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Water: the heart of development in the Mekong

Australian Mekong Water Resources Program

Update April 2010

© Commonwealth of Australia 2010

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program go to www.ausaid.gov.au

For further information relating to this publication,
contact AusAID, Australian Embassy, Vientiane, Laos

Phone

+856 21 353 800

Edited by Clarity Communications Australia Pty Ltd
Designed by Mekong Design, Vientiane
Photography by Jim Holmes
Printed by Clung Wicha Press, Bangkok

Cover photo: River transport is essential to move people and
goods in the Mekong Region

Contents

Overview

Introduction

Context

Australia’s goal

What is Australia funding now?

1

2

3

5

8

	

Overview

Water resources lie at the heart of development in the Mekong Region. Quality
of life in the region will be further improved with wise choices about sharing,

developing and managing water—to produce food and energy and to maintain vital
ecosystems.
The Mekong Region faces rapid geopolitical, economic, social and environmental
change—creating positive results in some areas and challenges to be resolved in
others.
Planned hydropower dams and other water projects will transform the Mekong
Region’s rivers, wetlands and lakes. Substantial economic benefit could flow from
these initiatives if the social, environment and economic impacts are fully assessed
and only the best options are pursued.
Australia is committed to helping Mekong governments to manage effectively their
water resources. Managed by the Australian Agency for International Development
(AusAID), the Australian Mekong Water Resources Program seeks to assist
the countries of the Mekong Region to reduce poverty and achieve sustainable
development through the equitable and efficient use and management of water
resources.
Australia’s support to better managing water is one element of a large and effective
aid program in the Mekong Region. This year, Australia will provide more than
A$230 million in assistance in the Mekong Region. All of Australia’s assistance is
in the form of grant aid and does not need to be repaid.
To increase its effectiveness the Australian Mekong Water Resources Program
now emphasises the importance of establishing partnerships with ‘non-state actors’
from the private sector, civil society and the science sector. These actors are critical
to meeting program objectives.
The Australian Mekong Water Resources Program is managed by the AusAID
Mekong Water Unit at the Australian Embassy, Vientiane, Laos. This in-region
presence strengthens Australia’s ability to respond effectively to water-related
development challenges in the Mekong and make informed decisions about future
support.

Australian Mekong Water Resources Program

1

Introduction

The Australian Mekong Water Resources Program is centred on the Mekong
Region, with a particular focus on the iconic Mekong River and its many

tributaries. This publication outlines:
> the Mekong regional context in relation to water resources
> the goals and objectives of Australian support

> activities the Australian Government supports and the results it hopes to
achieve.
The program supports priorities identified by Mekong country governments, and
is implemented in partnership with the Mekong River Commission (MRC), the
World Bank and the Asian Development Bank (ADB). It also reflects Australia’s
new direct engagement with, and support for, the non-state actors1 who are critical
to achieving development results on water issues in the Mekong Region.
With these partners the Australian Government seeks to assist the countries of the
Mekong Region to reduce poverty and achieve sustainable development through
the equitable and efficient use and management of water resources.

Context

In the Mekong Region many water resource projects have been completed, are
underway, or are being planned. These projects serve many purposes, including to:

control floods; expand food production; supply clean water for people to consume;
improve navigation; and, boost energy production through hydropower. While
some projects have been celebrated, others have led to disputes and protests,
particularly those that disrupt, disturb or destroy existing river systems. Projects
involving altering sediment and nutrient loads, using groundwater, and diverting
water (inter-state, intra-state, inter-basin and intra-basin), for example, are often
hotly contested.
Numerous hydropower dams and other water resource projects are being planned
by private and quasi-public sector developers, transnational capital providers and
the six governments of the region. A recent count by water resource experts found
82 existing and 179 planned hydropower projects in the region, many on Mekong
River tributaries. If completed, these developments will transform the region’s
rivers, wetlands and lakes—as well as national and regional economies, societies
and ecosystems.
The Mekong Region is also beginning to deal with the challenges of climate
change. Experts project that changes in rainfall patterns, rising sea levels and
more frequent and severe tropical storms will have an acute effect on the region’s
water resources. Experts also predict that delta areas, and especially the highly
productive Mekong Delta in Vietnam and Cambodia, will be severely affected by
climate change.
Extensive discussions continue about surface water and the way it should be best
used. As increased exploitation of surface water leads to greater scarcity and more
pollution, ground water utilisation also looms as an important issue.
These challenges of rapid hydropower development, climate change, surface
water use and greater exploitation of groundwater are not uncommon in the water
resources management arena. However, the transboundary nature of Mekong
waters adds the critical dimension: to be fair, decision making needs to be based
on regional evaluation of benefits and costs, rather than only concentrating on
national interests.

