Tuesday, September 25, 2012

Egypt remains “concerned” over Ethiopia’s Nile River dam project

http://www.bikyamasr.com/78373/egypt-remains-concerned-over-ethiopias-nile-river-dam-project/

Egypt remains �concerned� over Ethiopia�s Nile River dam project
Mohammad Awad and Joseph Mayton | 25 September 2012 |

Egypt says still �concerned� over Ethiopia dam project.
CAIRO and ADDIS ABABA: Ethiopia�s ambitious Nile River dam project
remains under the watchful gaze of Egypt. While Cairo denied any
intention of attacking the dam, the country�s Water Resources and
Irrigation Minister Mohamed Bahaa el-Din said on Saturday that his
country was maintaining its concerns about the construction of the
Renaissance Dam in Ethiopia.

He did say that officials at the Ethiopia foreign ministry �assured
Egypt and Sudan that in case there was any impact on their water quota
to the dam, other projects will be carried out to collect lost water
and cover shortages.�

It is the latest in the ongoing battle for the world�s largest river�s
water, with Egypt and Sudan continuing to remain obstinate in amending
any of the colonial treaties that guarantee their countries with a
lion�s share of water from the Nile.

The International Monetary Fund (IMF) this month called on Ethiopia to
slow its construction and planning for the dam, citing economic
concerns for the country.

Whistleblower site Wikileaks released documents this month that
revealed Egypt and Sudan had been planning to attack an Ethiopian dam
project to �protect� their rights over Nile water based on colonial
era treaties.

In documents revealed by Wikileaks, the Egyptian and Sudanese
government appeared ready to develop a launching pad for an attack by
Egypt against the dam.

Wikileaks has leaked files allegedly from the Texas-based global
intelligence company, Stratfor, which quote an anonymous �high-level
Egyptian source,� which reported that the Egyptian ambassador to
Lebanon said in 2010 that Egypt �would do anything to prevent the
secession of South Sudan because of the political implications it will
have for Egypt�s access to the Nile.�

Ethiopia�s massive dam project has seen much concern from Cairo and
Khartoum, who fear the establishment of Africa�s largest dam would
affect previous colonial deals on Nile water-sharing.
It is to be built some 40 kilometers upstream from Sudan on the Blue
Nile.
But even before the official announcement of Ethiopia�s prime
minister�s passing on August 20, Egyptian officials told Bikyamasr.com
that they believed a post-Meles region could bring forth new
negotiations and compromise over Nile water.

An Egyptian ministry of water and irrigation told Bikyamasr.com last
month, two weeks before Zenawi was pronounced dead, that with the
combination of Egypt�s new President Morsi and the potential of seeing
a new leader in Ethiopia, they hoped the tension over Nile River water
could be resolved.

�While this can in no way be official policy at this point, I believe
that there would be more maneuvering with a new leadership in Ethiopia
because there would be the ability to communicate and not be seen as
antagonistic,� the official said, adding that they were not authorized
to speak to the media.

�Let us be frank about the situation between Egypt and other Nile
countries,� the official continued. �We in Egypt have not been the
best at compromise so I think overall, there is so much that can be
done to help bring countries together, and Ethiopia has been a leader
in its criticism of Egypt so starting there would be good.�
With the Nile comes a new set of issues, and with Egypt holding onto a
lion�s share of water from the world�s largest river, upstream
countries such as Ethiopia have taken it on their own to begin
building dams and other water related endeavors, much to the anger of
Cairo.

However, officials hope that solutions can be had in the new post-
revolution Egypt that could see the growing tension between countries
along the Nile reduce.

�While Egypt never wants to mingle in another country�s affairs, a new
leadership in Ethiopia would go a long way to changing how things are
run, just like it has in Egypt,� the official added.
________________________________________________

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

Wednesday, September 19, 2012

Bosnia and Herzegovina: Agreements on construction and financing of HPP Ulog and TPP Stanari

Bosnia and Herzegovina: Agreements on construction and financing of HPP
Ulog and TPP Stanari have been signed in Beijing
Ekapija, 14 September 2012
http://www.ekapija.com/website/sr/page/630419_en

Ministry of Foreign Affairs of Bosnia and Herzegovina informed the
Foreign Trade Chamber of Bosnia and Herzegovina that on 4 September 2012
in Beijing an agreement was signed on construction of the hydro power
plant Ulog on the upper stream of the Neretva river under the EPC model
(engineering, procurement and construction) between representatives of
the EFT Group and China's energy Consortium (SINOHYDRO Corporation Ltd,
Dongfang Electric and China Development Bank).

The EFT Group has gained a right to a concession of exploitation of
electricity at the site of the Neretva river where the power plant Ulog
will be built. It is planned that the works on this project, with a
total capacity of 35 MW, last 42 months. The total investment value is
60 million euros.

This is the second power building in BiH which the EFT will build with
Chinese partners and fund through the Chinese Development Bank.

Also, the letter of the Ministry states that on 6 September 2012 an
agreement was signed on funding of TPP Stanari, with a total investment
value of 550 million euros, while the evaluation of the works to be
carried out by Chinese contractors, led by Dongfang Electronic
Corporation, amounts to 350 million euros, which will also be financed
by the China Development Bank.

Editors note: Sinohydro has stated that this is its first successful
hydropower project contract bid in Europe
(http://www.sinohydro.com/664-1692-608637.aspx)
________________________________________________

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

Zambezi hydro-dams unprepared for climate change

Dam-Dependent Zambezi Basin Unprepared for Climate Change

New report documents dangers of �business-as-usual� approach

An in-depth study warns that new and proposed dams on Southern
Africa�s largest river are ill-prepared to withstand the shocks of a
changing climate. The result could be uneconomic dams that under-
perform in the face of more extreme drought, and more dangerous dams
that have not been designed to handle increasingly damaging floods.

Currently, 13,000 megawatts of new large-dam hydro is proposed for the
Zambezi and its tributaries. The report finds that existing and
proposed hydropower dams are not being properly evaluated for the
risks from natural hydrological variability (which is extremely high
in the Zambezi), much less the risks posed by climate change.

Dr. Richard Beilfuss � a noted hydrologist with extensive experience
on the Zambezi � evaluated the hydrological risks to hydropower dams
in the basin. Overall, Africa�s fourth-largest river will experience
worse droughts and more extreme floods. Dams being proposed and built
now will be negatively affected, yet energy planning in the basin is
not taking serious steps to address these huge hydrological
uncertainties.

�Ensuring energy and water security in the Zambezi River basin for the
future will require new ways of thinking about river basin
development,� notes Dr. Beilfuss. �We must avoid investing billions of
dollars into projects that could become white elephants.�

The report�s key findings describe a region moving toward the edge of
a hydrological precipice:
� The Zambezi basin exhibits the worst potential effects of
climate change among 11 major sub-Saharan African river basins, and
will experience the most substantial reduction in rainfall and runoff,
according to the International Panel on Climate Change. Multiple
studies estimate that rainfall across the basin will decrease by 10-15%.
� The basin is likely to experience significant warming and
higher evaporation rates in the next century. Because large reservoirs
evaporate more water than natural rivers, big dams could worsen local
water deficits (and reduce water for hydropower). Already, more than
11% of the Zambezi�s mean annual flow is lost to evaporation from
large hydropower dams� reservoirs. These water losses increase the
risk of shortfalls in power generation, and significantly impact
downstream ecosystem functions.
� The designs for two of the larger dam projects proposed for
the Zambezi, Batoka Gorge and Mphanda Nkuwa dams, are based on
historical hydrological records and have not been evaluated for the
risks associated with reduced mean annual flows and more extreme flood
and drought cycles. Under future climate scenarios, these hydropower
stations, which are being based on the past century�s record of flows,
are unlikely to deliver the expected services over their lifetimes.
� The occurrence of more frequent extreme floods threatens the
stability and safe operation of large dams. Extreme flooding events, a
natural feature of the Zambezi River system, have become more costly
downstream since the construction of large dams. If dams are �under-
designed� for larger floods, the result could be serious safety risks
to millions of people living in the basin.

� The Zambezi River is already highly modified by large
hydropower dams, which have profoundly altered the hydrological
conditions that are most important for downstream livelihoods and
preserving biodiversity. The ecological goods and services provided by
the Zambezi, which are key to enabling societies to adapt to climate
change, are under grave threat. A recent economic study estimated that
the annual total value of river-dependent ecosystem services for one
Zambezi floodplain (the Zambezi Delta) ranges between US$930 million
and $1.6 billion. The economic value of water for downstream ecosystem
services exceeds the value of water for strict hydropower production.
These services are not being properly valued in planning for large
dams in the basin.

Rudo Sanyanga, Africa Programme Director for International Rivers,
says: �Large-dam hydro poses not just economic risks, but also
adaptation risks. Africa has been called the continent �most at risk�
of climate change. Successful adaptation will require new ways of
thinking about water resources. We need to act now to protect our
rivers as sources of livelihoods and food security.�
The report recommends a series of steps to address the coming storm of
hydrological changes, including changes to how dams are planned and
operated.

