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[Case Study] Korean Official Development Assistance (ODA) and the Xe Pian-Xe Namnoy Dam Collapse in Laos

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[Case Study] Korean Official Development Assistance (ODA) and the Xe Pian-Xe Namnoy Dam Collapse in Laos

admin | 수, 2019/11/06- 02:01

Case Study

Korean Official Development Assistance (ODA) and the Xe Pian-Xe Namnoy Dam Collapse in Laos

 

https://www.forum-asia.org/uploads/wp/2019/10/Attapu2_2019%E2%93%92-Kora... style="width:661px;height:475px;" />

 

Background

 

On 23 July 2018, a saddle dam of the Xe-Pian Xe-Namnoy hydropower dam in Attapeu Province, Laos, collapsed. The dam collapse unleashed a disaster with transboundary implications in which 49 Lao residents were killed, 22 others went missing[1], and more than 5,000 were displaced, as the dam water rushed towards the Cambodian border.

 

The Xe Pian-Xe Namnoy dam was a Public-Private-Partnership (PPP) that had received 80.8 million USD from the Economic Development Cooperation Fund (EDCF) of the Export-Import Bank of Korea, the primary institution that implements Official Development Assistance (ODA) loans for the Republic of Korea. SK Engineering and Construction (SK E&C), and Korea Western Power (KOWEPO) were among the main investors in the project. Construction had been completed in April 2017, four months ahead of schedule, and the dam was expected to commence its commercial operation in February 2019.

 

However, international environmental groups had long been opposed to the construction of the Xe Pian-Xe Namnoy dam. Concerns had been raised over: environmental damage, forced evictions, and lack of transparency in its Environmental Impact Assessments (EIA) and socio-environmental examination. During a parliamentary inspection by the Ministry of Strategy and Finance in 2013, it was pointed out that the project did not follow the EDCF’s safeguard policy, which aims to reduce, as much as, possible negative effects caused by large-scale development projects.[2]

 

Meanwhile, 90 percent of the electricity produced from the dam was supposed to be exported to Thailand and was never meant to be consumed in Laos. From the beginning, it was never intended to benefit the people of Laos. It was claimed it would serve as ‘the battery of Asia’, but it would do so by building an excessive number of hydropower dams. The Laotian Government was going to enjoy the financial profits.

 

SK E&C, the main constructor, and KOWEPO, the intended operator for the initial 27 years, were set to reap the benefits from the development project. The residents in the dam-constructing sites were left with the painful bitterness from having the environment destroyed and being displaced from their ancestral homes. As if this was not enough, some families lost family members and had their homes demolished.

 

Korean Civil Society’s Activities

 

After the dam collapsed in 2018, Korean civil society organisations assembled the Coordinated Response Team of the Korean Civil Societies for the Xe Pian-Xe Namnoy Dam Collapse (Korean Civil Society TF). The Korean Civil Society TF demanded the Korean Government and SK E&C to: investigate why the dam collapsed, commit to the restoration of the affected area, devote official reparation and compensation to the affected residents, and arrange for measures to be taken to prevent any other dam collapsing.

 

The Korean Civil Society TF has been monitoring the situation of the affected areas, while demanding accountability from the Korean Government and SK E&C. National campaigns have been initiated, some with participation from the international community for solidarity. In 2018, Thai and Cambodian activists from Laos Dam Investigation Monitoring (LDIM) and a victim of the damaged area in Cambodia visited Korea, and took part in an international public forum to inform the general public about the situation in the damaged areas after the dam collapsed. They also met with the Korean Exim Bank and Members of Parliament to share insights about the dam collapse. A press conference was held in front of SK E&C building. SK E&C refused to meet with the activists and affected residents.

 

The Korean Civil Society TF has been lobbying members of the National Assembly to play a role in how the dam collapse is addressed. During a parliamentary inspection in 2018, it was raised that there are suspicions that SK E&C attempted to earn excessive profits by changing the structure and design of the dam. It was also revealed that the Korean Government had signed a loan agreement to provide conditional incentive bonuses for completion ahead of schedule.[3]

 

In September 2018 and January 2019, the task force conducted a research on the affected areas in Laos and Cambodia. The research found that the situation of the affected village was worse than expected. The village was nearly lost to view, with houses severely dilapidated. The conditions in the temporary camps were also very poor. The Laotian Government has banned residents from entering their village, supposedly due to risks of diseases or accidents. In addition, victims’ remains were kept in plastic bottles without having proper funerals. The research also contains interviews with various stakeholders and victims to raise awareness in South Korea.

