Hydropower development in Malaysia
Lead NCPNorway
Supporting NCP(s)None Selected
DescriptionSpecific instance notified by the NGO FIVAS, the Norwegian Association for International Water Studies, regarding the activities of Norpower, a subsidiary of Norconsult AS, operating in Malaysia.
Theme(s)Disclosure, General policies, Human rights
Date22 Aug 2014
Host country(ies)Malaysia
Industry sectorConstruction

Read the final statement issued by the Norwegian NCP concluding the specific instance - 23 June 2015.

Read the joint statement issued by FIVAS and Norconsult - 2 June 2015

Read the initial assessment issued by the Norwegian NCP - January 2015

In August 2014 the Norwegian NCP received a request for review by FIVAS, the Norwegian Association for International Water Studies, on its own behalf and in consultation with the NGO coalition “Save Sarawak Rivers”, alleging that Norpower, a subsidiary of Norconsult AS had breached the general policies, disclosure and human rights provisions of the Guidelines in the Malaysian State of Sarawak.

More specifically, FIVAS alleged that Norconsult had:

      • shown a lack of transparency about Norconsult AS’s involvement in two hydropower development projects (Murum and Baram) in Malaysia;
      • failed to carry out adequate risk-based, human rights due diligence assessments and failed to provide adequate information about them;
      • contributed to the negative impacts that have occurred due to NorPower’s contracting business partner, and
      • failed to adequately address these adverse impacts.

The NCP undertook an initial assessment and concluded that the specific instance merited further consideration. It therefore drew up a timeline for mediation which was accepted by both parties.

The parties met in May and June 2015, and these mediation meetings resulted in a joint statement issued by the parties. Given the positive resolution of the issues, the NCP concluded the specific instance and issued a final statement in June 2015. The Norwegian NCP recommends that the parties continue the dialogue established during the mediation process, especially if issues arise related to implementation of the joint statement. The NCP will invite both parties to a follow-up meeting once a decision has been made with regards to one of the central issues of the case; the construction of the Baram-dam, to give an update on the implementation of the joint statement.