Australian Mekong Water Resources Program

3

The Mekong Region
GREATER MEKONG SUBREGION

95°

100°

105°

110°

Indian Line
Chinese Line

a
Brahmap
INDIA
25°

Baoshan
Tengchong

Zigong

Xichang

Panzhihua
Zhanyi
Kunming

Luzhou	gqin

W
Guiyang
C H I N A
Yishan

n

Changsha

25°

The word ‘Mekong’ means many things. It
can refer to the river itself, to the river basin
or to the diverse region through which the
river flows.
The Mekong Region is sometimes also called
the ‘Greater Mekong Subregion’ or the

Gejiu

M

zi

u

Hongshui

Yong

‘Mekong Subregion’.

Nanning

The Mekong is the longest river in Southeast

Sittwe
20°

Mandalay
MYANMAR
Meiktila
in
Chiang Mai

Uttaradit
Yangon

D

Loungphrabang
O
PE	Vinh
ne	'S

Udon Thani

g
Hanoi Haiphong
Hoa Binh

20°

Asia, running for an estimated 4 900 km. It is
the epicentre of contemporary debates about
‘water resources development’ in the region.
Most commonly, the region is taken to
encompass the territory, ecosystems, people,
economies and politics of Burma, Cambodia,
China’s Yunnan Province, Laos, Thailand and
Vietnam. It covers 2.3 million km2 and is

15°

Gulf of
Martaban

THAILAND
Nakhon
Ratchasima

Chi
Mun

g
Ubon
Ratchathani

Da Nang
VIET NAM

15°

home to more than 240 million people.
The Mekong River Basin (watershed or
catchment) is 795 000 km2 and comprises

Dawei

Bangkok

Battambang

Srepok

Qui Nhon

4% of Burma, 86% of Cambodia, a very small
percentage of the territory of China, 97% of

Myeik

CAMBODIA

Laos, 36% of Thailand and 20% of Vietnam.

10°

Mergui
Archipelago

Gulf of Thailand

Phnom Penh

Long Xuyen

Ho Chi Minh City
(Saigon)
Go Cong

Cam Ranh

10°

About 70 million people live in the basin, but
strikingly only nine cities have more than
100 000 people.
Increasing in profile is the Greater Mekong

Surat Thani
95°
National capital
Other cities
International boundary
The boundaries and names shown and the designations
used on this map do not imply official endorsement or
acceptance by the United Nations.

Songkhla

0

100

200

300

110°
400

500 km

Subregion Cooperation, initiated in 1992 with
support of the ADB and including a focus
on a 7th economy, China’s Guangxi Zhuang
Autonomous Region.

5°

100°

MALAYSIA

105°

0

100

200

300 mi

5°

Map No. 4112 Rev. 2 UNITED NATIONS
January 2004
The United Nations Cartographic Section, New York, US

4

Department of Peacekeeping Operations
Cartographic Section

Australian Mekong Water Resources Program

YUNNAN

Source: Map No. 4112, Rev. 2. January 2004.

Australia’s goal

Australia’s aim is to promote regional cooperation to achieve sustainable
development through better use and management of the Mekong Region’s
water resources.
The program goal reflects the importance of water as a vital resource in the
Mekong Region—essential to produce food, grow industry, generate energy
(through hydropower), and conserve ecosystems. With effective regional
cooperation, water resources can be more wisely used and managed. This, in turn,
can help reduce poverty and achieve sustainable development for the millions of
people who depend on Mekong Region water resources for their livelihood.
Australia’s three objectives
The Australian Mekong Water Resources Program is founded on three strategic
objectives: strengthening institutions; building reliable knowledge; and, making
more informed decisions on the region’s water resources.
Strengthening institutions
Strengthening institutions to improve integrated water resource management
(IWRM) in the region.
Equitable and efficient management and use of water resources contributes to
improved regional cooperation, poverty reduction and sustainable development.
IWRM, however, needs effective institutions to back it up—institutions that are
willing and able to support the more efficient use and management of water and
related resources.

Supporting the MRC and cooperation with the Murray-Darling Basin Authority

Australia has been an active supporter of improved water resource management in the Mekong Region for more than
15 years. In the past ten years the focus of this support has been the Mekong River Commission (MRC). During this
time Australia has provided more than A$10 million to the MRC to improve basin planning and river data.
An enduring element of this support has been the twinning relationship between the Mekong River Commission and
the Australian Murray-Darling Basin Authority since 1996. This allowed for joint learning between the two organisations
on issues such as basin planning and IWRM and fostered linkages between Australian and Mekong water resource
professionals. A third phase of this relationship is planned under the MRC’s Integrated Capacity Building Program.

