Can local people also gain from benefit sharing in water resources development? Experiences from dam development in the Orange-Senqu River Basin

Abstract

The concept of sharing benefits derived from beneficial uses of water is increasingly embraced in numerous international discourses in place of sharing water in volumes among nations riparian to common water bodies. Many benefit-sharing efforts involve building of dams and inter-basin transfer schemes. These infrastructures have been blamed to be posing environmental and social costs and directly affecting local people ( Gupta and van der Zaag, 2007) [Gupta, J., van der Zaag, P., 2007. Inter-basin water transfers and integrated water resources management: Where engineering, science and politics interlock. Physics and Chemistry of the Earth doi:10.1016/j.pce.2007.04.003]. This paper attempts to find attributes that lead towards recognising the rights of affected people and the mechanisms that may ensure access of direct benefits to them. Four theoretical factors are identified as key in recognising the rights of the affected people and were adopted as the analytical framework: a. Appropriate legal and policy framework, b. Public participation, c. Sustainable compensation measures, and d. Equitable access of derived benefits. In order to complement these theoretical factors, the study compared two large water development projects in the Orange-Senqu river basin: the Orange River Development Project and the Lesotho Highlands Water Project. In both projects, several large dams were constructed and water was transferred from one river into another. The following are the findings of the paper: a) the political environment through the legal and institutional framework plays a major role in protecting or marginalising the affected people; b) compensation measures for lost properties left many affected people destitute and food insecure; c) affected people mainly benefited from the indirect benefits of the projects instead of direct benefits. In order to ensure access to direct benefits for the affected people it is recommended that a) the national legislation must support the concept, b) mechanisms for allocating benefits to the affected people must be defined at project planning stage and should aim at long-term development goals, and c) local authorities must have sufficient capacity to ensure smooth operation.