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WHY IS THERE INCREASING INTEREST IN HYDROPOWER DEVELOPMENT IN THE MEKONG BASIN?

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WHY IS THERE INCREASING INTEREST IN HYDROPOWER DEVELOPMENT IN THE MEKONG BASIN?

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• There are several factors driving the increased interest in the potential for hydropower on the Mekong. The rapid pace of export-led growth comes on top of efforts to improve and expand electricity access in urban centres and rural areas. Selling hydropower to satisfy energy demands in neighbouring countries also provides countries such as Cambodia and Lao PDR a means to generating much needed foreign exchange earnings that can be used to finance other development projects. • Although the idea of using the Mekong river system for electricity generation has existed for decades, since 2007, there has been an upsurge in interest in the potential for hydropower development in the lower part of the basin. Many new proposals to develop hydropower schemes are being advanced by Mekong governments and the private sector, both on the tributaries; and on the Lao, Lao-Thai and Cambodian reaches of the Mekong mainstream. • Volatility in the international price of oil and gas and concerns over cli

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