 

On 22 January 2019, the Korean Civil Society TF submitted a letter to the Working Group on Business and Human Rights with allegations about human rights violations committed by transnational corporations and other business enterprises involved with the Xe-Pian Xe-Namnoy Hydropower Dam in Laos.[4] The allegation letter mainly asserts that the relevant authorities linked to the dam project failed in their responsibility to maintain safety and prevent human rights infringement by companies within its borders. Inappropriate decision-making, substandard construction processes, and incompetent crisis handling by the Korean Government and Korean companies all contributed to serious and extensive human rights infringements, which local residents were subjected to.

 

The UN Guiding Principles on Business and Human Rights[5] account for a State’s duty to protect individuals from human rights infringements from corporations within its borders. They also reflect the corporate responsibility to refrain from infringing on people’s human rights, while respecting human rights by remedying any negative impact on human rights it may find itself accountable for.[6]

 

The Korean Civil Society TF pointed out that SK E&C and the Korean Government had failed to fulfill their responsibilities and duties as explained in the UN Guiding Principles. This is because the companies involved did not immediately report to the State nor did they take measures to allow residents to evacuate, even though they were aware of problems with the saddle dam.

 

In addition, as a member of the United Nations, the Korean Government is obliged to abide by the International Covenant on Civil and Political Rights (ICCPR) and the International Covenant on Economic, Social, and Cultural Rights (ICESCR). As a major investor in the Xe-Pian Xe-Namnoy dam project, the Korean Government should thoroughly investigate and take measures in line with its responsibilities for the dam collapse. The Korean Civil Society TF pointed out that the Korean Government’s attitude in dealing with this collapse is very irresponsible.

 

On 17 June 2019, the Korean Civil Society TF filed a complaint to the Korean National Contact Point (NCP) against SK E&C, Korea Exim Bank and KOWEPO for breaching the OECD Guidelines for Multinational Enterprises.[7] The complaint pointed out that: 1) the reason for the dam collapse was faulty design and construction; 2) SK E&C and KOWEPO failed to minimise the damage by missing the opportunity to discharge overflow; 3) no appropriate measures were taken after the dam collapsed, such an announcement for evacuation; 4)  the adoption of preventive safety measures on environmental risks were required by the EIA; 5) Korea Exim Bank failed to implement due diligence on expected risks in its management and consulting of the financing process; and 6) SK E&C, Korea Exim Bank, and KOWEPO refused to communicate with civil society organisations and ignored information disclosure requests.

 

One year after the dam collapse

 

Although a year has passed, the tragedy of the dam collapse continues. Support for recovery and compensation for the loss and harm inflicted upon Lao and Cambodian nationals have been slow. It is still unclear when the affected residents living in the camps will be able to return their village to resume to their daily lives in hope of a secure future.

 

The cause of the accident has only been revealed recently through an independent investigation commissioned by the Laotian Government, which found that the collapse was caused by human error.[8] Immediate steps must be taken to provide full compensation and restoration for damages to lives and livelihoods. The Korean Government and SK E&C should formally apologise for this tragedy and appropriately compensate the victims.

 

Preventive measures must also be taken to avoid a recurrence of this tragic disaster. Safeguard policies have been established and implemented by international finance institutions such as World Bank and ADB to prevent environmental, social, and human rights violations caused by large-scale development projects, and protect the rights of residents.

 

The EDCF established a safeguard policy in 2016. Yet, problems persist, including: the absence of independent screening bodies, non-disclosure of relevant information, such as environmental and social impact assessments, lack of responsibility of aid agencies in fulfilling safeguarding measures, lack of monitoring and post-evaluation measures, and the lack of responsibility of aid agencies in operating grievance procedures.

 

The Korean Government must immediately review its safeguard policies and apply it to all projects, including concessional loans and grants for development aid. The Korean Civil Society TF will continue its activities to push for official compensation for the affected residents and for measures to prevent the recurrence of the disaster in cooperation with the international community.

