Tanzania's hydropower felled by changing climate?

http://allafrica.com/stories/201401290730.html?viewall=1

Tanzania Grapples With Higher Electricity Costs

BY KIZITO MAKOYE 

28 JANUARY 2014

 

Dar es Salaam — When Omar Mganga bought his latest stock of pre-paid electricity coupons via his smartphone, the confirmation message came as a shock. On January 1, the country's state-run power company increased its rates by 40 percent, meaning Mganga got far less energy than expected for his cash.

"This is daylight robbery! How on earth can they increase the tariffs that much within a short period of time? I don't think I can manage," complained the 37-year-old barbershop owner.

As increasingly variable rainfall cuts hydropower production, TANESCO, Tanzania's state-run power utility, has substantially hiked electricity tariffs, a move experts fear could lead to greater deforestation as cash-strapped power users turn to wood and charcoal for cooking.

Newly discovered reserves of natural gas in Tanzania could eventually help meet rising power demand and lower the use of polluting oil-powered generators. But the loss of hydropower capacity threatens to raise the country's emissions of climate-changing gases, while making life much harder for energy consumers.

Mganga, whose shop sits on Shekilango Road in the sprawling Sinza suburb, is among thousands of electricity customers in Tanzania who are bearing the brunt of higher power tariffs, with the effects spreading into every sector of the economy.

Tanzania's Energy and Water Utilities Regulatory Authority (EWURA) announced a 40 percent increase in electricity tariffs, and an almost 16 percent increase in the price of cooking gas cylinders, effective January 1, 2014, with the aim of bailing out the firm from huge losses caused by higher operating costs.

"The proposed tariff adjustment will enable the firm to meet operational costs and increase capacity needed to meet system peak demand," said Felix Ngalamgosi, EWURA's director of regulatory economics.

According to EWURA, ordinary domestic users will now pay 100 Tanzanian shillings (about 6 cents) per unit of electricity, up from 60 shillings before. This means that a government clerical worker receiving a minimum wage of 150,000 shillings ($99) per month will have to set aside about 30 percent of his salary to cover energy costs.

According to EWURA, power consumers such as medium-sized manufacturers whose demand exceeds 7,500 units per month will now pay 205 shillings per unit, an increase of 55 percent.

TANESCO's customers who are connected to the high-voltage supply, including those running factories and mines, and who use 66,000 units and above will pay 159 shillings per unit, 50 percent more than before.

INFLATION RISING

To cope with his spiralling running costs, Mganga has had no choice but to raise the prices at his salon. He now charges 5,000 shillings ($3) for a head and beard shave, an increase of 2,000 shillings.

"I don't mean to chase away customers, but there's no way out. Our landlord has just increased his rent. If we don't do this how are we going to pay him?" Mganga asked.

He has already lost a significant number of his customers, he said.

"It is a painful reality of life. I hope some of them will come back," he said.

Many Dar residents have expressed anger over the rising power tariffs and urged the government to disband EWURA, the regulatory agency, for failing in its mandate to protect customers from unreasonable fuel, water and electricity price increases.

"Let's dissolve it. We are fed up," said Daniel Kabati, a resident of Dar's Kawe neighbourhood. "We are being punished with ridiculously high energy costs almost every year."

Analysts say the rise in energy costs will hurt businesses as well as trigger inflation.

According to the Confederation of Tanzania Industries (CTI), the increases will hurt small and medium enterprises because electricity forms a big share of their production costs.

"It is too early to tell what will happen to manufacturers, but obviously the effect will be huge since the cost of production for locally made products will go up," said Hussein Kamote, CTI's director of policy and research.

HYDROPOWER CHALLENGES

Tanzania's electricity sector faces many challenges. Hydropower, which constitutes 71 percent of electricity generation, is frequently crippled by droughts caused by changing weather patterns.

Faced with shortages, TANESCO has increasingly been forced to use costly emergency generation plants, plunging the company into the financial doldrums. It spends about $3.3 million a day on heavy furnace oil to produce 365 megawatts (MW) of electricity from the emergency plants, but its daily revenue is only $1.4 million. The government is covering the extra costs.

Despite the protests by consumers, the government maintains that Tanzania still has the lowest power tariffs per unit in the region.

"Tanzanians pay less for power because the government subsidises the remaining cost," Sospeter Muhongo, the country's minister for energy and mineral resources, said in an interview with a local radio station.

Tanzania recently discovered huge reserves of natural gas in excess of 43.7 trillion cubic feet (1.2 trillion cubic metres), which has the potential to substantially curb electricity production costs when it becomes available for use. According to the energy ministry, that will happen in the next 10 years.

"With natural gas, we can generate up to 3,500 MW of electricity. Electricity problems will be history," Muhongo said during a public symposium held at the University of Dar es Salaam.

FOREST THREAT

Environmental experts, however, worry that for now the rise in electricity and cooking gas tariffs is likely to exacerbate the already alarming rate of deforestation.

Charcoal and firewood comprise about 90 percent of energy used for cooking in the country. The annual supply of wood needed to meet the demand for charcoal is about 30 million cubic metres.

Meanwhile, a 15kg cylinder of cooking gas now costs 62,500 shillings ($39), an increase of 8,500 shillings.

"The rise in power and cooking gas tariffs will exert more pressure on forests as people seek to use more charcoal and firewood for energy purposes," said Felician Kilahama, a retired senior conservationist with the Ministry of Tourism and Natural Resources.

"If we are to protect forest ecosystems, the government should have accorded high priority to forest protection and conservation, and where necessary provide subsidies to allow many households to afford alternative cooking sources of fuel," Kilahama said. - Thomson Reuters Foundation

Kizito Makoye is a journalist based in Dar es Salaam.

Read the original of this report on AlertNet Climate, the Thomson Reuters Foundation's daily news website on the human impacts of climate change.

U.S. opposes World Bank push toward ‘big hydro’, calls for outside oversight

http://www.washingtonpost.com/business/economy/us-pushes-for-outside-oversight-of-world-bank-opposes-push-toward-big-hydro/2014/01/24/fb41bb7c-8516-11e3-8099-9181471f7aaf_story.html


U.S. pushes for outside oversight of World Bank, opposes push toward 'big hydro'

Jan. 25, 2014

By Howard Schneider
The United States is demanding stricter oversight of World Bank projects amid concern that the bank has slipped in how closely it guards against violence, forced resettlement and other conflict associated with the works that it funds.

In a blow to plans set by World Bank President Jim Yong Kim, the United States recently approved an appropriations bill that orders the bank's U.S. board member to vote against any major hydroelectric project — a type of development that has been a source of local land conflicts and controversies through­out the bank's history. The measure also demands that the organization undertake "independent outside evaluations" of all of its lending.


The demand coincides with a spate of disputes between the World Bank, civil society groups and the United States over past bank-funded projects that have been linked to killings of villagers and forcing people from their land. The cases include still-unpaid reparations from a Guatemala dam project from the 1970s in which hundreds of villagers were killed, concern about forced relocations in Ethiopia, and funding for a palm oil and food company whose operations in Honduras in recent years were the scenes of deadly fighting between workers and security guards.

The bank has extensive procedures to guard the rights of local residents and a number of ostensibly independent review bodies inside its bureaucracy. But the growing concerns led Sen. Patrick J. Leahy (D-Vt.), chairman of the Senate appropriations subcommittee on foreign operations, to make a broad call for stricter oversight by an outside organization.

"Senator Leahy does not believe the evaluation process — the internal process — is what the institution needs to provide independent evaluation of the effectiveness of their lending," said David Carle, Leahy's spokesman. "It is time to make clear that [Kim] needs to look outside the institution."

It is not uncommon for Congress to use the appropriations bill to attach strings or recommendations about the operations of international organizations such as the World Bank, where the United States is the largest shareholder and an influential voice on policy.

The recently approved bill included $1.55 billion for the World Bank's concessional lending arm — what a spokesman for the bank called "strong support." But the list of amendments reflects skepticism about some of the central ideas that Kim has laid out since he was nominated to the bank's top job by President Obama two years ago.

