The Xe Pian-Xe Namnoy Dam Disaster:
Situation Update Two Years On
Devastation wrought by the dam collapse. Mekong Watch, December 2018.

In the aftermath of the dam
collapse, important questions
were raised regarding the causesof the disaster and the liabilityof the project’s developers andinvestors. The incident brought
to the fore the risks and inequities
in the government policy topromote hydropower development
across the country despiteextensive evidence of harmto people and the environment.

Introduction
On 23 July 2018, an auxiliary dam of the Xe Pian-Xe
Namnoy Hydropower Project in Laos collapsed,
unleashing a wall of water that left 49 people deadand 22 missing. The collapse displaced thousandsof people, flooding homes and villages. Over 7,000
people in 19 villages in Attapeu province experienced
losses and long-term damage to houses, property,
and farmlands. The floodwaters extended far
downstream and across the border into Cambodia,
affecting an estimated 15,000 people, damaging farms
and destroying livestock and property.1 The devastating
incident received global attention and an outpouringof donations and humanitarian aid.

Inclusive Development International and International Rivers, Reckless Endangerment: Assessing Responsibility for
the Xe Pian-Xe Namnoy Dam Collapse, July 2019.
<www.internationalrivers.org/sites/default/files/attached-files/reckless_endangerment_final_for_web.pdf>
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The Xe Pian-Xe Namnoy Dam Disaster: Situation Update Two Years On

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In the aftermath of the dam collapse, importantquestions were raised regarding the causes of thedisaster and the liability of the project’s developers
and investors. The incident brought to the fore therisks and inequities in the government policy topromote hydropower development across the country
despite extensive evidence of harm to people and theenvironment.
Two years on, construction is complete and the
project is operational, exporting electricity generated
to Thailand. Meanwhile, thousands of people wholost family members, homes, land and livelihoods inthe collapse remain in difficult conditions and withoutanswers or accountability from those responsible forthe disaster. Displaced families continue to reside in
temporary housing and face food and water shortages.
Many are yet to receive full compensation for thelosses and harm suffered. In Cambodia, there has
been no official recognition of the damage caused by
the disaster or compensation for those affected.
Information regarding the causes of the Xe Pian-Xe
Namnoy disaster remains opaque as do the linesof accountability. Following the incident, the Laogovernment commissioned an Independent Expert
Panel to investigate the cause of the collapse. The
panel’s findings pointed to construction flaws.2 The
independent investigation report was rejected by the
project developers. However, they have yet to offer
any other credible or evidence-based explanation. The
full report of the investigation has not been published.
Despite the extensive damage caused by the disaster,
the project’s construction schedule experienced little
delay. While the failed saddle dam ‘D’ was replaced,the other saddle dams, which are likely to face similarrisks of instability, are not known to have been replacedor reinforced as of mid 2020. No information has been
publicly disclosed by the power company or Lao
authorities on steps taken to ensure the overall safety
and integrity of the structure. The project’s current
operations -- with the causes of the collapse
unaddressed -- raise serious concerns over the risk offurther failure.
The project developers and investors have failed
to meaningfully respond to repeated requests for
information from civil society organizations and theUnited Nations’ Office of the High Commissioner for
Human Rights (OHCHR). Little information is publicly

available regarding the project’s insurance payout,
expenditure of donations and relief funds, determination
and allocation of compensation and provision of landand new housing. Transparency on these issues isessential in order to ensure that affected people areable to fully recuperate losses and harms and securedignified, self-reliant livelihoods, in accordance with
their right to remedy.

