The United States urged caution on Monday on plans by Laos to build a multibillion-dollar dam that has raised environmental concerns from neighbouring nations, saying its impact was still “unknown”.
The US$3.8 billion hydroelectric project at Xayaburi, led by Thai group CH Karnchang, has sharply divided the four Mekong nations – Laos, Vietnam, Cambodia and Thailand – who rely on the river system for fish and irrigation.
“Our own experience has made us acutely aware of the economic, social and environmental impacts that large infrastructure can have over the long-term,” the State Department said in a statement that nonetheless recognised the “important role” dams can play in helping advance economic growth.
“The extent and severity of impacts from the Xayaburi dam on an ecosystem that provides food security and livelihoods for millions are still unknown.”
Laotian deputy energy minister Viraphonh Viravong earlier told reporters that the government would hold a groundbreaking ceremony on Wednesday and begin work on the dam later this week.
Building work on the main project has been stalled for about 18 months over concerns relating to its environmental impact.