Kim has said he wants to steer the bank toward larger "transformational" infrastructure projects and has specifically mentioned the building of large-scale hydroelectric dams in
energy-starved parts of Africa and elsewhere to advance development and tackle climate change.

Carle said that Leahy believes the bank's renewed interest in large hydro projects "is a mistake and wanted to send that message."

Kim also has said the bank should focus more of its work in the world's conflict zones, where close oversight of which companies and projects get funded is even more critical.

In the Honduran case, funding for the Dinant Corp. flowed both directly from the bank's International Finance Corp. and — less transparently — through a Honduran bank that the IFC supported. The IFC was criticized by its internal ombudsman in a recent report for overlooking the risk of violence in the area.

A World Bank spokesman said that the U.S. demand was still being analyzed and that "we will work with the U.S. to understand their views."

The U.S. vote alone would not be enough to block hydroelectric or other projects from moving forward. But the Leahy amendments recommend withholding U.S. funding for the bank unless an outside evaluation process is established.

They also require U.S. Treasury officials and the American member of the World Bank board to pressure the organization to more quickly resolve disputes where "individuals and communities . . . suffer violations of human rights, including forced displacement, resulting from any loan, grant, strategy or policy."

The amendments apply to all international financial institutions, including regional ones such as the Inter-American Development Bank and the African Development Bank. But the focus was on the World Bank, and the measure referred specifically to disputes in Cambodia, Ethi­o­pia and Guatemala.

The Guatemalan case in particular stands out for its level of violence at the time and for the long-standing demand for reparations for the community involved. Construction of the Chixoy Dam in the 1970s was funded by the World Bank and the Inter-American Development Bank. It coincided with a bloody civil conflict, and several hundred villagers were killed and thousands displaced in clashes as the army tried to clear the way for the project.

The uprooted community has struggled since. In 2010, a reparations plan was agreed to by the Guatemalan government, but the money has not been paid. Under the Leahy amendment, U.S. Treasury officials are expected to begin pressuring the World Bank and the IADB to push for payment. There is a separate threat to withhold military training funds from the Guatemalan army unless the reparations are paid.

The bank has suggested using money from existing projects to benefit the affected families, and a spokesperson said the bank would "look for opportunities" to do more.
________________________________________________

You received this message as a subscriber on the list: dams@list.internationalrivers.org

To be removed from the list, please visit:
http://salsa.democracyinaction.org/o/2486/unsubscribe.jsp

U.S. pushes for outside oversight of World Bank, opposes push toward ‘big hydro’

U.S. pushes for outside oversight of World Bank, opposes push toward
'big hydro'
By Howard Schneider
The Washington Post, January 24, 2014
www.washingtonpost.com/business/economy/us-pushes-for-outside-oversight-of-world-bank-opposes-push-toward-big-hydro/2014/01/24/fb41bb7c-8516-11e3-8099-9181471f7aaf_story.html

The United States is demanding stricter oversight of World Bank projects
amid concern that the bank has slipped in how closely it guards against
violence, forced resettlement and other conflict associated with the
works that it funds.

In a blow to plans set by World Bank President Jim Yong Kim, the United
States recently approved an appropriations bill that orders the bank's
U.S. board member to vote against any major hydroelectric project — a
type of development that has been a source of local land conflicts and
controversies through­out the bank's history. The measure also demands
that the organization undertake "independent outside evaluations" of all
of its lending.

The demand coincides with a spate of disputes between the World Bank,
civil society groups and the United States over past bank-funded
projects that have been linked to killings of villagers and forcing
people from their land. The cases include still-unpaid reparations from
a Guatemala dam project from the 1970s in which hundreds of villagers
were killed, concern about forced relocations in Ethiopia, and funding
for a palm oil and food company whose operations in Honduras in recent
years were the scenes of deadly fighting between workers and security
guards.

The bank has extensive procedures to guard the rights of local residents
and a number of ostensibly independent review bodies inside its
bureaucracy. But the growing concerns led Sen. Patrick J. Leahy (D-Vt.),
chairman of the Senate appropriations subcommittee on foreign
operations, to make a broad call for stricter oversight by an outside
organization.

"Senator Leahy does not believe the evaluation process — the internal
process — is what the institution needs to provide independent
evaluation of the effectiveness of their lending," said David Carle,
Leahy's spokesman. "It is time to make clear that [Kim] needs to look
outside the institution."

It is not uncommon for Congress to use the appropriations bill to attach
strings or recommendations about the operations of international
organizations such as the World Bank, where the United States is the
largest shareholder and an influential voice on policy.

The recently approved bill included $1.55 billion for the World Bank's
concessional lending arm — what a spokesman for the bank called "strong
support." But the list of amendments reflects skepticism about some of
the central ideas that Kim has laid out since he was nominated to the
bank's top job by President Obama two years ago.

Kim has said he wants to steer the bank toward larger "transformational"
infrastructure projects and has specifically mentioned the building of
large-scale hydroelectric dams in
energy-starved parts of Africa and elsewhere to advance development and
tackle climate change.

Carle said that Leahy believes the bank's renewed interest in large
hydro projects "is a mistake and wanted to send that message."

Kim also has said the bank should focus more of its work in the world's
conflict zones, where close oversight of which companies and projects
get funded is even more critical.

In the Honduran case, funding for the Dinant Corp. flowed both directly
from the bank's International Finance Corp. and — less transparently —
through a Honduran bank that the IFC supported. The IFC was criticized
by its internal ombudsman in a recent report for overlooking the risk of
violence in the area.

A World Bank spokesman said that the U.S. demand was still being
analyzed and that "we will work with the U.S. to understand their views."

The U.S. vote alone would not be enough to block hydroelectric or other
projects from moving forward. But the Leahy amendments recommend
withholding U.S. funding for the bank unless an outside evaluation
process is established.

They also require U.S. Treasury officials and the American member of the
World Bank board to pressure the organization to more quickly resolve
disputes where "individuals and communities . . . suffer violations of
human rights, including forced displacement, resulting from any loan,
grant, strategy or policy."

The amendments apply to all international financial institutions,
including regional ones such as the Inter-American Development Bank and
the African Development Bank. But the focus was on the World Bank, and
the measure referred specifically to disputes in Cambodia, Ethi­o­pia
and Guatemala.

The Guatemalan case in particular stands out for its level of violence
at the time and for the long-standing demand for reparations for the
community involved. Construction of the Chixoy Dam in the 1970s was
funded by the World Bank and the Inter-American Development Bank. It
coincided with a bloody civil conflict, and several hundred villagers
were killed and thousands displaced in clashes as the army tried to
clear the way for the project.

The uprooted community has struggled since. In 2010, a reparations plan
was agreed to by the Guatemalan government, but the money has not been
paid. Under the Leahy amendment, U.S. Treasury officials are expected to
begin pressuring the World Bank and the IADB to push for payment. There
is a separate threat to withhold military training funds from the
Guatemalan army unless the reparations are paid.

The bank has suggested using money from existing projects to benefit the
affected families, and a spokesperson said the bank would "look for
opportunities" to do more.
________________________________________________

This is International Rivers' mailing list on the role of international financial institutions in promoting large dams.

You received this message as a subscriber on the list: ifi@list.internationalrivers.org

To be removed from the list, please visit:
http://salsa.democracyinaction.org/o/2486/unsubscribe.jsp

Chinese Push Sesan Dam Talks With Hun Sen

Chinese Push Sesan Dam Talks With Hun Sen
Cambodian Daily, 23 January 2014
By Hul Reaksmey

The chairman of the Chinese company whose subsidiary will construct the
Lower Sesan 2 dam met with Prime Minister Hun Sen on Wednesday to inform
him that the dam would be completed in three years' time, Mr. Hun Sen's
assistant said.