The Situation for Survivors
Displaced families remain in four temporary camps
while they await the construction of new villages
and homes. In these transitional housing areas,
where people have now lived for close to two years,
cramped, overcrowded and uncomfortable conditions
are the norm.
According to recent reports, 111 permanent housing
structures are now under construction, with ‘donated’materials provided by United Nations agencies andsupport from Thai state and Japanese aid agencies.3
A construction contract for building the remaining
houses -- approximately 700 within three newconsolidated relocation sites -- is under negotiation
between the Lao government and SK Engineeringand Construction (SKEC), one of the project’s leaddevelopers. While the timeline is uncertain, the new
housing and infrastructure is not expected to becompleted before 2022.
While there have been no reported cases of serious
illness, available information indicates that water
shortages are chronic in the displacement camps,
causing persistent sanitation challenges. Community
members also report heightened social tensions
within and between households, fuelled by the difficult
conditions, stress, and uncertainty in their capacity tosustain economic and social well-being in the years
ahead.
Livelihoods and food security remain a challenge.
After a long delay, some families have received
assistance to clear damaged farmland of mud anddebris, so that it is cultivable. Authorities haveannounced replacement land allotments for families
residing in the temporary camps, but clearing andcultivation of these allotments is not yet permitted.
Affected families therefore remain largely reliant

Vientiane Times, ‘Investigators: Dam collapse not a “force majeure” event’, 29 May 2019.
<www.vientianetimes.org.la/freeContent/FreeConten_Investigators.php>

2

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2

PNPC, Environment and Social Progress in Sanamxay: Overall Summary Report, 12 June 2020.

The Xe Pian-Xe Namnoy Dam Disaster: Situation Update Two Years On

Homes and belongings of families destroyed in the dam collapse. Mekong Watch, December 2018.

on subsistence allowances paid by authorities,
or donor-provided humanitarian relief.4 Payment of
the allowances, consisting of 250,000 kip (approx 28
USD) and 20 kg of rice per person each month, hasbeen inconsistent, with families not receiving themevery month, and reporting uncertainty over when
to expect them. Community members have also
reported that the allowance is inadequate for survival
and that the rice supplied is often substandard, better
suited as livestock feed.
Community members have not been included inmeaningful consultations or planning processes todevelop the new housing structures and villages. It is
not clear whether the new homes, infrastructure andland allotments will be adequate to enable the Laoand ethnic minority / indigenous peoples affectedby the project to live dignified and self-reliant lives.
Communities and development agencies have raisedquestions about whether the available water sources
and land will be sufficient to meet people’s needs.
Meanwhile, the track record of the project operator,
Xe Pian-Xe Namnoy Power Company (PNPC), andits shareholders, remains tarnished by the record of

the project’s initial resettlement site on the Bolaven
Plateau, where people have consistently faced dire
hunger, water insecurity, lack of sufficient housing
and electricity, and land impoverishment.
Early project plans proposed the establishment ofa project-level grievance mechanism, in compliancewith international standards, including Asian Development
Bank (ADB) and International Finance Corporation (IFC)
safeguard policies.5 This has not been implemented.
Instead, PNPC and its shareholders recommend thatproject-affected people submit concerns to government
authorities, using the ‘traditional’ state-based structures
already in place.6 There is currently no process toenable people to have their claims and concerns
resolved through an independent channel offering
protection from the risk of reprisals. This means thatthe project lacks a clear accountability process, andplaces people in a position in which they could facepunitive action for raising complaints. Further, there
is no mechanism to support the Cambodian villagers
downstream along the Sekong River who incurred
losses and harm when the saddle dam collapsed.
They are left without any means of recourse.

According to government statements, the allowances will continue from September 2019 to December 2021. VientianeTimes, ‘Attapeu flood victims getting monthly allowance of 250,000 kip’, 11 November 2019.
<www.vientianetimes.org.la/freeContent/FreeConten_Attapeu_246.php?fbclid=IwAR2BFkn421_sTSpA1w-rwMJ2Ux88G4M0hszZ6rpYGqeughBLBoiy0yxUepw>

4

PNPC’s ‘Resettlement and Ethnic Peoples Plan’ (Sept 2013) specifically references adherence to IFC performancestandards and provides grounds for the development of a grievance mechanism:<www.pnpclaos.com/images/PDF/EnvSocialDoc/REPDP/Chapter1/REPDP_Chapter_1_Introduction_Final_Sept_13.pdf>

5

See: PNPC Response to UN Communication, 12 June 2020, p. 8:<http://spcommreports.ohchr.org/TMResultsBase/DownLoadFile?gId=35334>

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The Xe Pian-Xe Namnoy Dam Disaster: Situation Update Two Years On

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Thitipan Pattanamongkok/ Sarakadee Magazine, December 2018.