Read the report: �A Risky Climate for Southern African Hydro:
Assessing hydrological risks and consequences for Zambezi River Basin
dams� by Dr. Richard Beilfuss. Full report, executive summary and
supporting materials (some in Portuguese as well as English) here: http://www.internationalrivers.org/node/7673

View a short video on the report�s findings:

http://www.youtube.com/watch?v=IN0YvxVdNSU&feature=youtu.be

Biographical information for Dr. Beilfuss:
http://www.savingcranes.org/richard-beilfuss-president-ceo.html
________________________________________________

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

Delhi loses initiative as Nepal seals power deal with Beijing

Delhi loses initiative as Nepal seals power deal with Beijing
By Aditya Kaul
DNA India
September 19, 2012

http://www.dnaindia.com/india/report_delhi-loses-initiative-as-nepal-seals-power-deal-with-beijing_1742574

Nepal and China have sealed the deal on the West Seti Hydropower Project
in West Nepal with the two sides signing a fresh Memorandum of
Understanding last month � the development is likely to cause unease in
New Delhi that has struggled with little progress in its own hydropower
projects in Nepal, coupled with Nepal's growing coziness with China.

The US $1.6 billion project - the biggest foreign investment project in
Nepal - was earlier designed to supply electricity to India, but it will
now be meeting Nepal's own domestic requirements with the surplus being
sold to China.

Nepal, which has been facing a severe power crisis, is estimated to have
43,000MW hydropower generation capacity, but the actual production is a
woeful 650 MW.

India has dominated the hydropower sector in Nepal so far, but several
of its projects have been stalled because of various reasons such as
protests from Maoists against awarding deals to foreign companies.
Projects like the Upper Karnali and Arun III have not showed any
progress despite MoUs having been signed years ago. Last year, a GMR
Power-led consortium's camp site office in Dailekh district was
reportedly burnt down.

In a recent letter to the prime minister's office and the ministry of
external affairs, the Research and Analysis Wing said, "The government
of Nepal has granted permission to China Three Gorges Corporation (CTGC)
to proceed on the 750 MW West Seti Hydropower Project on the Seti river
in Dadeldhura district.

"The Investment Board of Nepal and the CWE Investment Company of China
(sub group of CTGC looking after overseas operations) signed (August 27,
2012) a revised Memorandum of Understanding for construction of the WSHP."

The communication states that the Nepal government took the decision
following the visit of a three-member Nepalese delegation led by energy
secretary Hari Ram Koirala to China on August 7, 2012 to negotiate
issues related to investment and revision of the MoU signed earlier.

Estimated to cost about Nepalese Rs 180 billion, work on the project is
scheduled to start this year and will be completed by 2020, the letter
says. "The WSHP initially designed to export electricity to India, is
now aimed at meeting the growing energy demand of Nepal," the
communication dated August 30 states.

The project was first awarded to an Australian company - Snowy Mountain
Engineering Corporation - in 1997. On completion, the project was
supposed to sell electricity to India. But it never took off. Last year,
the Nepal government scrapped the contract and started discussions with
China.

On February 29 this year, CTGC signed an MoU with the Nepal government
for construction of WSHP. CTGC was supposed to hold 75 percent stake in
the project and the Nepal Electricity Authority (NEA) 25 percent. The
CTGC had also agreed to provide 2-5 per cent shares to the local
investors from its stake and help the NEA to secure a soft term loan
from the Exim Bank of China for the project.

The project had then run into rough weather over allegations of
preferential treatment to China by not allowing international bidding
for the project. Nepal's Natural Resources and Means Committee (NRMC) of
the Constituent Assembly, since dissolved, had, raised objections over
the terms of the MoU. This forced the Nepalese government to put the
project on hold. China had then reportedly threatened to pull out of the
project if the Nepalese government did not take a decision soon.

"As per the revised MoU, the CWE will now provide 10 per cent stake to
the local investors and agreed to make the project multipurpose by
including irrigation, fishery and water transportation components in the
project, in line with the recommendations made by the NRMC. About 150 MW
of electricity would be allocated for the industrial development of
local area."

"The Chinese company has also reportedly agreed to help generate funds
for construction of the transmission line simultaneously so that the
electricity generated could be linked to the national grid without
delay. China Exim bank and China Development bank have already expressed
interest to invest in the project and provide additional funds for
construction of the transmission line."
________________________________________________

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

China's water diversion project carries risks

China's water diversion project carries risks
China Daily
September 19th, 2012

http://usa.chinadaily.com.cn/china/2012-09/19/content_15766742.htm

As government officials hailed the success of relocating 340,000 people
in China's south-north water diversion project Tuesday, they are also
aware of the social and environmental challenges the project may bring.

The relocation in central China's provinces of Hubei and Henan is part
of the project to transfer clear water from the Han River, a major
tributary of the Yangtze River, to the drought-prone north including the
capital city of Beijing.

At the start of the route, the height of the Danjiangkou Dam on the Han
River has been raised, and the reservoir behind the dam will begin to
rise in 2014 so that water will flow all the way to the north.

The project forced 180,000 people in Hubei and 160,000 in Henan to leave
their homes around the reservoir. It is China's second largest
relocation program after the Three Gorges project, which involved the
relocation of 1.27 million people over a period of 17 years.

The immigrants, mostly poor farmers, have moved in to more than 600
government-designed villages across the two provinces within the past
three years.

The Hubei provincial government said that the relocation is a miracle in
the history of reservoir immigration in China.

Tens of thousands of officials were employed in the relocation program.
Among them, 21 - including nine in Hubei and 12 in Henan - died from
fatigue and illness caused by constant work.

However, the relocation is just the first step of the immigration, said
E Jingping, director of the South-North Water Diversion Office of the
State Council, China's cabinet. "The goal for the coming years is to
keep the immigrants stable, enable them to develop and become rich."

However, discontent exists among immigrants who have found life harder
in the new locations, where locals have different dialects and cultures.
Added to this, living costs are higher with some houses having defects.
Some immigrants are given low-grade farmland to work on and those who
grew fruits in hilly regions do not know how to grow rice on a plain.

Living standards are likely to go down for more than a third of the
immigrants, Peng Chengbo, vice director of the Hubei Reservoir
Immigration Bureau, told Xinhua.

Thousands of immigrants have travelled back to their hometowns to seek
redress from governments. Some have barricaded highways, besieged
government buildings and beaten immigration officials.

Peng said that local governments were under pressure in maintaining
stability in Hubei, where various water projects including the Three
Gorges and the water diversion forced a total of three million people to
move over the past five decades.

Hubei has plans to help the immigrants to raise their living standards
to average levels in the new locations within three years, and in a
further two years surpass the average, he added.

Environmental concerns

The biggest challenge the 201.3-billion-yuan project faces may not only
be the resettlement of the immigrants, but also protection of water
resources and calls for ecological compensation from downstream areas.

Beginning in 2014, the project will draw 9.5 billion cubic meters of
water from the Han River annually. Upon completion of the second phase
of the route, 12 to 14 billion cubic meters of water will flow north
each year.

Critics warned that as 25 to 30 percent of the river's total flow is
taken away, the ecology of the middle and lower reaches of the Han River
� a 650-kilometer-long section in Hubei - will be damaged and new water
shortages will be created.

The river level will fall and the cost of using water for people's life
and irrigation will increase; the river's ability to cleanse itself will
decline and pollution control will become more difficult; the number of
days during which the river is navigable will decrease and water
transport will be less efficient; fish will suffer a loss of breeding
grounds and the decrease in water temperature will be harmful, according
to a report by the Hubei provincial environmental authorities.

To make matters worse, Shaanxi province, which is in the upper reaches
of the Han River, will begin constructing a project to convey 1.5
billion cubic meters of water annually from the river to supplement the
Wei River, the largest tributary of the Yellow River.

It aims to ease water shortages in major cities including Xi'an and
Xianyang in west China, but is feared to exacerbate the situation in
Hubei, where the Han River is crucial to 12 million people and 1.13
million hectares of farmland known as the Jianghan Plain, said experts.

As a result, a 10-billion-yuan package of minor projects have been
formulated to reduce the impact of the water diversion projects on the
Han River. The most prominent is a 67-kilometer-long man-made canal to
use water of the Yangtze River to make up for the loss in its tributary.

Ironically however, the scheme is said by some as another act of
"robbing Peter to pay Paul" and new problems are predicted to arise.

The Han River will be polluted by water from the Yangtze River, the
aquatic life population in the tributary will be further decimated with
a decrease in water temperature, and the Yangtze River itself is short
of water every winter, according to the Hubei Bureau of South-North
Water Diversion Project, which oversees the construction of the projects.

In addition, dams are being built to raise water levels near major
industrial cities in Hubei including Xiangyang and Qianjiang to improve
shipping and irrigation. But experts claimed that with too many dams the
river will be cut into a string of reservoirs holding large volumes of
municipal sewage. Solving all these problems needs more investment and
proper management, they said.

