Deal #6602

Lao PDR
Created at
2015-12-02
Last update
2022-08-17
Last full update
2022-08-17

Names of communities / indigenous peoples affected

Name of community
Kiw Ngiew village and a part of Pang Bong Village in Ngeun district, Xayyaburi province (Phase III expansion of the project). ,
Source: RFA

How did the community react?

Community reaction
Mixed reaction
Comment on community reaction
In May 2013 it was reported that authorities in northern Laos had barred non-governmental organizations from meeting with villagers being relocated for the plant. The NGOs said they are trying to inform residents about their compensation rights and the full impact of the project. Nearly 2,000 people were moved to new locations. Source: Global Energy Monitor Within the new phase of expansion (Phase III), many villagers are being relocated to the new areas. They were worried about their lives once they move to new relocation site as well as worried of low compensation. Source: RFA

Displacement of people

Displacement of people
Yes
Number of households actually displaced
2 304
Comment on displacement of people
There are three phases of the project. Two phases are completed. Currently, it is beginning phase III. According to the report from RFA on 6th October 2021, hundreds of families were forced to move for Hongsa Lignite Power Plant Expansion. Two villages affected by the Phase III Expansion are Kiw Ngiew village which is the home to 115 families, while 18 more households live in Pang Bong village. Source: RFA

Negative impacts for local communities

Negative impacts for local communities
Environmental degradation, Displacement
Comment on negative impacts for local communities
"The project risks releasing heavy metals into local water supplies and damaging the wilderness that local communities rely on for their food and livelihoods. The project also poses significant transboundary impacts. A set of transmission lines from Hongsa into Nan province, Thailand have already been built through sensitive forest areas. Two more sets of power lines are set to be built in coming years. Additionally, the operation risks contaminating lakes that extend into Thailand with mercury. As with any coal-fired power project, it also contributes significantly to climate change and represents a threat to human rights and climate justice. The environmental impact assessment for the project involved no meaningful consultation with the affected communities and failed to assess any transboundary impacts." -- EarthRights The Lao government approved the Environmental Impact Assessment (EIA) and environmental management plan for the project conducted by the TEAM Consulting Engineering and Management Company in November 2007. Construction started amid criticism from civil society (despite the significant barriers to civil society expression in Laos) based on the lack of Public Participation, IFAC, and concerns regarding the technical quality of the EIA. Source: Impact Assessment and Project Appraisal, Ashijya Otwong & Tanapon Phenrat Project risks include water pollution, damage to wilderness, damage to local livelihoods, air pollution and climate change. Source: Asia Pacific Viewpoint 2022/ s ASEAN ready to move to multilateral cross-borderelectricity trade? Hongsa Company said that the strong earthquakes occurred in Hongsa district of Xayaboury province said that the incident caused only minor damage to some buildings at the plant. No deaths or injuries have been reported. Source: Thai PBS World

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
Houses replaced, 2 ha agric land per household, employment opportunities

Promised benefits for local communities

Promised benefits for local communities
Education
Comment on promised benefits for local communities
Hongsa Power signed a Memorandum of Understanding with the Polytechnic College in Vientiane for education development through technical training and practical courses Each home plot, measuring 450 square meters, at resettlement villages, has been promoted to involve both on-farm and off-farm activities as a short-term income source. The approximate 1,200-hectare area was also developed for farmland developments for project affected persons. Source: company source

Materialized benefits for local communities

Materialized benefits for local communities
Education
Comment on materialized benefits for local communities
In 2018, the company gave 40 scholarships worth 120 million kip for secondary school students in Ngeun, Hongsa, and Xienghon districts. Hongsa coal power plant (HPC) developed a Community Development Program (CD) in line with the commitment “To ensure better or at least same quality of life”, targeting Project Affected Persons (PAPs) residing around the Concession Area. Under the program, existing infrastructure (e.g. roads and piped water systems) was improved; while social tools (e.g. participatory rural appraisal) were used for village development planning, and village volunteers were formed as: (1) a link between the beneficiaries and HPC or government of Laos for any possible request; and (2) a household model at the village level in terms of socio-economic and sanitation aspects. Source: Company website