Vertical integration for stakeholder management of hydroelectric power megaproject construction in the Lao People's Democratic Republic (Lao PDR)

Abstract

Lao national policy of becoming the 'Battery of Asia' has driven the construction of numerous hydroelectric power projects (HPPs). The purpose of this research is to analyse the critical roles of internal and external stakeholders. Data is gathered through in-depth interviews with internal and external stakeholders of two mega-HPPs. We found that deep collaboration and trust among internal stakeholders are critical for success. Such collaboration and trust can be achieved by not only solid communications and strictly 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 a successful management of external stakeholders are the mitigation of environmental impacts. These factors have a performance-enhancing effect upon mega-HPP construction. The results speak to the following critical infrastructure problem domains: long-term investment, stakeholder engagement, and environmental management in critical infrastructure construction.