42013 October 2007 World Bank Supports First Forum on Lao-Thai Partnership in Sustainable Hydropower Development BANGKOK­ThenewLao-ThaiPartnership in Sustainable Hydropower Development was adopted last month during a high- level forum in Bangkok. Supported by the World Bank, the partnership aims to protect the environment, improve the lives of people affected by hydropower plants, and contribute to poverty reduction in both Lao PDR and Thailand. Under the new Partnership, the Governments of both countries agreed to work together to reduce social and environmental impacts from future hydropower projects in Lao. Nam Theun 2 is a recent example of hydropower project that is socially and environmentally sustainable, say both Thai and Lao Government officials This landmark Partnership also highlights Revenues from the power sale should the important role of Thailand's private therefore contribute significantly to Lao's sector in the responsible management of goal of becoming a middle-income country Lao'snaturalresources,whichwillprovide by 2020. long-term benefits to the Thai people as well. Thailand's energy demand, meanwhile, has been rising faster than its annual Lao is one of the poorest countries in economic growth. Over the last two Southeast Asia, with an annual income decades, both countries have been working average of under $500 per person. together on hydropower development. Hydropower is a major source of revenue for Lao, and the Government is now Last year, The Thai Government agreed to planningalargenumberofnewhydropower increase its commitment to buy power projects. from Lao to 5,000 megawatt between 2006 and 2015, making Thailand the largest market for Lao hydropower exports. Projects completed included the Houay Ho and the Theun-Hinboun hydropower plants.Thosecurrentlyunderconstruction include the Nam Theun 2, which has won support from the World Bank and the Asian Development Bank (ADB), and Nam Ngum 2. The High-Level Forum on Lao-Thai Partnership in Sustainable Hydropower Development brought together a diverse group of stakeholders Continue on page 2 Page 1 Continued from page 1 TheForum,saidDr.BosaykhamVongdara, the Lao Minister of Energy and Mines, is an important event that brings all of the stakeholders together to discuss the way forward in order to ensure that future hydropower projects will be friendly to the environment and to the communities affected by them. "My special thanks are made to the World Bank for its support to the development of the hydropower sector in Laos as well as to this Forum," he said. During the forum, participants studied "bestpractices"inhydropowerdevelopment Dr. Piyasvasti of Thailand during his keynote address and discussed social as well as DuringtheHigh-LevelForumonSeptember environmental safety measures for 7, 2007, Dr. Piyasvasti Amranand, the hydropower project design. Developers of Thai Minister of Energy, stressed that both the Houay Ho, Theun Hinboun, and Nam countries have benefited from the Theun 2 projects also shared their hydropower cooperation over the last two experiences that can be applied in future decades. investments. Nam Theun 2, Dr. Piyasvasti said, is a At the end of the forum, Drs. Bosaykham good example of such fruitful cooperation, and Piyasvasti agreed to adopt the givenitshighstandardontheenvironmental "BangkokJointCommuniquéforSustainable and social impact mitigation. Hydropower Development," which lays down the framework for the public and "Nam Theun 2 has shown to the world that private sectors of both countries to hydropowerprojectscanbeenvironmentally follow. friendly," he said. "I believe we can continue (to benefit from this cooperation) if we follow these high standards." The Laotian Government provides long- term concessions to private developers to finance, build and operate hydropower plants. At the end of the concession period, which normally lasts 25 years, the projects will be transferred to the Government. This has given Thai investors a major role in hydropower development in Lao. Many Thai companies have joined the business consortiums set up to develop and operate Dr. Bosaykham from Lao PDR, speaking to the reporters the projects. about the objective of the High-Level Forum The September 7th Forum aimed to raise The Communiqué calls for timely awareness of the social and environmental environmental and social impact risksarisingfromhydropowerdevelopment assessments, as well as design and among interested parties in both financing of safeguard measures, to be countries. integrated into new hydropower project planning. The Forum included senior officials from both sides as well as representatives of The Joint Communiqué also urges the private sector, commercial banks, commercial banks to ensure that funding international institutions, social and for new hydropower investments will go environmental experts, and the news to projects that are socially and media. environmentally responsible. In the Continue on page 3 Page 2 Continued from page 2 Communiqué, the Thai Government also "We can and should aim for benefits for all agreed to support Lao in building involved," he said. "This first high-level institutional capacity that will enable Lao forum taking place today is a major step officials to enforce existing environmental in this direction. It will, of course, now be laws. up to all of us to ensure that sustainable hydro does benefit us all." WorldBankCountryDirectorforSoutheast Asia, Ian Porter, welcomed this landmark For more information on the High-Level Forum agreement. He said all stakeholders on Lao-Thai Partnership in