Open Letter to Siam Commercial Bank (SCB) re: Potential Shortfalls of Luang Prabang Hydro Power Plant vis-à-vis Equator Principles

Fair Finance Thailand (FFT) has sent a letter to Siam Commercial Bank to express concerns and raise key questions regarding compliance with the Equator Principles for the Luang Prabang Hydro Power Plant (LPB) project. These concerns particularly focus on the environmental and social impact assessment, stakeholder engagement, grievance mechanisms, and independent review.

The Luang Prabang Hydropower Project has been disclosed on the Equator Principles website as a project financed by Siam Commercial Bank. Over the past years, FFT has conducted a case study titled "Time to Walk the Talk on Responsible Lending: The Case of the Luang Prabang Hydropower Project (2022)." Additionally, FFT has sent letters inquiring about Siam Commercial Bank's involvement with the project during the years 2021-2023. However, Siam Commercial Bank has never responded to our queries and concerns regarding material ESG risks of the LPB project or confirmed SCB's funding for the project.

Fair Finance Thailand would like to reiterate our concerns regarding the material ESG risks of LPB, as we have done since 2021. We offer to assist SCB in strengthening its compliance with the Equator Principles. We would greatly appreciate it if SCB could respond to the above queries in writing by 30 August 2024.