MANAGING COOPERATION IN LOWER MEKONG: A CASE STUDY OF XAYABURI DAM CONSTRUCTION (2010-2012)

Abstract

Title: Managing Cooperation in Lower Mekong: A Case Study of Xayaburi Dam Construction (2010-2012) The increasing demand of electricity energy in Southeast Asia and the fact that there is a difference in energy exploration potential among countries opened the chance for energy trading in the region. In the middle of global effort to reduce the carbon emission, Lao PDR came up with the idea of hydropower exploration. Under cooperation with Thailand developer, Lao PDR would construct Xayaburi Dam in the mainstream part of Lower Mekong; the region‘s largest river basin where the energy generated will be exported to Thailand. Reminding that Lower Mekong River is a trans-boundary resource, joint management and exploration has been managed by the 1995 Mekong Agreement and executed by the Mekong River Commission. When the disagreement appeared towards the proposal of the dam in the Commission, Lao PDR decided unilaterally to continue the construction and ignored the agreement that there will be no construction unless there is agreement from all riparian countries. This research is an attempt to identify the regional factors that influenced Lao PDR foreign policy and how these factors influenced the unilateral decision of Lao PDR towards the Xayaburi Dam case. Focusing on the economic, social and environmental sectors, this research elaborates the costs and benefit of two different regional frameworks that will influence the calculation of Lao PDR in pursuing its national goals.