Chinas Three Gorges Dam Project - Case Study Example

China’s ‘Three Gorges’ Dam Project Contents Introduction 3 History 5 Cost Benefit Analysis 6 Benefits 6 Costs 7 Analysis 12 Eradicating Problems 13 Eradicating Environmental Problems 13 Eradicating the Social Problems 15 Eradicating Economic Problems 16 Conclusion 17 Reference List 18 Introduction The Three Gorges Dam is considered as the largest hydroelectric dam in the world. The dam is situated in the intersection of three gorges, located on world’s third longest river, Yangtze. The dam is located in the province of Hubei, China. The project of constructing the dam was first proposed by Sun Yat-sen, long back in 1919 (Mtholyok, 2012a). The dam is almost a mile wide and is more than 600 feet long. It is believed to be the most expensive as well as extensive engineering project in the contemporary world. The initial official estimated cost of the project was $25 billion; but over time, these estimates have increased to $75 billion (Mtholyok, 2012a). The project was executed to generate electricity worth 18.2 million kilowatts (Mtholyok, 2012a). This accounted to 3% of total energy demand created by China; at that point of time. The government of China had permitted and approved the project of Three Gorges Dam in 1992. However, it was found that construction work had only begun in 1992 and completion was anticipated by 2009 (Mtholyok, 2012a). The project symbolizes prestige of China and its worth is often compared to that of the Great Wall of China. The project was an international high profile hydroelectric dam project, being funded by several international organizations around the world. Many multinational companies, banking institutions of Canada, Brazil, Sweden, France, Germany and Switzerland and export credit providing agencies are prominent investors of the project (Mtholyok, 2012a). Figure 1: Primary Funding Sources (Source: Mtholyok, 2012b) The above graph shows primary funding resources of the project. It has been found that the project is facing numerous problems regarding human rights and environmental impacts. The project was huge in terms of scale and scope. It included 16 million cubic meters of concrete, have flooded more than one lac villages around the world and relocated million of households from the banks of Yangtze River Basin (Mtholyok, 2012a). This assignment will analyze advantages and disadvantages of Three Gorges Dam project in China. The paper will incorporate theories of project and program strategies to estimate issues faced by the project and finally, recommend certain ways through which problems associated with the project can be rectified or minimized. History When the proposal for Three Gorges Dam project was first placed, the government of China encountered several problems relating to political crisis, project criticism and plan development. In 1932, the Construction Committee headed by Sun Yat-Sen had framed initial plan of the project (Mtholyok, 2012a). In 1994, the government of China had claimed for project related funding assistance from the U.S. government. The project was expected to not only benefit villages around Yangtze River, but also help in improving overall employability and economic status of China. During the Chinese Civil War (1947), the project lost its popularity; but soon after the massive Yangtze River floods in 1950, the Chinese government decided to re-launch the project. Political unrest in China in 1978, protest of Li Rui (Chinese Electric Power Minister) and objections of the State Council of China had delayed progress of the project (Mtholyok, 2012a). Finally in 1992, National’s Peoples Party of China approved the project and was set to be completed by 2009. Though the dam was supposed to be accomplished by 2009, yet emergence of additional projects delayed the construction (Morris and Jamieson, 2009). It is said that along with the dam, a new underground power generating plant with six additional generators would be produced. It is, hence, expected that the project will be completed by 2014. Figure 2: Three Gorges Dam Project Plan (Source: Mtholyok, 2012b) The above figure shows outline of the Three Gorges Dam project in China. Cost Benefit Analysis Benefits The Three Gorges Dam project in China had commenced in order to serve four primary objectives. Flood Control Floods in Yangtze have taken numerous lives of villagers, causing damages worth millions of dollars. The floods had destroyed immense amount of agricultural produce of the country. The Three Gorges Dam of China was constructed in order to lower the extent of floods around banks of Yangtze. It has a flood control capacity of 22.15 billion cubic meters (Mtholyok, 2012a). The project aimed to enhance social welfare level of rural Chinese individuals as well as protect agricultural produce of the country by controlling floods. Hence, the dam was indirectly directed at improving the food security of China (Johnson and Scholes, 1984). Navigation It was also claimed that large ships would be able to travel down and upstream after the dam, ship locks and reservoir was constructed. Especially, it was stated that the ships of Chongquing would be able to carry trading goods to Shanghai after the completion of the project (Mtholyok, 2012a). This shows that the project would provide numerous commercial benefits to the Chinese economy. After completion of the project, extent of inter and intra country shipping oriented trade of China would improve (Alghalith, 2007). Tourism Since this project comprised construction of the largest hydroelectric power generating dam ever, it had become a popular tourist destination in China. The project would also be beneficial