 

---------

[1] Vientiane Times, Victims of dam collapse receive compensation, January 29, 2019 http://www.vientianetimes.org.la/freeContent/FreeConten_Victims.php

 

[2] National Assembly Minutes, Parliamentary Inspection of Korea Eximbank, October 30, 2013

http://likms.assembly.go.kr/record/mhs-40-010.do" target="_blank" rel="nofollow">http://likms.assembly.go.kr/record/mhs-40-010.do

 

[3] Hankyoreh, SK E&C’s attempts to cut costs led to design changes that resulted in the collapse of dam in Laos, October 15, 2018

 

[4] The Korean Civil Society TF, Allegation Letter on Xe-Pian Xe-Namnoy Hydropower Dam Collapse, 2019

http://www.peoplepower21.org/index.php?_filter=search&mid=English&search... target="_blank" rel="nofollow">http://www.peoplepower21.org/index.php?_filter=search&mid=English&search...

 

[5] UN, Guiding Principles on Business and Human Rights: Implementing the United Nations “Protect, Respect and Remedy” Framework, (2011) UN Doc. HR/PUB/11/04.

 

[6] UN Guiding Principles, Article 1, Article 11

 

[7] The Korean Civil Society TF, Summary of the Complaint for the Xe-pian Xe-namnoy Dam Collapse, 2019

http://www.peoplepower21.org/index.php?mid=English&document_srl=1654038" target="_blank" rel="nofollow">http://www.peoplepower21.org/index.php?mid=English&document_srl=1654038<...

 

[8] Vientiane Time, Investigators: Dam collapse not a “force majeure” event, May 9, 2019

 

https://www.forum-asia.org/?p=30268" target="_blank" rel="nofollow">Forum-Asia website >> 

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Laos: Five years on, 122 organizations worldwide demand to know: “Where is Sombath?”

 

(15 December 2017) - On the fifth anniversary of the enforced disappearance of Lao civil society leader Sombath Somphone, we, the undersigned organizations, express outrage at the Lao government’s failure to independently, impartially, effectively, and transparently investigate Sombath’s disappearance, reveal his whereabouts, and return him to his family. 

 

The Lao government’s continued silence and obfuscation of the facts around Sombath’s enforced disappearance have subjected his family to five years of fear and uncertainty over his fate and whereabouts, which remain unknown to this day.

 

Sombath was last seen at a police checkpoint on a busy street of the Lao capital, Vientiane, on the evening of 15 December 2012. His abduction was captured on a CCTV camera near the police checkpoint. The footage strongly suggests that police stopped Sombath’s vehicle and, within minutes, unknown individuals forced him into another vehicle and drove him away in the presence of police officers. CCTV footage also appears to show an unknown individual driving Sombath’s vehicle away from the city center before returning sometime later.

 

The fact that police officers appeared to have witnessed Sombath’s abduction and failed to intervene strongly indicates state agents’ involvement in, or acquiescence to, Sombath’s disappearance. Despite this evidence, the Lao authorities have not presented any new findings with regard to their investigation of the case. Despite claiming in various international fora that the investigation is “ongoing”, the government has not issued an official report on the investigation’s progress since 8 June 2013.

 

Sombath’s case is not the only case of an unsolved enforced disappearance in Laos. Lao authorities have failed to provide information on the fate or whereabouts of many other individuals, including community activists, who have been victims of enforced disappearance.

 

The Lao government’s failure to undertake adequate investigations into all cases of enforced disappearances violates its obligations under international human rights law, including Article 2(3) of the International Covenant on Civil and Political Rights, to which Laos is a state party.

 

We urgently call on governments worldwide to demand that the Lao government immediately provide information on Sombath’s fate or current whereabouts, and other details surrounding Sombath’s enforced disappearance, as well as all other cases of enforced disappearance, in order to determine the victims’ fate or whereabouts. Lao authorities should commit to making the findings available to family members of the disappeared, and provide regular public updates on their progress on all cases of enforced disappearance. The Lao government should also ensure that those responsible for enforced disappearance, regardless of title or rank, are held accountable in trials that comply with international fair trial standards.

 

Lastly, we strongly urge the Lao government to ratify the International Convention for the Protection of All Persons from Enforced Disappearance, incorporate its provisions into the country’s domestic legislation, and implement it in practice.

