(January 28, 2003) The movement of people at the Nam Theun 2 hydroelectric project sites to the new resettlements set by the government and project authorities is said to be happening smoothly.

VIENTIANE —  The activity is being implemented while the World Bank management and executive council board decides on a guarantee about the political risk associated with the project.

Mr. Hoi Phomvisouk, head of the management unit for resettlements said last week that after the three model houses were built for three families, others in some 17 villages at the construction site were enthusiastic to move to the resettlement areas.

Mr. Hoi added that the project had already provided many conveniences for the 14 families of Ban Nong Boua by helping them during the movement process and building their accommodation. Nong Boua village consists of 29 families and is the first village to stay at the resettlement. The other 15 families of Ban Nong Boua are expected to leave to the new site at the end of this year.

The resettlement area will be further developed if the World Bank approves a guarantee on the Lao Government political risk, added Mr. Hoi. He also confirmed that all people at the construction site would be moved to the perfected resettlements.

Nam Theun 2 is an outstanding example of how the government of the Lao PDR is working with the private sector to develop a model of sustainable development with strong economic, social, and environment fundamentals. Also, the World Bank and the government of the Lao PDR are working hand in hand to establish that the project revenues to the government of the Lao PDR will effectively serve the long-term development of the country.

The Nam Theun 2 project’s implementation is likely to be the first real possibility for the Lao PDR to reduce gradually its dependence on Official Development Assistance (ODA). Accordingly, the government of the Lao PDR has agreed with the World Bank to develop a Poverty Reduction Fund that will be initially sourced from the International Development Agency (IDA) funds, and then from the government of the Lao PDR’s taxes, royalties and dividend revenues by the time project revenues become available in 2008.

The National Assembly of the Lao PDR has unanimously endorsed the Nam Theun 2 project during the Fifth Legislature, on April 11, 2002, and the Concession Agreement was signed with the Nam Theun 2 Power Company limited (NTPC) on Oct. 3, 2002. The project is recognised by the government of the Lao PDR as an essential part of the country’s development framework.

Khaosan Pathet Lao (KPL) , January 28, 2003