Deal #6583 Version #76203

According to the MFCB Annual Report 2019, approximately 300 households within 6 villages are directly or indirectly affected by the Project. Of these households, only 14 households were required to be resettled. For people affected by the Project, the first priority for lost assets will be like-for-like compensation for lost assets alongside with the Alternate Livelihood Program and other local infrastructure improvements.

The dam will allegedly impact the migration of fish that are now abundant, the flow of sediment that currently fertilizes the crops, and the habitat of the critically endangered Irrawaddy dolphins that support the local tourist economy therefor threatenin the life and livelihoods of Mekong River communities.

According to a Q&A sheet prepared by the Ministry of Energy and Mines, fishers within Sahong will lose income from the loss of fish traps but will be offered opportunities to develop livelihood alternatives and be assisted to achieve replacement income from new sources. A compensation package will be arranged for directly affected people on a case-by-case basis. As in other major hydropower projects in Lao PDR, affected people have obtained better housing and infrastructure and more economic opportunities than they had.

Construction of a community market which is scheduled for completion in early 2020

The project has hired some local people to fill various roles, including as construction workers and on the fisheries monitoring program and for fish passage restoration. Some local people are supplying goods and services to the project, and the provision of a road, school and additional traders has reduced their cost of transport and some goods. The project is supporting local people to develop alternative livelihoods including aquaculture and agricultural projects. In 2019, the Group has continued to undertake various activities which include but not limited to: • Upgrade of existing schools; • Construction of Don Sadam and Sahong irrigation system which was completed in 2019; • Construction of a community clinic which was completed in 2019 and pending official handover to Public Health Office before the commencement of clinic operation; • Contribution for the refurbishment of the Hua Sadam Temple upon project completion; • Upgraded roads for Don Sahong village; and • Financial assistance for villages affected by flood in September 2019 at Hua Sadam.