Resource information
Local benefit sharing in hydropower
projects can be defined as the systematic efforts by project
proponents to sustainably benefit local communities affected
by hydropower investments. Benefit sharing is a promising
approach for implementing hydropower projects sustainably,
and is emerging as a supplement to the requirements of
compensation and mitigation. Benefit sharing can provide
equitable development, sustainability, and smooth project
implementation for hydropower development. For benefit
sharing mechanisms to work, the key enabling conditions are
government policies, the legal and regulatory framework,
corporate social responsibility strategies of development
companies, and the capacity of local communities.
Stakeholder engagement is essential in initiating and
designing benefit sharing programs. This guide provides some
advice to task teams on how to design effective local
benefit sharing mechanisms in hydropower projects. Benefit
sharing arrangements would ensure that local communities
have the opportunity to benefit directly from hydropower
development, which will make hydropower projects more
environmentally and socially sustainable. As a long-term
arrangement, benefit sharing can facilitate local
development. It can respond to unexpected environmental
circumstances in the operation of dams to ensure local
communities receive adequate benefits. Arrangements for the
equitable sharing of benefits can offer scope for local
communities and all other stakeholders to avoid conflicts
and focus on creating synergies to maximize local
development opportunities.