 

1.           Accion Ecologica

 

2.           Al Haq

 

3.           Amman Center for Human Rights Studies (ACHRS)

 

4.           Amnesty International

 

5.           Armanshahr/OPEN ASIA

 

6.           ASEAN Parliamentarians for Human Rights (APHR)

 

7.           Asian Federation Against Involuntary Disappearances (AFAD)

 

8.           Asian Forum for Human Rights and Development (FORUM-ASIA)

 

9.           Assistance Association for Political Prisoners (AAPP)

 

10.       Association for Law, Human Rights and Justice (HAK)

 

11.       Association of Human Rights Defenders and Promoters (HRDP)

 

12.       Awaz Foundation Pakistan - Centre for Development Services

 

13.       Bahrain Center for Human Rights (BCHR)

 

14.       Bangladesh Environmental Lawyers Association (BELA) - Friends of the Earth Bangladesh

 

15.       Banglar Manabadhikar Suraksha Mancha (MASUM)

 

16.       Bank Information Center

 

17.       Bytes for All

 

18.       Cambodian Human Rights and Development Association (ADHOC)

 

19.       Cambodian League for the Promotion and Defense of Human Rights (LICADHO)

 

20.       Center for Environmental Justice (CEJ) - Friends of the Earth Sri Lanka

 

21.       Centre for Environmental Justice

 

22.       Centre for Financial Accountability

 

23.       Centre for Human Rights and Development

 

24.       Centre for Human Rights and Development (CHRD)

 

25.       China Labour Bulletin (CLB)

 

26.       Christian Development Alternative (CDA)

 

27.       Citizens Against Enforced Disappearances (CAGED)

 

28.       Coalition of the Flemish North-South Movement 11.11.11

 

29.       Commission for the Disappeared and Victims of Violence (KontraS)

 

30.       Community Resource Centre Foundation (CRC)

 

31.       Covenants Watch

 

32.       Cross Cultural Foundation (CrCF)

 

33.       DIGNIDAD (A Life of Dignity for All)

 

34.       Egyptian Initiative for Personal Rights

 

35.       Empowering Singaporeans

 

36.       ENGAGE

 

37.       Fastenopfer Switzerland

 

38.       FIAN International

 

39.       FIDH – International Federation for Human Rights

 

40.       Finnish Asiatic Society

 

41.       Finnish League for Human Rights

 

42.       Focus on the Global South

 

43.       Friends of the Earth Asia Pacific

 

44.       Friends of the Earth Australia

 

45.       Friends of the Earth International

 

46.       Friends of the Earth Japan

 

47.       Fundacion Solon

 

48.       Global Partnership for the Prevention of Armed Conflict

 

49.       Globe International

 

50.       GZO Peace Institute

 

51.       Haburas Foundation- Friends of the Earth East Timor

 

52.       Human Rights Alert

 

53.       Human Rights Commission of Pakistan (HRCP)

 

54.       Human Rights Defenders Forum

 

55.       Human Rights Defenders' Alert

 

56.       Human Rights Watch

 

57.       Indian Social Action Forum

 

58.       Indigenous Perspectives

 

59.       Indonesian Legal Aid and Human Rights Association(PBHI)

 

60.       Indonesian Legal Aid Foundation (YLBHI)

 

61.       INFORM Human Rights Documentation Centre

 

62.       Informal Sector Service Centre (INSEC)

 

63.       Initiatives for International Dialogue (IID)

 

64.       International Accountability Project

 

65.       International Commission of Jurists

 

66.       Internet Law Reform Dialogue (iLaw)

 

67.       Italian League of Human Rights - LIDU

 

68.       Jan Mitra Nyas

 

69.       Judicial System Monitoring Program (JSMP)

 

70.       Korean House for International Solidarity (KHIS)

 

71.       Lao Movement for Human Rights

 

72.       Latvian Human Rights Committee

 

73.       League for the Defence of Human Rights in Iran (LDDHI)

 

74.       Legal Rights and Natural Resources Center (LRC) - Friends of the Earth Philippines

 

75.       Liga lidských Práv (LLP)

 

76.       Ligue des droits de l'Homme (LDH)

 

77.       Maldivian Democracy Network (MDN)

 

78.       Mangrove Action Project

 

79.       MARUAH

 

80.       Mekong Monitor Tasmania

 

81.       Mekong Watch

 