Mei Jie, author of the Mighty River Goes North, who was born in the
Danjiangkou Reservoir area, said "I feel I have to tell the world about
the suffering of the people in the south and that the water flowing
north is not ordinary water, but blood and tears of the people in the
south."

The water diversion project is a must for the country considering the
chronic water scarcity in Beijing but the capital city is still
expanding and many people there are not fully aware of how scarce water
is and they really need to cherish it, she said.
________________________________________________

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

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

Monday, September 17, 2012

Climate change challenges power plant operations (Washington Post)

http://www.washingtonpost.com/national/health-science/climate-change-challenges-power-plant-operations/2012/09/09/42b26b8e-f6a5-11e1-8b93-c4f4ab1c8d13_story.html

Climate change challenges power plant operations

By Juliet Eilperin

Published: September 9

BOULDER CITY, NEV. � Drought and rising temperatures are forcing water
managers across the country to scramble for ways to produce the same
amount of power from the hydroelectric grid with less water, including
from behemoths such as the Hoover Dam.

Hydropower is not the only part of the nation�s energy system that
appears increasingly vulnerable to the impact of climate change, as
low water levels affect coal-fired and nuclear power plants�
operations and impede the passage of coal barges along the Mississippi
River.

�We�re trying to manage a changing climate, its impact on water
supplies and our ability to generate power, all at once,� said Michael
L. Connor, commissioner of the Bureau of Reclamation, the Interior
Department�s water-management agency. Producing electricity accounts
for at least 40 percent of water use in the United States.

Warmer and drier summers mean less water is available to cool nuclear
and fossil-fuel power plants. The Millstone nuclear plant in
Waterford, Conn., had to shut down one of its reactors in mid-August
because the water it drew from the Long Island Sound was too warm to
cool critical equipment outside the core. A twin-unit nuclear plant in
Braidwood, Ill., needed to get special permission to continue
operating this summer because the temperature in its cooling-water
pond rose to 102 degrees, four degrees above its normal limit; another
Midwestern plant stopped operating temporarily because its water-
intake pipes ended up on dry ground from the prolonged drought.

Scott Burnell, a spokesman for the Nuclear Regulatory Commission, said
the safety of America�s nuclear plants �is not in jeopardy,� because
the sources of water cooling the core are self-contained and might
have to shut down in some instances if water is either too warm or
unavailable.

�If water levels dropped to the point where you can�t draw water into
the condenser, you�d have to shut down the plant,� he said.The
commission�s new chairman, Allison Macfarlane, has asked her staff to
look at �a broad array of natural events that could affect nuclear
plant operations� in the future, such as climate change, Burnell added.

For more than three-quarters of a century, the Hoover Dam has
represented an engineering triumph, harnessing the power of the mighty
Colorado River to generate electricity for customers in not just
nearby Las Vegas but as far away as Southern California and Mexico.

But the bleached volcanic rock ringing Black Canyon above Lake Mead,
the reservoir created by the dam, speaks to the limits of human
engineering. Higher temperatures and less snowpack have reduced the
river�s flow and left the reservoir 103 feet below elevation for its
full targeted storage capacity, which it last came close to reaching
in 1999.

In the Colorado River�s 100-year recorded history, 1999 through 2010
ranks as the second-driest 12-year period, yielding an average of 16
percent less energy.

Scientists have just begun to study some key questions, such as the
rate of evaporation off dams� storage facilities. Predicting river
flows � which can flood one year and dry up the next � is even harder.
________________________________________________

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

Friday, September 14, 2012

IMF Urges Ethiopia to Slow Nile Dam Project to Protect Economy


IMF Urges Ethiopia to Slow Nile Dam Project to Protect Economy

By William Davison - Sep 14, 2012 

Ethiopia should slow the construction of Africa's largest hydropower plant to avoid the dam and other projects starving the rest of the economy of funds, the International Monetary Fund said.

The government began work on the Grand Ethiopian Renaissance Dam, situated on the Blue Nile River near the Sudanese border, in April last year. The 80 billion-birr ($4.5 billion) project that will generate 6,000 megawatts, partly for export to the region, is scheduled to be completed in 2018.

"I think there's a need to rethink some of those projects a little bit to make sure that they don't absorb all domestic financing just for that project," IMF country representative Jan Mikkelsen told reporters yesterday. "If you suck in all domestic financing to just a few projects that money will be used for this and not for normal trade and normal business."

Ethiopia, the world's fifth-biggest coffee producer, is seeking to diversify its economy to reduce a reliance on agriculture for 43 percent of total output. Ethiopian Electric Power Corp., the state-owned utility, began exports to neighboring Djibouti in May 2010 and plans to ship as much as 2,000 megawatts to Egypt and 1,200 megawatts to Sudan by 2020. Power exports to those nations may earn about $1.6 billion a year, according to Access Capital, the Addis Ababa-based research company.

The delayed return on investments for long-term projects increases the need to ensure they don't absorb all domestic financing as they're being built, Mikkelsen said.

'Well-Considered'

Ethiopia's government won't reschedule construction of the Grand Renaissance dam, said Communications Minister Bereket Simon, who co-chairs a fundraising committee for the plant.

"It was a well-considered plan and it's one of the mega projects for which the government commits itself unconditionally," Bereket said in a phone interview yesterday.

In the current fiscal year that ends next July, Ethiopia plans to invest 144 billion birr, about 16 percent of gross domestic product, in industrial development, transport, telecommunications, energy and housing, according to the government's five-year growth plan.

The Grand Renaissance dam is being funded by Ethiopians as foreign lenders were unwilling to finance it because of Egypt's historical refusal to sanction development projects on the river, according to Ethiopia's government. As much as 5 billion birr has been raised for the project so far from the public by selling bonds that pay 5.5 or 6 percent interest, Bereket said.

Bond Purchases

In April 2011, the government introduced a requirement for banks to purchase National Bank of Ethiopia securities worth 27 percent of each loan they disburse. The measure raised 12.6 billion birr for the government to invest in infrastructure projects in its first 16 months, according to Access Capital.

The regulation is "too onerous" and the fund has suggested an adjustment so banks can still fund state investments while freeing up more credit for private enterprises, Mikkelsen said.

Ethiopia's economy grew 7 percent in the 12 months to July 7 and 7.5 percent the previous year, according to the IMF. Inflation is projected to slow to 25.4 percent by the end of this year from 38.1 percent a year earlier, according to data on the lender's website.

Ethiopian officials have vowed to implement the industrialization program of former Prime Minister Meles Zenawi, who died last month. Meles aimed to transform Ethiopia into a middle-income nation by 2025.

"This is the brainchild of the late prime minister and we want to show commitment to his vision," Bereket said.


--
William Davison
Bloomberg News
Addis Ababa, Ethiopia
Mobile: 00251 913 415 322
Skype: william.davison2





Thursday, September 13, 2012

China rushes to build a new generation of mega-dams as thirst for power grows

China rushes to build a new generation of mega-dams as thirst for power
grows

By Tom Phillips, Xiluodu, Yunnan province
13 Sept 2012
The Telegraph (UK)

http://www.telegraph.co.uk/news/worldnews/asia/china/9541869/China-rushes-to-build-a-new-generation-of-mega-dams-as-thirst-for-power-grows.html

Feng Yinkai could do little but point and stare as the claw of a
turquoise excavator skewered what was left of his riverside home,
enveloping him in a haze of brown dust.

"My things are buried in there," the 64-year-old shouted. "That was my
home."

Home, for Mr Feng, was Fotan, a picturesque village perched on the banks
of the Jinsha or Golden Sands River in China's Yunnan province.

Now his house is gone � reduced to a heap of timber and dirt by
demolition crews. And soon the village will also be lost forever, as one
of two massive hydroelectric mega-projects near his home starts
operating and the Jinsha's waters rise, sweeping Fotan from Chinese maps.

"Of course we are willing to move!" Mr Feng sniggered sarcastically as
bulldozers levelled his community. "This is the Communist Party's land,
isn't it?"

Mr Feng is one of hundreds of thousands of people facing relocation as
China embarks on a new, multi-billion dollar hydropower drive in the
country's southwest.

Following the completion of the Three Gorges dam in 2005, Beijing
appeared to shy away from approving new hydroelectric "mega-projects"
amid concerns about the environmental and human cost and the safety of
building dams in earthquake-prone regions.

But campaigners say the race for China's rivers is now gaining momentum
once again, as authorities battle to meet soaring energy demand while
simultaneously slashing carbon emissions by making 15 per cent of its
energy "clean" by 2020.

Ed Grumbine, an American conservationist based in Yunnan's capital
Kunming, said China's thirst for energy and clean-power drive meant such
projects were now being developed "actively and rapidly".

"The government has two incredibly strong and compelling reasons for it
to move forwards. You have got to make a trade-off if your carbon
footprint is as massive and [is] growing [as fast] as China's."

At the centre of China's latest hydro push is the Jinsha, a murky brown
tributary of the world-famous Yangtze. Two vast projects � Xiluodu and
Xiangjiaba � will soon go online here, becoming China's second and third
biggest dams with joint capacity to produce around 20GW - enough to
power almost all the homes in England. With an installed capacity of
12.6GW, Xiluodu is one of the biggest hydroelectric projects being built
anywhere on earth.

