Deal #6583

Since this dam located on Mekong mainstream, this project was required to go through MRC’s procedure of notification, prior consultation and agreement (PNPCA) underthe 1995 MRC Mekong Agreement. However, there was no meaningful consultation with communities downstream in Cambodia, or indication of specific measures of compensation for local affected communities. [Source: International Rivers & WWF]

Local communities said that since the project started, they lost income because it was difficult for them to make income from fishing as they used to do before the project. Displaced people also said that the compensation they got was not enough to make restore new livelihood. [Source: RFA Lao] Listen to the voice of local villagers on how their livelihoods has changed since there [is Don Sahong dam by RFA: https://youtu.be/BpPksGkoIdA ]

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 threatening the life and livelihoods of Mekong River communities The dam threatens the existing of the most endangered fish species, ‘Irrawaddy dolphin’. An independent review of the Don Sahong environmental impact assessment (EIA) concluded that the project poses a high risk to the already vulnerable species and is likely to cause the extirpation of the remaining dolphin population in Lao PDR. Construction of the dam has blocked the Hou Sahong channel to fish passage, affecting dry season fish movement between the Lower Mekong floodplains and Tonlé Sap and the upper reaches of the Lower Mekong Basin. [Source: International Rivers]

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.

World Wildlife Fund (WWF), International Rivers, EarthRights International, Save the Mekong coalition. In October 2014, a national and international coalition of NGO's, including International Rivers, filed acomplaint with the Human Rights Commission of Malaysia (SUHAKAM), urging the commission to ensure Malaysian company Mega First complies with international human rights standards. Among these are the right to life and livelihood and the obligation to inform affected communities. After initially accepting the complaint, SUHAKAM unfortunately concluded it lacked the mandate for foreign investment projects of Malaysian companies. However, SUHAKAM did recommend Mega First to respect the human rights of people affected by the companies projects. In February 2016, the United Nations Human Rights Council notified the governments of Laos and Malaysia, as well as the Malaysian company Mega First, of their concerns on alleged human rights violations regarding the Don Sahong dam project. [Source: Factsheet od Don Sahong Dam by IR & Bank Track]