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May 13, 2010

Ethiopia dam project threatens devastating environmental consequences


The tale of two dams in Africa - one under construction, the other completed - captures two starkly differing sides to China's image as a major player in the development of hydropower around the world.

The Gibe 3 Dam in Ethiopia, now under construction by Italian hydropower developer Salini Costruttori, is the target of international lobbyists opposed to what they say is the devastating environmental consequences it will have.

Funding to cover the full US$1.75 billion construction of the project has not yet been secured, and against a background of opposition from local and international lobbyists, both the World Bank and the African Development Bank have withheld funding until an environmental impact report is received. Meanwhile, Salini Costruttori is proceeding with the project, with the support of Industrial and Commercial Bank of China (ICBC) and mainland power equipment supplier Dongfang Electric Corporation, who are now also the targets of the groups opposing the project.

In contrast to the international ire being raised over Gibe 3, the Merowe Dam in Sudan shows China appears to have learned the lesson of taking environmental issues into account.

Full Story....

Posted by mopeng at May 13, 2010 9:16 PM