Australian Mekong Water Resources Program

5

Building reliable knowledge
Improving the availability of reliable knowledge about water resources.
A reliable knowledge base is essential if informed decisions are to be made on
current and future water resource management in the Mekong. This requires
credible scientific and technical information and data. Currently, there is not
enough sound information available on the region and data that exists is often not
shared, integrated or synthesised.

Increasing knowledge of river flows to protect communities

Informed decisions about water resources are founded on accurate, credible and accessible information.
The Appropriate Hydrological Network Improvement Project (AHNIP) supported the establishment of 18 measuring
stations along the Mekong River, including two within China. The project built technical capacity to gather and analyse
river flow data. In 2005, AHNIP helped strike a landmark agreement between the MRC and China to share data during
the wet season. This agreement continues to be renewed annually.
This capacity has proven crucial in providing early warning of floods. During the severe 2008 flood AHNIP stations
provided real-time information that helped lower Mekong countries prepare for the rising waters.

Making more informed decisions
Influencing policies on water resources, and negotiations with public sector,
private sector and civil society actors.
The institutional and knowledge constraints outlined above have resulted in
rudimentary decisions being made on water resource management in the region.
Indeed, planning and decision making remains disconnected from national water
resources development agendas and individual project priorities. And at present
significant decisions are being made in national and provincial capitals and
company board rooms, not within intergovernmental processes. Urgent work is
needed to ensure that more informed decisions are made on water resources in
the region.

Safer and more efficient navigation on the Mekong between Cambodia and Vietnam

Australian support for the MRC’s Navigation Program, provided in partnership with Belgium, helped Cambodia and
Vietnam to sign the Treaty on Waterway Transportation in 2009. This treaty allows freedom of navigation on Mekong
waterways between the two countries and increases access to the Mekong River system for foreign vessels.
River transport is more efficient than moving goods by road or rail, and is more environmentally friendly. On average
one litre of fuel can move one ton of cargo 182 km by river, compared to 71 km by rail and 21 km by road. Similarly,
river freight produces on average about one fifth of the greenhouse gas CO2 per ton per km that is produced by trucking
goods on the road.
The Treaty on Waterway Transportation will increase regional and international trade, reduce shipping delays, and
make river-based customs and immigration procedures more efficient. It also introduces a range of measures for more
efficient and safe transit of vessels that use the more than 60 Cambodian and Vietnamese ports.

6

Australian Mekong Water Resources Program

How does Australia pursue its objectives?
To achieve the program’s goal and objectives, activities supported by Australia
address one or more of the following priority issues:
> Capacity building—technical and social capacity building to enable integrated
water resource management, a process referred to in short form as IWRM.
> Environmental change—adapting to climate and other environmental change.
> Food security—ensuring there is enough food for vulnerable and
marginalised people.
> Hydropower assessment—comprehensively assessing options, including
alternatives.
> Transboundary engagement—engaging more constructively on water-related
issues between all six countries of the Mekong Region.
> Corporate social responsibility—encouraging private sector leadership and
accountability.

In summary, strengthening institutions, building reliable knowledge and making
more informed decisions on the Mekong Region’s valuable water resources
are fundamental requirements of effective IWRM. This is a major challenge,

particularly in any multi-country setting that needs to negotiate on national and
transboundary waters. The Mekong Region is no exception.

Flood protection and poverty reduction in the Mekong Delta

Australian support of the North Vam Nao Water Control Project in the Mekong Delta, Vietnam, has allowed about
300 000 people to live without the threat of extreme flooding events.
The project, delivered in close partnership with the An Giang Province, improved the agricultural productivity, health
and livelihoods of people living on North Vam Nao Island.
It raised and strengthened the dyke that skirted the island, set sluice gates into the perimeter dyke to control the flow
of water through canals and strengthened the island’s internal dykes.
The result is a predictable supply and control of water for crop production, as well as protection of assets. Poverty rates
in some districts within the project area have fallen by up to 50 per cent.
7

What is Australia funding
now?

The activities of the Australian Mekong Water Resources Program have been
carefully chosen to make a constructive contribution to improving the region’s

water governance and promoting greater cooperation between Mekong countries.
The program has eight key activities:

Mekong River Commission
Three activities:

> The Integrated Capacity Building Program is developing a critical mass of
Mekong nationals qualified to improve the capacity of the MRC and other
players so they can operate more effectively in the water resource management
arena.

