The French Agency for Development (AFD), the Nam Theun 2 Power Company (NTPC), the Khammouane Provincial Government, and the Ministry of Agriculture and Forestry officially launched a 5-year project to support the development of agricultural, livestock and fishing activities on the Nakai Plateau in Khammouane Province. This project aims to sustain livelihoods access for households affected by the Nam Theun 2 hydropower project.
The construction of the Nam Theun 2 dam necessitated the resettlement of 6,289 people living in 17 affected communities on the Nakai plateau. A comprehensive set of compensation and development programs were implemented by the Government of Laos and NTPC to restore the villages’ livelihoods during this period of upheaval. The NP-LAF demonstrates a deeper and broader commitment to long-term development for these communities. The Nam Theun 2 project has brought the once isolated Nakai villages into much closer contact with the wider national economy, which brings with it both
challenges and opportunities.
The goal of the NP-LAF is to empower the Nakai villages with the skills to meet these challenges, and take advantage these opportunities. In complement to the achievements of the programs carried out as part of the Resettlement Implementation Period (RIP), the NP-LAF project will focus on developing livelihoods for people involved in farming, livestock and fishing activities. The program will be tailored to the Nakai Plateau’s unique context: its challenges and its opportunities. This includes the challenges of the plateau’s changed environment, the opportunities in terms of fisheries in the man-made reservoir, and the challenges of the plateau’s topography and soils, and both the opportunities and the challenges of the plateau’s innovative community resource management systems.
The project also seeks to help the villagers take charge of their integration into the province’s economy, with a particular focus on the contribution of women. The project will be financed equally by AFD and NTPC for a total grant of Euro 3 million over 5 years. The project implementation is being led by the Nakai District Government, with support from one
consultancy firm and one NGO. IRAM (the Institute for Research and Application of development Methods) is providing Technical Assistance, and the Comité de Cooperation avec le Laos (CCL) is supporting the District Agriculture and Forestry Office to implement the project in the field.
The operational monitoring will be conducted by AFD. According to Mr Frederic Hofmann: “This project is relatively unusual because it brings together the Government of Laos, a funding agency, a consultancy firm, an NGO and a private company. It was a long and difficult journey, but we did it.”
The project is made up of the following four components:
1. Analysis of the plateau’s agricultural potential and the setting out, on a participative basis
through the existing community land management institutions, of plans for land use, land
security, and the possible reallocation of certain areas of land.
2. Dissemination of agro-ecological practices and development of livestock in order to rehabilitate
soil fertility and increase yields.
3. Improved returns on fish catches (through processing and marketing of fishing products) and
support for the continued involvement of the village fisheries institutions in managing the
4. Capacity strengthening for the Nakai District Agriculture and Forestry Office regarding project
management and innovative approaches. On the occasion of the launch of the NP-LAF Project, a reception was organized at the French Embassy in Vientiane, hosted by Ms Claudine Ledoux, French Ambassador to Lao PDR with presence of Mr
Khammany Inthirath, Minister of Energy and Mines, and Dr Phouangparisack Pravongviengkham, Vice Minister of Agriculture and Forestry, and included representatives from the International Financial Institutions as well as the Panel of Experts (POE), IRAM and CCL.
For more information about the NP-LAF Project, contact AFD at firstname.lastname@example.org
The Nam Theun 2 Power Company (NTPC) is an industrial and development investment owned by two private shareholders (EDF and EGCO) and the Lao Government, backed by commercial lenders and international financial institutions including the World Bank and the Asian Development Bank. NTPC is dedicated to running a world class hydropower facility while improving the living conditions of people in the areas around the Project. The company is also committed to achieving the highest standard of environmental stewardship and protection of the environment for current and future generations.
The Power station has an installed capacity of 1,070 MW that can generate 6000 GWh of electricity per year. About 95% of the power is exported to Thailand. NTPC is a key company for Lao PDR development and is expected to generate 2 billion US$ in government revenue over the 25-year concession period.
AFD is France’s inclusive public development bank. AFD commits financing and technical assistance to
projects that genuinely improve everyday life, both in developing and emerging countries and in the
French overseas provinces. In keeping with the United Nations Sustainable Development Goals, AFD works in many sectors — energy, healthcare, biodiversity, water, digital technology, professional training, among others — to assist with transitions towards a safer, more equitable, and more sustainable world : a world in common. Through a network of 85 field offices, AFD currently finances, monitors, and assists more than 2,500 development projects in 108 countries.