Zhang Tingke, vice president of state-owned utility provider China
Huaneng Group, told Mr. Hun Sen that he was in Cambodia to meet with
local partners, including Ang & Associates Lawyer Co. Ltd., owned by
tycoon Kith Meng, to start building the dam, Eang Sophalleth, Mr. Hun
Sen's personal assistant, told reporters after the meeting.

"He [Zhang Tingke] is visiting Cambodia to cooperate with Ang &
Associates Lawyer group to build a hydropower dam and produce
electricity at the Lower Sesan 2," Mr. Sophalleth said.

"He also informed Samdech Prime Minister that this cooperation will push
this the Lower Sesan 2 project forward so that electricity will be
produced in 2017," he said, adding that Mr. Hun Sen welcomed the
company's efforts. "Samdech Prime Minister welcomed China Huaneng Group
and said that Chinese investments rely on the good relationship between
Cambodia and China," Mr. Sophalleth said after the meeting at the Peace
Palace on Wednesday.

Despite environmental concerns by NGOs, Mr. Tingke said that
Hydrolancang International Energy, the subsidiary of Huaneng, would
avoid damaging the environment and people's livelihoods.

However, the $781 million project in Stung Treng province is expected to
displace more than 5,000 residents, impact the livelihoods of more than
100,000 and cause a drop of fish stock by nine percent for the entire
Mekong basin, according to scientists.

(Additional reporting by Denise Hruby)

http://www.cambodiadaily.com/news/chinese-push-sesan-dam-talks-with-hun-sen-50978/?utm_source=rss&utm_medium=rss&utm_campaign=chinese-push-sesan-dam-talks-with-hun-sen
________________________________________________

This is International Rivers' mailing list on China's global footprint, and particularly Chinese investment in international dam projects.

You received this message as a subscriber on the list: chinaglobal@list.internationalrivers.org

To be removed from the list, please visit:
http://salsa.democracyinaction.org/o/2486/unsubscribe.jsp

US mulling partnership with China in Congo Inga 3 dam project

US mulling partnership with China in Congo Inga 3 dam project

Chinese state-owned firms and US government may end up funding costly
and controversial dam project in Democratic Republic of Congo
By Toh Han Shih, South China Morning Post, Monday, 20 January, 2014
www.scmp.com/business/china-business/article/1409212/us-mulling-partnership-china-congo-inga-3-dam-project

In an unusual move, the US government is considering partnering with
Chinese state firms in financing the US$12 billion Inga 3 dam in the
Democratic Republic of Congo, one of the world's costliest and possibly
most controversial dams.

A Chinese consortium comprising Sinohydro and China Three Gorges Corp,
both state-owned enterprises (SOEs), are bidding for the project,
according to media reports.

If the Chinese consortium wins the contract, this will be the biggest
overseas dam contract ever won by Chinese firms.

Inga 3 will have a capacity of 4,800 megawatts (MW) and is one of the
largest hydropower projects in Africa, according to Peter Bosshard,
policy director of International Rivers, a US nongovernmental
organisation (NGO) opposed to the project.

Bosshard said a partnership for such a massive undertaking between the
US and China is unusual. "I am not aware of any other such case," he added.

Benoit Tshibangu Ilunga, who runs Congo law firm Tshibangu Ilunga &
Partners and is involved in the dam project, told the South China
Morning Post that the US government was interested in partnering with
the Chinese state firms in the project.

During his current visit to China, Rajiv Shah, administrator of the US
Agency for International Development (USAID), discussed co-operation
with Chinese state firms in funding the Inga project, Bosshard claimed,
citing a "well-informed source".

"USAID continues to work with a wide range of partners to determine
whether an Inga dam project would be financially, environmentally,
socially, and politically viable. USAID continues to work to improve
access to electricity in the Democratic Republic of Congo and
sub-Saharan Africa," said a USAID spokesman when asked if Shah was
negotiating partnerships with the Chinese firms to fund the dam.

The Inga 3 dam is part of the Grand Inga plan, an US$80 billion complex
of 11 dams and six hydropower projects on the Congo River in the African
nation. If the Grand Inga plan proceeds, all its dams will have a
combined capacity of 40,000 MW, according to International Rivers. The
project would dwarf the world's biggest dam, China's US$28 billion Three
Gorges Dam, which has a capacity of 22,500 MW.

A group of NGOs, including International Rivers, sent a letter to US
Secretary of State John Kerry and Shah last month, urging Washington not
to support the Inga 3 dam.

"Inga 3 will completely bypass the local population and generate
electricity for the Congo mining sector and South African export market.
It is likely that the project will be affected by rampant corruption,
and may further entrench the country's resource curse," said the NGOs'
letter, which also cited environmental risks.

Last December, Shah told reporters the US government was considering
financing the Inga 3 dam, possibly as part of US President Barack
Obama's "Power Africa" initiative, without specifying the amount.

Obama announced the US$7 billion Power Africa plan to supply electricity
to the continent during his visit to Africa in July last year.

If a Chinese consortium wins the dam contract and USAID carries out its
intention to finance the dam, the US and China will be partners in the
project.

The US and China need not compete over Africa, but can co-operate in
developing the continent, said Charles Stith, director of the African
Presidential Archives and Research Centre at Boston University.

"In principle, economic co-operation between China and the US is a good
thing and can reduce tension. But co-operation should not come at the
expense of the environment," said Bosshard.

The Congo government has prequalified three consortiums to bid for this
project, including the Chinese consortium, according to Bosshard.

The other consortia are a Spanish consortium and a partnership between
SNC-Lavalin of Canada and two South Korean firms, Posco and Daewoo.

The Congo government wants to select the winning bidder by July,
according to media reports.

The biggest international dam contract won by a Chinese firm was signed
last October by Gezhouba and two Argentinean firms, to build two dams in
Argentina worth US$4.71 billion. Gezhouba will contribute US$2.83
billion or 60 per cent of the deal. The two dams would have a capacity
of 1,740 MW.

China is the world's biggest builder and financer of dams, according to
International Rivers.

Sinohydro, the world's largest dam builder, won 61.55 billion yuan
(HK$78.3 billion) of overseas contracts in the first 11 months of 2013,
the firm announced on the Shanghai stock exchange website.

China International Water & Electric Corp, a subsidiary of Three Gorges
Corp, won 17 overseas projects worth more than 11 billion yuan last
year, according to its website.
________________________________________________

You received this message as a subscriber on the list: africa@list.internationalrivers.org

To be removed from the list, please visit:
http://salsa.democracyinaction.org/o/2486/unsubscribe.jsp

US mulling partnership with China in Congo Inga 3 dam project

US mulling partnership with China in Congo Inga 3 dam project

Chinese state-owned firms and US government may end up funding costly
and controversial dam project in Democratic Republic of Congo
By Toh Han Shih, South China Morning Post, Monday, 20 January, 2014
www.scmp.com/business/china-business/article/1409212/us-mulling-partnership-china-congo-inga-3-dam-project

In an unusual move, the US government is considering partnering with
Chinese state firms in financing the US$12 billion Inga 3 dam in the
Democratic Republic of Congo, one of the world's costliest and possibly
most controversial dams.

A Chinese consortium comprising Sinohydro and China Three Gorges Corp,
both state-owned enterprises (SOEs), are bidding for the project,
according to media reports.

If the Chinese consortium wins the contract, this will be the biggest
overseas dam contract ever won by Chinese firms.

Inga 3 will have a capacity of 4,800 megawatts (MW) and is one of the
largest hydropower projects in Africa, according to Peter Bosshard,
policy director of International Rivers, a US nongovernmental
organisation (NGO) opposed to the project.

Bosshard said a partnership for such a massive undertaking between the
US and China is unusual. "I am not aware of any other such case," he added.

Benoit Tshibangu Ilunga, who runs Congo law firm Tshibangu Ilunga &
Partners and is involved in the dam project, told the South China
Morning Post that the US government was interested in partnering with
the Chinese state firms in the project.

During his current visit to China, Rajiv Shah, administrator of the US
Agency for International Development (USAID), discussed co-operation
with Chinese state firms in funding the Inga project, Bosshard claimed,
citing a "well-informed source".

