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Mekong Forum on Water, Food and Energy in Ha Noi, Viet Nam, November 19 to 21, 2013

BDC Mekong Project 2 Lao Team

Water Valuation, Benefits and Trade off after Resettlement – Case Study on Upstream of Nam

Gnouang Hydropower Reservoir

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Outline

• Introduction• Study Site • Approach• Results• Conclusions/

Further analysis

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T-H Extension Project

NG Reservoir and resettlement villages

Case Study in Lao PDR – Upstream Site

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VG 1

Keo Saen Kham180 HHs 2011

VG 2 320 HHs 2010

VG 3a 160 HHs 2010-11

VG 1 150 HHs 2009

The Change: conversion of Nam Gnouang river into a reservoir,

resettlement of local villages

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Study Site in Lao PDR:

Upstream

Google Earth image in 2003Estimated reservoir extent in 2012, byTheun Himboun Power Company, Lao PDR

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• To understand how local communities use the river water, river ecosystems and later reservoir ecosystem

• To assess the economic importance of the river and reservoir for local livelihood and income

• To compare water use patterns and economic values before and after the resettlement

Objectives

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Longitudinal Survey

FGDs and Stakeholder

Consultation

Upstream HH survey in 4

villagesBefore

Resettlement100 HH

April 2011 Sept. 2012

Upstream HH survey in 4

villages After

Resettlement100 HH

Validation Workshop

May 2013Feb 2011

Resettlementof 180 HH

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River Related Income Portfolio

Fisheries63%

Forestry 2%

Irrigated Agriculture

33%

Non Farm2%

River Related Income portfolio of HH Before Ressettlement

Total = 13 Mkip

Fisheries96%

Forestry 4%

Non Farm0%

River Related Income portfolio of HH After Ressettlement

Total = 5 Mkip

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From river to reservoir fisheries

Fishing is the most important use of reservoir

Fisheries generate a large share of income and more cash than before, but fisheries changed:

– Higher catch, but less diverse & lower market value

– Seasonality shifted – from peak fish catch in dry season to peak in rainy season

– No more harvest of other aquatic animals – Different fishing technique requiring more

equipment

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Changes is not Homogeneous Distance matters

• Before relocation: 4-5 minutes walk to the river

• After relocation: up to 30 minutes walk to the reservoir

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Distance to the Reservoir an Important factor in Livelihood strategies

– Close: < 15 mn walk– Medium: 15-33 mn– Far: >33 mn

The distance to reservoir is an important factor for access to fishery resource

Households located close to the reservoir have invested more in boats, fishing gears and fishery licenses than those located farBefore After Before After Before After

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2

4

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Change in River Related Income Portfolio - Before & After Resettlement

Non Farm

Irrigated Agriculture

Forestry

Fisheries

Mill

ion

Kip/

HH/y

ear

CLOSE MEDIUM FAR

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Domestic Water use – from river collection to Individual Well

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Changes in Sources of Water

River54%

Spring44%

Tap 2%

Dry Season

River36%

Spring50%

Rain and river5%

Rain and spring7%

Tap2%

Rain SeasonBefore Resettlement

After Resettlement

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Access to Water is Easier.....

Ease of Access to Sources of Water Before and After Relocation(1: Very easy; 5: Very difficult)

More Difficult

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and water consumption increases

Water Consumption Before and After Resettlement(liters/household/day)

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....and it saves time

Time Spent Collecting Water, Before and After Resettlement (total hours per week)

Total Total

Total Total

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...for making more money!

• Assuming a $2 per day of potential economic productivity

• The total annual economic benefit of the reduction in water collection time can be valued at approximately $19,000 (for all 4 villages combined)

Share of Economic Benefits from Time Saving in Water Collection Among 4 Villages

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Conclusion • During the transition period, households

relies more on natural resources • Reservoir fisheries need to be sustained

as it has become the most important local use of the reservoir and the main source of income

• Need to consider the differences within the resettlement village in terms of access to reservoir, forest and grazing while designing resettlement villages

• Domestic water access has dramatically improved and made more time available for income generation through other activities

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Need for further analysis

• The 2nd survey was too soon after the resettlement and agriculture activities had not yet started

• Another survey is planned in December 2013 to assess the changes two and half years after the resettlement