1. Mekong Water Utilization Project (WUP) 2000-2007 GEF IW C4 August 1, 2007

2. The Mekong River Commission (MRC) was formed (from the Mekong Committee founded in 1957) on April 5, 1995 by the Agreement on the Cooperation for the Sustainable Development of the Mekong River Basin between the governments of Cambodia, Lao PDR, Thailand and Vietnam to provides the institutional framework to promote regional cooperation. In 1996 China and Myanmar became Dialogue Partners of the MRC. The four goals of our organization for 2006-2010 are: Goal 1: To promote and support coordinated, sustainable, and pro-poor development; Goal 2: To enhance effective regional cooperation; Goal 3: To strengthen basin-wide environmental monitoring and impact assessment; Goal 4: To strengthen the Integrated Water Resources Management capacity and knowledge base of the MRC bodies, National Mekong Committees, Line Agencies, and other stakeholders.

3. The Mekong River Basin Key Features 4800 km long, longest river in South Asia and the 12th longest river in the world 795,000 km2 Parts of China, Myanmar and Vietnam, nearly one third of Thailand (1/3 of land); Cambodia (86%) Lao PDR (90%) 35 % of the river’s total annual flow comes from Lao PDR; 18% from Thailand/Cambodia, 11% from Vietnam, 16% from China, 2% from Myanmar Lower Mekong Basin (LMB): 65 million Only major international river system with limited development and regulation Resources One of the world’s most productive inland fisheries in floodplains High social values (culture, livelihood) Many international Tributaries Large fluctuations in seasonal discharge driven by the southwest monsoon Unique system with Tonle sap reverse flow Fisheries main source of protein intake and livelihoods (esp. Cambodia) Rich biodiversity – only second to the Amazon River Basin

4. Challenges 90 million by 2025 Fast regional growth - Demand for water increasing Private Sector Interest for development –Infrastructure (roads, hydropower, …) –Plantations (sugar, cane, corn, palm, aquaculture …) Limited storage capacity Low utilization – potentials for further utilization, particularly through regional collaboration Tourism and nature, fisheries, rural and agricultural development, irrigation, navigation, hydropower, flood protection Each of the LMB countries has both upstream and downstream interests Flow changes associated with investments could have a major social, economic and ecological impact

5. Threats on biodiversity and livelihoods Fishing communities Large scale deforestation due to exploitation of the wetlands, shifting cultivation, and logging in the uplands Agricultural expansion Watersheds degradation, increasing erosion, and modification of the hydrological regime, leading to loss of livelihoods and river’s biodiversity Extremely variable climatic conditions -flood, drought (e.g. Delta, northeastern Thailand Salinization and fertilizers pollution impact on land productivity, water supply… First oil cargo from Thailand to China Major economic uses and water balance Increased demand for electricity production: LMB demand for power expected to grow by 237%/y to 2022 Inland water navigation and maritime shipping upstream will influence flow

6. Governance Regional level Governance not yet established Capacity needs to be improved MRC needs to continue to improve its policies, management, and riparian ownership Limited public access to technical studies and data Legal and Institutional framework not yet well developed (national and regional level) Country level “Partial disconnect” between the regional and the national water sector strategies, the interests of the countries and MRC Secretariat’s work plan Governments still lack a comprehensive sector strategy, effective institutions, or HR Knowledge level still needs to be improved Technical line agencies have strong vested interests, leading to their lack of strong grip on the development debate, and on the oversight of the MRC Secretariat work plan. Country coordination of national Mekong-related activities not effective

7. SAP Elements Strategic planning - Logical, sustainable and politically acceptable solutions. MRC Strategic Plan 2006-2010 includes specific goals and "key result areas", all driven by the member countries’ willingness to cooperate in sustainable development of the Mekong basin under the 1995 Mekong Agreement. BDP 1 includes options for interventions, both physical and non-physical (e.g. management systems, tariffs, water use policies and laws) in 10 sub-areas.BDP2 starting in 2007 to produce a rolling plan facilitating future development activities in the Basin, enabling decisions to be made within a range of acceptable choices within a framework for regional action in LMB to minimize water-related environmental problems. BPD seen by the countries as a way to move beyond the operational requirements of the Agreement to embrace broader sustainable development. MWRAS provides framework for cooperative action in the basin in the short and medium terms. Was welcomed by governments and donors. Has inspired MRC’s Strategic Plan.

