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Water Saving

Dams and development

Outcome from the World Commission on Dams

Anne Reeves
NPA Vice-President
NPA's representative on the IRN

The final Report of the World Commission on Dams (WCD) was launched by Nelson Mandela late last year. Key recommendations focus on improved public participation, in-depth mandatory environmental impact assessment, and a review of all existing large dams. The Report is the culmination of 2½ years of hard work, extensive debate and wide consultation leading to identification of the need for dam projects to sustain rivers and livelihoods, and for greater efficiency and accountability.
The WCD was established by the World Bank and the World Conservation Union (IUCN) to independently review the development effectiveness of large dams, to assess alternatives and propose practical guidelines for future decisions. 

It arose out of an IUCN-World Bank workshop held in response to a global tide of concern over the adverse social and environmental impacts of large-scale dams around the world. James Wolfensen, President of the World Bank, is to present the findings to the bank's 180 member nations in February, leading to a decision on whether to implement them.


A Kurdish boy in front of the bridge in Hasankeyf, Turkey, 
which will be drowned if the Ilisu Dam is built. 
The base of the bridge dates back to the 7th century

©International Rivers Network Kurdish Human Rights Project

 The twelve-member Commission represented a diverse range of interests. Among them were two Australians – Mr Don Blackmore, Chief Executive Officer of the Murray Darling Basin Commission, and Dr Judy Henderson, former Chair of Oxfam International and member of the NSW Environment Protection Authority Board. The work of the Commission was assisted by a forum drawn from 68 institutions in 36 countries and teams of researchers, as well as major consultations and many submissions, providing an important legacy of documented evidence and proposals for change.

Why is all this relevant to us?

NPA was a founding member of the Inland Rivers Network (IRN) back in 1961, and has long been an advocate for better management of our river systems to address their declining health. NPA, along with other environment groups, signed on to a major submission to the WCD prepared by Jacquie Svenson for the Nature Conservation Council, focusing on ecosystem function and environmental restoration.

Approached for comment on the relevance of WCD recommendations to Australia, Dr Judy Henderson has highlighted a number of key issues.

Stakeholder involvement

In recent decades dam building has not been a major development activity in Australia, but those projects which have been considered have tended to incur controversy, with opposition from both environmental and indigenous groups. Part of the problem is that there has been little public participation at the time of analysis of the development needs of a region.

The WCD recommends that stakeholder involvement should occur much earlier in the process than has been the custom here, with agreement being sought on the needs for energy and water resource development. This should be followed by a further transparent and inclusive process in the selection of appropriate alternatives to meet these needs, with the minimum of social and environmental impact. Strategic impact assessments of alternatives should also have stakeholder involvement and gain public acceptance. If the site of a proposal involves Aboriginal country, the WCD recommends that the prior informed consent of the indigenous people should be obtained.

Addressing existing dams

In the global review of large dams, the WCD found that in many cases existing dams were under-performing with very little ongoing evaluation and adaptive management of these structures. WCD recommends that existing facilities should be optimised, including giving attention to resolution of outstanding environmental issues.

A recent NCC/IRN media release stressed that in confirming the massive environmental, economic and social destruction from dam development, the WCD findings have implications for dam management and associated river regulation throughout NSW and beyond. With 30 large dams in the Murray-Darling Basin alone, flow regulation and cold water releases – which affect 3,000 km of river length – many native fish are close to extinction and wetlands seriously depleted. The Total Asset Management Plan, currently under way in NSW, provides an important opportunity to review not only safety but also ecological impact. One option is to de-commission non-performing dams. Here the USA has led the way, finding that the economic savings and environmental benefits more than offset the costs of maintenance and management. Papers documenting some of these approaches were included in the recent Inland Rivers Network Conference The Way Forward on Weirs.

Responsibility of Australian companies operating overseas

Dr Henderson points out that as dam building has decreased in Australia, many local construction companies and consulting firms have moved off-shore in search of new projects, particularly in South East Asia. The WCD calls on all companies to implement WCD criteria and guidelines in all areas of their operations. Australian companies should publicise acceptance of WCD recommendations in their corporate policies, and should develop management systems and certification procedures, for example ISO 14001, to ensure – and demonstrate – compliance with the WCD guidelines.

The WCD found that allegations of corruption surround many large dam projects but have seldom resulted in prosecution. Australian companies should follow the WCD recommendation of adopting Integrity Pacts on a project-specific basis. An Integrity Pact is a voluntary undertaking that sets out the contractual rights and obligations of all parties to a procurement contract and thus eliminates uncertainties.

Funding agencies worldwide

The International Rivers Network, which has taken a lead role in advocating the need for change, contributed actively in the formation of the WCD. They responded – along with other groups around the world – on the release of the final WCD Report by calling for a moratorium on further dam building until the Commission’s recommendations are fully implemented. They noted that the WCD report vindicates many concerns raised by NGO campaigns, referring specifically to controversial projects such as India’s Narmada River dams, the Ilisu Dam in Turkey, Pak Mun in Thailand, Nam Theun 2 in Laos, and San Roque in the Philippines. The World Bank and export credit agencies in particular are urged to pay heed to these recommendations.

Responsibility of AusAID

The Australian Government has a specific opportunity through AusAID and through its influence in the Asian Development Bank to review policies and internal processes in light of the report. These agencies as a matter of priority should assist developing countries in the region to implement the WCD recommendations. This is particularly relevant for countries along the Mekong River with significant existing or potential dam-affected populations. AusAID and the ADB should review projects they have been involved with to identify those having unresolved social and environmental issues, and assist countries to address outstanding compensation issues.

International responses to date

Encouragingly, WCD work is already leading some to rethink project support. Skanska AB have announced their intention to apply the guidelines for major hydropower projects. In Norway, Prime Minister Jens Stoltenberg has said there would be no more large-scale hydropower developments.

New York-based Ogden Corporation have withdrawn from the controversial Maheshwar Dam on India’s Narmada River. The company had decided to quit the dam due to "growing concerns on project economics" so Mr Kent Burton, Ogden’s Vice President for Policy and Communications, informed the International Rivers Network. The Narmada River suite of 30 major and 3,000 smaller dams would displace some 200,000 people and affect the livelihood and land of many more.

The acceptability of hydro-power as a ‘green’ and renewable energy source has also come under challenge due to the adverse impacts of the dams. One newly recognised issue is the release of greenhouse gases from rotting vegetation in dams and weirs. This has led the International Association of Theoretical and Applied Limnology (Societas Internationalis Limnologia) to organise a session on Reservoirs and Greenhouse Gases in Melbourne in February .

The Commission has now disbanded, with implementation of their many recommendations passing to governments, funding institutions and dam builders around the world. Experience shows that success will largely depend on non-government groups keeping up the pressure on bureaucrats and decision makers around the globe to take up the challenge.

The author thanks Dr Henderson for her help with this article.

Anne Reeves
NPA Vice-President  
NPA's representative on the IRN

"Dams & Development" WCD Final Report can be ordered from the publisher Earthscan in London, via earthinfo@earthscan.co.uk.

ISBN 1-85383-798-9. Cost for paperback version £20 plus £2.50 p&h.


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