The government of Laos has stated that the construction of a major new hydropower dam on the Mekong River will get under way in early November in spite of opposition from neighbouring countries and environmentalists.
The 1285 MW Xayaburi project would be the first dam to be built on the lower reaches of the Mekong and would supply all of its energy to Thailand.
However Vietnam and Cambodia are opposed to the project because of its potential impact on fish stocks and sediment flow.
The Lao government announced the go-ahead for the $3.5 billion project at a gathering of European and Asian government leaders in its capital city, Vientiane. It says it has made modifications to the project in order to reduce its environmental impacts.
Xayaburi is one of 11 dams proposed for the lower Mekong River, some of which would be located in Laos and others in Cambodia. Laos is keen to start developing the project because the electricity sales will provide it with much-needed income.
Under an agreement signed in 1995 by countries that share the Mekong, governments must carry out consultations on the possible cross-border impacts of any river developments before proceeding with construction.
The Lao government says that it has consulted with its neighbours and that modifications to its original plans have been made that will add $100 million to the cost of the project.
Cambodia and Vietnam want more research to be carried out on the environmental impact of Xayaburi.
Anti-dam campaign group International Rivers says that construction on Xayaburi has already started and that the resettlement of local villages has started. It believes that the project will irreversibly alter the complex ecosystem of the Mekong River and jeopardize the food security of millions.
Xayaburi will be built by Thai construction firm Ch. Karnchang. It is due to be completed in early 2020.
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