82.       Moroccan Association for Human Rights (Association Marocaine des Droits Humains/AMDH)

 

83.       National Commission for Justice and Peace (NCJP)

 

84.       ND-Burma

 

85.       NGO Forum on ADB

 

86.       Odhikar

 

87.       Palestinian Environmental NGOs Network (PENGON) - Friends of the Earth Palestine

 

88.       People's Solidarity for Participatory Democracy (PSPD)

 

89.       People's Vigilance Committee on Human Rights (PVCHR)

 

90.       People’s Watch

 

91.       Philippine Alliance of Human Rights Advocates (PAHRA)

 

92.       PILIPINA Legal Resource Center (PLRC)

 

93.       Polish Society of Antidiscrimination Law (PSAL)

 

94.       Programme Against Custodial Torture & Impunity (PACTI)

 

95.       Progressive Voice

 

96.       Pusat Kumunikasi Masyarakat (Pusat KOMAS)

 

97.       Re:Common

 

98.       Refugee and Migratory Movements Research Unit (RMMRU)

 

99.       #ReturnOurCPF

 

100.   Russian Social-Ecological Union (RSEU) - Friends of the Earth Russia

 

101.   Sahabat Alam Malaysia (SAM) - Friends of the Earth Malaysia

 

102.   Savitri Bai Phule Women Forum

 

103.       School for Wellbeing Studies and Research

 

104.       Sister's Arab Forum (SAF)

 

105.       Solidarité des Jeunes Lao

 

106.       Sombath Initiative

 

107.       Southeast Asia Development Program (SADP)

 

108.       South India Cell for Human Rights Education and Monitoring (SICHREM)

 

109.       Suan Nguen Mee Ma

 

110.       Suara Rakyat Malaysia (SUARAM)

 

111.       Syrian Center for Media and Freedom of Expression (SCM)

 

112.       Taiwan Association for Human Rights (TAHR)

 

113.       Task Force Detainees of the Philippines (TFDP)

 

114.       The Corner House

 

115.       Think Centre

 

 

...

금, 2017/12/15- 14:06
166
0

The Xe Pian-Xe Nam Noy dam project which takes the whole life of the people of Laos: For whom was the development designed?

 

 

 9th August 2018

 

 

The accident of the Xe Pian-Xe Nam Noy dam in Laos on the 23rd of last July has resulted in the death of 34 people and left approximately 100 people missing. 13,067 from 13 towns have been affected by the accident and amongst them, 7,095 from 6 towns which were directly damaged and hit. Considering the fact that the flooded water from the dam has reached the Cambodian border, the total damages have exceeded the level of expectation.

 

This should not be treated as a simple accident. The benefit from the development was exploited by the big enterprises and the government, and the locals who have less power suffered from the consequences of the risks. A whopping 90 percentage of the electricity produced from the dam was supposed to export to Thailand and never meant to be consumed in Laos. From the beginning of this project, it has never been for the sake of the people of Laos. Claiming to serve a role as ‘the battery of Asia’ by carrying out excessive numbers of hydropower dam projects, the Laos government was going to enjoy the financial profit. Also, SK Engineering and Construction (SK E&C), the main constructor, and Korean Western Power KOWEPO), the operator for the next 27 years, were all along set to taste the sweetness from the development. The local residents in the dam-constructing sites were left with the painful bitterness from having the environment destroyed and being displaced from their ancestral homes. As it was not enough, they lost their beloved families, and their homes have been demolished. We cannot help but asking for whom this development was designed.

 

The Korean government also takes responsibility for this tragedy. The Xe Pian/Xe Nam Noy project was jointly promoted with the Korean government and enterprises. This was the first Public Private Partnership (PPP) sponsored by Economic Development Cooperation Fund (EDCF) from the Export-Import Bank of Korea as a Korea’s Official Development Assistance (ODA). The Ministry of Strategy and Finance of Korea extensively advertised this project as a new model of financial conglomerates combining ‘an aid’ and ‘an exportation’. ODA is constructed with the tax raised by the citizens for the purpose of ending poverty in developing countries and implementing humanitarianism around the globe. However the project in Laos, instead, took thousands of people’s homes causing hundreds of cases of missing people and over tens of people’s death.

 

Therefore we demand the Korean government and enterprises who are responsible for the Xe Pian-Xe Nam Noy dam accident follow below.