Dam Safety: Unresolved Questions
Following the dam collapse, and during the government-sponsored investigation, development of the Xe PianXe Namnoy project continued. Rather than putting
construction and operations on hold and suspending
the project to ensure the safety of people living inthe surrounding areas, the project developers sought
to fulfil contractual obligations to operationalise theproject and export electricity to Thailand by the firstquarter of 2020.
The integrity and structure of the Xe Pian-Xe Namnoy
project remains a serious concern. Despite earlier
reports that the other saddle dams -- alongside thefailed saddle dam ‘D’ -- would be replaced withconcrete, the project developers have not disclosed
any information regarding structural changes ormaterial reinforcements made to ensure the integrityof the project. A transparent assessment is required
to ascertain potential ongoing risks posed by the soil
conditions and foundations at the project site.7

When the saddle dam collapsed in 2018, people reported
receiving little or no warning before floodwaters
inundated homes and villages. Following the tragedy,
there is still no updated information regarding steps
taken to ensure an effective early warning systemfor populations at risk of further failure in Laos orfurther downstream in Cambodia, and no clear public
communications to delineate lines of accountability.
Close to 100 families continue to reside in areas aroundsaddle dams E and F and the Xe Namnoy Reservoir.
Not only would they face severe consequences if thestructure were to crack and breach, but there has
been no assessment process or information regarding
potential sites for resettlement and self-reliant
livelihoods, if these villages are forced to relocate due
to project impacts or another dam failure.

Richard Meehan & Douglas Hamilton, ‘Xe Pian-Xe Namnoy: Land stability and dam failure on the Bolaven Plateau, Laos’,
AGU The Landslide Blog, 11 September 2019. <https://blogs.agu.org/landslideblog/2019/09/11/xe-pian-xe-namnoy/>

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The Xe Pian-Xe Namnoy Dam Disaster: Situation Update Two Years On

Lack of Transparency andAccountability
The Xe Pian-Xe Namnoy dam collapse and its aftermath
have been characterized by a lack of informationtransparency and unwillingness on the part of projectstakeholders to answer questions or engage withthose seeking answers and accountability. Theseissues and concerns were documented in the mission
report of the UN Special Rapporteur on Human Rights
and Extreme Poverty following his visit to Laos in
March 2019.8
In April 2020, a group of UN experts wrote to thegovernments of Laos, Korea and Thailand and relevantbusiness stakeholders in the project urging them toaddress ongoing human rights violations experienced
by the survivors of the dam collapse.9 As of July 2020,
limited replies have been received from the actors
involved in the project.10
In response to inquiries enclosed in the UN experts’letter, on 12 June 2020 PNPC provided a reply outlining
the funds that they are in the process of providing to
the Lao government and survivors, totalling US$97.5
million. They reported that funds have been disbursed
as relief and compensation to survivors and unspecified
business operations that incurred lost assets, and as
payments to several unidentified business contractors

and government departments to repair and rebuild
infrastructure and clear land. Incorporated into the
US$97.5 million total is a reported US$50 million
liability insurance payout.
In November 2019 the Lao Minister of Mines and Energy
reported to the National Assembly on the receipt of
the insurance funds in a state bank account,11 but little
details are available regarding disbursement. In addition
to compensation, extensive international assistancein the form of donations and humanitarian relief has
been provided to the Lao government to support thevictims of the dam collapse. These funds are managed
by the National Disaster Management Committee,
but limited information is publicly available as to how
the funds are expended.
Both PNPC and people living in the temporary camps
have reported that compensation for lost assets isbeing provided on a per household basis, allocatedand calculated by government and company personnel
through undertaking interviews with each family.
However, ongoing negotiations over the timelines for
disbursing the full amounts of compensation has left
survivors, including local village leaders, in the dark
about when and if promised funds will materialize.12

