective debate about specific strategies were used inappropriately, allowing issues, breakout groups were established and more powerful village members to dominate helped to make discussion more focused and 3 dynamic. The workshops were extremely Value Added of Public Consultation useful in bringing together a broad cross- section of stakeholders, who provided valu- There have been several observable ben- able feedback to NTEC and the GoL by scruti- efits of undertaking a comprehensive program nizing most aspects of the project. of public consultation. In addition to the lessons outlined in Box 2, public consultation: The third workshop was well run and the GoL's capacity to undertake consultations has provides an excellent planning tool, been strengthened to the extent that it can now enhancing the quality assurance process by play a leadership role in this area in the region. changing project design to accommodate stakeholder concerns; International Level allows a closer examination of the costs of The International Advisory Group was the project, with the possibility of reducing convened and visited Lao PDR, where it met costs in part because of the transparency of with a wide range of directly and indirectly the process; affected stakeholders. The Group produced a sets a precedent for requirement of report which noted that establishing such an carefully planned, costed and funded International Advisory Group presented an resettlement plans for future projects; opportunity to consult broadly on whether the workshops, as observed by GoL, have Bank Group should proceed with NT2 and that helped in delineating responsibilities the World Bank has taken an innovative step in between the public and private sectors; co-convening with IUCN, the World Commis- sion on Dams. The Group's unedited report has encouraged other developers and was released to the public within 30 days. donor agencies to consider incorporating this process into their projects. Box 2. Early Lessons Learned The complexity and novelty of the Nam Theun 2 project make it very difficult to avoid having some prob- lems. However, overall the consultations to date have been considered positive by the GoL, the private devel- oper, and members of the international community. Some of the lessons learned are: Strategy: a strategic plan is needed; the participation process should begin early; where there are community structures for information dissemination, these should be used to facilitate the consultation process; and continued consultation is needed through the project development process. Methodology: the process of consultation should address the need to clearly define the project area so that all potential impacts are included; clear information is needed for private sponsors about requirements and evaluation criteria for the participation process; and appropriate communication tools and strategies that are understandable to the target group help ensure a process of meaningful consultation. Capacity building is essential especially: strengthening the sponsors' capacity to manage complex consultation processes and to build on what they or other entities in the area are already doing; proper management of national workshops and the creation of breakout groups within the workshops, to stimulate more in-depth discussion of certain issues; supervising the project sponsors to make sure that all consultations are occurring as desired, at the local level it is important that supervision is carried out by senior social scientists; and ensuring that social scientist expertise is available in consultations, not just in supervision. Social Development Notes are published informally by the Social Development Family in the Environmentally and Socially Sustainable Development Network of the World Bank. For additional copies, contact Social Development Publications, The World Bank, 1818 H Street, NW, Washington, DC 20433, USA, Fax: 202-522-3247, E-mail: sdpublications@worldbank.org 4