 

First, the Korean government must perform the truth-finding mission of the Xe Pian-Xe Nam Noy hydropower dam with sincere responsibility. It was announced that the Laos government will organize the Investigation Committee of the Accident in order to look into the cause of the accident thoroughly, and will ask for the cooperation of the Korean government and the Thai government in the process. SK Engineering and Construction (SK E&C) claims that the cause of the accident is the overflow of the subsidiary dams due to heavy rainfall whereas Korea Western Power (KOWEPO) accounts for the collapse of the subsidiaries, which shows the reasons why an accurate investigation regarding the cause of the accident is utterly necessary. In addition, the process of location-selecting, planning, and building and the evaluation of its environmental and social effects should be examined so that possible wrongful aspects in those stages can be fully revealed. In order to extend the outcomes of the truth-finding investigation from a simple revelation of the cause to the stage where the rehabilitation and the prevention of additional damages or the re-occurrence are promised, the participation of the representatives of the affected towns, local NGOs and the international civil organizations, including Korea’s, must be guaranteed along with the transparency over the whole investigation process.

 

Second, the Korean government and SK E&C should provide long-term plans for the rehabilitation and reconstruction of the areas that were damaged. Because of the accident, the citizens of Laos have lost a great deal including not only their families but also their homes and means of living. This cannot be resolved by emergency relief. The long-term plans for the rehabilitation and reconstruction of the affected areas must be guaranteed and implemented by both the Korean government and SK E&C.

 

Third, the Korean government should study the limitations and problems of its activation policies regarding the PPP (Public Private Partnership) and establish its countermeasures. There have been numerous worries regarding the act of the companies who focus on profits without complying with social responsibilities and corporate ethics. This could hurt the purpose of development cooperation projects, which is to solve poverty and to contribute to the development in partner countries, by damaging the environment and the residents’ right to exist. Nevertheless, the Korean government has not prepared a code of conduct or a system for companies to follow when they participate in these development and cooperation projects. The accident is the very proof that the development cooperation projects, which seek only profits without considering the demands and needs of the community, could actually endanger many people's rights to survive and to live. Such a disaster would not have occurred if the voice of the local residents were heard when they expressed their concerns since the beginning of the project. This tremendous disaster should arouse the Korean government to review its policy of activating public-private cooperation projects.

 

Fourth, the Korean government should fully mandate the implementation of Safeguard, the primary system for preventing environmental, social and human-rights damages of large development projects and for protecting the rights of local residents. According to the EDCF Safeguard, it is stated that Safeguard is useful but not compulsory. If Safeguard is not mandatory, it is only nominal. Even if the responsibility for implementation is placed on the partner countries, the accountability cannot be fulfilled unless the Korean government manages and supervises the implementation process. A complete investigation should apply to the projects that have already started in order to ensure that they comply with Safeguard. Furthermore, it should be determined whether the Korean Safeguard operated at the field so that they do not adversely affect human rights and the environment. Possible improvements should be also considered. The Committee on Economic, Social and Cultural Rights (CESCR) expressed its concerns in 2017 regarding not considering or demanding human rights related matters when Korea`s public financial institutions provided financial aid. The Korean government should introduce a Human Rights Impact Assessment according to this recommendation, which is to take further steps from the environmental and social impact assessments. In addition, relevant information such as project feasibility reports and environmental and social impact assessment reports should be transparently made public. 

That is the minimum responsibility to ensure that such tragic accidents do not happen again.

 

We will actively cooperate with the people of Laos and local organizations and urge a thorough truth-finding investigation into the cause of the accident. We will also continue our activities to improve legal and institutional mechanisms in the development and cooperation sector for sustainable development of the partner countries.

 

 

The Coordinated Response Team of the Korean Civil Societies for the Xe Pian-Xe Nam Noy Dam Collapse

Energy & Climate Policy Institute / Korean Federation for Environmental Movement/ KTNC Watch / PEACE MOMO / People's Solidarity for Participatory Democracy / PIDA / Truth Foundation

 

* [Joint Statement] See/Download

* Korean Version >> Click

 

목, 2018/08/09- 14:39
84
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We must find the reasons behind the accident in Laos Xe Pian-Xe Namnoy Hydroelectric power dam and help to restore the damages

Tragedy caused under the South Korean ODA assistance project, 

the South Korean government and enterprise cannot avoid responsibility

 

25. July. 2018

 

 

According to the local press, on 23 July at around 8 pm (local time), a supporting infrastructure, part of the Xe Pian-Xe Namnoy hydroelectric power dam situated in the South-east province of Attapeu, collapsed. The accident inundated 6 villages, thousands went missing and caused more than six thousand refugees. We pray that those who have been sacrificed rest in peace and that those who went missing can return safely to their families. We sympathise deeply with the citizens of Laos who have lost everything in the tragic accident.

