The Project Is Prepared
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the inundation area—as an offset to the loss of natural habitats arising from the project and as protection of the project watershed, ensuring longevity of the reservoir. Threats to the proposed conservation area were considerable. Moreover, the large numbers of workers and work camp followers expected to migrate to the area to build NT2 posed additional threats. The offset program consisted of a partnership between NTPC and the government, with long-term financing, innovative institutional arrangements, and a strong capacity-building program. A long-term vision of the protected area was prepared before the start of project implementation, with the objective of ensuring integrity of the area while improving living standards and opportunities for residents of the protected area and surrounding villages. Establishment and strengthening of the Watershed Management and Protection Authority (WMPA) consisted of a long-term technical assistance program in which short-term gaps in diagnostics, planning, and enforcement were addressed through external consultancies. The WMPA hired a highly credible international NGO to assist it. A participatory planning process was promoted that established and fostered adherence to new land- and resourceuse patterns and regulations, designed alternative livelihood options to replace activities that were incompatible with conservation, and provided improved access to basic services. Also early on, the World Bank recognized the need for special purpose wildlife conservation programs. Potential impacts on several important species and significant habitats became a high-visibility issue. However, the assessment and mitigation of project impacts was hampered by lack of adequate baseline data, which forced decisions to be made under difficult circumstances. NTPC conducted detailed and groundbreaking (certainly in the Lao context) fish/freshwater biodiversity surveys in the plateau, watershed, and downstream areas, and developed a detailed wildlife program for the plateau. Contracts were awarded to well-reputed NGOs to establish baselines and design programs for the management of wildlife on the plateau. To address issues that could undermine the sustainability of the protected area but lay beyond the scope of the NT2 project, the World Bank and the government took parallel action, including a comprehensive program of capacity building and investment in biodiversity conservation in other parts of the country through the Lao Environment and Social Project. In addition, the government reached an agreement with Vietnam on cooperation to control illegal transboundary wildlife trade and logging.