Independent Technical Review: NT2 Forestry Development Program

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IRN and Environmental Defense commissioned this independent review of the Nam Theun forestry development program for Nakai Plateau resettlers. The reviews finds that the feasibility of the forestry development program presented in the Nam Theun 2 project’s Social Development Plan (SDP) is questionable for a number of reasons.

For example, past illegal logging activities have dramatically reduced the availability of quality timber in the resettlement area. The poor market for low quality timber, combined with high government taxes, makes it essential that tax concessions are secured and post harvest chemical treatment occurs if the operation is to be profitable. As both the tax concessions and the chemical harvesting component are uncertain, if either one fails to materialize the viability of the entire plan will be jeopardised.