Laos will not curb its hydropower projects

Subject

Laos's dam-building ambitions.

Significance

Laos on August 7 suspended approval of new hydropower projects, following the collapse of a dam in the Mekong river basin late last month. The government has ordered an inspection of all existing hydropower facilities as it looks to demonstrate transparency and avert a social and environmental backlash. China and the four-country Mekong River Commission (MRC), comprising Laos, Cambodia, Thailand and Vietnam, seek to manage the river basin’s resources and development.

Impacts

• The increasing calls for transparency will translate into greater social pressure to improve regulation and safety standards.
• The government may face environmental protests, though any dissent will be quickly suppressed.
• China is likely to exploit divisions between Mekong countries to serve its interests in the Mekong sub-region.