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Three Gorges Dam faces 14.5-billion-dollar cost overrun

Posted : Thu, 16 Apr 2009 12:17:58 GMT
By : DPA
Category : Asia (World)
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Beijing - China's Three Gorges Dam, due to be completed in November, is getting bigger every day on all fronts. While officially the government said it has spent 180 billion yuan (26.35 billion dollars) on building the 185-metre dam and a reservoir stretching more than 600 kilometres, local critics and foreign observers said the real figure could be more than twice that amount, and that's just in the construction phase.

A new figure emerged in local media, indicating that nearly 100 billion yuan would have to be spent over the next 10 years to manage the myriad social and environmental problems that have risen alongside the dam's concrete wall.

The financial magazine Caijing and local newspapers reported that 98.9 billion yuan would be needed over the next decade. Of this, 38.2 billion yuan would be spent on environmental protection.

A spokesman with the Yangtze River Water Resources Commission neither confirmed nor denied the figure, which has been submitted as part of a larger post-construction plan to China's State Council.

"The plan is not finished," he told the German Press Agency dpa. "It's still in the early working phase."

"The formal report will come out at the end of the year," the spokesman said. "The State Council has not yet approved it."

A State Council representative confirmed the report was in its drafting phase and refused to give details.

But the estimate confirmed that the environmental and social impact of the dam is not only massive in scale but larger than initially projected.

According to Caijing, since September, when the project authority carried out tests to try to raise the dam's water level to a desired 175 metres, the surrounding region of Chongqing has seen 150 mudslides across 13 counties.

In one recent case, 55 people were evacuated from their homes in Yunyang County after 3.6 million cubic metres of soil became destabilized in November, state media reported. Night traffic on the Yangtze River was suspended for three days, the official Xinhua news agency reported. The ban was no small matter in an area that sees 300 vessels carrying 23,000 passengers every day.

The government has touted a benefits of the high-cost Three Gorges project, whose 26 generators, once operational, are to be able to supply the power needs of more than 18 million households.

But experts said the money to build the project and the resettlement of 1 million people to carry it out have been only part of the costs of the dam.

Fan Xiao, a geologist with the Sichuan Bureau of Geological Exploration of Mineral Resources, told

Copyright DPA

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Three Gorges
By: Reader , Thu, 16 Apr 2009 16:44:43 GMT

All 26 generators have been in operation for awhile and have already generated 300 TWh of electricity - enough to cover 30% of the total investment.







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