Benefit sharing from Kamchay and Lower Sesan 2 hydropower watersheds in Cambodia

Abstract

Abstract The purpose of this study was to explore the institutions underlying different forms of benefit sharing in hydropower projects in Cambodia, through detailed analysis of two case studies: Kamchay and the Lower Sesan 2 hydro-dams. Promises on paper were compared with how benefit sharing was implemented in practice. The study found that, first, compensation and resettlement were a common, if minimalist, form of benefit sharing in Cambodia. Other forms of benefit sharing, such as environmental impact management and allocation of community development funds, were mentioned in both the EIA report and investment agreements, but have never been implemented. Second, at the national and sub-national levels, there are no comprehensive guidelines for benefit sharing, nor is there a supporting legal framework. Benefit sharing and compensation policies have been developed on a project-by-project basis. Third, hydro-dam projects do not prioritize providing electricity services to affected communities: no preferential electricity rate was given. Fourth, inter-ministerial structures have been introduced, which could improve the integration of activities, but instead have just slowed down decision-making. This study advances our knowledge on how benefits from hydro-dam projects are shared (and not shared), in practice, with prior residents of hydropower watersheds and other affected stakeholders in Cambodia.