[Piepsap-fiji] FW: World Bank approves support for Lao PDR, Nam Theun 2

Fri, 1 Apr 2005 12:08:38 +1200

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fyi
-----Original Message-----
From: Gerhard Zieroth=20
Sent: Friday, 1 April 2005 12:05
To: SOPAC Energy Sector
Subject: FW: World Bank approves support for Lao PDR, Nam Theun 2

-----Original Message-----
From: nt2feedback@worldbank.org [mailto:nt2feedback@worldbank.org]
Sent: Friday, April 01, 2005 11:21 AM
To: gerhard@sopac.org
Subject: World Bank approves support for Lao PDR, Nam Theun 2

Lao PDR, One of the Poorest Countries in East Asia, Receives Support =
for the
Long Term

WASHINGTON, March 31, 2005 =E2EUR" The Executive Directors of the
International
Development Association (IDA) and the Board of Directors of the =
Multilateral
Investment Guarantee Agency (MIGA) today discussed the development =
prospects
of
Lao People=E2EUR(tm)s Democratic Republic (PDR) and approved a number =
of
investments as
part of an international effort to help increase incomes and living
standards
in one of East Asia=E2EUR(tm)s poorest countries.

The measures include a US$50 million partial risk guarantee, a US$20 =
million
IDA grant, and up to US$200 million in MIGA political risk guarantees =
in
support of the Nam Theun 2 hydroelectric project. The US$1.2 billion =
Nam
Theun
2 is the biggest single project undertaken in Lao PDR, and is expected =
to
provide Lao PDR with up to US$150 million in additional annual revenue. =
This
will enable spending on basic health and education to rise by as much =
as 25
to
30 percent in the project=E2EUR(tm)s first year of operation.

The World Bank President, Mr. James D. Wolfensohn, said that Nam Theun =
2 and
the other initiatives were an effort to assist a country which has =
great
needs
and few options.

=E2EURoeLao PDR has an average income level of less than a dollar a =
day, and
in many
rural areas, it is considerably less than that,=E2EUR=9D he said. =
=E2EURoeChildren
still
suffer malnutrition in many parts of the country, and too many young =
people
receive little or no formal education.

=E2EURoeBut to get out of this poverty trap, the country has few =
options to
generate
income. Essentially, it relies on mining, timber and hydroelectricity. =
We
believe that a sound approach to selling hydroelectricity, supported by
improved government policies, is the best way for the country to =
increase
the
amount of money it can invest in health, education and basic =
infrastructure
for
the benefit of the poor.

=E2EURoeMy colleagues and I have visited the project area and spoken to =
the
villagers
on many occasions over the past several years =E2EUR" in fact I was =
there just
in
February -- to talk with them and hear directly from them about their =
hopes
and
concerns. We have also had many intensive discussions with the Lao
Government
and the project developers, making it clear that we all share the
responsibility for this project succeeding in the years ahead.=E2EUR=9D

Mr. Wolfensohn said that the project was quite complex and would pose =
some
serious implementation challenges to the Government of Lao PDR, the =
private
sector developers, and the other supporters, including the World Bank.

=E2EURoeWe have spent the best part of a decade studying the project =
and
evaluating
the risks,=E2EUR=9D Mr. Wolfensohn said. =E2EURoeIn fact, we have been =
advised by
some
independent experts that we have studied it for too long, and been too
focused
on possible risks. But because it involves resettlement of people, =
because
it
impacts not one but two rivers, and because it is so vital for the =
future of
the country, we believe these risks need the utmost attention. Our =
decision,
after a lot of deliberation, is that the risks can be managed; in fact, =
one
major reason we are involved is to help manage those risks.=E2EUR=9D

In addition to the construction of the dam, the project also provides =
for:

=E2EUR=A2 Increased environmental protection in Lao PDR, with a =
valuable
biodiversity
area, nine times the size of the area to be flooded for the dam, being =
set
aside and conserved;
=E2EUR=A2 Improved housing and higher incomes for the 6,200 villagers =
who are
resettling from the reservoir area;
=E2EUR=A2 A robust and proactive mitigation and compensation program to =
assist
communities downstream to prepare for changes to their livelihoods well =
in
advance of the actual impacts;
=E2EUR=A2 Special measures to ensure that revenues from the project are =
used
effectively to reduce poverty; and
=E2EUR=A2 A continued commitment by the Bank to monitor the project and =
ensure
that it
is fully and properly implemented.

