Nam Theun 2 Dam

Nam Theun 2 Dam

The Nam Theun 2 Hydropower Project, or simply NT2, is a hydroelectric dam located on the Nam Theun River in Laos. Commercial operation of the plant began in March 2010. The scheme diverts water from the Nam Theun, a tributary of the Mekong River, to the Xe Bang Fai River, enabling a generation capacity of 1,070 MW, from a 350 m (1,148 ft) difference in elevation between the reservoir and the power station.

It is the largest hydroelectric project so far in Laos, exporting power to Thailand and supplying the local area with electricity. At the time of signing in 2005, NT2 was the largest foreign investment in Laos, the world's largest private sector cross-border power project financing, the largest private sector hydroelectric project financing, and one of the largest internationally-financed IPP projects in Southeast Asia. The dam also marked a return by the World Bank to funding large-scale infrastructure, after a decade-long hiatus.

According to the government of Laos, "the project is an essential part of the country's development framework and the Project's implementation is likely to be the first real possibility for (Laos) to reduce gradually its dependence on Official Development Assistance".

The project has environmental and social impacts, and comprehensive measures have been designed to mitigate these. According to a group of social and environmental experts who advise on the project, these measures could become a global model. Although Newsweek magazine referred to it as a "kinder and gentler dam", the project also attracted criticism.