Meanwhile a "cascade" of dozens more dams are planned or already under
construction elsewhere on the 1429-mile river.

"The Jinsha is number one right now," said Grumbine, the author of a
book about the fight to protect another of Yunnan's rivers. "We are
talking about 30 [dams], something like that, and I would think most of
them will be built."

The Daily Telegraph was the first western news organisation to be given
access to Xiluodu, a 285.5m tall concrete colossus straddling the river
border between Yunnan and Sichuan provinces.

Through the morning mist, the construction site resembles a futuristic
citadel, its 21 towers humming with activity as thousands of workers
race to complete an 18-turbine dam that will form a key part of China's
energy future.

On surrounding mountains, giant billboards heap praise on the 67.5
billion yuan project that will reputedly be the world's third tallest
dam, as high as a 95-story building.

"A model power plant, built with the bureau's full efforts!" boasts one.
"Make full efforts to support reconstruction and relocation work!"

Yang Jiacong, a senior official from Yongshan county, where Xiluodu is
located, said the dams were transforming the region; schools had been
built, health care improved and incomes were rocketing. "[It is] is a
good thing for the country and [the] people."

Outsiders are flocking to this isolated corner of China. Xiluodu's
62-room Pleasant China Hotel now welcomes foreign guests through two
brand-new Ionic columns, including technicians from electronics giant
Siemens who have draped a German flag from a second-floor balcony.

Impoverished migrant workers have also set up camp along the Jinsha,
charging �5 a day to dismantle homes slated for demolition.

"The dam is good � at least it has brought us job opportunities," said
Gan Longyin, 40, who is sleeping with his family in the shell of one
gutted Fotan residence.

But environmentalists, geologists and river dwellers have major
misgivings about the construction "frenzy".

"[The Jinsha] is big and beautiful. [But] if you have 25 dams and every
100km there is a dam then you don't have a river. You will never have a
river again," said Liu Jianqing, an environmental journalist and
campaigner. "It means you won't have fish, you will lose a lot of land
and many people have to lose their homes. We call that a dead river."

Grumbine said there were concerns about building dams in an area prone
to earthquakes.

"The government needs to pay more attention to the seismic issues. They
down play that big time. If they build a dam and get the carbon benefits
and then have a 6,7 or 8 point earthquake � the dam is going to go and
it is not going to be pretty," he said.

The Jinsha dams will displace fewer people than the Three Gorges dam,
which saw at least 1.2m people relocated. But for those affected the
impact has been immense.

"Nothing good has come out of it for us," complained Long Anji, 33, as
he loaded his home, brick-by-brick, into a truck.

One of 39,210 people relocated in Yongshan county, Mr Long ran a grocers
with his wife until officials ordered them out. "We can do nothing.
Sometimes it is difficult to argue with the local government."

Some have taken shelter on a ravine above the Jinsha, cobbling shacks
together with plastic and window frames stripped from homes that no
longer exist.

"I have no plans for the future," said Bo Guangting, 58, a retired
factory worker who said compensation had been insufficient to secure a
new home. "We have no place to live and the government just ignores it."

Mr Bo claimed those who resisted relocation had been arrested, a story
corroborated by other villagers. "We are still willing to support the
country but we hope there will be a better solution for us," he said.

Mr Yang denied "violent or arbitrary methods were used on the people."
"The majority of the people relocated are content since they moved to a
new home and improved their [living] conditions. They just need some
time to get adjusted to the new environment."

But there have been outbreaks of unrest along the Jinsha. Last year riot
police quelled a "mass disturbance" in Suijiang town, where 60,000
people are being relocated because of the Xiangjiaba dam.
In towns and villages along the Jinsha locals voiced support Beijing but
expressed mistrust and fear of local officials.

"We feel really sad and bitter," complained one man whose home in
Sichuan province's Dukou village was destroyed in May to make way for
the Xiangjiaba dam. He claimed the best compensation packages were
reserved for those with ties to local officials. "We now have far too
many corrupt officials."
Even traditional party allies said the relocation had stretched their
loyalty to breaking point.
Inside his semi-demolished home an elderly retied official shook with
anger as an earth-digger ripped down his neighbour's house.

"If the government actually comes to demolish my house as it is now, I'm
going to risk my life and fight," he shouted. "We support nation
building [and] the dam project, but the relocation treatment is not in
accordance with the party line."

But with the bulldozers closing in, what more could he do?

"I'm over 70, and have lived long enough," he replied. "I will greet
them with a bang."
________________________________________________

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

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

Beyond Big Dams: Turning to Grass Roots Solutions on Water

http://e360.yale.edu/feature/beyond_big_dams_turning_to_grass_roots_solutions_on_water/2571/#.UFIkjHbUgyc.facebook

Beyond Big Dams: Turning to Grass Roots Solutions on Water

by Fred Pearce

Mega-dams and massive government-run irrigation projects are not the
key to meeting world�s water needs, a growing number of experts now
say. For developing nations, the answer may lie in small-scale
measures such as inexpensive water pumps and other readily available
equipment.

How will the world find the water to feed a growing population in an
era of droughts and water shortages? The answer, a growing number of
water experts are saying, is to forget big government-run irrigations
projects with their mega-dams, giant canals, and often corrupt and
indolent management. Farmers across the poor world, they say, are
solving their water problems far more effectively with cheap Chinese-
made pumps and other low-tech and off-the-shelf equipment. Researchers
are concluding that small is both beautiful and productive.

�Cheap pumps and new ways of powering them are transforming farming
and boosting income all over Africa and Asia,� says Meredith Giordano,
lead author of a three-year research project looking at how
smallholder farmers are turning their backs on governments and finding
their own solutions to water problems.

�We were amazed at the scale of what is going on,� Giordano says.
Indian farmers have an estimated 20 million pumps at work watering
their fields. As many as 200 million Africans benefit from the crops
they water. And in

In Ghana, a study found, small private irrigation schemes cover
25 times more land than public projects.

addition to pumps, she notes, �simple tools for drilling wells and
capturing rainwater have enabled many farmers to produce more crops in
the dry season, hugely boosting their incomes.�

Such innovations are becoming a major driver of economic growth,
poverty reduction, and food security, says her report, Water for
Wealth and Food Security, published by the International Water
Management Institute (IWMI), a research center based in Sri Lanka.

The report says better support for this hidden farmer-led revolution
could increase crop yields threefold in some places � and could add
tens of billions of dollars to the household incomes of poor farmers
across Africa and south Asia, the two regions where the majority of
the world�s poor and food-insecure rural people live.

But such help could be a while coming, because much of the revolution
is happening out of sight of governments and international
organizations. In Ghana, the study found, small private irrigation
schemes cover 185,000 hectares � 25 times more land than public
irrigation projects. �Yet when I asked the agriculture minister there
about these schemes, he hadn't even heard of them,� says Colin
Chartres, director of IWMI.

For years, national governments and aid agencies have believed that
centrally planned and run irrigation schemes, mostly tapping large
rivers, are the answer to the world�s growing shortage of reliable
water supplies needed to grow the food for people in arid countries
and those with highly seasonal or unpredictable rainfall. But the
record of such schemes has proved patchy at best. The 2000 report of
the World Commission on Dams, set up by the World Bank, found that a
quarter of dam-fed irrigation schemes watered less than 35 percent of
the land intended, cost over-runs were almost universal, and a quarter
of the irrigated fields were waterlogged or poisoned by salt.� Not
surprisingly, farmers have increasingly been making their own
arrangements for water.

I have seen this revolution taking hold all over the world in recent
years. In northern Nigeria, I saw the canals of the state-owned Kano
Irrigation Project clogged with weeds and the fields often untended,
while a few miles away, farmers lined up pumps on the banks of the
river, diverting its flow to their fields.

Across India, I met farmers who are reviving the ancient tradition of
digging ponds to capture water as it falls onto their land during the
short monsoon, storing it for growing crops during the long dry
season. In Mexico, I found farmers irrigating fields in the middle of
a state irrigation scheme by pumping up the prodigious amounts of
water seeping from unlined irrigating canals.

Charlotte de Fraiture of UNESCO�s Institute for Water Education in
Delft, the Netherlands, agrees there is a hydrological revolution
going on. Rich farmers have always had the money to buy pumps, she
says, but �with the availability of cheap Chinese pumps, this type of
irrigation is accessible to a much larger range of farmers.� You can
now buy pumps at almost any town market for as little as $200.

Even the cheapest models transform livelihoods. �The capacity of even
a small pump with one to five horsepower is bigger than most farmers
need,� says de Fraiture. �So they hire them out.�

In India, small-time rural entrepreneurs travel the countryside on
bikes or donkey carts, with pumps strapped on the back. They rent the
pumps for a dollar an hour, so even the poorest farmers can get some
water from a local river or underground water reserve. In Burkina Faso
in West Africa, pump owners supply a complete service, keeping small
vegetable gardens irrigated for $120 to $150 per growing season.