to the tourism sector of China and in turn assist in growth of its domestic income (Benser and Hobbs, 2012). Power Generation The Three Gorges Dam project in China was introduced to generate electricity through hydroelectric power. This would help the country to lower dependence on other polluting energy resources like, hydrocarbon and coal. When electricity is produced through such energy resources, harmful greenhouse gasses are emitted that are highly detrimental for the environment. It was claimed that hydroelectric turbine generating machines included in the project would create 84.6 billion kilowatt hours of clean energy annually (Mtholyok, 2012a). Through increased hydroelectric power generation, the project aims to increase energy supply of the emerging Chinese economy. At the same time, this indirectly attempts to lowers the use of coal and hydrocarbons in the country (Mtholyok, 2012a). Three Gorges Dam project, thus, aims to enhance environmental conditions of China. Costs Environmental Impact It is claimed by several environmentalists and researchers that hydroelectric power should not be regarded as a type of renewable source of energy. This is because generating hydroelectric energy through specific projects causes infinite number of environmental distortions. Greenhouse Gases The Three Gorges Dam project was primarily initiated for lowering the amount of carbon emissions from non-renewable sources of energy. In reality, it was found that the dam generated greenhouse gases in the atmosphere, in forms that are slightly dissimilar to conventional industrial pollution. The breakdown of organic materials and vegetation accumulation in reservoirs are believed to emit carbon dioxide. Hence, despite claims made, hydroelectric power is not truly a “clean” energy resource (Mtholyok, 2012a). Water Pollution Apart from vegetation, the dam is found to block almost 10 million tones of bottles, animal corpses, plastic bags, trees and other types of debris that would have generally flowed into the sea (Mtholyok, 2012a). In addition to that, Yangtze is one of the most polluted rivers in the world. This is because; it connects sewage outlets of several cities in China. Approximately 265 billion gallons of sewage is dumped into the river on a yearly basis. The reservoirs are flooded themselves with infinite number of factory and mine waste products. As the dam prevents outflow of any waste products into the sea, extent of pollution in Yangtze is substantially increasing. Millions of people in China depend on Yangtze River, as their single water resource. Severe contamination of water resulting indirectly from construction of the dam has created health hazards for millions of individuals (Mtholyok, 2012a). Siltation With slowing down of water flow speed behind Yangtze dam, approximately 530 million tones of silt have been accumulated behind the dam. The spillway constructed in the dam was claimed to possess a discharge capacity of 116,000 cubic meters (Mtholyok, 2012a). However, in reality, the size is not sufficient to prevent siltation behind the dam. In the long run, such rise in siltation might make certain regions of the river impossible for shipping. This is directly affecting economic benefit that the dam, which had been aspired in way of increased shipping trade in China. Furthermore, blocking capacities of sluice gates of the dam can also reduce due to increased siltation. Under such circumstances, the dam would not be able to control water or floods. Even so, power generation capacity of the dam would be reduced due to siltation effect. Disruption of the Ecosystem The giant hydroelectric Three Gorges Dam of China is claimed to disrupt the entire ecosystem of the Yangtze River. Apart from creating water pollution, the project has interrupted the habitat fragmentation of nearly all species found around the dam. A research study claimed that there are 47 endangered species residing around Three Gorges Dam (Mtholyok, 2012a). All these species are supposed to be protected by law. After increased contamination of the river water, Chinese River Dolphin and Chinese Sturgeon are found to be two species at risk in China. At the same time, physical barriers created by the dam along with water pollution are killing fish spawning in the Yangtze River and are estimated to hamper the Chinese fishing business. Deforestation Forests help to purify environment of a country and lower the extent of greenhouse emissions in the atmosphere. Nonetheless, it is noted that the deforestation process generates carbon dioxides and greenhouse gases in the environment. Deforestation is the process where forests are burned for the purpose of using land for other productive uses. The construction of the dam had required large tracts of land and hence, involved extensive amount of deforestation. The agricultural lands around the river are peripheral regions of the steep gorges, which renders them unsuitable for agriculture. In addition, after deforestation, soil around the dam has lost its firmness and has become more prone to landslides. All these factors have forced villages to shift their habitats away from regions surrounding the dam (Mtholyok, 2012a). Landslides Landslides are the biggest environmental problems created after construction of Three Gorges Dam. After construction of the dam, almost 91 places along the shore of Yangtze have collapsed. Some landslides have caused 50 meters high waves in the reservoirs. A place named Fengjie County, situated near the dam, is claimed to comprise almost 800 disaster prone regions (Mtholyok, 2012a). At the same time, it is also claimed that large dams often lead to earthquakes due to increased rising