Groups File Complaint Against NTPC Over Lao Hydro Project

0 Comments | Renewable Energy Today, Dec 1, 2004

Belgian business watchdog Proyecto Gato and French environmental protection group Amis de la Terre recently announced that several non-governmental organizations (NGOs) have filed a complaint against Electricite de France (EdF), the major shareholder in the Nam Theun 2 Power Company (NTPC), for breaching the Organization for Economic Co-operation and Development (OECD) guidelines for multinational enterprises concerning the construction of the $1.3-billion Nam Theun 2 hydropower project in Lao People's Democratic Republic (PDR).

According to Proyecto Gato and Amis de la Terre, the NGOs have accused NTPC of "failing to identify, respond to and consider potentially serious impacts for tens of thousands of people and an ecosystem known for its endangered biodiversity;" "not engaging in adequate and timely consultation with affected communities;" "failing to comply with the Lao government's international labor rights obligations and commitments;" and "awarding the head construction contract for the project to Electricite de France without international competitive bidding."

"We are demanding that EdF conducts its business responsibly and in accordance with the OECD guidelines for multinational enterprises," said Proyecto Gato official Jan Cappelle. "This includes fully addressing the environmental and social impacts of the Nam Theun 2 Hydropower Project and ensuring that complete and rigorous baseline studies have been undertaken before the project commences, allowing an accurate assessment of likely project impacts. However, the Nam Theun 2 Power Company plans to start full construction in May 2005, despite the fact that many studies are still incomplete, key baseline data is lacking, and many of those studies that have been completed will not be released to the public."

Contact: Jan Cappelle, Proyecto Gato, phone 32-48-440-3358; Sebastian Godinot, Amis de la Terre, phone 33-14-851-1892.

(EIN STAFF: 11/25)