Of course, pumps need a power source, usually either electricity or
diesel. But in India, some farmers are using dung from their cows to
generate biodiesel. One Gujarati practitioner told IWMI researchers
that dung-powered pumping saved him $400 a year in fuel.

Such farmers are not being green; they are being pragmatic. According
to the IWMI�s Chartres, a big push by aid groups a few years ago to
get poor farmers to invest in treadle pumps to raise water from
shallow aquifers beneath their fields has largely failed. �Most
farmers don�t want to sit in the hot sun all day, pumping up water
with their feet,� he says. �Not when you can hook up a motor pump for
a few dollars.�

Farmers are also finding inexpensive ways to conserve water by using
drip irrigation � delivering water down pipes from where it drips
through holes close to plant roots. Conventional drip irrigation is
costly to install. But in central India farmers have found a novel
solution. They buy rolls of cheap perforated plastic tubing that ice-
pop sellers use to package their frozen candies. The perforations,
which the ice-pop sellers use to tear off each individual popsicle
holder, turn out to be ideal for dripping water close to crop roots.

Too often, we have a picture of poor smallholder farmers as passive
victims of natural disasters, or the grateful recipients of aid from
others. But here they emerge in a different light. It is they � rather
than governments, NGOs or Western aid-givers � who are the active
players, taking charge of their own destiny.

But there is a downside, which the IWMI report touches on, and which
in some regions is a major threat to both future water supplies and
the survival of the farming communities themselves.

The danger is that independent action by farmers to water their fields
is creating a �tragedy of the commons� � in which everyone grabs what
water they can while they can, because they know that all will suffer
when the water runs out. This is especially a risk where farmers are
pumping out underground water reserves at rates that the rains cannot
replenish.

Seven years ago, I toured Gujarat with Tushaar Shah, head of IWMI's
groundwater research station. He was in despair at what he called
�hydrological anarchy� in the Indian state. A million farmers had
bought cheap pumps that they were plugging into the heavily subsidized
state electricity grid. The pumps often ran 24 hours a day, bringing
massive volumes of underground water to the surface. The farmers�
yields often doubled, but the water tables were plummeting. �It looks
like a one-way trip to disaster,� he told me then. �Nobody knows where
the pumps are, or who owns them. There is no way anyone can control
what happens to them.�

Yet today, Shah is one of the co-authors of the IWMI study advocating
more of the same. What changed? He says that, on his advice, the state
government of Gujarat has tamed the anarchy by restricting power
supplies for farmers to eight hours a day. Water tables are still
falling, he admits, but with pumping time limited, the decline is much
slower than before.

Many will think the IWMI report underplays the risk of hydrological
anarchy. But, when I put this to Chartres, he countered that in many
places, there is still huge scope to encourage farmers to make better
use of both surface and underground water. In some of the poorest
parts of eastern India, there is water to spare and there are better
livings to be had. In Madhya Pradesh, for instance, farmers have
increased their incomes by 70 percent by constructing on-farm ponds.

The story is the same in sub-Saharan Africa. Much of the continent is
often thought of as short of water. The images of hungry people
searching for food in droughts are seared in our memories. But much of
Africa has abundant water for much of the time � what�s needed is to
find better ways to store and tap it.

State-sponsored irrigation projects in Africa have a dismal record.
IWMI quotes a UN estimate that only 3 percent of sub-Saharan Africa�s
renewable water resources are currently used for agriculture. Given
how little is known about African farmers� informal irrigation, this
is probably an underestimate. But even so, there is clearly room to
scale up. Millions of Africans could transform their livelihoods by
deploying pumps, according to Chartres. �There are huge investment
opportunities for unlocking the potential of this farmer-led
approach,� he says.

What should be done? Chartres calls for more investment in bringing
electricity to rural communities, encouraging the local manufacture of
pumps, and supporting local water entrepreneurs. He says this should
be coupled with an effort to map water reserves and prevent farmers
from taking too much when supplies are tight.

MORE FROM YALE e360

Can �Climate-Smart� Agriculture
Help Both Africa and the Planet?
Can �Climate-Smart� Agriculture Help Both Africa and the Planet?
One idea promoted at last year�s climate talks in Durban was �climate-
smart agriculture,� which could make crops less vulnerable to heat and
drought and turn depleted soils into carbon sinks. But, as Fred Pearce
reports, some critics are skeptical that it will benefit small-scale
African farmers.
READ MORE
De Fraiture agrees. She despairs that governments and donors alike
�continue to focus their attention and investments on the
underperforming public irrigation sector, when private irrigation is
both more important and has larger potential� for scaling up.

The new thinking from IWMI about managing water supplies has a
striking parallel with how researchers are discussing other global
commons, notably forests. Once it was assumed that only states could
protect forests. But recent research suggests that local people often
know best how to both protect and use them.

Now the same lesson seems to be emerging for water.

Governments cannot shirk their responsibility for ensuring that water
is used wisely. But perhas they should give up the idea that the water
in rivers and underground is theirs alone � or that only they can
manage it.

POSTED ON 13 Sep 2012 IN Business & Innovation Business & Innovation
Climate Energy Policy & Politics Policy & Politics Pollution & Health
Sustainability Water Africa Africa Europe
________________________________________________

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

Diamer Bhasha Dam: Russia wants to take up project without bidding

Diamer Bhasha Dam: Russia wants to take up project without bidding
12 September 2012
Daily The Pak Banker

ISLAMABAD. Russia is seeking direct award of a construction contract for
the $13 billion Diamer Bhasha Dam in a government-to-government deal
without resorting to international competitive bidding, sources say.

Faced with water and power shortages, Pakistan is looking for funds from
China and Russia, who in turn want a government-to-government deal
without international bidding.

The government's search for funds came after multilateral donors asked
Pakistan to get a no-objection certificate from India for the dam's
construction.

China and Russia want a similar arrangement for undertaking the
Iran-Pakistan gas pipeline project, which has faced fierce opposition
from the United States.

According to sources, Pakistan and Russia are likely to strike a final
deal on the dam during visit of Russian President Vladimir Putin to
Islamabad next month.

"A meeting of Pak-Russia inter-ministerial commission will be held
before the visit of Russian president, which will work out a mechanism
for financing mega projects," a government official said.

In a meeting of the Inter-governmental Commission (IGC) held here on
Monday, government officials gave a detailed briefing to the Russian
team on planned energy projects. However, sources said, Russia made no
firm commitment to the dam.

According to the official, it was just a preparatory meeting to discuss
different projects, which could be tabled during deliberations with the
Russian president.

In the IGC meeting, the Russian side was told that Bhasha Dam was a
strategic project with power generation capacity of 4,500 megawatts to
overcome the energy crisis. It will have water storage capacity of 8.5
million acre feet to feed the agricultural sector.

Chinese offer

The Chinese government has already offered Pakistan skilled labour for
the construction of Bhasha Dam. China has 17,000 skilled workers, who
have worked on the giant Three Gorges Dam, which is producing 30,000
megawatts of electricity.

On the other hand, multilateral donors have asked Pakistan to seek a
no-objection certificate from India to pave the way for financing the
dam, which they say is situated in a disputed territory. Instead, they
have offered to finance another project, Dasu hydropower, but the
government has rejected the plan and wants to complete Bhasha Dam first.

On Monday, a delegation of the World Bank, headed by Country Director
Rachid Benmessaud, called on Federal Water and Power Minister Ahmed
Mukhtar and once again offered to finance phase-I of the Dasu project.

Dasu hydropower project is situated 7 km upstream of Dasu village on
Indus River and 350 km from Islamabad. The project is located in
Kohistan district of Khyber-Pakhtunkhwa.
________________________________________________

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

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

Wednesday, September 12, 2012

Diamer Bhasha Dam/Guyana endorses US$506M construction deal in China

Diamer Bhasha Dam: Russia wants to take up project without bidding
12 September 2012
Daily The Pak Banker

ISLAMABAD. Russia is seeking direct award of a construction contract for
the $13 billion Diamer Bhasha Dam in a government-to-government deal
without resorting to international competitive bidding, sources say.

Faced with water and power shortages, Pakistan is looking for funds from
China and Russia, who in turn want a government-to-government deal
without international bidding.

The government�s search for funds came after multilateral donors asked
Pakistan to get a no-objection certificate from India for the dam�s
construction.

China and Russia want a similar arrangement for undertaking the
Iran-Pakistan gas pipeline project, which has faced fierce opposition
from the United States.

According to sources, Pakistan and Russia are likely to strike a final
deal on the dam during visit of Russian President Vladimir Putin to
Islamabad next month.

"A meeting of Pak-Russia inter-ministerial commission will be held
before the visit of Russian president, which will work out a mechanism
for financing mega projects," a government official said.

In a meeting of the Inter-governmental Commission (IGC) held here on
Monday, government officials gave a detailed briefing to the Russian
team on planned energy projects. However, sources said, Russia made no
firm commitment to the dam.

