Mekong dams will be vexed issue in South-east Asia

Hydropower dams on the Mekong river present both risks and opportunities to mainland South-east Asian states

Source: Stimson Center; media reports

Outlook

The MRC, concerned about low water levels in the Mekong, last week urged the five mainland South-east Asian countries and China to share more data on dam operations. Last month, Thailand, Cambodia and Vietnam raised concerns about the possible environmental impact of Laos’s planned Luang Prabang dam.

Laos, which wants to be the ‘battery of Asia’, will not compromise on its hydropower ambitions, since electricity exports bring in much-needed foreign currency. Its neighbours will meanwhile be keen to keep importing Lao hydroelectricity.

China, for its part, will strongly deny that it is causing droughts in South-east Asia by impounding water in its Mekong dams.

Impacts

  • The LMC will help impose Beijing’s vision for development of the Mekong region.
  • Lao hydropower projects will continue to receive the support of companies and banks from across the region.
  • Environmental groups will lead the strongest pushback to Lao and Chinese dam-building schemes.

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