Transboundary Hydropower Projects Seen Through the Lens of Three International Legal Regimes

Foreign Investment, Environmental Protection and Human Rights

Abstract

Recent years have witnessed a growing interest in hydropower. Many countries now see hydropower
as a ‘cheap and clean’ alternative to fossil fuels, and therefore an important strategy
in addressing climate change. However, much of the world’s hydropower potential is situated in
transboundary rivers where existing cooperative arrangements are weak. These river basins are
heavily reliant on ‘out of basin’ principles for water sharing. A set of substantive and procedural
laws has evolved under customary international law to determine the rights and obligations of
States sharing these transboundary rivers. Two further ‘out of basin’ legal regimes are also likely
to have an important bearing on transboundary hydropower projects, namely laws concerning
foreign investments, and laws protecting the interests of local communities. To date, there has
been limited analysis of the linkages between these different regimes, and no study that has
considered their relationship within the context of transboundary hydropower. This paper
demonstrates that there are critical intersections to be made. These intersections provide important
opportunities to explore how these three legal regimes can be implemented in a mutually reinforcing manner.