Oct 4, 2011

Myanmar - 'Myanmar dam not an eco threat': Chinese businessman


A senior Chinese executive involved in Myanmar's halted Myitsone hydropower project on Monday refuted claims by green NGOs that the dam poses a serious threat to the environment.

According to local media, Myanmar President Thien Sein has suspended work on the plant in the country's northern Kachin State over concerns the dam will inundate an area roughly the size of Singapore, submerging dozens of villages and displacing at least 10,000 people.

The project is the largest of several dams planned for the upper reaches of the Irrawaddy River.

However, in an interview with Chinese media, Lu Qizhou, president of China Power Investment, Myitsone's largest investor, insisted more than 100 experts from China and Myanmar had conducted environmental impact studies and found no cause for alarm.

"According to site investigations, vegetation only accounts for a small part in the flooded area, and the flooded land only accounts for 1.4 percent of the whole (Irrawaddy) basin," he said, adding that any protected plants are already widely found outside the reservoir area.

Lu also said his company has assisted in the resettlement of 2,146 people, while fully respecting local religious and ethnic customs.

The Myitsone project is a joint venture between China Power Investment, Myanmar's Ministry of Electric Power and Asia World, a private company in Myanmar.

Lu said that China Power Investment will be responsible for operation of the dam for 50 years, following which it will be transferred to the Myanmar government for free. After its transfer, the Myanmar government will have a fixed-asset increase worth tens of billions of dollars, in addition to hundreds of billions of dollars in direct economic benefits, he added.

"Either in terms of direct economic benefit or indirect profit, the upstream Irrawaddy hydropower project will significantly boost economic and social development in Myanmar," Lu said, in answer to NGO claims that the plant will benefit only China. "In terms of direct economic benefit, when the hydropower stations, including Myitsone, are completed, Myanmar will gain US$54 billion through taxation, free electricity and share dividends, far more than China Power Investment's return during our operation period," he said.

China's Foreign Ministry on Saturday urged consultation over the suspended project, saying the legitimate rights and interests of companies involved should be protected.

The Myitsone project was started in December 2009. With an installed capacity of 6,000 megawatts, it is estimated to yield 29,400 million kilowatt-hours a year on completion, scheduled to be in 2019.

Lu said the project will help Myanmar's electric industry realize leapfrog development, raise flood prevention standards, improve infrastructure (750 km of roads will be built) and boost job opportunities, as more than 40,000 workers will be needed during construction.

Myanmar is regarded one of few countries in the world with abundant hydropower resources, although its current rate of development and utilization is only 2.45 percent, compared with an average of 60 percent in developed nations.

News Desk
China Daily



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