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ECONOMIC ASPECTS:
aboutthissite sustainable hydro power
Economic

Local capacity building

Capacity building programs can enhance the capabilities and opportunities for local institutions and communities affected by hydro developments.

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Management

Central to the economic and social sustainability of hydropower developments is the need to support capacity building within local communities and institutions through the demonstrable provision and support of increased capabilities and opportunities.  The role that governments and project developers play in this process is integral to community acceptance of the project, the long term sustainability of the scheme and the effective distribution of benefits.

The development and support of local capabilities and opportunities at various levels may involve:

  • providing employment opportunities;
  • establishing economic opportunities;
  • the investment of funds in long term development and training programs;
  • the establishment of training and community infrastructure and facilities (schools, crèches, market places, tourist facilities);
  • the development of  skills for employment;
  • providing access to commercial electricity supply, water and sanitation.
Building and maintaining a hydro scheme can be heavily reliant on the use of local resources, not just materials such as rock fill but also through the employment of local labour and contracting of local businesses.  Training and employing local people brings them into the cash economy and provides them with skills.  The success of such a process is best initiated early in the community consultation process through discussion and involvement of local communities affected by development.  Participants in capacity building processes may need to be provided with incentives to participate, and may need encouragement through consensus building or conflict management techniques. 
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