16 November 2000
World Commission on Dams Launches 'Landmark' Final Report

The World Commission on Dams today launched 'Dams And Development: A New Framework for Decision-Making', its Final Report that seeks to turn costly controversies into clear and productive consensus.

An ambitious goal? It may well work. The Commission already has succeeded in bringing together for the first time all parties in the increasingly confrontational debate about the role that 45,000 large dams have played in development.

For two years a diverse forum of engineers, environmentalists, government officials, indigenous people, financiers, affected people and academics engaged in an unprecedented global public policy process. Overcoming their differences, all unanimously signed one report which will have a profound impact not only on the future role of the $42 billion dam industry, but on how to develop water and energy resources.

Speaking at the launch before 300 global representatives from governments, the private sector and civil society, former South African President, Nelson Mandela praised the constructive nature of the independent Commission, comparing its work to his own experiences: "It is one thing to find fault with an existing system. It is another thing altogether, a more difficult task, to replace it with an approach that is better."

Key highlights from the report included:

• An assessment that dams have made an important and significant contribution to human development, but in too many cases, the social and environmental costs have been unacceptable and often unnecessary.



• A new framework for decision-making that moves beyond simple cost-benefit tradeoffs to introduce an inclusive 'rights and risks approach' which recognises all legitimate stakeholders in negotiating development choices.



• A set of core values, strategic priorities, and practical criteria and guidelines governing water and energy resources development in the future.



• A challenge to national governments, civil society groups, bilateral aid agencies and multilateral development banks and the private sector to change the way they view energy and water resources development.

The report provides the most comprehensive, global and independent review of dams to date. The WCD's Global Review examines the technical, financial and economic performance of dams as well as their environmental and social performance. Together with its assessment of potential alternatives to dams and the study of decision making processes, it offers unique insights into one of the most of the controversial development debates of our time.

WCD Chairman and Minister of Education in South Africa, Kader Asmal and members of the Commission, presented the report in London, supported by Mr Mandela; and the Chairman of the World Water Forum 2000, HRH The Prince of Orange; UN High Commissioner for Human Rights, Mary Robinson; as well as World Bank President James D Wolfensohn and World Conservation Union (IUCN) Director General, Maritta von Bieberstein Koch-Weser whose two institutions jointly initiated the process that led to the Commission being established in 1998.

"It means nothing to build billion-dollar dams if your monuments alienate the weak," said Asmal. "It means nothing to stop all dams if your protests only entrench poverty. But show me a clear and sustainable way to provide food, energy, stability and running water for those who most need it -- that means something. And that we have done."

Key Findings of the Review of Large Dams

The World Commission on Dams conducted detailed reviews of eight large dams in Turkey, Norway, the United States, Zambia and Zimbabwe, Thailand, Pakistan, Brazil and South Africa. It also prepared country reviews for India and China, as well as a briefing paper on Russia and the Newly Independent States. A survey of 125 large dams was also undertaken, along with 17 thematic reviews on social, environmental and economic issues; on alternatives to dams; and on governance and institutional processes. It received 947 submissions and hosted four regional consultations in Colombo, Sao Paulo, Cairo and Hanoi where the Commissioners listened to people's individual experiences. All these inputs formed the core of the WCD Knowledge Base that served to inform the Commission on the main issues surrounding dams and their alternatives

The Commission found that:

• Dams deliver significant development services in more than 140 countries. On a global scale hydropower dams account for 19% of electricity generated and for an estimated 12 - 16 % of global food production. 12% of large dams supply domestic and industrial water, and large dams provide flood control services in more than 70 countries;


• Large dams display a high degree of variability in delivering predicted water and electricity services - and related social benefits - with a considerable portion falling short of physical and economic targets, while others continue to generate benefits after 30 - 40 years.


• Large dams have demonstrated a marked tendency towards schedule delays and cost overruns.


• Large dams have led to the loss of forests and wildlife habitat and the loss of aquatic biodiversity of upstream and downstream fisheries. The Commission found that efforts to counter the ecosystem impact of large dams had met with limited success.