"USAID continues to work with a wide range of partners to determine
whether an Inga dam project would be financially, environmentally,
socially, and politically viable. USAID continues to work to improve
access to electricity in the Democratic Republic of Congo and
sub-Saharan Africa," said a USAID spokesman when asked if Shah was
negotiating partnerships with the Chinese firms to fund the dam.

The Inga 3 dam is part of the Grand Inga plan, an US$80 billion complex
of 11 dams and six hydropower projects on the Congo River in the African
nation. If the Grand Inga plan proceeds, all its dams will have a
combined capacity of 40,000 MW, according to International Rivers. The
project would dwarf the world's biggest dam, China's US$28 billion Three
Gorges Dam, which has a capacity of 22,500 MW.

A group of NGOs, including International Rivers, sent a letter to US
Secretary of State John Kerry and Shah last month, urging Washington not
to support the Inga 3 dam.

"Inga 3 will completely bypass the local population and generate
electricity for the Congo mining sector and South African export market.
It is likely that the project will be affected by rampant corruption,
and may further entrench the country's resource curse," said the NGOs'
letter, which also cited environmental risks.

Last December, Shah told reporters the US government was considering
financing the Inga 3 dam, possibly as part of US President Barack
Obama's "Power Africa" initiative, without specifying the amount.

Obama announced the US$7 billion Power Africa plan to supply electricity
to the continent during his visit to Africa in July last year.

If a Chinese consortium wins the dam contract and USAID carries out its
intention to finance the dam, the US and China will be partners in the
project.

The US and China need not compete over Africa, but can co-operate in
developing the continent, said Charles Stith, director of the African
Presidential Archives and Research Centre at Boston University.

"In principle, economic co-operation between China and the US is a good
thing and can reduce tension. But co-operation should not come at the
expense of the environment," said Bosshard.

The Congo government has prequalified three consortiums to bid for this
project, including the Chinese consortium, according to Bosshard.

The other consortia are a Spanish consortium and a partnership between
SNC-Lavalin of Canada and two South Korean firms, Posco and Daewoo.

The Congo government wants to select the winning bidder by July,
according to media reports.

The biggest international dam contract won by a Chinese firm was signed
last October by Gezhouba and two Argentinean firms, to build two dams in
Argentina worth US$4.71 billion. Gezhouba will contribute US$2.83
billion or 60 per cent of the deal. The two dams would have a capacity
of 1,740 MW.

China is the world's biggest builder and financer of dams, according to
International Rivers.

Sinohydro, the world's largest dam builder, won 61.55 billion yuan
(HK$78.3 billion) of overseas contracts in the first 11 months of 2013,
the firm announced on the Shanghai stock exchange website.

China International Water & Electric Corp, a subsidiary of Three Gorges
Corp, won 17 overseas projects worth more than 11 billion yuan last
year, according to its website.
________________________________________________

This is International Rivers' mailing list on China's global footprint, and particularly Chinese investment in international dam projects.

You received this message as a subscriber on the list: chinaglobal@list.internationalrivers.org

To be removed from the list, please visit:
http://salsa.democracyinaction.org/o/2486/unsubscribe.jsp

Chinese dam builders gaining muscle | South Sudan civil war no deterrent to Chinese firms

Chinese dam builders gaining muscle

China Daily, 20 January 2014

By Chris Davis

Latin America, with its vast array of powerful and beautiful rivers, may be a relatively recent new frontier for Chinese dam builders, but they are coming on strong now, not only providing hydroelectric power and water for irrigation, but also expanding China's geopolitical clout.

International Rivers, a US-based watchdog that monitors dam building worldwide, said that Chinese dam builders have 22 hydropower projects in total in Latin America, with three completed, seven under construction and 12 in the proposal stage.

All of the projects, except for two of the completed ones in Belize - one on the Chalillo River completed in 2005 and funded by the Canadian International Development Agency and the Vaca Hydroelectric Project completed in 2010 - started after 2010, and really gained momentum after 2011.

Both were built by Sinohydro. The third completed dam, on the Mazar Dudas River in Ecuador, was built by the China National Equipment Corp and funded by the China Development Bank.

"It's fair to say that Chinese dam-building companies are targeting the Latin American market," said International River's China program director Grace Mang.

Sinohydro has dams under construction in Costa Rica - the 50 Megawatt Chucas Hydroelectric Project, scheduled for completion in 2013, and in Ecuador with the Coca Codo Sinclair, a 1,500 MW $1.7 billion project bankrolled by China Exim Bank and scheduled for completion in 2015.

Sinohydro also has two controversial projects in Honduras, one near completion - the 55-meter-high 105 MW dam on the Patuca, which IR says is likely to have impact on the Rio Platano World Heritage site, a threatened tropical rainforest biosphere that has already been put on UNESCO's endangered list because of illegal logging, poaching and general lawlessness from the presence of heavy illegal drug trafficking.

IR warns that Sinohydro's other project in Honduras - the 22 MW Aqua Zarca which started construction in 2013 - could displace communities and reduce access to their water and territory.

Chinese dam builders have two other projects under construction in Ecuador, one by China International Water and Electric Corporation and another by Hydro China, totaling 361 MW and combined price tag of $480 million.

Patricia Adams, executive director of Probe International, a Canadian NGO, told the South China Morning Post that China was expanding its dam-building into Latin America partly for geopolitical reasons.

IR's Peter Bosshard agreed. "There is often a bit of geopolitics involved in these projects," he told China Daily. "Obviously, Brazil has a very active dam-building industry as well and is kind of the regional powerhouse. But there are governments that are trying to become a bit more independent from Brazilian influence, so that is where China plays a more active role in Ecuador."

Of the 12 proposed dam projects under discussion, there is one each in Costa Rica, Guyana, Peru and Argentina, two in Honduras, and six in Ecuador, for upwards of $4.5 billion worth of investment.

Bossard explained that around 2003, dam-builders from China, Brazil, India and Thailand, were appearing on the global market and they weren't initially necessarily concerned with following international environmental and humanitarian standards. They had the view that it was up to the host government to set the standards they wanted to apply in their projects.

It was the beginning of a new trend where these new dam builders over the past 10 years who have pretty much taken over the global market. "Nowadays Chinese companies and financiers are the most important actors in the global hydro-power business," he said.

To pursue its mission, IR had to reinvent the way they worked. "We couldn't just go to Chinese actors and tell them what they should or should not be doing," Bosshard said. "But we felt there was a lot of international experience to offer them, so we started to translate a lot of case studies into Chinese.”

***

South Sudan civil war no deterrent to Chinese firms

South China Morning Post, 20 January 2014

By Toh Han Shih

The conflict has heightened concern but has not stopped billions of dollars of new investment

Hundreds of Chinese nationals and tens of thousands of refugees are fleeing the worsening civil war in South Sudan, yet Chinese companies are still investing billions of dollars in the troubled region.

Since fighting broke out between the government and forces loyal to former South Sudan vice president Riek Machar last December, nearly 80,000 South Sudanese have fled to neighbouring countries, said the United Nations refugee agency.

“Chinese companies, notably CNPC [China National Petroleum Corp], have invested in the country in recent years because of the oil fields there, some of the richest in the continent,” said Lizzie Parsons, the senior China adviser of Global Witness, a British non-governmental organisation (NGO).

“There are certainly risks. The fighting is getting close to the oil regions in South Sudan,” said Robert Kwauk, chief Beijing representative of Blake, Cassels & Graydon, a Canadian law firm.

In late December, the Chinese embassy in South Sudan told reporters 600 to 700 Chinese nationals had been evacuated from South Sudan, while 1,300 Chinese workers remained stationed in that country.

Some Chinese workers have moved from more remote locations in South Sudan to the country’s capital Juba, while skeleton teams are staying on some Chinese project sites to maintain operations.

On Christmas Day last year, 97 Chinese employees of CNPC, the country’s largest state-owned energy firm, arrived in Khartoum, the capital of Sudan, from South Sudan, reported Xinhua.