With $4.5 million in no-interest loans and $5.5 million in grants, the =
Board
also agreed to a Poverty Reduction Support Credit. The money will =
support
the
government=E2EUR(tm)s efforts to improve the management of public =
finances and
provide
better health and education services.

The support program is part of the World Bank=E2EUR(tm)s Country =
Assistance
Strategy for
Lao PDR, which was also discussed and endorsed by the Board today.  The
strategy aims to sustain growth by strengthening the private sector, =
helping
rural communities, better managing natural resources, and further =
linking
Lao
PDR to the regional economy.

The Regional Vice President for East Asia and the Pacific, Mr. =
Jemal-ud-din
Kassum, said that Nam Theun 2 and the other support measures approved =
by the
Board showed the Bank=E2EUR(tm)s long-term commitment to Lao PDR.

=E2EURoeWe intend to work with the Government and the Lao people for =
many
years to see
that this major project is fully and properly implemented, and that the
benefits flow to the poor who need them so much,=E2EUR=9D Mr. Kassum =
said.
=E2EURoeOur
involvement does not stop with the signing of the guarantee. That is =
when it
really starts.=E2EUR=9D

He said that in the coming years, the Bank would continue to focus on =
the
details of the project and work closely with the Government and the
developers
to ensure that all commitments are honored and risks properly managed.
=E2EURoeWe will
also continue to encourage public discussion and scrutiny, and to make
information available on the project via our website.=E2EUR=9D

###

For more information, please see our website at
http://www.worldbank.org/laont2

In Washington: Peter Stephens  202-361-5195 (mb), =
pstephens1@worldbank.org
 Melissa Fossberg  202- 458-4145;  mfossberg@worldbank.org
Jill Wilkins  202-473-1792; jwilkins@worldbank.org

In Bangkok: Kimberly Versak, +66-2-256-7792 x322

*** NO LONGER INTERESTED IN RECEIVING THESE UPDATES? ***

Please reply to this message with 'unsubscribe' in the subject line to =
be
removed from this distribution list.

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<P><FONT SIZE=3D2>fyi</FONT>
<BR><FONT SIZE=3D2>-----Original Message-----</FONT>
<BR><FONT SIZE=3D2>From: Gerhard Zieroth </FONT>
<BR><FONT SIZE=3D2>Sent: Friday, 1 April 2005 12:05</FONT>
<BR><FONT SIZE=3D2>To: SOPAC Energy Sector</FONT>
<BR><FONT SIZE=3D2>Subject: FW: World Bank approves support for Lao =
PDR, Nam Theun 2</FONT>
</P>
<BR>
<BR>
<BR>

<P><FONT SIZE=3D2>-----Original Message-----</FONT>
<BR><FONT SIZE=3D2>From: nt2feedback@worldbank.org [<A =
HREF=3D"mailto:nt2feedback@worldbank.org">mailto:nt2feedback@worldbank.o=
rg</A>]</FONT>
<BR><FONT SIZE=3D2>Sent: Friday, April 01, 2005 11:21 AM</FONT>
<BR><FONT SIZE=3D2>To: gerhard@sopac.org</FONT>
<BR><FONT SIZE=3D2>Subject: World Bank approves support for Lao PDR, =
Nam Theun 2</FONT>
</P>
<BR>

<P><FONT SIZE=3D2>Lao PDR, One of the Poorest Countries in East Asia, =
Receives Support for the</FONT>
<BR><FONT SIZE=3D2>Long Term</FONT>
</P>

