Track 2 incorporates two types of activity. The first will build on and share current knowledge, making available the vast array of experience already gained in integrating improved governance, plus social and environmental aspects into hydropower development. This would involve expanding the MRC’s database on existing, planned and proposed hydropower projects; building capacity for strategic environme ntal assessment through a case study covering the mainstream of the Lower Mekong Basin; supporting the Navigation Programme in development of standard specifications and protocols for navigation locks; working with the Environment Programme implement the Environmental Considerations for Sustainable Hydropower Development initiative; reviewing policy options for benefit sharing from hydropower projects; improving the availability of environmental baseline data; building capacity for independent monitoring among respective line agencies; and carrying out an initial scoping assessment of the potential for small-scale decentralised hydropower for rural communities.

The second type of activity would see the HP as a facilitator of dialogue at different levels on key issues facing the hydropower sector. Four levels of dialogue have been initially identified: joint ministerial briefings across relevant sectors in each of the member countries to foster discussion of good practice and disseminate the outcomes of Track 1 of the programme; dialogue meetings among private sector developers and financiers to explore areas of improving performance from a basin perspective and ensure coordination on environmental mitigation measures; a multi-stakeholder consultation similar to the recent Basin Development Plan stakeholder consultation for structured debate on key issues and feedback on the role and direction of the HP; and continued dialogue with China as an upstream country and sponsor of projects in the lower basin.

Track 2 would be carried out over an initial two-year period starting in late 2008. Other tracks may be identified during programme formulation.

Summary of Track 2 activities under consideration:

• Strategic Environmental Assessment of hydropower plans
• Facilitation of dialogue among private sector developers
• Review of experience from alternative approaches to watershed management and proposals to promote sustainability in hydropower catchments
• Review of policy options for benefit sharing
• Identification of possible financing mechanisms to encourage sustainable considerations in hydropower development
• Support to power optimisation studies in the context of sustainability considerations
• Further development of the knowledge base of Mekong hydropower projects
• Design of detailed process advice for developers to facilitate 1995 Mekong Agreement compliance.