This paper draws on the author's recent experience from several developing countries to discuss the multi-dimensional nature of the EIA process and how it can lead to creating sound hydropower projects. Four dimensions are identified: (i) national permission to implement; (ii) international ability to invest; (iii) national economic development; and (iv) professional strategies. Several potentially contentious issues of contemporary hydropower planning are discussed with emphasis on the role being played by international aid and financing agencies and national authorities. It gives examples of problems met and suggests approaches to deal with them to create project solutions more acceptable to the variety of stakeholders involved in the decision-making processes. Conclusions point to the desirability of finding a balance between the inde-pendence of the EIA efforts and the need to integrate these into an environmental management approach to project formulation, planning and implementation. The consequence of separating the EIA efforts from the technical planning is extra costs or environmentally less sound projects. Environmental criteria are suggested developed from the outset to guide planning before the EIA team reports on its findings and recommendations.
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