<P><FONT SIZE=3D2>WASHINGTON, March 31, 2005 =E2&#8364;" The Executive =
Directors of the International</FONT>
<BR><FONT SIZE=3D2>Development Association (IDA) and the Board of =
Directors of the Multilateral</FONT>
<BR><FONT SIZE=3D2>Investment Guarantee Agency (MIGA) today discussed =
the development prospects of</FONT>
<BR><FONT SIZE=3D2>Lao People=E2&#8364;(tm)s Democratic Republic (PDR) =
and approved a number of investments as</FONT>
<BR><FONT SIZE=3D2>part of an international effort to help increase =
incomes and living standards</FONT>
<BR><FONT SIZE=3D2>in one of East Asia=E2&#8364;(tm)s poorest =
countries.</FONT>
</P>

The measures include a US$50 million partial risk =
guarantee, a US$20 million
 IDA grant, and up to US$200 million in MIGA =
political risk guarantees in
 support of the Nam Theun 2 hydroelectric project. =
The US$1.2 billion Nam Theun
 2 is the biggest single project undertaken in Lao =
PDR, and is expected to
 provide Lao PDR with up to US$150 million in =
additional annual revenue. This
 will enable spending on basic health and education =
to rise by as much as 25 to
 30 percent in the project=E2&#8364;(tm)s first year =
of operation.

The World Bank President, Mr. James D. Wolfensohn, =
said that Nam Theun 2 and
 the other initiatives were an effort to assist a =
country which has great needs
 and few options.

=E2&#8364;oeLao PDR has an average income level of =
less than a dollar a day, and in many
 rural areas, it is considerably less than =
that,=E2&#8364;=9D he said. =E2&#8364;oeChildren still
 suffer malnutrition in many parts of the country, =
and too many young people
 receive little or no formal education.

=E2&#8364;oeBut to get out of this poverty trap, the =
country has few options to generate
 income. Essentially, it relies on mining, timber and =
hydroelectricity. We
 believe that a sound approach to selling =
hydroelectricity, supported by
 improved government policies, is the best way for =
the country to increase the
 amount of money it can invest in health, education =
and basic infrastructure for
 the benefit of the poor.

=E2&#8364;oeMy colleagues and I have visited the =
project area and spoken to the villagers
 on many occasions over the past several years =
=E2&#8364;" in fact I was there just in
 February -- to talk with them and hear directly from =
them about their hopes and
 concerns. We have also had many intensive =
discussions with the Lao Government
 and the project developers, making it clear that we =
all share the
 responsibility for this project succeeding in the =
years ahead.=E2&#8364;=9D

Mr. Wolfensohn said that the project was quite =
complex and would pose some
 serious implementation challenges to the Government =
of Lao PDR, the private
 sector developers, and the other supporters, =
including the World Bank.

=E2&#8364;oeWe have spent the best part of a decade =
studying the project and evaluating
 the risks,=E2&#8364;=9D Mr. Wolfensohn said. =
=E2&#8364;oeIn fact, we have been advised by some
 independent experts that we have studied it for too =
long, and been too focused
 on possible risks. But because it involves =
resettlement of people, because it
 impacts not one but two rivers, and because it is so =
vital for the future of
 the country, we believe these risks need the utmost =
attention. Our decision,
 after a lot of deliberation, is that the risks can =
be managed; in fact, one
 major reason we are involved is to help manage those =
risks.=E2&#8364;=9D

<P><FONT SIZE=3D2>In addition to the construction of the dam, the =
project also provides for:</FONT>
</P>

