Feature: Chinese companies helping Laos eradicate poverty in remote

Remaining one of the world's least-developed countries, the South-East Asian nation of Laos occupies more than 236,000 square kilometers of land and is home to a population estimated at less than 6.9 million people.

The majority of the country's population continues to live in remote mountainous villages as they have done from generation to generation and due to a lack of infrastructure, especially poor access to transport and income from trade, many have lived their lives isolated from essential services and opportunities to escape structural poverty.

As such, the increasing investment from Chinese companies and development of significant hydropower projects has brought positive socio-economic changes for more and more local people as they seek a better life amid the remote and picturesque mountains and river valleys of Laos.

Villagers in remote areas of Laos have for generations lived in basic dwellings roofed and lined with thatch and lightweight materials, but many are upgrading to safer and more structurally sound homes thanks to Chinese investment in the hydropower sector.

At the old site of the village of Pak Jim in Luang Prabang's Muang Ngoy district, the village has been notably relocated to higher ground nearby to avoid the partial seasonal inundation the former site suffered.

Despite the ramshackle facade of the former dwellings, the residents are friendly and eager to communicate, like Madam Seng as she carried her youngest daughter while walking around to show her old dwelling from which she has already relocated.

Like fellow villagers, she is now happily housed in an abode far more sturdy and habitable as part of the relocation deal. "On a rainy day our former houses would often leak or flood, bringing dirt and mud into the living area. But now it's no problem since the Chinese company helped us move to the new resettlement village two months ago. The new house is more spacious and convenient than this old one," she said. "In addition, my eldest daughter has been employed thanks to the hydropower project so our livelihood is much better than before."

A lifetime of hard work shows in the deep tan, weathered visage and wiry frame that makes Madam Seng appear older than her actual age. This and the threadbare clothing worn by the proud woman and her two-year-old daughter cannot help but reveal a challenging life, but the heartfelt smile on her face shows the great confidence and expectations she has for the future of her family.

On the wander up to her new home, the new stilt-raised houses constructed from solid wood begin to appear. Like other villagers, she has adjusted the area underneath the raised house to provide additional living room partially enclosed by brick and stone granting welcome shade during the heat of the day.

The dwellings now resemble villas with two floors. Houses have been painted in various hues by the villagers according to their personal tastes, helping make the 51 houses lined up in 4 rows appear to be a more colorful and prosperous village. Only a part of the village site is set to be below the water level, so the remaining villagers were not required to move. However, all have been able to benefit. The big difference between the old thatched houses and the new sturdy dwellings permit visitors to markedly feel the great improvement in the villagers' quality of life.

Pak Jim resettlement village is one of six resettlement villages in the reservoir area of Nam Ou 2 hydropower project. Nam Ou-First Phase Hydropower Project has seen investment by Nam Ou River Basin Hydropower Co., Ltd (NOHPC), a joint venture of Powerchina Resources Ltd. (PCR) with an 85 percent share and Electricite du Laos in possession of the remaining 15 percent.

The village is located at the 20 km mark of a stretch of rural road built especially for project and resettlement villages by NOHPC. This road connects those villages to Road No.13, considered the most important lifeline for transport, trade and communication from north to south of Laos.

Although only 30 km in length, the road required the construction of six bridges bringing the total cost to 7.18 million U.S. dollars. For residents and visitors to Teng Khen village located at the far end of this road, its importance is self-evident.

As deputy project manager of Nam Ou 2 project, Shen Hui is responsible for coordinating relocation and resettlement works relating to Nam Ou 2 Hydropower project. "There was no road to our village before. Motorcycles and vehicles could not come in or out. The only way to go out was walk which was too inconvenient for us. But now this road has been built to our village. Commodities including timber can be transported to the outside markets for sale," Mr. Tongwan, the village chief said with a smile. "Meanwhile, necessary wares such as BeerLao (a favorite of local people) can be transported into our village. You could say our living conditions have been improved significantly," Tongwan, said to visiting Shen Hui, among others.

Deputy general manager of NOHPC in charge of the Environment and Resettlement works Cao Jixuan said that while there were only three families whose original dwellings would be directly impacted by the increase in water level, NOHPC insisted on funding the road for the benefit of these and other local villages nearby.

Therefore, the local villagers were deeply grateful and have expressed appreciation for the Chinese investment which has helped them overcome barriers to the daily necessities of travel and trade.

The Nam Ou River is the largest tributary on the north-eastern bank of the Mekong River. It meets the Mekong's mainstream in Lao PDR having originated from the mountainous areas of the border region between Yunnan Province in China and Phongsaly Province in Lao PDR.

The Nam Ou River Basin Hydropower Co., Ltd., established and under the control of PCR, is responsible for developing and operating Nam Ou-First phase hydropower projects (including Nam Ou 2, 5 and 6 hydropower projects).

The three projects involve 49 villages from 5 districts in Luangrabang and Phongsaly provinces. More than 7,100 people from 1, 193 families were impacted by the impounding of water in the reservoir, requiring resettlement or relocation based on preliminary planning.

Of note is that both of the two completed resettlement sites have been praised by the local government and have since become the benchmark for future projects in each province respectively. Moreover, the project has created more employment opportunities for the local people and pushed forward environmentally and socially responsible development.

A stone monument carrying the two nations' flags and the words "Friendship between Lao and China" has been set up at the entrance of the newly built township that brings together residents of Hatkhip and Hhatphang Villages as a lasting testament to the myriad benefits.

The Nam Ou river basin hydropower project is the first of its kind in Laos where a single foreign company has been granted official authority to develop hydropower generation for the entirety of a single river basin (comprising 7 cascade hydropower projects)according to deputy general manager of PCR and general manager of NOHPC, Yu Xiangrong.

In any country developing its socio-economy and technical capacity there are challenges to successful implementation of a single standalone hydropower project, let alone an entire river basin's worth.

However because of the political stability and controllable risks in Laos, PCR is planning to invest around 2.8 billion U.S. dollars for development of the series of 7 cascade-style hydropower generation facilities on the Nam Ou River. In addition, PCR has invested in and operated not only hydropower projects like Nam Ngum 5 but also the Khammouane Thakhek cement factory and the Vientiane potash mining project. The estimated investment value is close to 5 billion U.S. dollars, which is the largest amount invested by the Chinese company in Laos. "The government and policy is stable in Laos and the relationship between Laos and China is really friendly," Yu Xiangrong said. "The bilateral trade and economic cooperation is being developed and deepened constantly which has improved investor confidence in Laos. As we can see from the efforts to promote the strategy for jointly building the Silk Road Economic Belt and the 21st Century Maritime Silk Road, this confidence will be further improved."

In addition to Powerchina Resources Ltd., there are many hydropower projects already operated or under construction by other companies from China. Hydropower projects like these are making increasing contributions to local socio-economic development and the elimination of poverty, something highly appreciated by Laos' government and its people. Endi