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China’s risky overseas dam building in Burma and beyond

China is grappling with the social and environmental risks of building 300 dams in 66 countries, with a large number in south-east Asia.

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China’s construction of dams on the Lancang (or Upper Mekong) threatens a complex ecosystem downstream that supports over 60 million people in Southeast Asia, say campaigners (Image by International rivers)

Today, Chinese companies dominate the international hydropower market. Over the past few years, China has successfully exported its large dam-building expertise to the world. International Rivers is currently aware of some 300 dam projects in 66 countries in which Chinese companies and financiers are involved.

More than two-thirds of these dams are large hydropower projects with a generating capacity of over 50 megawatts. Approximately 40% of these projects are located in south-east Asia and 15% in Africa. The geographical spread mimics the regional distribution of Chinese overseas investment.  

With the Chinese overseas dam industry’s ever-increasing global presence, International Rivers and its partners around the world have been working since 2007 to better understand China’s global role in hydropower development. Through our report "New Great Walls – An Activist Guide to Chinese Overseas Dam-Building Industry", revised and republished in November, we have sought to share information with communities impacted by Chinese dam building.

While China has not turned out to be the rogue dam builder that many feared it might be, Chinese dam builders are coming late to the game and face heightened environmental and social risks when operating overseas.

First, Chinese companies often operate in countries that have weak environmental protection and social safeguards. For example, in Burma, the government did not require any environmental approvals for the 6,000 megawatt Myitsone Dam. In such cases, Chinese companies cannot rely on local legislation to ensure compliance with international laws and standards.

Also see: Behind Myanmar’s suspended dam

Second, until very recently, Chinese dam builders have lacked any clear environmental and social policy standards consistent with international best practice for their overseas operations.

Third, many Chinese companies lack experience and are ill-prepared to adequately deal with community grievances in the host countries and the scrutiny of an independent media. When confronted with local opposition or negative reporting, Chinese companies have tended to be defensive or dismissive, confirming perceptions that they operate in a non-transparent manner.

And, finally, in some cases strengthening bilateral relations between China and the host country has meant that social and environmental considerations of dam projects are an afterthought.

However, Chinese dam builders have made it clear that their aim is to be a responsible global actor and, in recent years, civil society has been fundamental in helping to shape the pathway for Chinese dam builders to get there.

Sinohydro forging new environmental path

Sinohydro, the world’s largest hydroelectric company, is engaged in a dialogue with Chinese and international NGOs, and has prepared an environmental policy that puts it at the forefront of the international hydropower industry. Sinohydro has adopted all the World Bank safeguard policies, including those relating to indigenous people, resettlement and the environment, as its minimum standard.

It has also identified a number of “no-go” zones for hydropower development, including World Heritage areas and the habitats of internationally protected species. And it has committed to establishing grievance and complaints mechanisms for its overseas projects. Of course, the challenge will be in policy implementation, which will require a fundamental change in the way Sinohydro does business.

Chinese government agencies have also issued guidelines for foreign investors to protect the environment and respect local communities in their host countries. Efforts are also under way that would see the Chinese government go beyond what any western country has done to address the social and environmental impacts of its companies operating overseas.

The Ministries of Commerce and Environmental Protection are currently drafting guidelines for the environmental impacts of Chinese companies operating abroad, which will go some way to establishing a minimum standard regardless of how weak host-country laws may be.

Civil society groups have also been directly engaged in pressuring Chinese dam builders to pull out of destructive dam projects. After protests by local communities and NGOs, Chinese companies and financiers had to suspend projects in Burma and Gabon, and even withdraw from their operations in Cambodia. 

Grace Mang is China Programme Director at the NGO International Rivers

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匿名 | Anonymous

中国水利水电建设集团的软文?

中国水利水电建设集团在马来西亚,埃塞俄比亚,湄公河地区及许多发展中国家及地区承建了部分对当地环境及社会造成危害的项目,这篇文章却似乎是在为该集团做广告。大坝建设项目不应由中国水利水电集团或者其他的跨国组织承建,因为它们将会对当地的水文系统及社群造成破坏。

Advertising for Sinohydro?

Sinohydro has some very environmentally and socially damaging dam projects in Malaysia, Ethiopia, the Mekong region and throughout the developing world. This organization seems to be advertising for Sinohydro! Large dam projects should not be built by Sinohydro or any other international dam company because they damage river systems and the communities that live there.

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匿名 | Anonymous

请停止反对中国建坝的言论!

为什么中外对话经常仅仅根据美国一个小组织的主张就发表关于反对中国建造水电大坝的消极言论?

其实显而易见的是,经常被欧洲投资者及国际财团阻挠建造大坝的许多非洲及亚洲国家都在向中国求助,以解所需。建坝不过是与一些发达国家的利益相悖罢了。

在这种情况下,国际河流组织只是作为发达国家推动可再生资源产业的发声器而已。但是水电却是目前为止唯一最重要和最可靠的绿色能源,而这种能源也经常被欧美国家利用。

再次,为什么中外对话支持一个目的似乎是让穷人更穷,富人更富的主张呢?

Stop your anti-dam propaganda China Dialogue!

Why does China Dialogue continue to post negative comments about dams from a small campaigning advocacy organisation based in the USA?

It is quite clear that many African and Asian countries that were prevented by European donors and global financing organisations from building dams are turning to China to meet their needs. This does not suit some interests in rich countries.

In this regard, International Rivers is just serving as a propaganda group for organisations in the rich countries that are trying to promote their renewable energy industries. Yet hydropower is by far the most important and reliable form of green energy available. It is widely used in Europe and USA.

So again, why does China Dialogue support an organisation whose aim seems to be to keep poor people poor and make rich people richer?