Don Sahong Dam and the business of regional cooperation

The Don Sahong Dam is located on the Mekong River in southern Laos, close to the Cambodian border. The lead company building the dam is Malaysia-based MegaFirst Corporation Berhad. MegaFirst is in discussions with China’s Sinohydro International Corporation, which has at least 122 international hydroelectric projects underway, over contracts to build the dam. The Mekong River Commission, an intergovernmental body made up of Cambodia, Laos, Vietnam, and Thailand and charged with coordinating sustainable development across the Mekong River basin, has been stuck in its discussions over the proposed dam. Laos now wants to go ahead with the project without the Mekong River Commission’s input.

The negative human and environmental impact this dam will have in Laos and Cambodia makes it controversial. Add into the mix the business interests of Malaysia and China and the dam is a full-fledged regional powder-keg waiting to explode. The question is whether regional cooperation can resolve this issue or will Laos move forward unilaterally.