Strategy Note on Economic Cooperation for Mekong Subregion The World Bank’s contribution to the GMS Water Resources Management March 2007

Current Draft Written in April 2006 and needs update Written in April 2006 and needs update Risks for uncontrolled developmentRisks for uncontrolled development MRC Strategic PlanMRC Strategic Plan MRC Performance ReviewMRC Performance Review World Bank’s Approach for water resources management more clarifiedWorld Bank’s Approach for water resources management more clarified Presentation today reflects some thoughts on update Presentation today reflects some thoughts on update

The Mekong River Unique socio-environmental characteristics Unique socio-environmental characteristics Vast habitat, Rich biodiversityVast habitat, Rich biodiversity High social values (culture, livelihood)High social values (culture, livelihood) Only remaining major international river with limited developmentOnly remaining major international river with limited development Many international TributariesMany international Tributaries Unique system with Tonle sap reverse flowUnique system with Tonle sap reverse flow Low Utilization – potentials for further utilization, particularly through regional collaboration Low Utilization – potentials for further utilization, particularly through regional collaboration Tourism and nature, fisheries, rural and agricultural development, irrigation, navigation, hydropower, flood protection Tourism and nature, fisheries, rural and agricultural development, irrigation, navigation, hydropower, flood protection Global Environmental Assets – need to support “sustainable development” Global Environmental Assets – need to support “sustainable development”

Current Setting Fast Regional Growth Fast Regional Growth Demand for water increasingDemand for water increasing Private Sector Interest for development Private Sector Interest for development Infrastructure (roads, hydropower, …)Infrastructure (roads, hydropower, …) Plantations (sugar, cane, corn, palm, aquaculture …)Plantations (sugar, cane, corn, palm, aquaculture …) Navigations (first oil cargo Thailand to China)Navigations (first oil cargo Thailand to China) Legal and Institutional framework not yet well developed (national and regional level) Legal and Institutional framework not yet well developed (national and regional level) Knowledge level still needs to be improved Knowledge level still needs to be improved Governance not yet established Governance not yet established Capacity needs to be improved Capacity needs to be improved

World Bank Engagement in WRM in The Mekong River WUP ( ) WUP ( ) Invest in knowledge and regional rules/proceduresInvest in knowledge and regional rules/procedures Hydrological models Hydrological models Procedures for prior notification, water quality, and water quantities Procedures for prior notification, water quality, and water quantities MWRAS (2006) MWRAS (2006) Identification of Regional investment possibilitiesIdentification of Regional investment possibilities Recognition that trade-offs may be necessaryRecognition that trade-offs may be necessary Emphasis on strengthening of regulatory and governance frameworksEmphasis on strengthening of regulatory and governance frameworks MWARP (2007) MWARP (2007) Scoping of Regional investment possibilities (Lao-Thai, Cambodia-Vietnam Delta)Scoping of Regional investment possibilities (Lao-Thai, Cambodia-Vietnam Delta) Capacity Building ActivitiesCapacity Building Activities

World Bank Strategy for Mekong Support Sustainable Development Sustainable Development Objectives: * poverty alleviation Objectives: * poverty alleviation * development that is environmentally sustainable and with shared benefits  can be small-scale local development or large- scale development, can be Environmental Protection Integrated Water Resources Management is a key Integrated Water Resources Management is a key Address Trans-boundary Inter-sectoral issuesAddress Trans-boundary Inter-sectoral issues Properly accounting for socio-environmental valuesProperly accounting for socio-environmental values Supporting Pro-poor developmentSupporting Pro-poor development Support for Two Fronts Support for Two Fronts Enabling EnvironmentEnabling Environment Regional Cooperation for Concrete ActionsRegional Cooperation for Concrete Actions

Enabling Framework Invest in Policy, Institution, and Human Resources Regional level – Support for MRCRegional level – Support for MRC Knowledge and Tools Knowledge and Tools Rules and Procedures Rules and Procedures Good Governance (communications) Good Governance (communications) Upper Riparian Engagement Upper Riparian Engagement National LevelNational Level Harmonized Policies and laws Harmonized Policies and laws Effective institutions (from national level to river basin – improved governance with basin committees) Effective institutions (from national level to river basin – improved governance with basin committees) Human Resources Human Resources

From Strategy to Actions Incremental Way Small, simple actions first to demonstrateSmall, simple actions first to demonstrate Support ‘scoping’ studies for larger, complex programs for longer-term perspectiveSupport ‘scoping’ studies for larger, complex programs for longer-term perspective Apply social and environmental safeguards, and consultations with local communitiesApply social and environmental safeguards, and consultations with local communities

Mekong Regional Programs Mekong IWRM Support Project (2008)Mekong IWRM Support Project (2008) Enabling Regional Frameworks Enabling Regional Frameworks Transboundary Demonstration Activities Transboundary Demonstration Activities Regional Navigational Accident PreventionRegional Navigational Accident Prevention Fishery Management (Champassak – Stung Treng area)Fishery Management (Champassak – Stung Treng area) Community-Based Flood/Drought Mitigation SupportCommunity-Based Flood/Drought Mitigation Support Strengthening institutional capacity Strengthening institutional capacity Mekong Regional Water Management Project (2010)Mekong Regional Water Management Project (2010) Larger project Larger project

Mekong Regional Programs: M-IWRMS Project – Possible Transboundary Project Cambodian Delta: Vamco R., water storage, to allow second rice crop

M-IWRMS Project – Possible Demonstration Activities 2 Champassak-Stung Treng Community fisheries; Protection of Deep Pools (dolphin); Breeding pilot program for indigenous carp and catfish fish species