Lao Minister of Energy and Mines Bosaikham Vongdara said full-scale work on the project only started in the middle of 2005 and construction was in full swing after receiving support from international finance groups such as the World Bank and Asian Development Bank.

Progress was reported to the second annual stakeholders' forum in Thakhek district, central Khammouane yesterday. Some 350 Lao officials, project officers, plus financiers, affected villagers and conservationists who strongly opposed the project attended the forum.

Khamsy Sisa-ad, a villager from Ban Sob-On in Nakai Plateau, which will be inundated, said her life would completely change as the dam should "release her" from poverty.

Khamsy is among about 6,000 people affected by the project and had to be relocated to a new area, as well as undergo rehabilitation. "I now have good access to transportation and my children have a school for their education," she told the meeting.

The hydropower project has a capacity of 1070 MW, 995 MW of which will to be sent to Thailand - generating annual revenue of more than US$200 million (Bt7 billion) for the cash-strapped Lao economy. Direct revenue over the 30-year concession would be around $2 billion, much of which would be spent on poverty reduction, Bosaikham said. During the construction period, the project would create jobs and additional incomes for 5,000-7,000 local workers, he said.

But international conservationists oppose the project because it has and will damage the environment on the Nakai Plateau and downstream of Xe Bang Fai, where huge volumes of water will be diverted.

They also raised concerns about wildlife in the area, notably scores of wild elephants. Officials said a scheme to save 150 wild elephants was being implemented. - supalak G Khundee, the nation