The technical workshop on enhancingdevelopment benefits to local communities in hydropowerprojects was held in Washington, D.C., on June 26, 2008. Itwas hosted by the Social Development Department (SDV) andWater Anchor (ETWWA) of the World Bank. The workshop aimedto provide a platform for a discussion of past and currentpractices, as well as how to construct development benefitsmechanisms within the specific context of hydropowerprojects. It also provided a forum for sharing knowledge asto how development benefits mechanisms may be applied toBank-financed projects. The workshop had five sessions andbrought together more than 60 experts from different sectorsin different regions of the World Bank. Sixteen speakersgave presentations. The workshop had discussions onenhancing development benefits to local communities inhydropower projects and also covered issues pertaining tothe broader range of benefit-sharing, including World Bankengagement in hydropower projects, legacy of hydropower,notion evolution, approaches and mechanisms, and goodpractices in benefit-sharing of hydropower projects. A rangeof mechanisms are available to enhance and share benefits.Benefit-sharing consists of a combination of monetary andnon-monetary mechanisms adapted to specific projectcontexts. Monetary development benefits are linked largelyto economic rent, fair distribution, full compensation,entitlements, national priorities, and optimization ofopportunities, and include basically taxation, royalties,preferential rates, revenue sharing, development funds, andjoint ownership. The non-monetary development benefitsinclude, for example, allocation of fishing rights inreservoirs; priority hiring of local community membersduring construction; start-up support for local companies;capacity building; multipurpose infrastructure; ruralelectrification; and access to improved infrastructure.
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