Laos will this week start construction of the 120 billion baht hydropower Xayaburi dam on the Mekong River that has been delayed for 18 months amid fierce opposition from downstream countries and activist groups.
The ground-breaking ceremony will take place on Wednesday at the site of the dam, according to Lao Deputy Minister of Energy and Mines Viraphonh Viravong.
Bangkok-based Ch Karnchang Plc, PTT Pcl and the Electricity Generating Authority of Thailand (Egat) are among major shareholders of Xayaburi Power Co, the dam's operator.
"It has been assessed, it has been discussed the last two years," Mr Viraphonh said on Monday. "We have addressed most of the concerns."
The hydropower plant is the first of eight that Laos plans to build on the Mekong to sell electricity to neighbouring countries including Thailand.
Egat has agreed to buy almost all the power from the 1,285-megawatt project.
The news came as environmentalists launched a campaign on 45 boats in Nong Khai province to draw the attention of leaders attending the Asia-Europe Meeting Summit in Vientiane.
About 250 Thai villagers organised a flotilla in Nong Khai province to protest against the Xayabouri dam project in Laos. (Photo by EPA).
The Mekong River has reached a crisis point with plans to construct the Xayaburi dam and a cascade of 11 dams rapidly moving forward, International Rivers (IR), a California-based nonprofit group that aims to protect rivers and human rights, said in a statement on Sunday.
Pienporn Deetes, IR's campaign coordinator for Thailand, strongly criticised the decision to go ahead with the dam construction.
Villagers downstream will be severely affected, she told the Bangkok Post, adding that its cross-border impacts will prevail after the construction including ecological damage and the livelihood of people along the river.
"We never oppose a dam on groundless reasons," she said. "What we want to see is a decision based on knowledge rather than economic and political reasons."
"This is not a project which will bring about sustainability for people in the region," she added.
Mr Viraphonh dismissed the concerns, saying measures have been taken to ensure a limited impact on the environment. Cambodian officials who had opposed the dam are now very happy with its design, he said.
"The lesson of Xayaburi is that we have raised the standard of dam projects," Mr Viraphonh said. "We are taking care more of the environment and other concerns."
Members of the Mekong River Commission urged a delay of the construction in a meeting in Siem Reap last year due to concerns about environmental impacts. Laos commissioned Poyry, an independent engineering consulting firm based in Finland to study the consequences and redesign the dam to alley their worries.
But Ms Pienporn rejected the report, saying it was hastily written with no consultations from downstream members. "We've never seen the study," she said, adding that the environmentalists and villagers will not give up protests against the dam.