I am delighted to present the 2008 Annual Report on behalf of the Mekong River Commission. 2008 was an eventful, and in some cases, highly challenging year – not only for the MRC but also throughout the Mekong River Basin. The most dramatic and devastating occurrence was the August flood, the worst in over 30 years for areas in Northern Lao PDR and Thailand, which caused an estimated US$ 135 million worth of damage to property and crops, and effectively destroyed livelihoods. Many of the people impacted by the August floods are still receiving emergency food aid. They will probably continue to do so in the short to medium-term.
The flooding also placed the MRC under the spotlight – in particular its effectiveness in providing flood forecasts. It highlighted the need to further build capacity in the region for mitigating the effects of floods and responding to flood disasters and their aftermath. The 2008 flood was both a litmus test and learning experience.
The MRC's Flood Management and Mitigation Programme acted quickly on the recommendations for improving planning and response to floods. It developed an action plan – now being implemented – which focuses on improvements to flood forecasting and communication effectiveness with Member Countries line agencies and other stakeholders. A technical paper outlining the causes and nature of the flooding was widely disseminated shortly after the event.
The MRC also responded to calls for greater community and stakeholder dialogue and participation in its decision-making processes. This has been encouraged through a variety of forums, including a major multi-stakeholder consultation on the Basin Development Plan in March 2008, and on sustainable hydropower in September 2008. Based on a Regional Meeting on Stakeholder Engagement in November 2008 in Vientiane, a draft code for stakeholder participation and a communication strategy aimed at greater transparency and increased access to information was proposed for consideration by the Joint Committee in 2009.
Building on its early hydropower strategy, a clear role for the MRC as a facilitator of dialogue on hydropower issues was established in 2008. Government agencies, the private sector and civil society have been engaged in a series of activities reflecting the cross-cutting nature of hydropower development in close cooperation with the MRC. The MRC’s new Initiative on Sustainable Hydropower will engage expertise from the region and around the world in understanding strategic environmental assessment and comprehending the impacts of hydropower on fisheries, sediment management and navigation. This information will form the basis for the formal process of prior consultation on proposed mainstream hydropower projects required under the 1995 Mekong Agreement.
The drive to provide greater access to information has been taking place both centrally and at programme level throughout 2008. The Environment Programme signed a Memorandum of Understanding with the regional arm of the Global Change System for Analysis, Research and Training (SEA-START) to cooperate on studies and project activities related to climate change and adaptation. This is just one aspect of the Environment Division’s new Climate Change and Adaptation Initiative which began formulation in July 2008. The establishment of the ad hoc Fisheries Expert Group to advise the Hydropower Consultation Meeting in November 2008 about the effects of hydropower developments on livelihoods and fisheries, including fish migration, set a new benchmark in the knowledge sharing and independent advisory role of the MRC to Member Countries and stakeholders.
A joint seminar with The People’s Republic of China run by the Navigation Programme and Yunnan Navigation Affairs Bureau on the topic of Waterway Safety and Navigation Improvement showed how sharing regional knowledge and experience can result in improved cooperation and can help address - in this case - navigation issues between the four MRC Member Countries and their dialogue partners, China and Myanmar. The Navigation Programme also reached the final stage of facilitating an agreement for cross-border waterborne transportation between Cambodia and Viet Nam that will reduce trade barriers and harmonise legal frameworks for navigation between the two countries.
The year was also a defining moment for a number of programmes, with some closing and others moving on to new phases. The Water Utilisation Programme concluded successfully, with follow-up activities being continued by the Mekong Integrated Water Resource Management Project. A number of projects under the Agriculture, Irrigation and Forestry Programme including the Challenge Programme on Water and Food and Phase II of the Watershed Management Programme, also wrapped up activities and are moving on to new phases in their programme cycles.
Development Partners continued to provide fi nancial support to the MRC as programmes progressed well throughout the year and new initiatives were identifi ed to respond to development challenges throughout the Basin. The MRC is taking steps to improve donor harmonisation and aid effectiveness and to introduce an effective results-based approach to project delivery, management and monitoring. Many donors were additionally generous with support during the August flood.
I would like to take this opportunity to thank the international donor community for their continuing support of the MRC and its work. I would also like to thank the Member Countries who have continued to increase their contributions to the MRC, as it starts on a path to increased fi nancial ownership. 2008 has been a year of consolidation and aligning ourselves to new challenges. The MRC has demonstrated that it is both equipped and prepared to play its role in promoting sustainable development of the region’s water resources and the work programme for 2009 is designed to meet these expectations.