water geological pressure All such factors heightened the risk of livelihood around the Three Gorges Dam, China. Poor Government Initiative It is claimed that very few rural individuals residing near the dam have received financial aids from the government related to relocation due to construction of the dam. Most of these individuals live in tents and camps at present. Moreover, places that have been greatly affected by landslide or earthquake have very poor transportation facilities. Millions of villagers who had homes in places surrounding the dam are ultimately rendered homeless with no financial assistance (Mtholyok, 2012a). Social Consequences Flooding The reservoir of the Three Gorges Dam has already flooded 13 cities, 1352 villages, 140 towns and almost 1 lac acres of fertile land. It is estimated that due to such floods, almost 40% of grain and 705 of rice production in China is severely affected (Mtholyok, 2012a). Additionally, rural farmers who have been rendered homeless are facing great difficulties to grow crops in new lands along the gorges that are steep. Financing It is seen that the export bank of U.S. and the World Bank have denied financing the project because of extensive social and environmental degrading impacts. These organizations claimed that benefits associated with the project are comparatively lower than its costs (Mtholyok, 2012a). Relocation It is considered that almost 46% of Chinese population is poor even at this point of time. Millions of individuals were reallocated for construction of the Three Gorgers Dam. According to the report of World Bank, among these reallocated individuals, nearly 500000 lie below the poverty level, who earn only $ 1 per day (Mtholyok, 2012a). These poor individuals were not provided with adequate compensation funds, houses or other amenities after the reallocation process. Consequently, as opposed to maximizing social welfare, the Three Gorges Dam gave rise to numerous welfare minimizing effects. Corruption The reallocation process severely lacked central controls and gave rise to corruption among the regional officials. Moreover, only basic regulations regarding reallocation were formulated by central government of the country. The actual execution and implementation processes of the regulations were established by the state government authorities. Only a few individuals were provided with free houses after being reallocated; the others had to manage their shelters through self financing procedures (Bourne, 2012). It is found that the local authorities had used compensation funds for executing new infrastructure projects, instead of supporting the resettlers with the same. Furthermore, some of the houses provided to the resetllers had unsuitable living conditions (Mtholyok, 2012a). Embezzlement It is estimated that the funds kept for compensation of the Three Gorges Dam project were as high as $7.15 billion. This accounts to almost 46% of the total cost involved for completing the construction project (Mtholyok, 2012a). By 1999, approximately 140 cases of misappropriation were reported against the Three Gorges Dam project of China. Many state political officials purposely inflated the value of lands and population strength in order to procure more amount of money from the government regarding reallocation. The financial auditors of the project had found in 2005 that fund worth $35 million was misused for embezzlement by different local authorities. As a result, such illegal financial appropriations against reallocation have enhanced real cost of the project. Social Unrest The exact rules and laws regarding resettlement are mentioned in China’s Reservoir Resettlement Act. This Act aimed to: Ensure matters of human rights Make the government responsible to commoners Settle upcoming conflicts Redress complaints (Mtholyok, 2012a) However, from the above context, it can be stated that all such aspects were not satisfied during the project. The reallocated individuals who were not provided with adequate compensations had started to protest against the ruling government of China. Main organizers of the project such as, Dai Quing, was convicted and jailed during the turmoil (Mtholyok, 2012a). Hence, the Three Gorges Dam had aggravated social unrest in China. Poor Government Regulations The government of China took international advices for engineering and construction purposes of the Three Gorges Dam. Yet, matters related to reallocation were not scrutinized by the government of China in details. China had collaborated with the Covenant on Civil and Political Rights and claimed that its migrants are provided with adequate freedom of opinion, association and movement. Meanwhile, during construction work of this project, the state and central political authorities of the country were found to suppress individuals and ignore their wellbeing. Analysis It would be correct to state that regardless of superior engineering and construction plans, costs associated with Three Gorges Dam project are more than its benefits. The table below summarizes faulty strategies of the project. Problem Faulty Project Strategy or Planning Greenhouse gases, ecosystem disruption, siltation, deforestation, landslides and water pollution. The planning authorities of the project did not properly consider environmental impact of construction of the dam, which is why the project is not environmentally sustainable. Flooding and reallocation The planning authorities did not consider extent of floods that the dam could cause. The reallocation plans were not organized. Misappropriation The activities of central and state government authorities were not synchronized. The state governments appropriated