• The negative social impacts reflect a pervasive and systematic failure to assess and account for the range of potential negative impacts on displaced and resettled people as well as downstream communities. Estimates suggest that some 40-80 million people have been displaced by dams worldwide while the liveliehoods of many more living downstream were affected but not recognised. Mitigation, compensation or resettlement programs were often inadequate.

Alternatives to Dams for Water & Energy Resources Development

The Commission examined the alternatives for meeting energy, water and food needs and found that while there is far greater scope for utilising these no universal formula applies as local and national conditions are central to determining viable options:

• A number of environmentally and economically viable supply options are emerging, including wind and solar energy, recycling, and local water management. However, obstacles such as market, institutional, intellectual and financial barriers limit the adoption rate of alternatives.



• Improved system management, particularly in the irrigation sector but also through reduction in water losses, more efficient system management and an upgrading of distribution technology, can alleviate demand for new supply sources.



• Demand-side management has significant potential and provides a major opportunity to reduce water stress and power requirements.

Guidelines for Decision-Making in the Future

The Report argues it is not necessary to trade off one person's gain against another's loss. Rather, by negotiating outcomes through multi-criteria analysis -- technical, environmental, economic, social and financial -- the development effectiveness of water and energy projects will be improved, unfavourable projects will be eliminated at an early stage, and the options chosen will be what key stakeholders agree best meets the needs in question. Recommendations included:

• A set of five core values for future decision-making - Equity; Sustainability; Efficiency; Participatory decision-making and Accountability.



• A rights and risks approach for identifying all legitimate stakeholders in negotiating development choices and agreements.



• Seven Strategy Priorities for water and energy resources development: Gaining Public Acceptance; Comprehensive Options Assessment; Addressing Existing Dams; Sustaining Rivers and Livelihoods; Recognizing Entitlements and Sharing Benefits; Ensuring Compliance; and Sharing Rivers for Peace, Development and Security.



• A set of clear criteria for assessing compliance and 26 guidelines for review and approval of projects at five key stages of decision-making.

Recommendations & Responsibilities

In order to achieve this new framework for decision-making, the Commission provides specific recommendations and responsibilities for key stakeholders in the debate. These reflect lessons learnt and offer guidance as to how a consensus on optimal use of water and energy resources can be achieved. Examples include:

• environmental flow requirements to sustain aquatic ecosystems


• integrity pacts for contractors and developers


• procedures for assessing claims of aggrieved parties and providing compensation


• financial incentives and sanctions to ensure compliance


• criteria for international financing of dams involving transboundary rivers


• guidelines and binding agreements for resettlement programmes.

The WCD report concludes with a range of proposals as to how different groups and institutions can utilise the report for follow -up actions:

• National Governments: review existing procedures and regulations concerning large dam projects and time-bound licences for all dams.



• Civil Society groups: actively assist in identifying relevant stakeholders for dam projects using the rights and risk approach as well the ability to monitor compliance with agreements and assist aggrieved parties to seek recourse.



• The Private Sector: recommend that voluntary codes of conduct, management systems and certification procedures be implemented as well as the adoption of integrity pacts and compliance plans for all contracts and procurements.



• Affected Peoples' Organizations: strengthen the technical and legal capacity for needs and options assessment processes through support networks and the ability to identify unresolved social and environmental impacts and convince the relevant authorities to take effective steps to address them.



• Bilateral Aid Agencies, Export Credit Agencies and Multilateral Development Banks: establish procedures which ensure that approved financing for dam projects emerge from an agreed process of ranking alternatives and respecting World Commission on Dams guidelines.

The Commission's mandate expires with this launch on November 16. The WCD Forum will meet in February 2001 to determine further mechanisms for implementation.

Asmal concludes: "The WCD urges governments, NGOs, businesses, professional associations, aid agencies, utilities and affected peoples to practice what we preach because we preach only what we have practised ourselves. We listened to all sides. We reviewed alternatives. We balanced ideal against possible and made our decision to sign this report with confidence. We exclude only one development option: inaction. The cost of conflict is too high."