Environmental groups say the dam will flood forests where rare species still survive and uproot some 4,500 people from their villages and traditional way of life. The World Bank, stung by past criticism for backing destructive dams, has moved with caution on the Nam Theun project, demanding numerous studies and participation in the decision making by Laotians at various levels of society. Needing the World Bank's blessing is a multi-national consortium headed by Transfield, an Australian engineering firm which was granted the lead role by Laos in 1993. Others in the consortium are Electricite de France, three Thai firms and the government of Laos, which would hold an equity stake of about 25 percent in the project. The bank's caution, which has greatly slowed progress on the dam, has not satisfied a number of the environmental groups.
Hurdles remain before any construction can begin.
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