 

The Xe Pian-Xe Namnoy dam was a Public Private Partnership (PPP) that had received 95.5 billion won from the Economic Development Cooperation Fund(EDCF) of the Export-Import Bank of Korea as a Korea’s Official Development Assistance(ODA). SK Engineering and Construction (SK E&C), Korea Western Power (KOWEPO) have participated in the project. The construction had been finished in April of 2017, four months earlier than scheduled and the dam was expected to commence its commercial operation from February of 2019.

 

However, international environmental NGOs- have long been opposed to the Xe Pian-Xe Namnoy Dam construction. Concerns over several problems have been raised such as the environmental damage it can cause, the violation of human rights of local residents who could be forcibly removed from the area and the non-transparency of a socio-environmental examination of the project. During the parliamentary inspection of the Ministry of Strategy and Finance of Korea, it has been pointed out that the project did not follow the EDCF safe guide policy which aims to reduce as much as possible any negative effects caused by a large-scale development project and the problems of its applicability.

 

The Laos Xe Pian-Xe Namnoy Dam Construction has been supported by the South Korean Official Development Assistance(ODA). The private company, SK Engineering and Construction, as well as the Korean government are responsible for the tragedy. The government must help deal with the aftermath and must investigate the reasons behind the unprecedented and tragic accident. SK E&C has been asserting that the cause of the accident was the ‘overflow’ of water in the supporting dam due to the heavy rain but the Korea Western Power explains that it was the fault of the ‘collapse’ of the supporting dam. This confusion is the reason why a proper and clear investigation of the cause of the accident is needed. Furthermore, they need to clarify if they have selected correctly the location of the infrastructure, if there were no problems of the design or the construction of the dam, if they have implemented effectively the socio-environmental evaluation and if they have followed the guidelines for safety.

 

In addition, it is of utmost importance to evaluate the limits and the problems of its activation policies regarding the EDCF Public-Private-Partnership policy and to provide solutions and alternatives to the problems. The basic installations of guidelines for safety in order to prevent harmful effects on the environment, on the society and on human rights must be compulsory in order to protect the rights of local residents. This is the least of the responsibilities that can be claimed in order to prevent another tragic accident. We sincerely hope once again that the aftermath of the accidents can be handled safely and that all missing people be returned to their families.

 

Statement [See/Download]

Korean Version >>

 

 

번역: 황보경 자원활동가

감수: 참여연대 국제연대위원회

수, 2018/07/25- 08:43
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Welcome the Korean NCP’s decision to offer good offices to SK E&C and Korea Western Power 

The Korean Civil Society TF must express its deep regret at the Korean NCP’s decision to exclude the Export-Import Bank of Korea from the mediation process.

SK E&C and Korea Western Power must faithfully participate in the mediation process.

 

 

October 10, 2019

 

 

On September 25, the Korean National Contact Point of OECD Guidelines for Multinational Enterprises (referred to as the Korean NCP in this statement) presented its initial assessment of a complaint about the violation of the OECD Guidelines for Multinational Enterprises regarding the collapse of the Xe Pian -Xe Nam Noy Dam. The Korean NCP made the decision to offer good offices in the future with SK Engineering & Construction Co., Ltd., and Korea Western Power Co. Ltd., taking into account their interests and the significance of the matter. On the other hand, the Export-Import Bank of Korea was excluded in the future mediation process on the grounds that it is an executive agency of the Official Development Assistance (ODA), this is not subject to the OECD Guidelines for Multinational Enterprises. Korean Civil Society Task Force Team for the Xe Pian Xe-Namnoy Dam Collapse (referred to as the Korean Civil Society TF in this statement) welcomes the Korean NCP’s decision regarding the mediation process with SK Engineering & Construction Co., Ltd., and Korea Western Power Co. Ltd., and urges the two entities to faithfully undertake the mediation process. However, it laments the Korean NCP’s decision to exclude the Export-Import Bank of Korea from the mediation process.

