This document is the Policy Guideline on the Implementation of the Government Decree on Policy on Sustainable Hydropower Development (PSHD) in Lao PDR which was approved by the Prime Minister on 12 January 2015 (Decree Nº 02/GOL dated 12/1/2015). The Guideline aims to provide policy guidance to the agencies responsible for overseeing the implementation of investment projects in the hydropower sector as well as to inform and encourage project developers/investors to be aware of the Government policy toward achieving sustainable development in Lao PDR. Four elements of hydropower sustainability represent the Vision of the Government of Lao PDR. These elements consist of “3-E and 1-S”:
• Engineering – guarantee safety, ensure the use of modern technology and equipment and prevent or mitigate damage to natural resources and third parties during the survey, design, construction and operation stages;
• Economic – reliance upon the maintenance of the renewable resource base, and the use of non-renewable resource rents support the development of other factors of production;
• Environment – relies upon the avoidance if irreversible environmental impacts such as the loss of biodiversity, accumulation of persistent pollutants, or disruption of ecological cycles;
• Social – based upon the better-off of project affected people from the projects development through the process of public participation.