CNPC’s chief representative in Sudan, Zhao Dong, told Xinhua that CNPC’s oil wells in remote parts of South Sudan have shut down and workers were evacuated from those oil wells.

That news did not seem to deter other Chinese companies from neighbouring Sudan.

On January 9, China Railway Construction Corp (CRCC), a Chinese state-owned rail builder listed in Hong Kong and Shanghai, announced it won a US$1.45 billion contract to build a railway in the eastern part of Sudan.

“The company will closely monitor the security situation and take appropriate measures to protect the security of personnel and assets, and ensure there are no economic losses,” a CRCC spokesman said.

There is a reason for taking on the risk.

“It will be in China’s interest to build infrastructure to transport oil from South Sudan to Sudan,” said Kwauk. Oil production is concentrated mainly in land-locked South Sudan, but the oil needs to be shipped to China through Sudan.

Another firm staying put is Sinohydro, a Chinese state-owned dam-building company which announced on its website on January 3 that it has completed grouting of its dam on the Upper Atbara River. Grouting prevents seepage on a dam.

Sinohydro has built several dams in Sudan, including the US$838 million dam on the Upper Atbara River, according to International Rivers, a US NGO.

“China’s investment into the Sudanese oil sector has rapidly descended into one of its most problematic investments in Africa. The conflict may result in a heightened sense of risk amongst Chinese state-owned enterprises investing in politically unstable parts of Africa,” said Martyn Davies, chief executive of Frontier Advisory, a South African consultancy.

Although the fighting is currently confined to South Sudan, the country of Sudan itself has been a battleground for years.

Clashes occurred between the forces of Sudan and South Sudan along the border in March 2012, according to a report by the International Crisis Group. “Continued instability along the shared border will remain a threat to peace and Chinese interests,” then NGO stated.

Sudan suffered from a nearly uninterrupted civil war from 1955 to 1972 and then from 1983 to 2005.

“To turn a blind eye to the war in South Sudan risks seriously hampering the legitimacy of Chinese companies to operate in the country, which would be a lose-lose situation,” said Harry Verhoeven, convenor of the Oxford University China-Africa Network.

On January 15, China’s Representative to the African Union Xie Xiaoyan reiterated China’s call for a peacefully negotiated solution for the crisis in South Sudan, reported the People’s Daily.

“The conflict is a challenge to China’s long-held policy of non-interference,” said Parsons.

US Congress Takes Landmark Decision for Rivers and Rights

Congress Takes Landmark Decision for Rivers and Rights
Peter Bosshard, Huffington Post, January 17, 2014
www.huffingtonpost.com/peter-bosshard/congress-takes-landmark-d_b_4613251.html?utm_hp_ref=green

Dams have turned freshwater into the ecosystem most threatened by
species extinction, displaced 80 million people and impoverished many
more. Even so, the World Bank is eager to re-engage in large dam
projects around the world, and other financiers are following in its
wake. The US Congress has now poured cold water on these plans. In a
landmark decision it has instructed the US government to oppose the
construction of large dams in international financial institutions, and
called for justice for the victims of human rights abuses in their projects.

The new instructions were sponsored by Senator Patrick Leahy (D-Vt), and
are part of the Consolidated Appropriations Act, the budget compromise
which was approved by the US Senate and House this week. In the section
on multilateral financial institutions, the act says:

"The Secretary of the Treasury shall instruct the United States
executive director of each international financial institution that it
is the policy of the United States to oppose any loan, grant, strategy
or policy of such institution to support the construction of any large
hydroelectric dam (as defined in "Dams and Development: A New Framework
for Decision-Making," World Commission on Dams (November 2000))."

(Like the dam industry, the World Commission on Dams basically defines
dams as large if they are at least 15 meters high. You can find the
language on p. 1361 of the voluminous act.)

At a time when better solutions are readily available, the Congressional
decision supports a shift of public funding from large, often
destructive hydropower projects to decentralized renewable energy
solutions which are more effective at reducing energy poverty and
protecting the environment. Under the new mandate, the US executive
directors will have to object to dam projects such as Inga 3 on the
Congo, Dasu on the Indus, Adjarala in Togo, Amaila Falls in the
rainforest of Guyana, and the dams in the Nam Ngiep and Sekong river
basins in Laos.

The budget act also takes action to support the victims of human rights
abuses in development projects. It instructs the US government to "seek
to ensure that each such institution responds to the findings and
recommendations of its accountability mechanisms by providing just
compensation and other appropriate redress to individuals and
communities that suffer violations of human rights, including forced
displacement, resulting from any loan, grant, strategy or policy of such
institution." More specifically, Congress asks for regular updates about
measures undertaken by the World Bank and the Inter-American Development
Bank (IADB) to ensure reparations for the survivors of the massacres
carried out under the Chixoy dam project in Guatemala. (See p. 1240 for
this provision.)

More than 400 Maya Achi indigenous people were killed in a series of
massacres to make way for the World Bank and IADB's Chixoy Dam on the
Rio Negro in 1978. With support from International Rivers and other
activists, the survivors of the massacre negotiated a reparations
agreement with the Guatemalan government in 2010, but the government and
financiers have dragged their feet on implementing it ever since. The
new decision by the US Congress makes a big step towards finally
bringing justice to the victims of the Chixoy massacres and other human
rights abuses.

The World Bank has close to 200 member countries. The Bank and other
international financial institutions are free to ignore the position of
the US executive directors. If this happens, Congress should redirect
its financial contributions to institutions that are more willing and
better equipped to support clean local energy solutions. Through the
Power 4 People campaign, International Rivers and other organizations
are calling on governments and national parliaments to shift $1.6
billion from the World Bank's International Development Association to
the Green Climate Fund and other appropriate channels for decentralized
renewable energy solutions.

The language in the new Congressional act is a breakthrough for healthy
rivers and the rights of river-based communities, and we salute all the
efforts that made it possible. At the same time, serious problems in the
global energy policy of the US government and Congress continue to
exist. First, the appropriations bill that was originally drafted by the
Senate instructed the US government to oppose not just large dams, but
also coal projects in international financial institutions. Under
pressure from the fossil fuel lobby, coal projects were dropped from the
final text in the negotiations with the House of Representatives.
Policies to protect the climate in the operations of US export
financiers were also rolled back.

Secondly, the US government plans to increase its support for large
hydropower dams in Africa such as the Inga 3 Dam through USAID and the
new Power Africa initiative at the same time as Congress is asking it to
oppose such projects in international financial institutions. The US
should not fund projects bilaterally that it would reject on the
multilateral level. We celebrate an important breakthrough for rivers
and rights today. Making the new policy more consistent will be the task
for tomorrow.

Peter Bosshard is the Policy Director of International Rivers
________________________________________________

This is International Rivers' mailing list on the role of international financial institutions in promoting large dams.

You received this message as a subscriber on the list: ifi@list.internationalrivers.org

To be removed from the list, please visit:
http://salsa.democracyinaction.org/o/2486/unsubscribe.jsp

Kachin hydropower projects the result of back-door deals

Kachin hydropower projects the result of back-door deals

Eleven Media, 15 January 2014

A Chinese company has been planning to sign a contract with the Myanmar government to build four hydropower projects in northern Kachin State.

The projects are planned along the Nawchankha River, which flows into Maykha River, according to sources close to the Ministry of Electric Power.

In 2010, YPIC International Energy Cooperation & Development Ltd., based in Yunnan province, signed an agreement with the government together with International Group of Entrepreneur (IGE), an unknown private entity from Myanmar, to construct hydropower projects on Nawchankha River.

The initial agreement, approved by the government's Hydropower Administration Department, covers the establishment of five projects on the river, namely Laungdin, Htonshin Chaung, Wukyone Kyal, Gaw Lan, and Kankan. 

However, the public has been kept in the dark about these projects as the agreement was signed during the previous military government which made numerous secret agreements with China. 