8. SAP Elements 4. Goals and objectives UN Millennium Development Goals Towards Integrated Water Resources Management (IWRM) Goals Objectives Strategic outputs 5. Implementation Strategy Strategic partnerships with other regional initiatives Integrated programme approach Integrated programme structure and management BDP planning process Funding MRC activities Funding approach Towards budget aid for MRC activities Organisational and managerial strategy of the MRC MRC Secretariat organisational structure Management principles Monitoring and evaluation Overall performance Monitoring and evaluation system Implementation arrangements

9. SAP Elements Full stakeholder participation. All parties fully consulted throughout SAP process. MRC Strategic Plan 2006-2010 was prepared with extensive consultation with riparian stakeholders. BDP has developed close linkages with line agencies, NGOs and community organizations.

10. SAP Elements Stepwise consensus building through stakeholder representation at all stages. MRC Strategic Plan builds upon MRC’s work and achievements and presents clear roles, goals, objectives and organizational arrangements for moving MRC’s vision forward. Within MRC, all decisions must be adopted by a unanimous vote, under the 1995 Agreement, unless otherwise decided by MRC’s governing bodies. In practice, decisions are reached by consensus through a process of consultation and negotiation that balances the interests of all stakeholders and seeks acceptable solutions for all parties without any vote required.

11. SAP Elements Regional dialogue BDP2 continues rolling basin development plans in the coming years. Process of State of Basin Report to be continued at regular intervals as more data become available and are shared. Update expected before 2009 State of the Basin Report to provide incentive to improve data collection and analysis. WB-ADB-funded Mekong Water Resources Partnership Program (MWARP) includes continued dialogue among development partners, countries, and civil society.

12. SAP Elements Accountability of parties committing themselves to implementing the SAP for their actions. Stakeholder group/sector/ government agency(ies) responsible for implementing the actions proposed is clearly identified. MWRAS frames comprehensive agenda for stakeholders for policy analysis, dialogue and governance, technical assistance, and investments.

13. SAP Elements Political commitment. SAP is high level binding agreement between governments for policy development and implementation. Acceptable flows (based on IBFM as an objective assessment) under Article 6 of 1995 Agreement and Procedures for Maintenance of Flows developed under WUP. Five sets of procedures and related and guidelines developed under WUP, four of which have formal approval by MRC Council: - Data and information exchange and sharing - Water use monitoring - Notification, prior consultation and agreement - Maintenance of flows - Water quality (agreed by the Joint Committee, and pending approval by the cabinet of the Government of Thailand, and MRC Council.)

15. SAP Elements Donor partnerships as an incentive for commitment and to avoid duplication of efforts. International community supports joint action. BDP links with and supports GMS and work of WUP, ASEAN, ESCAP, GWP, etc. MWRAS principles consistent with regional policies and programs of donors e.g. Ausaid and Danida.

16. SAP Elements Subsidiarity. SAP should clearly address the balance between regional and national actions. MRC Strategic Plan 2006-2010 identifies clear "key result areas" and priorities at various levels.

17. SAP Elements Inter-sectoral policy building (national Interministerial committees, including appropriate government sectors as well as other relevant stakeholder representatives) MRC organizational framework enables interactions between the member countries at the highest (i.e. ministerial) levels although MRC is not part of any line ministries making it difficult to implement some of the rules.

18. WUP (2000-2007) Invest in knowledge and regional rules/procedures Hydrological models Procedures for prior notification, water quality, and water quantities

19. Cambodian Delta: Vamco R., water storage, to allow second rice crop

20. Champassak-Stung Treng Community fisheries; Protection of Deep Pools (dolphin); Breeding pilot program for indigenous carp and catfish fish species