Philip Alston, UN Special Rapporteur on extreme poverty and human rights, Visit to the Lao People’s Democratic Republic,
Human Rights Council 41st session, 20 June 2019. A/HRC/41/39/Add.2.
<http://chrgj.org/wp-content/uploads/2019/06/A_HRC_41_39_Add.2.pdf>

8This included letters to the project company (PNPC), its shareholders SKEC, Ratch Group, Korean Western Power Company(KOWEPO) and the Lao State Holding Enterprise (LHSE). They also sent letters to the Thai and Korean banks that helped
finance the estimated US$1.02 billion project, including Krung Thai Bank, the Bank of Ayudhya, Thanachart Bank, alongwith the Export-Import Banks of Thailand and Korea: United Nations Office of the High Commissioner for HUman Rights(OHCHR), Lao dam disaster: UN rights experts call for justice two years on, 29 April 2020.
<www.ohchr.org/EN/NewsEvents/Pages/DisplayNews.aspx?NewsID=25839&LangID=E>
9

Only PNPC, Krung Thai Bank, and the Lao and Korean governments have issued replies, which have been published:
PNPC Response to UN Communication, 12 June 2020:<http://spcommreports.ohchr.org/TMResultsBase/DownLoadFile?gId=35334>; Krung Thai Bank response to UN Communication, 16 June 2020: <http://spcommreports.ohchr.org/TMResultsBase/DownLoadFile?gId=35348>; Lao PDR Response
to UN Communication, 16 July 2020: <http://spcommreports.ohchr.org/TMResultsBase/DownLoadFile?gId=35426>;
Republic of Korea Response to UN Communication, 6 July 2020 <http://spcommreports.ohchr.org/TMResultsBase/
DownLoadFile?gId=35415>.

10Land Issues Working Group - YouTube, Minister of Energy and Mines reported about XPXN dam collapse at NA 2019’,
21 November 2019. <www.youtube.com/watch?v=NW7o7LNVKIg&feature=youtu.be>11

Radio Free Asia, ‘Survivors of Laos’ Worst Dam Disaster Still Struggling Two Years Later’, 22 July 2020.
<www.rfa.org/english/news/laos/xe-pian-xe-namnoi-two-year-07222020211103.html>. See also: Mekong Watch, Factsheet: Xe Pian-Xe Namnoy Hydropower Project, March 2020 <http://www.mekongwatch.org/PDF/FS-XPXNN.pdf>.

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The Xe Pian-Xe Namnoy Dam Disaster: Situation Update Two Years On

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Rows of transitional homes
where displaced communities
continue to reside. Mekong
Watch, December 2018.

Although PNPC and Lao authorities have provided
general explanations regarding the allocation of close
to US$100 million, there is no publicly available,
disaggregated information accounting for how
expenditures are being disbursed and tracked, orwhether they will be subject to an independent audit.
There is no process to support claims for reparationsin accordance with people’s right to remedy. The steps
taken to date lack clear, time-bound commitments toensure long-term livelihoods recovery and an open
and transparent process for land and watershed
restoration to rehabilitate areas that are critical tosocial, cultural and economic well-being.
Civil society organizations monitoring the dam collapse
have repeatedly sought to engage the businessstakeholders involved in the project, including the
project’s developers, investors, financiers and insurers,13seeking responses to letters, opportunities to engage
in dialogue, and submitting concerns in person toheadquarter offices. Very limited response has been
received to date.14

