First feasibility studies were conducted in 1999 but the proposal was rejected as being financially unattractive, carrying large social and environmental costs [1]. However, new Vietnamese and Chinese investors expressed their interest and a Memorandum of Understanding was signed on June 15, 2006 to go ahead with Environmental Impact Assessments (EIA) and planning of the 977$ million dollar investment [1]. Although the EIA did not meet international standards, the LS2 was approved for construction in 2012 [2]. Forest clearing started in 2013 and construction work in 2014, accompanied by a growing number of access ways and illegal logging outside the concession area [2]. The dam is planned to be operative in 2017 [1].

Impacts on people and the environment will be devastating, but no proper consultation of affected people was held prior to the construction [1;3]. Upstream the dam, around 5000 people from 7 villages, comprised by Prov, Phnong and Lao ethnic minorities [4], will need to be relocated to make place for the reservoir [2] and an estimated 78,000 people will lose access to important migratory fish stocks [3]. Resettlement land for the dispossessed was reported to overlap with protected areas and concessions land of other companies [3]. Downstream, at least 22,000 people will be negatively affected by bad water quality and changing hydrology [3] and fish stock is expected to drop by almost 10% basinwide, while around 50 species will be endangered [5]. Socio-ecological impacts in fact are expected to affect upstream Laos and downstream Vietnam, turning it into a transboundary issue [2]. In summary, the dam will cause immense destruction of livelihoods, deforestation, habitat loss and large-scale ecological change [1].

Since years, the affected communities voice their preoccupations. They started protests marches, submitted formal concerns, and called on the spirits to stop the project [6]. Compensations, generally inappropriate, were refused [7]. Due to the transboundary nature of the project, international donors (Australia, Japan, Finland and USA) urged Cambodia to submit the project for prior consultation to the Mekong River Commission, which however has not been done [2]. Some NGOs submitted formal complaints regarding concerns of human rights abuse [8]; while others request a new EIA [9]. However, it seems that the interests of investors and urban elites are above those of affected communities.

Currently, it looks like that the project will go on, in spite of its devastating impacts.

Expected capacity amounts to 400 MW during rainy season. According to the EIA, in dry season when energy is most demanded, the capacity will drop to 100MW [3]

Investment size is reported to amount up to 977$ million dollar investment [1].30% of the capital is held by the companies, and 70% of undisclosed bank loan, but likely from China [3]

The dam is operated by Hydropower Lower Sesan 2 CO. Ltd, a joint venture between Cambodia’s Royal Group, Chinas Hydrolancang International Energy Co, which is subsidiary of Chinese state owned Huaneng Group [1], and EVN International Joint Stock Company, subsidiary of Electricity of Vietnam [2]

The LS2 dam is a BOT project (build-operate-transfer), in which ownership is transferred to the Cambodian Government after 45 years of operation [3]

EIA consultancy was conducted by Key Consultants Cambodia (KCC), and Power Engineering Consulting Joint-Stock Company (Vietnam). Forest clearance was concessioned to Ang & Associates Lawyer Ltd. (Cambodia), owned by Cambodia’s tycoon Kith Meng and his Royal Group Kith Meng [2]

Produced electricity will be sold to Electricite du Cambodge (EDC) or exported to Vietnam [3]