Vertical integration for stakeholder management of hydroelectric power projects in Lao PRD

Abstract

During the past three decades, La o PDR national policy has positioned the country to become the “Battery of Asia,” harnessing the Mekong River and its tributaries for electric power generation. This polic y has driven the construction of numerous Hydroelectric Power Projects ( HPP). The purpose of this research is to analyze the critical roles of internal and external stakeholders in HPP megaprojects in Lao PDR. Data is gathered through in-depth interview s with internal and external stakeholders of two megaproject HPPs. The internal stakeholders are the project owner, first- tier contractors, Lao PDR’s Minister of Energy and Mines, Electricity Generating Authority of Thailand (EGAT), and Electricite Du Laos (EDL). The external stakeholders are Lao PDR’s Ministry of Natural Resources and E nvironment, Lao PDR’s Province Governor. The interviewees of this research were directors, a governor, and the managing directors. We found that deep collaboration and trust among internal stakeholders are critical for success in HPPs. Such collaboration and t rust can be achieved by not only solid communications and following the contract agreement, but also through strategic choices that can limit excessive transaction costs and foster credible commitments of future benefit sharing among internal stakeholders. The critical requirements for successful management of external stakeh olders are the mitigation of environmental impacts. Effective stakeholder management (SM) from the early construction stages through the project life cycle will result in efficient cost management, quick resolution of technical problems, and accelerated w ork progress. This research confirms the positive effects a successful SM process has upon mega-HPP construction. An effective SM process reduces risks during the const ruction by cultivating positive stakeholder engagement and relationships. These factors have a performance-enhancing effects upon megaproject HPP construction.