Asian Development Bank website
October 1, 2000

The Government of Viet Nam has formally advised ADB that it no longer requires ADB’s assistance to proceed with the Se San 3 Hydropower project.

An update from the ADB on Se San 3

Earlier, ADB had deferred a decision to proceed with financing this project, as the findings of an initial ADB study, coupled with reports of the downstream impact of the Ya Li hydropower station (solely implemented by the Government of Viet Nam) reaching into Cambodia, led ADB to believe that significant further environmental and social impact analysis was required before decisions could be made with respect to the technical design and operating perameters of Se San 3. ADB had offered to provide an additional assistance to Viet Nam of US$1.8 million to prepare an environmental impact study that would assess the downstream impacts of Ya Li and Se San 3 and to develop environmental and social management, and mitigation and monitoring plans for the entire cascade, including mitigation plans for the already operational Ya Li.

The Government of Viet Nam’s decision means that the proposed assistance project will not proceed. The proposed investment project, therefore has also been deleted from the ADB loan program.

The environmental and social assessments completed to date (under the original assistance provided by ADB for the Se San 3 Project) are currently being reviewed by an independent international panel comprised of a sociologist/resettlement advisor and an environmental advisor. Once finalized, these reports, incorporating the panel’s comments, will be provided to the Government of Viet Nam. ADB hopes the findings of its original study will be helpful to the Government of Viet Nam in the further development of the country’s energy sector.

Although ADB is no longer actively involved in the development of the Se San 3 project, ADB is willing to share its views with respect to appropriate environment mitigation and management measures for the development of hydropower projects in the region.