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China begins construction of Tibet mega-dam

China begins construction of Tibet mega-dam

China has begun construction of the world's largest hydro-electric dam along a river which runs through Tibet and India, despite concerns from its neighbours that millions of people could be negatively impacted by it.
Once built, the dam could dwarf the record-breaking Three Gorges Dam on the Yangtze River in central China and is expected to power the Tibetan region.
It is planned to have five cascade hydro-electric dams, which together would generate as much energy annually as the United Kingdom consumes in a single year.
Beijing has said the dam will help meet power demand in Tibet and the rest of China without having a major effect on downstream water supplies or the environment.
Operations are expected sometime in the 2030s.
But the governments of India and Bangladesh have expressed concerns about the project.
The waterway being dammed, the Yarlung Zangbo, becomes the Brahmaputra River as it leaves Tibet and flows south into India and finally into Bangladesh.
Non-government organisations say the dam will irreversibly harm the Tibetan Plateau and hit millions of people downstream.
The chief minister of India's Arunachal Pradesh state, Pema Khandu, said earlier this year that such a colossal dam barely 50 kilometres from the border could dry out 80 per cent of the river passing as it passes through the region.
Mr Handu also warned that the dam could potentially inundate downstream areas in Arunachal and neighbouring Assam state.
India's foreign ministry in January said it had raised concerns with China about the project in Tibet, saying it will "monitor and take necessary measures to protect our interests".
China has meanwhile insisted the dam would not have any downstream impacts and would work closely with its neighbours.
At the official event marking the start of construction on Saturday, Chinese Premier Li Qiang described the dam as a "project of the century".
He added that special emphasis "must be placed on ecological conservation to prevent environmental damage," China's Xinhua news agency reported.
Despite the potential for regional tensions, a number of Chinese companies in the construction sector saw their share prices rise on Monday.
Government bond yields also rose across the board on Monday, with the most-traded 30-year treasury futures CTLU5 falling to five-week lows, as investors interpreted the news as part of China's economic stimulus.
The project, overseen by the newly formed state-owned China Yajiang Group, marks a major boost in public investment to help bolster economic growth as current drivers show signs of faltering.
"Assuming 10 years of construction, the investment/GDP boost could reach 120 billion yuan (AU$25 billion) for a single year," global bank Citi said in a note.
"The actual economic benefits could go beyond that."
Reuters/AFP
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