 

On June 17, the Korean Civil Society TF filed a complaint to the Korean NCP against SK Engineering & Construction Co., Ltd., Korea Western Power Co. Ltd. and the Export-Import Bank of Korea about the violation of the OECD Guidelines for Multinational Enterprises regarding the collapse of the Xe Pian Xe-Namnoy Dam. In specific, the complaint pointed out △ that there existed a flaw in the design and the construction of the dam, △that the damage increased due to the delay in emergency water discharge carried out by SK Engineering & Construction Co., Ltd., and Korea Western Power Co. Ltd, △the failure to take proper initial measures upon the collapse of the dam such as the absence of an evacuation order, △the failure to implement safety measures despite the mentioning of environmental risk response plan in the Environmental Impact Assessment Report, △the failure of the Export-Import Bank of Korea to conduct due diligence in the process of implementing its management and financial advisory contracts, △their refusal to communicate with civil society and to respond to information disclosure request.

 

Regarding the complaint filed by the Korean Civil Society TF, the Korean NCP has concluded that SK Engineering & Construction Co., Ltd., and Korea Western Power Co. Ltd have interests because 1. SK Engineering & Construction Co., Ltd. is in charge of the design and construction, 2. Korea Western Power Co. Ltd is in charge of the operation of the dam after construction, and 3. both entities are shareholders of PNPC, the joint investment venture and principal agent of the Xe Pian Xe-Namnoy hydroelectric project. Furthermore, the Korean NCP acknowledged the need to contribute to resolving the issue through dialogues initiated by the Korean NCP and to proceed with the mediation process as the Korean Civil Society TF, SK Engineering & Construction Co., Ltd., and Korea Western Power Co. Ltd all acknowledge that the issue is critical.

 

However, it is very regrettable that the Export-Import Bank of Korea would be excluded from the conciliation process due to a lack of precedent. In line with the complaint filed regarding the “Jalaur River Multi-purpose project” in the Philippines, the Korean NCP concluded that the Export-Import Bank of Korea is classified as an agency founded and operated according to the Special Act to achieve national policy objectives, thus the project is of no commercial purpose to the bank. Hence, the Korean NCP ruled that concessional funding and associated financial advisory activities are not subject to the OECD Guidelines for Multinational Enterprises. However, the OECD Guidelines for Multinational Enterprises does not explain nor leaves room for interpretation that only projects with commercial purposes are subject to the guidelines. Nevertheless, the Korean NCP is repeating its claim that there is no precedent in which the guidelines were applied to Official Development Assistance, referring to cases brought to the national contact points of other nations. The Korean NCP must take preemptive measures such as applying the OECD Guidelines for Multinational Enterprises without exception, including all financial assistance. 

 

A year has passed since the collapse of the Xe Pian-Xe Nam Noy Dam. The tragedy has had a detrimental effect on the Laotian residents. They are residing in temporary shelters, not knowing when they would be able to return to ordinary lives. The Korean Civil Society TF hopes that the mediation process initiated by the Korean NCP with SK Engineering & Construction Co., Ltd., and Korea Western Power Co. Ltd would lead to meaningful relief for the victims and further contribute to the provision of recurrence prevention measures. The Korean NCP must promptly initiate the mediation process and while SK Engineering & Construction Co., Ltd. and Korea Western Power Co. Ltd must faithfully participate in the mediation process. The Export-Import Bank of Korea must also fulfill its role and take accountability for all its actions as an executive agency of Official Development Assistance.

 

 

Korean Civil Society Task Force Team for the Xe-Pian Xe-Namnoy Dam Collapse

Energy & Climate Policy Institute / Korean Federation for Environmental Movement/ KTNC Watch / PEACE MOMO / People's Solidarity for Participatory Democracy / PIDA

 

Joint Statement [https://docs.google.com/document/d/1fY-FdaulSzfuXK_u1EVbXiHxOr0fVGTR5DBx... target="_blank" rel="nofollow">See/Download]

http://www.peoplepower21.org/index.php?mid=International&document_srl=16... target="_blank" rel="nofollow">Korean Version >> 

 

목, 2019/10/10- 19:57
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