Van Vieng
designing a river
basin fund in Lao PDR
Many countries have shifted towards models for river
basin management that involve the establishment of
autonomous or semi-independent authorities. The search
for sustainable income and financing, which can be used
to support integrated water resource management, has
become a major challenge. While core funding from the
state budget is in most cases allocated, additional sources
of income are almost always needed to cover the costs of
these new institutions and to fund the activities they are
mandated to deliver. Although many industries and
sectors depend on sustainable river basin management,
sources of revenues and funding are scarce, and already
under heavy pressure from other sectors.

We have been working with
Gesellschaft für Internationale
Zusammenarbeit (GIZ) and the Mekong River Commission
(MRC) to recommend concrete options for the design and
financing of a river basin fund for the Nam Ngum River
Basin Committee, one of the first two pilot authorities in
Lao PDR to be developed under the recent Decree on
“Establishment and Activities of River Basin Committees”.
Nam Ngum dam
Nam Song river diversion to the Nam Ngum reservoir
© Environment Management Group 2012