Vientiane: Construction is underway on Laos' latest large-scale Mekong River dam, satellite imagery analyzed by Radio Free Asia (RFA) reveals. Experts have informed RFA that the Pak Beng hydropower project shares similarities with other mainstream Mekong River dams, as Vientiane hopes that the economic benefits will outweigh the environmental sacrifices, such as the disruption of riparian ecosystems and the relocation of nearby villages.
According to Radio Free Asia, with many hydropower dams already built or under construction on the Mekong River and its tributaries, Laos is committed to its controversial strategy to become the "Battery of Southeast Asia" by planning to sell electricity to neighboring countries. Once completed, Pak Beng will be the most upstream dam on the Mekong in Laos. The project is a joint venture between a Chinese investment company and a Thai energy firm, boasting a generating capacity of 912 megawatts and expected to produce an average of 4,775 gigawatt-hours annually-enough to power a mid-sized U.S. city for a year.
Brian Eyler, director of the Southeast Asia program at the Washington-based Stimson Center, told RFA that construction has quietly begun. On paper, these hydropower dams generate income for Laos by selling power to Thailand, Vietnam, and Cambodia. This inflow of foreign currency is more stable than the kip, the local currency of Laos.
Satellite imagery taken on July 29 shows a large earthen and rock embankment built across a river bend, creating a dry work area shielded from the river's flow. Within this diverted section, workers are seen excavating and laying the foundation for the dam's main structure. Numerous dump trucks and excavators are visible, cutting into bedrock and sediment on the riverbed to level the surface in preparation for the dam's foundation, reported Bruce Songhak Chung, a senior researcher at the Seoul-based Korea Institute for Security Strategy, to RFA.
The Pak Beng hydropower project began construction in late 2025, featuring a large earthen and rock embankment. Workers are actively excavating and laying the foundation for the dam's main structure. Satellite imagery also shows initial stages of a powerhouse building, a spillway, and foundational work for a ship lock and fish passage intended to facilitate vessel and aquatic movement past the dam once completed, noted Chung.
According to the Mekong River Commission, preparatory works are underway, with main construction scheduled to begin in October 2026, following the wet season. The commission, an intergovernmental organization, collaborates with the governments of the four Mekong basin countries to jointly manage shared water resources and ensure sustainable development of the Mekong.
Work will commence with the construction of the first-stage cofferdam, stated Chandaly Mao, a communications officer with the Mekong River Commission, adding that the developer anticipates commercial operations to begin in 2033.
Meanwhile, further downstream, the Luang Prabang large-scale dam is more than 70% complete and is set to begin commercial operation in 2030, according to the commission. Currently, there are two operational dams and nine others in various stages of completion, according to the Stimson Center.
Eyler indicated that there are over 100 dams in Laos on Mekong tributaries, including the Xayaburi dam, which is the largest currently in operation. Additionally, Myanmar and Laos signed a joint agreement on July 5 to develop a new 2,790-megawatt Mekong mainstream dam, expected to be situated in a canyon section of the Mekong along the Laos-Myanmar border.
All these dams are constructed by foreign companies, Eyler noted. While Laos has the capability to build small dams, large dams are beyond its capacity. Under this arrangement, the foreign company owns the dam for a set period, typically 20 to 30 years, collecting the income it generates, while the Lao government receives taxes and royalties. Once the contract expires, ownership reverts to the Lao government.
Many of the foreign players involved are Chinese firms or have Chinese backing, raising concerns that the arrangement could trap Laos in debt, increasing its vulnerability to Chinese creditors.
"This is a sovereign decision of the Government of Lao PDR," Mao told RFA. "A further consideration is that operating patterns are shaped by concession and power purchase agreements. It is important that these agreements allow operating rules to be adapted for environmental purposes."
Experts warn that the dams affect the livelihoods of local communities and have significant environmental and social impacts downstream, which accumulate as more dams are built along the river. While the dams generate electricity mostly sold to Thailand, benefiting Laos' economy, local communities near the dams see little advantage.
The Mekong River Commission has raised concerns over sediment trapping, fish passage, changes to flow regime, and socioeconomic impacts on communities dependent on fisheries. Fish passage is a particular concern for both adults migrating upstream and for eggs and larvae drifting downstream through slow-moving impoundments, Mao stated.
Despite the presence of fish ladders in some dams, they are reportedly ineffective, Eyler said. This has led to a dire situation for fisheries, which are crucial for food and income for local populations.
According to the Stimson Center's Mekong Dam Monitor project, fisheries are depleting and declining for local people along the entire run of the Mekong in Laos. In areas where the borders of Laos, Myanmar, and Thailand converge, entire villages have become ghost towns due to collapsed fish stocks.
Chung added that dams also trap sediment and nutrients that would otherwise flow downstream, potentially accelerating erosion in Vietnam's Mekong Delta and contributing to farmland loss and declining agricultural productivity. Dams can release large amounts of water suddenly, causing downstream flooding, and residents of affected villages may be forced to relocate, losing their homes and livelihoods.