The failed dam planned to export 90 percent of its electricity to Thailand and the remaining amount was to be offered up on the local grid.
The project, which is the first build-operate-transfer (BOT) project to be undertaken by the Korean companies in Laos. The project achieved financial closure in February 2014 and is financed through 70% debt and 30% equity. Debt financing of approximately $737.5m is provided by a syndicate of Thai financial institutions including Bank of Ayudhya, The Export- Import Bank of Thailand, Krung Thai Bank, and Thanachart Bank. [1]
On 23rd July 2018 it was reported that there were at least 27 people have been killed and more than 100 are missing in flooding of at least six villages following the collapse of one of the subsidiary dams, known as "Saddle Dam D". More than 6,600 people have been made homeless. As of 30 July, there are at least 27 dead, over 100 people missing and 16,000 affected.
Workers found the hydroelectric dam in Attapeu province was partially damaged on Sunday, and villagers living nearby were evacuated.
The collapse of the dam Monday was not the first in Laos. Last year, a dam on the Nam Ao River that was being built as part of a hydropower project burst, although no deaths were reported after that accident [3].
Some residents whose villages were in the way of the hydropower project have resisted moving, saying the compensation they were offered was too small and the land they were offered was unsuitable for farming.
In a 2013 International Rivers sent a letter to the power company reporting what the organization saw firsthand on a field visit. People were struggling “with a lack of access to sufficient food, water and land.”
“In addition, families have found that the shallow soil around their homes is inappropriate for growing vegetables, fruits or staple crops, and consistently attest to going hungry,” the letter said [4]. The EJAtlashas recorded the details of building and opposition to several dams in Lao PDR.
There has been criticism for many years against the building of many dams in the Mekong River. There was a typical reaction to the collapse of 23 July 2018 from one of the dam building firms, the Mega First company which is building the 250 MW Don Sahong dam, also in Southern Laos near the Cambodian border. Their press release aserted that "Having reviewed the circumstances surrounding the incident, and the specific and unique characteristics of the Don Sahong Project, the board is satisfied that present and future dam safety risks remain extremely low". Really?
The government's figures on deaths are still increasing a few days later. [5]. A high-ranking Lao official suggested that the dam collapse in Champassak province was the result of faulty construction and said the project’s developer should be held accountable, as the death toll from flooding has reached 30, with more than 20 hospitalized for injuries.
Despite early warnings of a possible breach due to heavy rainfall, many were left behind in their homes when “Saddle Dam D” collapsed, Minister of Energy and Mines Khammany Inthirath told RFA’s Lao Service that the burst was caused by “heavy rainfall” and “construction technique.” [5]. Cambodian villages have also been affected, with 5000 people rellocated. [5]
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