Banks and other financial institutions from countries such as China, Korea, Thailand, and Vietnam are increasingly investing in hydropower projects in Lao PDR. IFC wants to help interested banks improve their environmental and social management systems as well as develop and adopt environmental and social guidelines for their hydropower investments.
To achieve this, IFC has been organizing knowledge-sharing workshops on environmental and social risk management for banks investing in hydropower. For over two years, IFC has been working with the Thai Bankers’ Association to help Thai banks better manage financing risks, particularly for hydropower projects in the Mekong region.
Focus is on IFC’s Performance Standards that lay the foundation for Equator Principles. For example, Performance Standard 1 provides clients with guidance on how to identify overall risks and impacts, and is designed to help avoid, mitigate, and manage impacts as a way of doing business in a sustainable way.
IFC also aims to design, in collaboration with banks, environmental and social sustainability guidelines that are specifically applicable to hydropower project financing in Lao PDR and to help one or more banks pilot such guidelines.
Financial institutions that would like to learn more about the benefits of adopting environmental and social guidelines for hydropower investments can contact us.
IFC's support to financial institutions is based on their agreement to commit to following these core principles.
We work together with our clients to develop progressive environmental and social action plans that support the entire project cycle.
In addition, more than 30 financial institutions worldwide use IFC’s system of evaluating corporate governance risk and opportunities. IFC’s corporate governance financial investments have combined assets of $852 billion.