World Bank Grant for Inga 3 Dam Denounced as Support for Africa's Next White Elephant

World Bank Grant for Inga 3 Dam Denounced as Support for Africa's Next
White Elephant
International Rivers, March 20, 2014
www.internationalrivers.org/node/8272

Today, the World Bank Group Board of Directors approved a grant of $73
million for the Inga 3 Dam on the Congo River -€" the biggest hydropower
project the World Bank has ever funded. International Rivers denounces
the decision as support for a risky mega-project that will not benefit
the local population.

The 4800 megawatt Inga 3 Dam is the first phase of the giant Grand Inga
scheme in the Democratic Republic of Congo. Including the financing
costs, Inga 3 will cost $14 billion. The Bank's $73 million grant will
finance technical studies and legal work to prepare for the construction
of the dam, which is expected to start in 2016 and take seven years.
Even though only 9% of the DRC population has access to electricity, the
power generated by Inga 3 will primarily benefit mining companies and
export markets.

Rudo Sanyanga, the Africa Director of International Rivers, said: "By
approving Inga 3, the World Bank shows it has not learned lessons from
the bad experience of previous dams on the Congo River despite its
claims to the contrary. The Bank is turning a blind eye to the DRC's
poor governance and is taking short-cuts to the environmental assessment
of the project."

Peter Bosshard, the Policy Director of International Rivers, said:
"Solar, wind and micro-hydropower are more effective at reducing energy
poverty in Africa, and don't suffer the cost and time overruns that are
typical for large dams. We will continue to push the World Bank and the
DRC government to support clean local energy solutions rather than
Africa'€™s next white elephant."

On March 10, four researchers from Oxford University published a study
which found that the large dams built since 1934 suffered average cost
overruns of 96% and delays of 44%. In a conversation with International
Rivers, the Oxford study's co-author, Atif Ansar, cautioned against Inga
3. "It is a very high-risk project typical of dam disasters," he said.
Using the findings of the Oxford study to forecast cost overruns, he
suggested that the Bank's $14 billion estimated cost of Inga 3 should be
uplifted to $28 billion to obtain 80% certainty that the budget is not
exceeded. Given the cost risk's the dam is a non-starter in terms of
economic viability. Congo is at risk of drowning its fragile economy in
debt.

Further information:

. Background information on Inga 3: www.internationalrivers.org/node/8211
. Oxford dam study:
www.sciencedirect.com/science/article/pii/S0301421513010926
. Quotes from Oxford study co-author on Inga 3:
www.internationalrivers.org/node/8261
________________________________________________

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://org.salsalabs.com/o/2486/unsubscribe.jsp