According to the official, it was just a preparatory meeting to discuss
different projects, which could be tabled during deliberations with the
Russian president.

In the IGC meeting, the Russian side was told that Bhasha Dam was a
strategic project with power generation capacity of 4,500 megawatts to
overcome the energy crisis. It will have water storage capacity of 8.5
million acre feet to feed the agricultural sector.

Chinese offer

The Chinese government has already offered Pakistan skilled labour for
the construction of Bhasha Dam. China has 17,000 skilled workers, who
have worked on the giant Three Gorges Dam, which is producing 30,000
megawatts of electricity.

On the other hand, multilateral donors have asked Pakistan to seek a
no-objection certificate from India to pave the way for financing the
dam, which they say is situated in a disputed territory. Instead, they
have offered to finance another project � Dasu hydropower, but the
government has rejected the plan and wants to complete Bhasha Dam first.

On Monday, a delegation of the World Bank, headed by Country Director
Rachid Benmessaud, called on Federal Water and Power Minister Ahmed
Mukhtar and once again offered to finance phase-I of the Dasu project.

Dasu hydropower project is situated 7 km upstream of Dasu village on
Indus River and 350 km from Islamabad. The project is located in
Kohistan district of Khyber-Pakhtunkhwa.

***

Guyana endorses US$506M construction deal in China
September 12, 2012
KNews -
http://www.kaieteurnewsonline.com/2012/09/12/guyana-endorses-us506m-construction-deal-in-china/

The construction agreement of what would be Guyana�s costliest
infrastructural project � the Amaila Falls Hydroelectric Project (AFHEP)
� has been signed, government announced yesterday. Construction is
expected to start in mid-2013.

According to a statement issued by the Government Information Agency
(GINA), the Engineering, Procurement and Construction (EPC) agreement
for the construction of the Amaila Falls Hydro project and Transmission
Line was yesterday executed in Xian, China, by Sithe Global, the
developer, and China Railway First Group (CRFG), the construction
company. There were no indications before yesterday that a government
team had left for China for the signing.

The contract, valued at US$506M, was signed by Bruce Wrobel, Chief
Executive Officer (CEO) of Sithe Global, and Dr. Sun Yonggang, Chairman
of China Railway First Group (CRFG).
According to GINA, speaking at the signing ceremony, Finance Minister
Dr. Ashni Singh described the occasion as a historic moment for Guyana
and for Guyana-China relations. He alluded to "the strong historic
relations between the two countries and the increasing role that Chinese
enterprises are playing in the development of Guyana."

According to the Minister, the Amaila Falls project presents an
opportunity for these relations to enter a new phase as the project
represents the single largest investment in Guyana and one of the
largest Chinese investments in the Caribbean.

Also in China for the signing were Chairman of the Guyana Power and
Light, Winston Brassington; Office of the President Advisor, Steven
Grin, along with representatives of the Province of Shaanxi, the China
Development Bank, China Export and Credit Insurance Corporation, the
Inter-American Development Bank (IDB), and other representatives of
Sithe Global and China Rail.

"This transformational project is the single largest investment in
Guyana and will allow Guyana in one single step to move from being
almost entirely dependent on costly fossil fuels to being supplied
almost entirely by renewable energy. We are delighted to have such
credible partners recognize the importance of the project and be ready
to invest private capital in Guyana," Minister Singh said.

Wrobel stated that, "We are pleased to be associated with this project,
long in the making, that will make a huge difference to the people of
Guyana and is representative of the globalised world that we inhabit, a
project with many important players, such as the CRFG, CDB, IDB, the
Government of Norway, and the GoG."

The Chinese construction firm, CRFG, was founded in 1950 and is a
state-owned entity, with over US$9B in annual revenue. It is part of
China Railway Engineering Group, a company with over US$90B in revenue
and the third largest construction company in China and one of the top
100 construction companies in the World, GINA said. CRFG is
headquartered in Xian, China.

Sithe Global is a fully-owned subsidiary of the Blackstone Group.
Blackstone is said to be one of the largest private equity funds in the
world with over US$120B under management. China Development Bank is one
of the largest commercial banks in China with assets in excess of
US$900B. The project is being led by the Shaanxi branch of the CDB, in
Xian. The IDB is one of Guyana's oldest development partners in the
energy sector and an institution with over US$171B in capital.

In June, Sithe Global said that it was hoping to have financial closure
on the project by March 2013. It has established a local company, Amaila
Falls Hydro Inc. (AFH), to handle the project in Guyana.

There were no details in the statement yesterday as to whether there was
financial closure for the project and how the US$840M will be spent.

During meetings in Guyana earlier this year, Sithe Global officials had
offered a detailed look into the project costs, timelines and issues
leading up to the financial closure of the project.

The company had also warned of cost increases.

"One risk of delay is that the project's construction contract price
could increase. Such increases could result from changes in foreign
currency exchange rates or other factors. While previous currency
adjustments resulted in substantial cost increases, the US Dollar to
Chinese Yuan Renminbi foreign exchange rates have not moved
significantly in the first half of 2012."

The project has been marred by concerns over the high costs which
started from US$600M and has risen to over US$800M without a stone being
laid or a screw turned.

It was also hampered by the scandalous US$15.4M road project contract
awarded under controversial circumstances to Makeshwar 'Fip' Motilall.
The contract was terminated earlier this year because of the absence of
a performance bond.

The Amaila Hydropower Project, (approximately 165MW capacity), to be
located in western Guyana, in Region Eight, will include a new 270 km
transmission line and new substations leading to Georgetown. Currently,
nearly all electric generation in Guyana is provided through small units
burning either diesel or heavy fuel oil. A significant portion of the
country�s foreign exchange is spent on importing fossil fuel.
________________________________________________

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

Monday, September 10, 2012

Important victory in Omkareshwar struggle!

Narmada Bachao Andolan Press note -10th September 2012

Important victory for the Jal Satyagrahis , Water level reduced to 189
meters in Ghoghalgaon!!
State government announces that all Omkareshwar affected will be given
land for land !!
A Contempt petition will be filed in the High court in connection to the
Indira Sagar Dam !!
Important victory for the JalSatyagrahis , Water level reduced to 189
meters in Ghoghalgaon!!

On the 17th day of the Jal Satyagrah at Ghogalgaon, the chief minister
made the announcement of reducing the water level to 189 meters in the
Omkareshwar dam and that land for land will be given to all the people
affected by Omkareshwar dam. It was announced that a 3 minister team has
been constituted to deal with the issues and problems of the Omkareshwar
Dam. With this announcement the water level of the dam was reduced to
189 meters. NArmada Bachao Andolan welcomes this decision. It is worth
mentioning that along with senior activist Chittaroopa Palit 50 Men and
women had been staging a Jal satyagrah by continuously standing in the
rising waters of the Dam. By the 17th day, many of them had rotting skin
and their health was deteriorating. But they determination was strong
and they continued standing in water even though many times the water
reached above their necks. The Satyagrahis were protesting against the
Open violation of the Supreme court by increasing water level of the Dam.

State government announces that all affected by Omkareshwar will be
given land for land !!

The state government also accepted that they will have to give land for
land to the displaced people/ Farmers of Omkareshwar Dam. This
announcement is a big victory for the Jal Satyagrahees standing in water
for the past 17 days. The Government also announced that their will be a
three minister Committee that will work towards resolving the problems
and issues related to the Omkareshwar dam in a satisfactory manner .
This Committee will comprise of Industries minister Kailash
Vijayvargiya, The tribal and scheduled caste Minister Vijay Shah and
Narmada valley development Minister Kanhaiya Lal Aggarwal.

A Contempt petition will be filed in the High court in connection to the
Indra Sagar Dam.
Jal Satyagrah continues Khardana and Badkhaliya.

At the same time The Jal Satyagraha continues in Khardana and
Badkhaliya. The NBA has decided that they will immediately file a
contempt petition against the Governments decision to increase of the
water level to 260 meters. It is to be mentioned that according to the
orders of the High court and the supreme court , the water level can
not be raised above 260 meters.

The Voice of the Jal Sataygrahis has reached the whole country and there
has been widespread support for the Satyagrahis. The Media too played
its role in showing the world the inhuman atrocity being faced by the
Displaced people. All this forced the State government to take a
division in favor of the displaced people . Narmada Bachao Andolan is
grateful to all its supporters and the media. This victory would not
have been possible without their support. The Narmada Bachao Andolan has
pledged that The Satayagrah site will be converted into a Land Rights
Site. And there it will be ensured that all displaced will get land for
land and all other benefits of rehabilitation.

Alok Agarwal
Narmada Bachao Andolan
2, Sai Nagar, Mata Chowk,
Khandwa, Madhya Pradesh -450 001
Telefax : 0733 - 2228318
E-mail : nbakhandwa@gmail.com
________________________________________________

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

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

Friday, September 7, 2012

Yunnan's largest hydroelectric dam goes online

Yunnan's largest hydroelectric dam goes online
GoKunming.com
Sept 7 2012

http://gokunming.com/en/blog/item/2788/yunnans_largest_hydroelectric_dam_goes_online

The largest hydroelectric project on the Upper Mekong River Basin
officially began generating power yesterday. The Nuozhadu dam (糯扎渡水电站)
near Pu'er will be China's fourth largest hydropower plant when
finished in 2014, energy website RedNet is reporting.