The Korean Civil Society Taskforce Team for the
Xe Pian-Xe Namnoy Dam Collapse has also attempted
to ensure the accountability of the dam’s construction
contractor, SK Engineering and Construction, andoperator, Korea Western Power (KOWEPO). In June
2019, the Taskforce submitted a complaint to the
Korean OECD National Contact Point (NCP), an oversight
body that sits within the Korean government.15 The
complaint alleges violations of the OECD Guidelines
on Multinational Enterprises16 with respect to humanrights, environmental protection and disclosure, andwas accepted by the NCP in October 2019. However,neither SK E&C nor KOWEPO cooperated in resolving
the complaint. As July 23rd 2020, the Korean NCP
issued formal notification that mediation would be
discontinued due to the companies’ refusal to engage
in the process.

The details of business stakeholders and their involvement in the project were outlined in the report by Inclusive
Development International and International Rivers, Reckless Endangerment: Assessing Responsibility for the Xe PianXe Namnoy Dam Collapse, July 2019.
<www.internationalrivers.org/sites/default/files/attached-files/reckless_endangerment_final_for_web.pdf>

13

Business and Human Rights Resource Center, ‘Laos: Groups demand accountability from companies as well as insurers
for collapse of Xe Pian-Xe Namnoy dam’.
<www.business-humanrights.org/en/laos-groups-demand-accountability-from-companies-as-well-as-insurers-for-collapseof-xe-pian-xe-namnoy-dam>.

14

Korean National Contact Point of the OECD Guidelines on Multinational Enterprises, Cases: Korean Civil Society Task
Force Team v. SK E & C etc.
<www.ncp.or.kr/servlet/kcab_encp/info/4001?pageno=1&seq=32&SEARCHTYPE=TITLE&SEARCHTEXT=>

15OECD Watch, South Korean Civil Society Task Force vs. SK E&C.
<http://complaints.oecdwatch.org/cases/Case_551>

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The Xe Pian-Xe Namnoy Dam Disaster: Situation Update Two Years On

Recommendations
The project developers and business actors involvedin the Xe Pian-Xe-Namnoy project, together with
the Government of Laos, and investor home state
governments of Korea and Thailand, must immediately
ensure that:• Clear and detailed information is publicly
disclosed in Lao, English and Korean languages
on reinforcement measures to ensure thelong-term stability of each saddle dam,
supported by evidence-based information
regarding the integrity of the entire complex.
Specific and timely communication systems
must be in place for alerting staff, state/provincial institutions and communities,in Laos and Cambodia, in case of any future
structural failures, with a clear delineation oflines of responsibility. Until such time, dam
operations should be suspended.
• An internationally credible claims process isestablished for families in both Laos andCambodia affected by the failure of saddle
dam ‘D’ to allow recovery of the full worth ofreported losses, free of the threat of reprisals,in line with the right to remedy as outlined in
the UN Guiding Principles on Business andHuman Rights (UNGPs) and other international
conventions.

• Credible, verifiable data is publicly disclosed-- and regularly updated -- to account for funds
allocated and disbursed to each affectedvillage. This should include immediate relief
support, construction of temporary andpermanent housing, infrastructure, resolutionof housing, land, water and food supply
problems, and compensation offered torecuperate other household assets andlost livelihoods. Disclosures should include
compensation provided to affected businesses
in the area, payments to specific businesses
and state enterprises associated withresettlement and recovery efforts, and funds
for watershed and land rehabilitation.
• An independent third-party negotiation teamis engaged to address the concerns of thegroup of families whose subsistence relieson the land near Saddle Dams E and F, by the
Xe Namnoy reservoir in Paksong District,Champasak Province, to ensure, at a minimum,
community access to land and resourcesin the surrounding area and recognition of
their customary rights, as indigenous peoples,over sacred areas of forest and burial grounds.

Thitipan Pattanamongkok/
Sarakadee Magazine,
December 2018.

Jointly published July 2020 by International Rivers, Mekong Watch and Inclusive Development International.

The Xe Pian-Xe Namnoy Dam Disaster: Situation Update Two Years On

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