Experts who have read the 2010 agreement said it was an ‘umbrella MOA’ that covers all five projects in the Nawchankha River basin. However, one has since been removed. 

Government left with 15 percent share

According to the agreement, YPIC International from China and IGE will own a joint 85 percent share, leaving the government with the remaining 15 percent. However, IGE will only claim 2 percent of the joint share, leaving YPIC International with a de facto 83 percent ownership of the project. 

Revisions have been made to prevent potential flooding, leading parties to sign a new contract to build the four hydropower projects – Laungdin (600 megawatt), Gaw Lan (120 megawatt), Htonshin Chaung (340 megawatt) and Kankan (140 megawatt). 

While Myanmar is currently planning up to 67 hydropower projects, the government remains reluctant to explain how it plans to distribute the electricity or what the environmental impact will be. 

Behind closed doors

Following the controversy of the Myitsone dam project, which was halted by President Thein Sein after public outcry, similar contracts are now emerging that were signed behind closed doors between military brokers, private companies and government officials. 

Environmental and social concerns are often the most neglected by such large-scale development projects. For example, the entire Htamathi forest in Sagaing Region was cleared within six years under the pretence of building a hydropower project. Residents who were forcibly removed from the area are still facing difficulties reclaiming their land, while land brokers have become disproportionately rich. 

The Latpadaungtaung copper mine project is another case study. It has demonstrated the high-stake economic interests, again involving China, that have resulted in an iron-fisted response to the peaceful protests that oppose the project. 

Transparency to equal accountability

The meagre benefits of such projects for the general public who have long faced eviction, forced resettlement, as well as land-grabbing and lack of compensation, has led to even greater discontent. 

The back-door deals with foreign companies that orchestrate these projects further increases the suspicions that development projects only benefit crony businesses at the expense of the public. 

In the past, contracts signed with Chinese companies have sought to exploit the countries natural resources, often leaving the government with a meagre 15 percent share. This rarely translates in compensation for land or better public services. 

The Nawchankha hydropower project is only the latest to come to light. With growing transparency, the public can only hope for better accountability.  

http://www.elevenmyanmar.com/index.php?option=com_content&view=article&id=4722:kachin-hydropower-projects-the-result-of-back-door-deals&catid=44:national&Itemid=384

Pakistan, China agree to set up energy planning working group

Pakistan, China agree to set up energy planning working group

Wednesday, January 8, 2014

The News (Pakistan), By Khalid Mustafa

 

http://www.thenews.com.pk/Todays-News-3-225084-Pakistan-China-agree-to-set-up-energy-planning-working-group

ISLAMABAD: In a major development, Islamabad and Beijing have agreed to set up an energy planning working group to help Pakistan wriggle out of its energy crisis.

 The revelations were made during the third Sino-Pak energy working group and first energy working group of China-Pakistan Economic Corridor meeting held in Beijing on Tuesday.

 The meeting was co-chaired by Administer of Energy Administration (NEA) of China, Mr Wu Xinxiong, and Federal Minister of Water and Power, Khawaja Asif.

Islamabad will also take advantage of export credit insurance from Beijing to promote and sustain the development of a Chinese energy project in Pakistan.

The working group, however, expressed concern on the $448 million financing process for Neelum-Jehlum Hydropower project, which is to be jointly developed by EXIM Bank of China (EIBC) and the Ministry of Economic Affairs Division of Pakistan.

According to the minutes of the meeting, EIBC would now pay close attention to the Chinese government’s approval on the project’s insurance-free status and accelerate the relevant procedure so as to release the first batch of loan in the shortest time.

Further, according to the minutes of the meeting available with The News, the International Cooperation Department of China’s National Energy Administration and Ministry of Water and Power, Pakistan would take the lead on the respective sides to take charge of the specific work of the energy planning working group and establish a working plan and timetable before the end of February 2014.

China will play pivotal role in completing the feasibility study of the 6600MW Gadani Power Park and development of its power transmission and transformation circuit and power distribution and distribution grids.

In the meeting, the two parties agreed to make nuclear cooperation as one of the priorities for energy cooperation between the two countries. Both parties agreed that China-Pakistan nuclear cooperation would continue to move forward in a sound and steady manner and the all-weather strategic partnership between Pakistan and China would be consolidated and developed.

The two sides also noticed that fruitful achievement has been established in the cooperative construction of nuclear power between China and Pakistan.

Two in-service 300,000KW generator units of Chashma nuclear power plant have operated in good condition and the construction of the other two 300,000KW generator units has been smooth. In the meeting held on Tuesday, both sides were satisfied with previous projects and were willing to continue cooperation on new projects such as Chashma 5 and Muzaffragarh 1-2 units.

Pakistan, China share decades old cooperation in energy sector

http://www.app.com.pk/en_/index.php?option=com_content&task=view&id=258811&Itemid=2

BEIJING, Jan 7 (APP): Federal Minister for Water and Power Khawaja Muhammad Asif said on Tuesday Pakistan and China shared decades old cooperation in energy sector and several projects between the two countries illustrated their close cooperation. He was addressing the two-day 3rd Pakistan-China Joint Energy Working Group and the 1st Energy Working Group meeting of Pakistan-China Economic Corridor here. The meeting was presided over jointly by Chinese Executive 

Administrator of National Energy Administration (NEA) Shi Yubo and Khuwaja Muhammad Asif. The minister expressed the confidence that joint efforts would lead to creation of even greater linkages and inter-dependence for mutual benefits in energy and power sectors and thereby contribute towards further strengthening of Pakistan-China friendship.

He said following the visit of the Premiers of both countries, and in line with the vision of the economic corridor, the energy working group meeting further added to the economic and energy cooperation.

He said that Pakistan at present needed construction of criticalinfrastructure in power generation and laying of a network of new transmission lines system as well as up-gradation of the existing obsolete network.

He pointed out that several projects had been identified for collaborationbetween the two countries aimed at power generation and transmission in addition to the existing projects.

The minister said in this regard, Pakistan wanted to take  benefit of Chinese companies, who were blessed with requisite experience in power generation and transmission sectors. The governments of the two countries are determined to create conducive environment for investors to collaborate for mutual benefit and setting up of Pak-China Economic Corridor is the right step in this connection, he noted.    

The minister said there was a realization to shift the proportion of Pakistan’senergy mix towards cost-effective and affordable fuel resources.

He said Pakistan was endowed with abundant energy resources and had one of the largest indigenous coal energy reserves. Mining and power plants were being set up to tap the resource.       

Highlighting the generation of low cost electricity, the minister said Pakistan offered immense potential for coal based power generation, hydro and renewable resource power generation in different parts of the country, including Gilgit-Baltistan bordering China.

He said the government had approved an ambitious project for the constructionof 6600 MW Power Park at Gaddani. Chinese investment is welcome in coal-based power plants as well as construction of jetty and infrastructure there, he noted.

He said Pakistan had already signed an MoU (memorandum of understanding) yesterday with Gezhouba Group for setting up 660 MW power plant in Gaddani.

Pakistan intends to build massive power infrastructure, including transmission lines and grid stations to evacuate power from the new power projects, he said adding that investment from Chinese friends was being sought not only for the new power projects but even for the existing transmissionup-gradating.

This will also help overcome the problem of transmission losses, he added.

The miister said said he was excited about Pakistan-China Energy Corridor, and wanted to share with the Chinese friends the advantages emerging from its strategic position as Pakistan being located on the cross-road of Central Asia, South Asia, West Asia and China.

He looked forward to investment especially in the planned Solar PowerPark in province of Punjab. 

He pointed out that some of Chinese companies were keenly interested in these projects. He said the Chinese side could assist Pakistan in mapping its landscape for renewable energy, particularly wind power. In addition, construction of coal-based power pants also in Punjab, apart from other parts of the country was also being looked at, he added.

Appreciating presentations made by both sides on energy policy planning, power and renewable energy, the minister said their input was very valuable for formulating energy strategy.

He said,”We have abundant resources for alternative energy in Pakistan.