The embankment dam rises 261.5 meters above the Mekong River, or
Lancang River (澜沧江) in Chinese. Construction on the dam is not
complete and only one of a planned nine 650 megawatt generators is
currently in operation.

When fully operational the power plant will produce an estimated
24,000 gigawatts of electricity annually. In practical terms, that is
enough energy to power New York City for seven months. Project
engineers at the power plant's September 6 opening ceremony said
energy generated by Nuozhadu will save more than nine million tons of
coal per year.

The 61 billion yuan (US$9.6 billion) project broke ground in 2004 and
is part of China's sprawling Western Development Strategy (西部大开发战略).
One of the key goals of this policy is to utilize the region's
numerous rivers for power production. Much of the electricity will be
sent to larger, more energy-hungry cities on the east coast. Some of
the power generated by the dam will be sold to Laos, Myanmar, and
Vietnam.

The project broke ground in 2004 and the reservoir behind the dam
began filling last year. When completely full, the new Nuozhadu
reservoir will have a surface area of 320 square kilometers and hold
water equivalent to 11 Dianchi lakes.

Nearly 43,000 people must be relocated to make way for the slowly
filling lake. Those efforts began in 2011 and will continue through
this year.
________________________________________________

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

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

Wednesday, September 5, 2012

Morgan Stanley-led group invests $150 million more in China hydropower firm

Morgan Stanley-led group invests $150 million more in China hydropower firm

By Stephen Aldred
Reuters
September 5, 2012

http://www.reuters.com/article/2012/09/05/us-morganstanley-chinahydro-idUSBRE8840F820120905

A consortium led by a Morgan Stanley (MS.N) infrastructure fund has made
a second $150 million investment in unlisted Chinese hydropower company
Zhaoheng Hydropower Holdings Ltd, Zhaoheng said.

The consortium had made a similar-sized investment in Zhaoheng in 2010
and the combined $300 million represents the largest private investment
in China's renewable energy and hydropower sector so far, the company
said in the statement.

Other members of the consortium include China-focused fund Fountainvest
Partners and Asia buyouts fund Olympus Capital. Olympus previously
invested $47.5 million in Zhaoheng in 2009, according to a statement on
the private equity firm's website.

Zhaoheng said it plans to use the investment to buy hydropower plants
and exceed one gigawatt of operating capacity over the next two years.
The company now owns and operates over 30 hydropower plants in seven
provinces with over 650 megawatts of installed capacity.

China is the world's biggest producer of hydroelectric power, with over
200 gigawatts of installed generation capacity. China's renewable energy
law promotes growth of the hydropower sector, and the country's 12th
five-year plan calls for China to grow generation of electricity from
the sector to over 450 gigawatts by 2030.

The U.S. bank's investment in Zhaoheng is through Morgan Stanley
Infrastructure Partners, which is a $4 billion global infrastructure
fund of Morgan Stanley Infrastructure. The U.S. bank makes its
infrastructure investments through Morgan Stanley Infrastructure.

(Reporting by Stephen Aldred; Editing by Muralikumar Anantharaman)
________________________________________________

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

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

Tuesday, September 4, 2012

Diamer Bhasha Dam, Pakistan: Govt to approach China, local banks for financing

Diamer Bhasha Dam: Govt to approach China, local banks for financing
PakTribune Pakistan News Service
September 3, 2012

http://paktribune.com/business/news/Diamer-Bhasha-Dam-Govt-to-approach-China-local-banks-for-financing-10322.html

ISLAMABAD: With power shortage increasing continuously in the face of
rising consumer demand, the government has decided to seek financing
from China for the mega $13 billion Diamer Bhasha Dam with power
production capacity of 4,500 megawatts and also take loans from domestic
commercial banks by offering guarantees.

According to sources, Prime Minister Raja Pervez Ashraf will place a
request before his Chinese counterpart during the visit on September 10
for financing the Diamer Bhasha Dam, for which multilateral donors
including the World Bank and Asian Development Bank (ADB) had sought
no-objection certificate (NOC) from India due to the dam "being situated
in a disputed territory".

The decision to approach China was taken in a meeting held at the
Planning Commission last month as Beijing had wide experience of
building large dams, a senior government official said. During the
meeting, different options were considered for arranging capital for the
dam, which is vital for wiping out most of the gap between electricity
demand and supply in the country.

In the meeting, the government officials also decided to borrow money
from banks with 50% guarantees to be provided by the central government
and the remaining by the Water and Power Development Authority (Wapda).
The loans will be taken against security of assets like turbines of dams.

"The prime minister has been briefed on the plan for seeking financing
from China and he will discuss it with his Chinese counterpart during
the upcoming visit," the official said.

The Chinese government had already offered Pakistan skilled labour for
the construction of the dam. Beijing has 17,000 skilled workers, who
worked on the Three Gorges Dam, which is producing 30,000 megawatts of
electricity.

Sources said China had also assured Pakistan that it would hire a
company to finance the construction of the dam. China Development Bank
was also willing to pour money into the project. However, they said
China would seek guarantees from the Government of Pakistan.

Pakistan had been engaged with China since 2008 and had shared with it
the draft of a detailed engineering design of the dam.

In the draft, German firm Lemhyer put the cost of the dam at $8.5
billion in 2008 against estimates of $6.5 billion in 2005. The cost has
further gone up and now stands at $13 billion, say some estimates, as
the project has been considerably delayed compared to the government�s
plan to start construction work by 2009.

According to officials, the government has rejected a proposal to impose
surcharge on power consumers, like the one being used to finance the
Neelum Jhelum hydropower project, to raise funds for the Bhasha Dam.

"The proposal was opposed by different stakeholders as consumers were
already paying a higher power tariff," an official remarked.

Consumers are paying a surcharge of 10 paisa per unit for Neelum Jhelum
hydropower plant, which will generate Rs6 billion per annum for the project.

The country has been searching for alternative financing sources since
the multilateral donors asked Pakistan to seek NOC from India for Diamer
Bhasha dam. The donors instead offered to finance the Dasu hydropower
project. However, the government has rejected the donors� programme and
wants to complete Bhasha Dam first.

The Dasu project is situated 7 km upstream of Dasu village on Indus
River and 350 km from Islamabad. The project is in Kohistan district of
Khyber-Pakhtunkhwa.
________________________________________________

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

Urgent alert: Narmada oustees need your support

From: Narmada Bachao Andolan
2, Sai Nagar, Mata Chowk, Khandwa, M.P
Tel: 0733-2228418, 09425394606. 09425928007
E-mail: nbakhandwa@gmail.com

ACTION ALERT!

Oustees of Omkareshwar and Indira Sagar dam fighting for their rights
and life need your support
Oustees standing in dam water for last 5 days

Dear Friends,

The oustees of the Omkareshwar and Indira Sagar dam in the Narmada
valley in Madhya Pradesh, who are fighting for their rights and their
life are in the need of your urgent support. The Government and the
company NHDC Limited which has built these dams are illegally and in
violation of the Orders of the High Court and Supreme Court raising the
water level in these dams, causing submergence of lands and houses of
thousands of oustees without rehabilitation. 34 oustees of Omkareshwar
dam along with senior activist of Narmada Bachao Andolan Chittaroopa
Palit have been on "Jal-Satyagraha" and are standing in the Omkareshwar
dam water for last 5 days. Many of these jal satyagrahies have developed
blisters in their feet. In the Indira Sagar dam area also today Jal
Satyagraha has started at 3 places in the rising water of the dam.

OMKARESHWAR DAM

In May 2011, the Apex Court ruled that the authorities are obliged to
allot a land for land and a minimum of 2 ha. of land, well in advance of
the completion of dam construction. However, although an entire year has
passed since the judgment, the State has failed to allot land to the
over 2500 land-holder families. It may noted that recently even the
Grievance Redressal Authority has said in its orders that the
rehabilitation policy has not been followed and all the oustees of
Omkareshwar dam should be given land in lieu of land. Over 1000 families
remain to be allotted even house-plots. Various other entitlements
remain to be provided.

Yet, the State Government and the project authorities have announced
that they intend to raise the water level of the Omkareshwar dam to 193
meters from the earlier level of 189 meters and on 25th August, 2012
when the authorities raised the level of the reservoir by 1.5 meters,
the oustees started Jal Satyagraha and since then they are standing in
the water of Omkareshwar dam.

INDIRA SAGAR DAM

Similarly, in the Indira Sagar dam area also thousands of oustees are
yet to be given land and other rehabilitation entitlements. There are
orders of Supreme Court and High Court that the water level in Indira
Sagar dam cannot be raised beyond level of 260 meters. In spite of this,
the government has started raising the water level beyond 260 meters. In
protest, Jal Satyagraha has started today at three places in the Indira
Sagar dam submergence areas in villages Khardana, Badgaon Mal and
Badkhaliya of Districts Harda and Khandwa.