<P><FONT SIZE=3D2>=E2&#8364;=A2 Increased environmental protection in =
Lao PDR, with a valuable biodiversity</FONT>
<BR><FONT SIZE=3D2>area, nine times the size of the area to be flooded =
for the dam, being set</FONT>
<BR><FONT SIZE=3D2>aside and conserved;</FONT>
<BR><FONT SIZE=3D2>=E2&#8364;=A2 Improved housing and higher incomes =
for the 6,200 villagers who are</FONT>
<BR><FONT SIZE=3D2>resettling from the reservoir area;</FONT>
<BR><FONT SIZE=3D2>=E2&#8364;=A2 A robust and proactive mitigation and =
compensation program to assist</FONT>
<BR><FONT SIZE=3D2>communities downstream to prepare for changes to =
their livelihoods well in</FONT>
<BR><FONT SIZE=3D2>advance of the actual impacts;</FONT>
<BR><FONT SIZE=3D2>=E2&#8364;=A2 Special measures to ensure that =
revenues from the project are used</FONT>
<BR><FONT SIZE=3D2>effectively to reduce poverty; and</FONT>
<BR><FONT SIZE=3D2>=E2&#8364;=A2 A continued commitment by the Bank to =
monitor the project and ensure that it</FONT>
<BR><FONT SIZE=3D2>is fully and properly implemented.</FONT>
</P>

With $4.5 million in no-interest loans and $5.5 =
million in grants, the Board
 also agreed to a Poverty Reduction Support Credit. =
The money will support the
 government=E2&#8364;(tm)s efforts to improve the =
management of public finances and provide
 better health and education services.

<P><FONT SIZE=3D2>The support program is part of the World =
Bank=E2&#8364;(tm)s Country Assistance Strategy for</FONT>
<BR><FONT SIZE=3D2>Lao PDR, which was also discussed and endorsed by =
the Board today.&nbsp; The</FONT>
<BR><FONT SIZE=3D2>strategy aims to sustain growth by strengthening the =
private sector, helping</FONT>
<BR><FONT SIZE=3D2>rural communities, better managing natural =
resources, and further linking Lao</FONT>
<BR><FONT SIZE=3D2>PDR to the regional economy.</FONT>
</P>

The Regional Vice President for East Asia and the =
Pacific, Mr. Jemal-ud-din
 Kassum, said that Nam Theun 2 and the other support =
measures approved by the
 Board showed the Bank=E2&#8364;(tm)s long-term =
commitment to Lao PDR.

=E2&#8364;oeWe intend to work with the Government and =
the Lao people for many years to see
 that this major project is fully and properly =
implemented, and that the
 benefits flow to the poor who need them so =
much,=E2&#8364;=9D Mr. Kassum said. =E2&#8364;oeOur
 involvement does not stop with the signing of the =
guarantee. That is when it
 really starts.=E2&#8364;=9D

He said that in the coming years, the Bank would =
continue to focus on the
 details of the project and work closely with the =
Government and the developers
 to ensure that all commitments are honored and risks =
properly managed. =E2&#8364;oeWe will
 also continue to encourage public discussion and =
scrutiny, and to make
 information available on the project via our =
website.=E2&#8364;=9D

<P><FONT SIZE=3D2>###</FONT>
</P>

<P><FONT SIZE=3D2>For more information, please see our website at <A =
HREF=3D"http://www.worldbank.org/laont2" =
TARGET=3D"_blank">http://www.worldbank.org/laont2</A></FONT>
</P>
<BR>
<BR>
<BR>

<P><FONT SIZE=3D2>In Washington: Peter Stephens&nbsp; 202-361-5195 =
(mb), pstephens1@worldbank.org</FONT>
<BR><FONT SIZE=3D2>&nbsp;Melissa Fossberg&nbsp; 202- 458-4145;&nbsp; =
mfossberg@worldbank.org</FONT>
<BR><FONT SIZE=3D2>Jill Wilkins&nbsp; 202-473-1792; =
jwilkins@worldbank.org</FONT>
</P>

<P><FONT SIZE=3D2>In Bangkok: Kimberly Versak, +66-2-256-7792 =
x322</FONT>
</P>

<P><FONT SIZE=3D2>*** NO LONGER INTERESTED IN RECEIVING THESE UPDATES? =
***</FONT>
</P>

<P><FONT SIZE=3D2>Please reply to this message with 'unsubscribe' in =
the subject line to be</FONT>
<BR><FONT SIZE=3D2>removed from this distribution list.</FONT>
</P>
<BR>

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