[Press Release / Joint Statement]
Lao dam disaster: NGOs decry lack of effective remedy for survivors five years on
On July 23, 2018, the auxiliary dam (Saddle D) of the Xe-Pian Xe-Namnoy hydroelectric
power project in Laos collapsed, killing 71 people, displacing thousands, and flooding homes
and villages. Five years after this tragic incident, the survivors have still not received
adequate compensation or remedy and continue to suffer from the impacts of the disaster.
NGOs* are calling on the corporations and governments involved—including the project
developer SK Ecoplant, its operator the Xe-Pian Xe-Namnoy Power Company (PNPC), aswell as the Lao government and the Republic of Korea, which provided ODA funding—toacknowledge their wrongdoing and fulfill their duty to ensure reparations.
SK Ecoplant is still denying its responsibility for the disaster
SK Ecoplant, the constructor of the Xe-Pian Xe-Namnoy hydroelectric power project, hasfiled an international arbitration in Singapore against PNPC, the company in charge ofoperating the dam, arguing that the collapse was not caused by faulty construction but by anatural disaster (force majeure), so it is unfair for the contractor to be held accountable for thecosts, including compensation.
However, experts agree that the disaster was man-made. On May 28, 2019, the Independent
Expert Panel (IEP) of the National Investigation Committee established by the Laogovernment released the results of its investigation, stating that the Xe-Pian Xe-Namnoy
Dam collapse could have been prevented by proper measures to secure the foundation.
In 2022, SK Ecoplant publicly announced a 'Human Rights Policy Statement' asserting that it
actively acts to fulfill its corporate social responsibilities and is a human rights-friendlycompany. Before promoting itself as a socially responsible corporation, SK Ecoplant should
acknowledge its responsibility for the tragedy and provide effective remedy.
The majority of compensation money was paid to the Lao government, not the affected
Communities
PNPC, the official operator of the Xe-Pian Xe-Namnoy Dam in Laos, stated in a letter
submitted to UN human rights experts on August 30, 2022, that it had provided a total of$91.2 million for compensation. However, NGOs stress that according to PNPC’s internal
records, the majority of the compensation ($64.87 million, or about 71% of the total) waspaid to the Lao government, not to the affected people. (See annex.)
This is because all the compensation for housing, land, infrastructure, etc. lost and damaged
in the disaster was paid to the Lao government. The Lao government designed a "MasterPlan" to clear the rainforest and to build new cities and had PNPC pay for the development. It
appears that the compensation process prioritized the development needs of the Laogovernment over the effective remedy of the survivors. Meanwhile, there is no public
information on how the Lao government spent the money it received from PNPC nor thespecifics of the “Master Plan”.
According to PNPC, it has paid some monetary compensation to affected villagers for loss oflife and property damage. However, as of June this year, PNPC stated in an email to KTNC

Watch, a network of trade unions and civil society organizations based in South Korea, thatcompensation for valuables and other items of emotional value, which were washed away by
the flood but not included in the property damage evaluation, is yet to be complete. We also
confirm that there has been no compensation for the psychological damage caused by thetragedy, nor any support for trauma recovery.
Survivors are uprooted from their longtime homeland, and left without sustainable
livelihood
According to KTNC Watch’s interviews with the survivors, the survivors were relocated to
unfamiliar lands and are not provided with sustainable livelihoods.
People in the affected villages have traditionally made a living from rice farming along theXe Pian River, but PNPC built residential complexes far from their original homes, inaccordance with the Lao government's "Master Plan". Most of the affected villagers weredisplaced to the newly built complexes without choice.
As the displaced survivors have lost their traditional livelihood, the Lao government hasgiven them plots of cleared forest. But it turned out that the land is not suitable for ricecultivation. The villagers are now unable to grow their own rice and are instead forced togrow and sell commodity crops such as cassava or lease the land to plantation corporations.
However, many of the affected people had been living self-sufficient lives; some of them did
not even have personal savings accounts prior to the disaster. Consequently, it is nearly
impossible for the affected villagers to suddenly become commercial farmers. In short, notonly have the survivors of the dam's collapse been forced to relocate, but they are notprovided with sustainable livelihoods. It is doubtful if the survivors were properly consulted
in the relocation process.
We call for full reparation to the affected communities that prioritizes the voice of thesurvivors
Business entities that caused or contributed to the disaster appear to consider that they
fulfilled their responsibilities because they paid a lot of money under the name of‘compensation’. However, the actual use of the money shows that the companies' need to
avoid liability was matched by the Lao government's need to clear lands and develop newcities. The true rehabilitation of the survivors was deprioritized, and as a result, the survivors
are still suffering from the impact of the disaster, with no guarantee of a sustainable
livelihood.
In addition to SK Ecoplant, PNPC, the Lao government, and the Republic of Korea, which
provided ODA funding for the Xe-Pian Xe-Namnoy hydropower project, all have a duty toensure effective remedy and rehabilitation of the survivors of the dam collapse. We urge
those agents to provide relief measures prioritizing the needs of the survivors and ensure
effective remedy and full rehabilitation to the affected communities, in meaningful
consultation with the survivors. <End>* KTNC Watch (https://ktncwatch.org/)

Manushya Foundation (https://www.manushyafoundation.org/)
Inclusive Development International (https://www.inclusivedevelopment.net/)
International Rivers (https://www.internationalrivers.org/)
Community Resource Centre (CRC), Thailand (https://crcthai.org/)
ETOs Watch Coalition (https://etowatch.com/)
Fair Finance Thailand (https://fairfinancethailand.org/)
Mekong Watch (http://www.mekongwatch.org/)*** For more information and media requests please contact:••

Yujung Shin (+82 010 8452 0108, yjshin@jihyanglaw.com),
Pillkyu Hwang (hopenvision@naver.com),or Youngah Park (mashil049@gmail.com).
Emilie Pradichit (emilie@manushyafoundation.org)

Annex. Status of Compensation paid by PNPC
*Source: Korean Western Power(KOWEPO)
Subject ofthe payment

Payment
completion
date100

The victim

June 2019

100

Lao Govt.

January2021

100

The victim

November
2021

10.727924

100

The victim

8.127274

100

Lao Govt.

5. Environment 9.401966

100

Lao Govt.

Total

100

Category

Third-party
compensation

The amountpaid(1 mil USD)

1. damage of
1.003078
human life1
2-1. damage of
11.500000
housing2-2.
otherdomestic
14.648915
2
damages(orDirect 3. Business3
compensation)
4.
infrastructure

55.409157

100

Lao Govt.
&The victims

6.063402

100

Lao Govt.

5.293489

100

Lao Govt.

7.650261

100

Lao Govt.

0.361532
3.224556

100
100

Lao Govt.
Lao Govt.

0.257172100

Lao Govt.

35.850412

100

1-1. Permanent
13.000000
Housing
1-2.
Road,bridges,waterworks,etc.
Masterplan
2.Civilengineering(orIndirectwork, etc.
compensation)
3. Warehouse,etc.
4. school
5. Electricity
6.
Medicalfacilities
Total

Paymentrate(%)

January
2020
October
2020
December
2020

Paid upon
Lao Govt.’srequest;paid in 5
installmentsfrom April
2021 to July
2022.

PNPC has paid compensation of $10,000 per person for the 71 deceased, and paid 28 orphaned children
compensation money calculated at 1,100,000 KIP (about $57) for each month remaining until each child reaches
the age of 18.
1

Refers to the affected household's property damage, except for the damages to housing (vehicles, outbuildings,valuables, etc.).
2

3

Refers to compensation for business enterprises that operated within the affected area.