The oustees of the Omkareshwar and Indira Sagar dam urgently need your
support.

We request you to :

Write to Chief Minister, Madhya Pradesh and Collector, Khandwa
asking him to bring the water level down to 189 meters in Omkareshwar
dam and 260 meters in Indira Sagar dam and to rehabilitate all the
oustees by giving them land and other rehabilitation
entitlements.(Petitions are attached, pl. send e-mail, and fax)
Come to the Narmada Valley and join the Jal Satyagraha of the oustees.
Hold demonstration/other programmes in support of Jal Satyagraha.

Thank you for your support,
In solidarity,
Alok Agarwal, Radheshyam Tirole, Sakubai, Radhabai

Note : Khandwa is on Delhi-Mumbai, Howrah- Mumbai rail line. 3 hrs by
road from Indore, 4 hrs by train from Bhopal

Contacts : Alok Agarwal (094259-28007, 09009710068), Chittaroopa Palit
(09425394606), Gulabchand (09424524638), Khandwa office : 0733-2228318

-----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
To,
Shri Shivraj Singh Chouhan,
Chief Minister,
Government of Madhya Pradesh,
Vallabh Bhawan,
Bhopal
Fax: 91-755-2441781, 2540501,
E-mail: cm@mp.nic.in

Subject : Urgent action regarding oustees of Omkareshwar and Indira
Sagar Dams.

Dear Sir,

We have learnt with deep shock that the water level in Omkareshwar and
Indira Sagar dams in the Narmada Valley have been illegally raised
causing submergence of numerous lands and houses of oustees of these
dams. Oustees of these dams have not been rehabilitated and resettled as
per rehabilitation policy by giving them agricultural land and other
rehabilitation entitlements. Although the Supreme Court has clearly
ordered that these oustees have to be rehabilitated 6 months before
submergence, thousands of families who are yet to be rehabilitated are
now being submerged in complete violation of Supreme Court and High
Court orders.

We have also learned that many oustees have been standing in Omkareshwar
dam water and also in Indira Sagar dam, demanding reduction in water
level and rehabilitation before submergence. It is extremely disturbing
that the oustees have to embark on Jal Satygraha to get their due
rehabilitation rights.

We, therefore request you to immediately order reduction in water level
in Omkareshwar dam to 189 meters and in Indira Sagar Dam to 260 meters
and rehabilitate all the oustees by giving agricultural land and other
rehabilitation entitlements.

Thanking you,
----------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
To,
The Collector,
District Khandwa,
Khandwa,
Madhya Pradesh.
Phone : 91-733-2224153(O), 91-733-2226666(O), 91-733-2223333(R);Fax :
91-733-2224233
E-mail: dmkhandwa@mp.nic.in

Subject : Urgent action regarding oustees of Omkareshwar and Indira
Sagar Dams.

Dear Sir,

We have learnt with deep shock that the water level in Omkareshwar and
Indira Sagar dams in the Narmada Valley have been illegally raised
causing submergence of numerous lands and houses of oustees of these
dams. Oustees of these dams have not been rehabilitated and resettled as
per rehabilitation policy by giving them agricultural land and other
rehabilitation entitlements. Although the Supreme Court has clearly
ordered that these oustees have to be rehabilitated 6 months before
submergence, thousands of families who are yet to be rehabilitated are
now being submerged in complete violation of Supreme Court and High
Court orders.

We have also learned that many oustees have been standing in Omkareshwar
dam water and also in Indira Sagar dam, demanding reduction in water
level and rehabilitation before submergence. It is extremely disturbing
that the oustees have to embark on Jal Satygraha to get their due
rehabilitation rights.

We, therefore request you to immediately order reduction in water level
in Omkareshwar dam to 189 meters and in Indira Sagar Dam to 260 meters
and to rehabilitate and resettle all the oustees by allotting
agricultural land to them and providing them other rehabilitation
entitlements.

Thanking you,
________________________________________________

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

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

Monday, September 3, 2012

Nigeria: Federal Government, China Bicker Over Mambilla, Zungeru Power Projects

Nigeria: FG, China Bicker Over Mambilla, Zungeru Power Projects
Published in Daily Trust
By Yunus Abdulhamid, 3 September 2012
http://allafrica.com/stories/201209030657.html


The Federal Government moved at the weekend to spin off parts of the
Mambilla and Zungeru power projects being handled by two Chinese
companies because of what a minister said were concerns over competence
of the firms involved.

But the Chinese government said any attempt to take away any parts of
the two projects from the companies would amount to a breach of contract
as the firms are competent to do the job.

Mambilla Hydro Power Project, handled by SINO Hydro, is expected to
generate 3500 megawatts of electricity while the Zungeru Hydro Power has
a 700mw capacity, being executed by CGGC. They are among the nation's
long-running power projects that failed to materialise for many years
despite guzzling billions of naira.

At a meeting weekend, Minister of State for Power, Mr. Darius Ishaku,
told the Chinese Ambassador to Nigeria, Mr. Beng Boqing, that government
was concerned that the two projects were not moving fast enough because
they were "too large" for the Chinese companies.

A statement by spokesman for the Power Ministry, Greyne Anosike, quoted
the minister as saying the "two projects in particular were too large
that no single company can execute each of them alone and deliver at a
stipulated timeline."

Ishaku said the Federal Government was planning to "pair or subcontract
some parts of the projects so that the objectives for the investment is
realised within the expected time frame."

He said the Federal Government is not comfortable with the companies and
has reasons to doubt their abilities, and asked the Chinese ambassador
to give a guarantee that the two firms could deliver.

Ishaku said Nigeria cancelled the agreement it entered into with CGGC
when it became obvious that a single company could not go it alone and
that the Federal Government had called on CGGC to pair with SINO among
other companies to speed up work on the Mambilla project.

But Ambassador Beng vouched for the competence of the companies, which
he said were as famous in China as they are in Nigeria in hydro power
technology.

"Chinese Government appreciates the central role stability in electric
power will portend for Nigeria in her quest to be a leading nation and
emphasised that Chinese expertise in hydro power construction is only
one of the Chinese entities working in various sectors of the Nigeria
economy to consolidate China-Nigeria 40 years of friendship," he said.

"Chinese hydro power companies especially CGGC and SINO are competent,
popular and competitive in China and had played eminent roles in the
industrial development of Nigeria."

He said it was wrong for the country to work out on an agreement without
consulting the other parties.

"Agreement is an agreement and its sanctity involved be sacred," the
Ambassador said.


Nigeria: Power Projects - FG Seeks Guarantee From China
By Chineme Okafor, 3 September 2012
Published in "This Day"
http://allafrica.com/stories/201209030862.html

Abuja � The Federal Government at the weekend asked China to attest to
the competence and integrity of two Chinese firms contracted to execute
two power projects in Nigeria.

The government said such a gesture would be necessary in view of the
importance it attached to power projects such as the 3,500 megawatts
Mambilla hydropower project and the 700mw Zungeru hydropower project
being handled by two Chinese firms, SINO Hydro and China Gezhouba Group
Company Ltd (CGGC).

Minister of State for Power, Mr. Darius Ishaku, at a meeting with the
Chinese Ambassador to Nigeria, Mr. Beng Boqing, in Abuja, stated the
concern of the Federal Government on the two companies handling the
projects.

"The guarantee became important as a result of the importance the
government places on the two dams in shoring up power supply. These two
projects in particular are too large that no single company can execute
each of them alone and deliver at a stipulated timeline, which is why we
are worried," a statement from the ministry quoted the minister as saying.

The minister added that the government would subcontract some parts of
the project to other contractors to quicken the realisation of the
projects' objectives within the expected period.

According to him, the Federal Government is not comfortable with the
companies and has reasons to doubt their ability to successfully handle
the projects.

This, he said, had made the Federal Government to direct CGGC to pair
with SINO Hydro to achieve the targets set for the various projects.

Ishaku, while responding to questions from Boqing, explained that
Nigeria cancelled the agreement it entered into with CGGC when it became
obvious that a single company could not execute the project alone and
thus paired CGGC with SINO and other companies to speed up work on the
Mambilla hydropower project.

Vice-President Namadi Sambo had in August chaired a meeting to finalise
the formation of a consortium for Mambilla hydropower project.

The companies include SINO-Hydro and CGGC, while the consulting firms
are being led by TRACTEBEL Engineering-Coyne-et Beller.

In response to the government's demand, Boqing, who vouched for the
integrity of the companies, said they were as famous in China as they
are in Nigeria in areas of hydropower technology.

He said: "The Chinese government appreciates the central role stability
in electric power will portend for Nigeria in her quest to be a leading
nation. Chinese hydropower companies, especially CGGC and SINO, are
competent, popular and competitive in China and had played eminent roles
in the industrial development of Nigeria."

Noting that it was wrong for Nigeria to disregard an agreement it signed
without consulting its partners or other parties, he added: "An
agreement is an agreement and the sanctity involved should be sacred."
________________________________________________

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