Sustainable hydropower development: Theun-Hinboun expansion project case study, Laos

I examine sustainability and benefit-sharing mechanisms in the context of the Theun-Hinboun Expansion Project (THXP) in central Laos. THXP has been planned and implemented in accordance with international good practice, and is now at the stage of preparing for closure on a number of key issues, in particular on livelihood restoration. With most of the infrastructure and service improvements completed, the long-term challenge relates to institutional development, environmental management and sustainability of the new livelihood systems. A strategy is being developed to ensure that local government, the private sector and the Theun-Hinboun Power Company (THPC) contribute in terms of budget, staff and expertise to ensure sustainability is achieved by 2017, or until targets are met and local communities can manage resources on their own. This approach to mitigating project impacts is an example of a new paradigm in which hydropower can achieve sustainable development for project affected communities.