Besides, huge coal deposits of 175 billion tons, that can be used for generationof low cost electricity.”

Speaking on the occasion, Executive Administrator of National Energy Administration of China (NEA) Shi Yubo said the meeting provided an excellent platform as both sides discussed issues of mutual interest and listened to initiatives that laid a solid foundation for cooperation.

He said meetings had raised the cooperation mechanism and level of energycooperation dialogue, as well as successfully identified priority areas of cooperation.

He hoped that Chinese enterprises would invest more in Pakistan, and helpbuild energy infrastructure under the economic corridor.

He said China was well aware of Pakistan’s energy shortage and it would continue to support Pakistani friends in addressing the deficiency.

Khawaja Asif said the size of Chinese market and its power generation capacity was enormous and China had a lot to offer to Pakistan.  

Pakistan was not only looking at investment in power generation but also in comparable and compatible transmission networks, he added.

He sought Chinese investment in coal, hydel, renewable and other forms of energygeneration, as well as in the transmission networks .

He said the government was also looking at the privatization prospects, particularly of the transmission networks both of existing as well as for laying new transmission lines.

Minster Khawaja Asif acknowledged and lauded Chinese support, assistance and guidance in overcoming Pakistan’s energy requirements.

Later on, Minister Asif and Shi Yubo signed minutes of the meeting  thatmark another milestone in Pak-China  economic cooperation.

Ambassador Masood Khalid, senior officers from the energy sector of Pakistan and Chinese corporate executives were present at the Working Group’s meeting.

Khawaja Asif met Chairman of the EXIM bank of China Li Ruogu in the evening and discussed with him financing of various energy related projects, and also appreciated the bank’s cooperation and assistance. 

Ethiopia Rejects Egypt Proposal on Nile as Dam Talks Falter

http://www.bloomberg.com/news/2014-01-08/ethiopia-rejects-egyptian-proposal-on-nile-as-dam-talks-falter.html

Ethiopia Rejects Egypt Proposal on Nile as Dam Talks Falter

By William Davison and Ahmed Feteha  

Jan 8, 2014 

 

Ethiopia rejected a proposal that would guarantee Egypt the rights to most of the Nile River's water, as disagreements cast doubt over future talks about Africa's biggest hydropower project.

The 6,000-megawatt Grand Ethiopian Renaissance Dam on Ethiopia's Blue Nile River, set to be completed in 2017, has raised concern in Cairo that it will reduce the flow of the Nile, which provides almost all of Egypt's water. The Blue Nile is the main tributary of the Nile.

The $4.2 billion dam 30 kilometers (19 miles) from Sudan's border will benefit agricultural and power interests in the region and not cause water losses downstream, Ethiopia says. Sudan supports the hydropower project designed to produce electricity for much of East Africa that began in April 2011.

Egyptian officials at a Jan. 4-Jan. 5 meeting that also included representatives from Sudan, introduced a "principles of confidence-building" document asking Ethiopia to "respect" Sudan and Egypt's water security, said Fekahmed Negash, the head of the Ethiopian Water and Energy Ministry's Boundary and Transboundary Rivers Affairs Directorate. Discussing the issue would contravene an agreement signed by six Nile countries, he said in a phone interview on Jan. 6.

"We will not negotiate on this issue with any country," Fekahmed said from Ethiopia's capital, Addis Ababa. "That is why we say take it to the right platform" that includes other members of the Nile Basin, he said.

1959 Accord

Egypt argues its 1959 agreement with Sudan that gave Egypt the rights to 55.5 billion cubic meters out of a total of 84 billion cubic meters is the governing document on the Nile's water. The rest of the river's flow was for Sudan or lost to evaporation. Ethiopia and other upstream nations reject the accord they were not signatories to and say Egypt's domination of the Nile has unfairly deprived them of a vital resource.

Ethiopia also rejected an Egyptian suggestion to immediately form a panel of neutral experts to adjudicate any disputes arising from planned studies of the dam's hydrological and environmental impact, Ethiopian Water and Energy Minister Alemayehu Tegenu said. Experts can be hired if they're needed, he said in an interview Jan. 5 in Khartoum.

Egypt won't send a delegation to Addis Ababa unless Ethiopia's government signals its intent to resolve the areas of dispute, Egyptian daily Al-Masry Al-Youm quoted Egyptian Irrigation Minister Mohamed Abdel-Moteleb as saying on Jan. 6.

Talks Impasse

"We have exhausted all opportunities to negotiate with Ethiopia because of the intransigence of Addis Ababa," Abdel-Moteleb said.

Discussions will "continue," Ethiopia's Alemayehu said yesterday on his official Twitter account.

Egypt, Ethiopia and Sudan decided on Dec. 9 to form a committee comprising four members from each country to oversee the studies. The initiative was recommended by a panel of international experts who concluded in May that insufficient work had been done on the dam's downstream impact while the reservoir is filled and during operation.

Ethiopia has repeatedly refused Egyptian requests to pause construction of a key national project. "There is nothing that will stop it," Gideon Asfaw, head of Ethiopia's technical team in Khartoum, said about the dam.

Egypt "has escalatory steps to assert our historic rights to the Nile waters," Abdel-Moteleb was quoted as saying, without elaborating.

Equitable Principles

A Cooperative Framework Agreement has been signed by Ethiopia and five other Nile nations that adopts principles of "equitable and reasonable" use of waters that do not cause "significant harm" to other states. Once ratified by six legislatures, the accord paves the way for the creation of a Nile River Basin Commission that will manage water rights and development projects on the Nile.

Egypt considers preserving its claimed rights to the Nile a matter of national security and says it needs more than its 1959 share because of its growing population. In June, in a televised meeting with former President Mohamed Mursi, Egyptian opposition politicians discussed tactics to prevent Ethiopia finishing the dam, including the use of force.

"We need 80 billion cubic meters," Abdel-Moteleb said. "We will not let go of one drop of water."

Suu Kyi Slams Myanmar Government for Leaving Myitsone Dam ‘Hanging'

Suu Kyi Slams Myanmar Government for Leaving Myitsone Dam 'Hanging'

6 January 2014, Radio Free Asia
http://www.rfa.org/english/news/myanmar/myitsone-01062014173251.html

Myanmar opposition leader Aung San Suu Kyi has slammed President Thein
Sein for leaving the future of a controversial Chinese-backed dam
unresolved, accusing him of passing the buck to the country's next
leaders by suspending the project until the end of his term.

Chinese investors in the Myitsone dam, located on the Irrawaddy River in
northern Myanmar's Kachin state, are eager to see the project restarted
when a new government comes to power after the 2015 elections, which
Thein Sein is not expected to contest.

Construction on the 6,000 megawatt dam, located on the Irrawaddy River
in northern Myanmar's Kachin state, has been suspended since September
2011, when Thein Sein pledged months after taking office that it would
be halted for the duration of his five-year term.

Aung San Suu Kyi, whose National League for Democracy is expected to be
a key contender in the upcoming polls, accused Thein Sein's government
of ducking responsibility for the issue by leaving a decision on the
$3.6 billion project up to the next government.

"By … postponing the project by five years, this means the next
government will have to take care of it," she said in an interview with
RFA's Myanmar Service.

"It is as if they are saying, 'It is not our duty. We are not
responsible for this,'" she said.

She said the country's next government would be saddled with
responsibility for deciding on the project because of the failure of
Thein Sein's to settle its future for good.

If her party wins the 2015 polls, it will have "no other choice" but to
deal with Chinese investors to resolve the issue "because the current
government has left it hanging," she said.

"I don't like this idea because a government should be brave enough to
take responsibility."

She added that because many members of the current government also
served in the previous regime, "they are the same members as those who
agreed to the Myitsone project, and they can't say now that they have
nothing to do with the previous government's actions."

Controversial project

Thein Sein said in a monthly radio address last week since the day he
took office he had "not avoided responsibility" and "tried to act
correctly."

The former military general had earned widespread praise for his
suspending the dam as part of a series of reforms carried out as Myanmar
began emerging from decades under military rule.

