Transcript Nam Theun 2 Technical Workshop

NAM THEUN 2
TECHNICAL
WORKSHOP
Bangkok
31st August, 2004
Dr Somboune MANOLOM
Permanent Secretary
Ministry of Industry and Handicrafts, Lao PDR
THE LAO CONTEXT
• A poor country
• Landlocked and mountainous
• Sparsely populated
• Limited industry and exports
THE LAO CONTEXT
A poor country:
• A Least Developed Country (LDC) - ranked 145 out of 175 countries in
UNDP Human Development ranking
• One-third of population living below poverty line - 70% live on less
than US$2 a day
• GDP of US$1.9 billion in 2003
• Per Capita GDP of US$330
• Heavily reliant on Official Development Assistance (ODA)
THE LAO CONTEXT
Landlocked and mountainous:
• Restricted access to export markets : shipping + insurance costs for
LDC’s = 15%; 5% for industrialised countries
• 30% of land area has slope of > 30o – agricultural land is a precious
commodity
• 50% of land is contaminated by UXO – another factor affecting
availability of agricultural land
THE LAO CONTEXT
Sparsely populated:
• Population a little over 5.5 million
• 80% of people live in rural areas
• 40% of villages practice slash-and-burn agriculture
• 70% of labour force - no education or did not finish primary school
• Life expectancy 59 years
• 1 in 10 children die by age of five - 1 in 4 adults die by age 40
THE LAO CONTEXT
Limited industry and exports:
• Exports in 2003 of US$330 million = 20% of GDP
• Agricultural sector is 50% of GDP; manufacturing 20%
• Main export revenues from - garments, wood and wood products;
gold and copper; coffee and electricity
• Electricity exports to Thailand = about 30% of export revenues
THE LAO CONTEXT
A Practical Example: Life on the Nakai Plateau
• Total population about 7,200 people (2003 census)
• 80% of families cannot grow enough rice for the year
• Most households have no electricity
• 60% of population use rivers/streams as only water source
• No paved roads
• Schools only in larger villages – over 60% of people have no
schooling at all
• Average distance to nearest hospital (Ban Oudomsouk) 11 km –
access for most is on foot
THE LAO CONTEXT
Progress is being made
Since the early/mid 1990’s …
• Population below poverty line: reduced by 50%
• Access to piped water / protected wells: up to 50% from 15%
• Under 5 mortality rate: down from 170 per 1,000 to 107 per 1,000
• Mortality from malaria: reduced by 60%
• Agricultural output: 4-5% annual growth
• Fishery: 160% growth
• Rural electrification: almost doubled
National Growth and Poverty Eradication
Strategy (NGPES)
National Growth and Poverty Eradication
Strategy (NGPES)
4 Main Sectors
• Agriculture/forestry : improvement of household food
security
• Education :
increased access to education for all
• Health :
grassroots health care
• Infrastructure :
improvement and expansion of road
network
National Growth and Poverty Eradication
Strategy (NGPES)
Supporting Sectors & Cross-Sector Priorities
• Energy and Rural Electrification
• Agro-forestry
• Tourism
• Industrial Development
• Mining and Construction Materials Industry
• Environmental Conservation and Resource Management
• Gender Equality
• Capacity Building
National Growth and Poverty Eradication
Strategy (NGPES)
3 National Programmes
• National Drug Control Programme
• UXO Decontamination Programme
• National Action Plan for HIV/AIDS/STD
Nam Theun 2
• A key project for government of
Lao PDR
• Estimated revenues for Lao PDR of
US$1.8 billion over 25-year
concession period
• Revenue use priorities : poverty
reduction / environmental
protection programmes
THANK YOU