Sustainable should now look beyond `one-off' benefits, Hydropower Development, please visit www. or to think of benefits as only for some worldbank.or.thorcontactPichayaFittsatpfitts@ and not for others. worldbank.org and tel. +66 (0) 26868324 New World Bank Study Finds Immigration Has Minimal Impact on Thai Wages BANGKOK, Sept. 17, 2007 ­ Contrary to fled the long-running conflict to the more the belief of many Thais, the influx of stable environment of Thailand. illegal immigrants in Thailand has not had a significant impact on employment of Migrants now account for roughly four Thailand's low-skilled workers over the percent of the Thai population of ages 15- last decade, a new World Bank study 59. Many migrant workers in Thailand are finds. illegal. Thestudy,DoesImmigrationtoThailand Reduce the Wages of Thai Workers?, shows that the effect of immigration on local wages has been minimal, said John Bryant, a researcher of the Institute for Population and Social Research at Bangkok's Mahidol University and co- author of the report. The study finds that even a 10 percent increase in immigration would have led to a roughly two percent reduction on Thai wages, a small effect when compared to the average of 10 percent annual growth Recent rapid economic growth in Thailand has led to the influx in Thailand's wages in the 1990s. of hundreds of thousand of migrant workers from neighboring countries "This means if another 100,000 of migrant A recent poll showed that the majority of workers came tomorrow, it would lower Thai people believe that Thai workers have wages by about eight baht per month," been hurt by the increase of illegal he added. immigrants in Thailand. However, Does Mr. Bryant explained that the study found Immigration to Thailand Reduce the that the annual growth in the wages of Wages of Thai Workers? finds that Thai workers over the last ten years would migration has not caused Thai people to have been just 0.1 to 0.2 percent higher lose jobs or work less. The finding was without immigration. based on four rounds of Thai labor force surveys by the government in 2004, Mr. During the early 1990s, Thailand's rapid Bryant said. economic growth has made it a desirable destination for hundreds of thousands of "In term of policy, efforts to keep out migrant migrants looking for better paid jobs than workers could have a negative impact on in their own countries. They came mostly Thailand's economy," Mr. Bryant from Myanmar, but also from Cambodia, commented. "This is because migrants are Lao PDR, Vietnam and Yunnan Province, a source of cheap labor for labor-intensive China. Those from Myanmar have also industries." Continue on page 4 Page 3 Continued from page 3 Does Immigration to Thailand Reduce than restrict migration, said Ian Porter, the Wages of Thai Workers? is the the World Bank Country Director for second in a series of World Bank studies Thailand, Lao PDR, Cambodia and under its Greater Mekong Sub-region Myanmar, four of the six GMS countries. (GMS) Labor Migration Program. This program, launched in 2005, is part of the "If managed well, migration could have a World Bank's overall assistance strategy positive impact on economic growth in both for the sub-region. the countries of origin and destination, which will help the governments to reduce poverty and improve the living standard of their peoples," Mr. Porter said. "The Bank would like to provide technical expertise to help the GMS governments find ways to do just that." Labor Migration in the Greater Mekong Sub-region was the first in the series of World Bank studies on the subject. Published in December 2006, this report concluded that uneven development in the sub-region, slowing population growth in Thailand (compared with high birth rates in neighboring countries), and growing economic integration will guarantee that labor migration in the GMS will continue to increase in the coming decade. A lot of migrant workers find employment in labor- intensive, low-skilled industries Greater efforts are needed then to manage By establishing this program, the World migration flows and ensure that the rights Bank seeks to fill some of the knowledge of workers will be protected and keep them gaps relating to labor migration in this from becoming victims of human extremely dynamic sub-region, where trafficking, the report recommended. annual growth rates have been averaging above six percent per year recently, said For more information on the World Bank's GMS Ana Revenga, a Lead Economist at the Labor Migration Program, please contact World Bank who works on labor migration AnaRevengabyemail:arevenga@worldbank.org issues. To download the full report, please log on to www.worldbank.or.th "More than two million migrants have been moving between GMS countries in the last For more information about the World Bank's few years, but surprisingly there is a GMS cooperation program, please contact limited knowledge about migration in the Pichaya Fitts at +66 (0) 26868324, or email: sub-region," Ms. Revenga noted. "Without pfitts@worldbank.org the knowledge, GMS countries cannot make an informed decision on what labor Does Immigration migration policy will best suit their countries toThailandReduce a n d s u p p o r t t h e i r e c o n o m i c the Wages of Thai development." Workers? is the second in World By focusing on the socio-economic impact Bank series of study of migration in both the sending and on labor migration in receiving countries, the Bank can help the Greater Mekong GMS governments refine and implement Sub-region a regional system that will facilitate rather Page 4