The U.S. $3.6 billion dam project, which would provide most of its
electricity to China, had provoked massive public outcry over the
widespread flooding and deforestation it would cause, as well as the
displacement of 10,000 ethnic minority Kachin villagers.

The project's investor China Power Investment Co. (CPI) has said it is
interested in restarting the project, raising concerns among local
residents.

Pushing late last month for a restart of the project, Li Guanghua, a top
official of the Myanmar subsidiary of CPI promised to work transparently
with Myanmar if it is resumed.

"We will inform the people about everything we do on this project," Li
told reporters at a press conference.

He said he hoped "the government that was elected by the people will
make the right decision" on whether to resume with the dam.

Aung San Suu Kyi has said she wants to run for president in the next
election, but provisions in the constitution bar her from taking up the
post on the grounds that her sons hold British citizenship.

Her party has pushed for those provisions, which some analysts believe
were written specifically to target her, to be amended ahead of the
polls, as well as for sweeping changes to charter.

Aung San Suu Kyi, who joined parliament two years ago after landmark
by-elections, faced strong criticism from local residents last year
after a committee she headed recommended the resumption of a
Chinese-backed copper mine that had been suspended amid mass protests.

Her committee had said the expansion of the Letpadaung copper mine
should be allowed to continue so as not to discourage future foreign
investment and provoke tensions with China, triggering outrage from
activists who called for a complete halt to the project.
________________________________________________

This is International Rivers' mailing list on China's global footprint, and particularly Chinese investment in international dam projects.

You received this message as a subscriber on the list: chinaglobal@list.internationalrivers.org

To be removed from the list, please visit:
http://salsa.democracyinaction.org/o/2486/unsubscribe.jsp

R.I.P. Robert Goodland

R.I.P. Robert Goodland

Robert Goodland, a life-long defender of the environment and human
rights and a close friend of International Rivers, passed away on
December 28, 2013. Robert was hired as the World Bank's first full-time
environmental expert in 1978, and later became the Bank's Lead
Environmental Adviser. He was the main instigator and author of the
institution's environmental and social safeguard policies, and
tirelessly fought for their strengthening and implementation. After his
official retirement in 2001, Robert continued to advocate for
environmental justice through his involvement with the Extractive
Industries Review and many other processes. His role changed from the
Bank's environmental conscience to an outspoken thorn in its side.

Robert Goodland was a generous mentor, supporter and friend of
International Rivers and many other environmental organizations and
causes. I first met Bob in 1991, and as long as I have known him, he
never tired of sharing advice and information, donating for a good
cause, supporting us with encouragement and inspiration. When we took
action, Robert (or Rbt., as he would sign his messages) was often one of
the first to cheer us on with moral and financial support, frequently
dropping a line and asking us to "keep up the GREAT work".

The environmental and social destruction brought about by dams was one
of the topics Robert felt strongly about. He was incensed by the World
Bank's recent decision to move back into funding mega-dams, and
advocated against it with his network of old friends. Robert Goodland
was the main author of the new paper, Towards a World Bank Group Policy
on the Social and Environmental Impacts of Dams, Reservoirs, and
Hydroelectricity Projects, which was just published on the website of
Foundation Earth (see www.fdnearth.org/?attachment_id=219).

On December 28, Robert Goodland suddenly passed away as he traveled home
from a trekking trip in Nepal. He is survived by his wife and son.
Robert will leave a huge gap in the global network for environmental
justice. We will not forget him.

You will find a obituary for Robert Goodland at
www.chompingclimatechange.org/1/post/2014/01/honoring-thememory-of-robert-goodland-co-founder-of-chomping-climate-change.html.

Peter Bosshard
International Rivers
________________________________________________

This is International Rivers' mailing list on the role of international financial institutions in promoting large dams.

You received this message as a subscriber on the list: ifi@list.internationalrivers.org

To be removed from the list, please visit:
http://salsa.democracyinaction.org/o/2486/unsubscribe.jsp

Chinese dam builders rush to Latin America

Chinese dam builders rush to Latin America

6 January 2014

Toh Han Shih, South China Morning Post 

China's growing involvement in hydropower development in the region boosts clout but also leads to allegations of poor corporate responsibility

There has been a huge increase in Chinese dam projects in South America, which has expanded China's geopolitical clout in the continent but also drawn allegations of poor corporate social responsibility.

"China's involvement in hydropower development in Latin America has grown significantly since 2010. It's fair to say that Chinese dam-building companies are targeting the Latin American market," said Grace Mang, China programme director at International Rivers, a green non-governmental organisation in the United States.

Before 2010, International Rivers was aware of only two Chinese hydropower projects in Latin America, both in Belize, Mang said. Now, there are 22, of which three are completed, seven are under construction and 12 are on the drawing board.

The three completed Chinese dams are in Belize and Ecuador with a total installed capacity of 47 megawatts and costing more than US$30 million.

The seven being built are in Costa Rica, Ecuador and Honduras, with a total installed capacity of 2,087 MW and costing more than US$2.53 billion. Among them is the US$1.7 billion Coca Codo Sinclair dam being built by Sinohydro, a Shanghai-listed state-owned dam builder, and financed by the Export-Import Bank of China.

The 12 proposed hydropower projects are in Costa Rica, Ecuador, Guyana, Honduras, Peru and Argentina, with a total installed capacity of 5,069 MW. The total budget, which includes funding from Latin American sources, is more than US$12.25 billion, according to International Rivers.

These include two in Argentina to be built by Shanghai-listed China Gezhouba and Argentine firms with a total value of US$4 billion, which will be financed by China Development Bank and Bank of Communications.

It is a difficult market because Chinese firms are not familiar with local issues

GRACE MANG, INTERNATIONAL RIVERS

Latin America was the second-biggest hydropower market in the world after China, said Mang. "So it's no surprise that Chinese companies want to take a share of it. The Chinese government's desire to build better bilateral relations has resulted in dam projects such as the Coca Codo Sinclair project in Ecuador," she said.

Patricia Adams, executive director of Probe International, a Canadian non-governmental organisation, said China was expanding its dam-building into Latin America partly for geopolitical reasons.

For example, mainland state-owned firms had replaced those from Taiwan to build three dams in Honduras, which recognised the island, Adams said.

Chinese state institutions were involved in the hydro-sector planning of Ecuador, said Paulina Garzon, international financial co-ordinator of the Centre for Economic and Social Rights, an Ecuadorian non-governmental organisation.

The National Water Secretariat of Ecuador maintained close collaboration with the Ministry of Water Resources in China, while the Yangtze River Chinese Institute was in charge of the management plan of watersheds in Ecuador, Garzon said.

At least half of the financing provided by China to Ecuador since 2009, comprising US$10 billion of loans in return for Ecuadorian oil, had been earmarked for hydro projects, she said, adding that seven of Ecuador's 11 hydro projects were in the hands of Chinese companies.

The rise in Ecuador's debt to China, currently more than US$7 billion, had sparked concerns over an erosion of Ecuador's sovereignty, reported the Economist Intelligence Unit.

Adams said: "There is great resistance to dam-building in Latin America and special worry about Chinese dams because of the opaque nature of China's decision-making and poor quality in these dams. The construction industry is more plagued by corruption than any other and China's dam-building industry is well known for corruption."

In November 2012, local workers at Sinohydro's Coca Codo Sinclair dam project complained at a meeting with Ecuador's Minister of Labour Relations Francisco Vacas and members of the National Assembly that they had not received all their wages and had been subject to physical and verbal abuse and sexual harassment, local media reported.

A Sinohydro spokesman said the Latin American press report was inaccurate, and Vacas affirmed on November 26, 2012, the company's compliance with Ecuadorian labour regulations.

"Strong local opposition has contributed to the view that while Latin America is a market with a lot of opportunities, it is also a very difficult market because Chinese companies are not familiar with local issues," said Mang.

http://www.scmp.com/business/china-business/article/1398498/chinese-dam-builders-rush-latin-america