Australia Awards—Scholarships for Mekong water professionals

A key challenge for the region is developing the human resource potential of water experts. Mekong countries need
trained and skilled water engineers, hydrological experts, water resource planners and environmental specialists to
help make informed decisions.
The MRC is benefiting from Australia Awards.
Mr Lilao Bouapao, for example, is at the forefront of work on the development of social impact monitoring,
vulnerability assessment and integrated basin flow management at the MRC. A senior social science specialist in
the Environment Programme, Mr Bouapao earned his Master of Science at the University of Sydney in 2001 with an
Australian Development Scholarship (ADS). He now contributes directly to the MRC’s strategic goals and says: ‘We are
developing understanding of the issues concerned, as well as indicators and other measures to monitor and assess
the changes we are seeing and will see in the future.’
Another ADS beneficiary, Mr Phetsamone Southalack, applies his Master’s Degree in Natural Resources from the
University of New England in his work on the MRC’s Basin Development Plan. One reason he chose his study was
to add value to his home country. ‘Laos is developing rapidly and we need to know how we want it to develop,’ Mr
Southalack explained. ‘Sometimes those involved in water resource planning only take a national perspective, but
integrated river basin planning must consider more transboundary impacts. I can help bring a regional perspective
into national planning.’
Human resources management is critical to the smooth running of the MRC Secretariat and Ms Bounthanome Mixap
is putting her Bachelor of Commerce gained as an ADS at University of Hobart to good use in the Human Resources
Section. ‘With staff coming from four member countries and international positions this is a busy role,’ said Ms
Mixap. ‘What we do is vital to the smooth running of the Secretariat.’
www.australiaawards.gov.au

8

Australian Mekong Water Resources Program

> The Mekong Integrated Water Resource Management Project builds
on previous MRC work to develop water resource management tools,
procedures and guidelines. These measures are essential for making fully
informed decisions on the reasonable and equitable use of water across the
Mekong Basin (as per Article 5 of the 1995 Mekong Agreement).
> The Climate Change Adaptation Initiative is building knowledge and
improving the capacity of Mekong governments to adapt to and manage
climate change.
National governments
Two activities:
> Laos IWRM support.
With the World Bank, Australia is supporting the Ministry of Energy and
Mines to: improve the mining and hydropower sectors; increase the efficiency
and transparency of hydropower governance; and, provide professional training
and share information on hydropower development.
In partnership with the ADB, a new program of support for the Water
Resources Environment Administration is being developed to: assist it
to formulate national policies and strategies and reform legislation; build the
technical capacity for hydrological and metrological data handling; and,
educate the next generation of Lao water experts.

Australia Awards—Fellowships for Mekong water professionals

The Australian Leadership Awards (ALA) Fellowship program has supported Mekong water professionals to gain
experience in Australia.
The Australian International Centre of Excellence in Water Resources Management (ICEWaRM), with funding from the ALA
program, has played an increasing role in recent years to build water management capacity in Mekong countries.
In the last two years, about 70 Fellows from five Mekong countries undertook water management courses organised by ICEWaRM
in Australia. This included participants from China funded under the Australia-China Environment Development Program.
ICEWaRM delivered professional specialist short courses, field and industry visits, workshops and planning sessions for
the Mekong Fellows. Courses have covered water modelling, catchment management, water policy and planning, water
quality and reuse.
ICEWaRM provides an international gateway and a national focus to Australia’s education, training and research expertise
in water resources management.

>

Cambodia IWRM support.

In partnership with the ADB, Australia is considering a contribution to a new
program of assistance to the Ministry of Water Resources and Meteorology.
The activity is expected to focus on the Cambodian irrigation sector and will
also deal with transboundary water resource management, including the
opportunities and risks of water resource development within the Tonle Sap
area.
Non-state actors
Three activities:
> Support of the Cambodia Development Resource Institute (CDRI) allows
this independent development research organisation to build water governance
research capacity. Australian support also helps educate the next generation of
Cambodian water experts through joint CDRI-University of Sydney
post-graduate scholarships.
> As part of the Alliance between AusAID and the Commonwealth Scientific and
Industrial Research Organisation (CSIRO), the Mekong Region Futures project
is exploring the nexus between food, water and energy in the Mekong Region
to contribute to better planning decisions in and between these sectors.
> A facility to support the private sector, civil society and the science community
active on Mekong Region water issues is under development. An early
example of these activities is work with the Challenge Program on Water
and Food (CPWF) to support consultations and trials in the Mekong of the
draft Hydropower Sustainability Assessment Protocol. Australia is also
working with the CPWF to develop a funding window through which
non-state actors can receive assistance to study Mekong water governance
issues and contribute to policymaking. To be eligible for funding, initiatives
will need to demonstrate strong alignment to the goals and objectives of the
Australian Mekong Water Resources Program.

10

Australian Mekong Water Resources Program