~ Le Viêt Nam, aujourd'hui. ~
The Vietnam News

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Development poker

SI PA PHIN - Compared to other farmers in Vietnam's impoverished northern highlands, Dieu Van Luyen is rolling in it. Nineteen months ago, he and his family moved to a spacious new home that resembles a Swiss chalet on stilts, complete with a wrap-around balcony, shiny peach floor tiles, electricity, running water and satellite TV. Instead of walking all morning to reach his crops, Luyen can now zoom off on his new motorcycle and get home in time for dinner and a movie on his new DVD player. "I have everything," says the 40-year-old father of six.

Luyen's newfound creature comforts represent the ruling Vietnamese Communist Party's opening bid in an unusual, high-stakes game of development poker. The bet: By dramatically elevating the lifestyle of villagers like Luyen--whose homes, rice fields and orchards are destined for a watery grave, thanks to a planned dam in northern Vietnam--the government will persuade foreign donors and export-credit agencies to help finance the megaproject.

The government wants to raise $2.5 billion for the hydroelectric dam in Son La province--at 2,400 megawatts, the largest single power project Vietnam has ever attempted. The nation's leaders claim the dam, officially dubbed the "project of the century," is crucial to meeting the country's future energy needs and maintaining Vietnam's 7% annual economic growth. They say it's also a vital bulwark to protect the capital, Hanoi, from annual floods. Construction is supposed to begin by late 2005, but the government still doesn't know how it will foot a large portion of the bill. Officials project that some 30% of the project will be financed from external sources.

Eventually, some 91,000 people, mostly from ethnic minorities, will be displaced by the dam, known as the Son La hydropower project. The government has earmarked more than $640 million of the overall project budget to relocate them and provide cash bonuses--a huge sum for the nation. That includes more than $6 million lavished so far on Si Pa Phin, Luyen's model relocation village located in Dien Bien, one of three northern provinces affected by the dam.

"As long as [donors] see that we are improving people's lives, we will get support from them," predicts Nguyen Dang Dao, vice-chairman of the people's committee in Lai Chau province. Officials also want to placate internal critics of the dam project who have voiced fears in the national assembly that it will disrupt the lives of ethnic minority communities. Indeed, foreign resettlement experts say it is unclear whether the treatment given to the first batch of families will translate into improved living conditions for all the ethnic minorities slated to move.

The attention focused on resettlement marks a surprising shift. When Vietnam built its first major hydroelectric dam in the northern province of Hoa Binh in the 1980s, the 56,000 villagers displaced then got little more than some gruff advice to find new homes on their own. Plunged into isolation when the Vietnam War ended in 1975, Hanoi paid little heed to foreign critics or disgruntled locals.

Things are different today. Unlike China--home of the controversial Three Gorges dam--Vietnam remains highly dependent on foreign aid. And while some Vietnamese officials don't expect organizations like the World Bank to chip in for its hydropower ambitions because of overseas sensitivities about the large population displacements, they're still hopeful that Japan and other overseas organizations will respond when Hanoi formally asks for help.

Vietnam and neighbouring Laos are global pioneers in building model relocation villages. But such outposts are destined to become a common tool for developing countries that are striving to win overseas funding for dam projects, predicts American anthropologist Thayer Scudder, a former commissioner for the World Commission on Dams.

A scenic new home

Give or take a few hairpin bends, it's a smooth ride up a freshly-chiselled mountain road to reach Si Pa Phin, at about 900 metres above sea level. The forested vistas are probably even more spectacular for those who manage to hitch a helicopter ride with Communist Party officials who often drop in to check on the remote village's progress.

Rising from the distance amid sloping rice terraces and sugar-cane fields, Si Pa Phin's neat rows of cream-coloured houses hover like a mirage. Up close, packed mud lanes indicate that the village remains a work in progress for the 175 ethnic Thai families living here, including Luyen's.

Before piling into trucks for the move from their distant lowland village, along with their water buffalo, pigs and farming tools, many family members were shown three model houses. Most opted for an airy, 120-square-metre cement confection, perched on cement pillars to mimic the traditional wooden stilted houses of their former village. That leaves plenty of room below for raising pigs, stacking firewood and parking their new motorbikes. "Even in their dreams, they wouldn't imagine such big houses," relocated farmer Lo Van Choi says of his former neighbours.

The village only had accommodation for about half the 400 families that signed up to move. Among the new arrivals, 25 families from Vietnam's ethnic majority Kinh group are housed in a separate cluster. Occasionally, both communities gather at a pristine "cultural centre," where eight electric fans keep everyone cool. Choi's home occupies a particularly scenic knoll, overlooking a slope where he and his neighbours are growing a breed of tall grass for cattle feed. They're gearing up for the first shipment of 50 pregnant Red Brahman cows from Australia, which have been bought by the Vietnamese government for the relocated families at $1,245 per head. If that experiment works out, 7,500 more cows will be bought, officials say.

The farmer is also looking to earn extra money from his new fish pond, five times bigger than his old one, he says. Gazing at his elaborate new stereo system and sturdy wooden furniture, he doesn't appear particularly nostalgic for Chan Nua, his native village located 105 kilometres away. As the leader of Chan Nua's agricultural cooperative, Choi was recruited to join a "relocation management board." He gets a $13 monthly stipend to persuade his neighbours to move. In addition to touting clean water, indoor toilets and electricity, the board dangled cash bonuses of up to $2,250 per family. Even the bones of ancestors are being relocated with state funds.

Still, not everyone back in Chan Nua can be so easily lured away. "Here, we have fish in the river, meat in the forest, and trees all around us," says farmer Lo Van Phin, who treats visitors to fresh coconut juice. Doubts also plague co-villager Dieu Van Nhieu. "I don't think there will be enough food for us over there," the farmer mutters. "I prefer to stay here." In Si Pa Phin, what do the neighbours think of the newly rich arrivals? Some villagers say they are benefiting from the fresh government attention to the area, including new schools and a nearly completed $1.2 million irrigation system. Yet hints of jealousy creep in. "I would like a big and beautiful house like that, but I have no money," says resident Mua Van Lau, an ethnic Hmong whose home is a dark, dilapidated wooden structure typical of the area.

For all the trouble the government is going to, the $2.5 billion question remains: Will donors come ? Some are dubious. "It's very difficult to carry out that project," concludes Nishimiya Koji, programme coordinator at the Japanese government's International Cooperation Agency in Hanoi. "The relocation issue is very, very critical."

By Margot Cohen - Far Eastern Economic Review - January 01, 2004.