by Piyaporn Hawiset
24 November 2002
Laos will receive a 15 million USD soft loan from the Asian Development Bank (ADB) to improve of the Nam Ngu river's water resources. The ADB-financed Nam Ngu river basin development project is intended to strengthen the capacity of key central and basin level water coordinating bodies and optimize power generation of the 150-megawatt Nam Ngu 1 reservoir, mitigate floods, and improve water use efficiency in the basin.
It also aims to improve watershed management by strengthening capacity of rural communities and relevant government departments, increasing crop productivity and irrigation efficiency, improving livestock and fishery management, and preserving and restoring forests.
"To ensure optimal use and long-term sustainability of water resources and livelihood opportunities in the river basin, an integrated water resources management is needed to coordinate efforts among farming communities and line agencies," ADB project economist Akmal Siddiq said.
The project will yield a wide range of benefits ranging from an additional two percent or 20 gigawatt hours of hydropower (worth 600,000 USD) per year, to improve water conservation and flood mitigation. More effective use of water for agriculture will also boost productivity and household incomes in the upper basin.
The project will directly benefit some 10,000 households once it is completed in September 2008.
ADB's loan accounts for 65 percent of the total project cost of 23 million USD. The loan comes from its concessional Asian Development Fund and has a term of 32 years, including a grace period of eight years.