South China Morning Post
May 24, 2000

The National Assembly, often criticised as a rubber-stamp parliament, has confounded its critics by putting the brakes on a massive hydro-electric power scheme previously touted as essential to northern Vietnam’s economic growth. Assembly delegates meeting in Hanoi have effectively put the project on hold despite increasing shortages of electricity and fresh water in the capital, claiming feasibility plans submitted by Electricity of Vietnam did not adequately deal with potential social and environmental impacts.

The hydroelectric plant, first proposed 10 years ago, demands the inundation of more than 450 square km of forest and farmland and would require the relocation of nearly 100,000 people. The project would consume up to US$ 4 billion (HK$ 31 billion) in investment capital to produce about 3.5 megawatts of electricity annually. The scheme was previously mooted for completion before 2010.

But in a heated assembly debate, the state electricity utility was sent packing after being told its feasibility and impact assessments had fallen far short of international standards.

“Assembly delegates have asked for more detail on the massive scheme and for feasibility studies on a scaled-down version,” one state-controlled newspaper reported yesterday.

“Further studies need to be conducted on the seismic conditions of the area, as well as the annual water needs of the Red River delta provinces, land clearance, population relocation and compensation,” the report quoted Planning and Investment Minister Tran Xuan Gia as saying.

Environmental and humanitarian groups welcomed the assembly’s decision, saying they had previously feared the plan would be approved without serious consideration of its impact.

“It’s an encouraging sign that the authorities are showing an awareness of the negatives of such a project, rather than just its economic importance,” one Hanoi-based foreign environmentalist said.

But Professor Nguyen Tri Vieng, of Hanoi’s Water Resources University, said he was confident the project eventually would go ahead, even if it were a scaled -down version.

“The main reason the National Assembly halted the project is because Electricity of Vietnam had not done enough preparation on the relocation and rehabilitation of people affected by the dam and the difficulty that would create in raising foreign capital,” he said.

“But this problem can be solved and the project will be approved sooner or later because of it’s economic usefulness.”

He added the dam would allow better control of flooding which frequently destroys crops in the Red River delta.