extra funds from central political authorities. Corruption and social unrest The reallocation funds were not efficiently distributed to concerned resettlers. This enhanced social unrest and corruption in China. Financing The actual amount of finances acquired by the Chinese government was less than that was anticipated. Several authorities denied funding the project because of inherent social and environmental impacts (Lubin and Schafer, 2010). Poor regulations The government regulations introduced regarding the project were not firmly implemented (Blomquist, et al., 2010). Therefore, there are political, social, economical, legal, technological and environmental problems associated with the Three Gorges Dam project. All these problems have primarily occurred due to poor strategy implementation and planning of Chinese government. Eradicating Problems It should be analyzed that political, economical, social and environmental stability of the Chinese economy considerably depends on success of the Three Gorges Dam project. In the contemporary era, China is considered to be the most prominent emerging economy. Since 1978, after implementation of open trade policies, Chinese government has notably helped to enhance inward foreign direct investments within its economy. Foreign Portfolio and Greenfield investment have facilitated greater domestic productivity and employability in Chinese economy. If the Three Gorges Project becomes a failure in the long run, then foreign investors would lose confidence over the investment market of China. Moreover, if social status in the country is poor or unstable, then that would automatically create more political volatility (Mtholyok, 2012a). Even so, environmental hazards created by the project would soon deplete rare productive resources of the country. Hence, in order to ensure long run growth, the government of China must introduce special programme strategies through which issues associated with the Three Gorges Dam project can be rectified. Eradicating Environmental Problems The government of the country should address to the environmental issues created by the project in China. It is finally noted that in September 25 forum, political regulating authorities of the country have admitted to take charges against environmental damages created by the project. After the meeting, the authorities have allocated $1.3 billion funds to geographically stabilize areas of land around the dam. This would help to lower the extent of water pollution, landslides, ecosystem disruption and greenhouse gas emission. Nevertheless, in order to render this activity successful, the Three Gorges Project Committee must consider some additional strategies. A special committee of loyal officers should be formed only to ensure that fund allotted for the purpose is not misappropriated. Resource allocation and mobilization should be efficient and optimal for any high profile infrastructure project. The extent of landslides can be lowered by improving the subsurface and surface draining systems. If the water accumulating on the surface or subsurface of a landslide prone land is removed, then it can render the land more firm and stable, thereby lowering possibility of landslides (Williams and Parr, 2006). If certain portions of soil and rocks lying on the steep land topographies of a landslide prone area are excavated, then speed and frequency of landslides are minimized. Specially constructed retaining walls and piles can also help in reducing probability of landslide occurrence. Figure 3: Preventing Landslides (Source: Kansas Geological Survey, 1999) The above graph shows the way through which a pile can contribute towards preventing landslide. Water pollution and ecosystem disruption caused by construction of the dam can be lowered by implementing special activities, whereby: (a) Sedimentation and soil erosion are controlled (b) Special pollutant control chemicals are added to the water (Chinyio and Olomolaiye, 2009). (c) The quality of surface water in stream and riparian habitat in the water are protected. The planners should preserve vegetation grown in landslide prone land. This is because, trees and venerations helps to lower the extent of soil erosion and makes land firm. Additionally, reforestation processes should be encouraged and timber cutting should be eradicated to lower occurrences of landslides (Bittner and Gregorc, 2010). Special technologies should be introduced through which methane, sulphur dioxide or other greenhouse gas emitted during the hydroelectric power generation can be lowered. For this, officials of the Three Gorges Dam can procure additional funds from multinational environmentalist organizations and NGOs (non-government organizations). Eradicating the Social Problems The project is yet to be completed and it is found that in coming 20 years, almost 4 million more individuals would be reallocated from areas near the dam. The government of the country has claimed that they are encouraging individuals of the country living in rural regions to shift in urban localities near Chongqing. The government has also declared that by residing in the urban localities, employment opportunities, living standards and welfare maximizing facilities of the individuals would improve (Heldman, 2011). Even so, additional measures needs to be taken by the Three Gorges Dam authorities for ensuring that social welfare level is not depleted due to the project. A special committee of loyal officials should be formed so as to check that funds allocated for the relocation are adequately channelized to the resettlers. Moreover, these officials should keep check that the state government does not appropriate excessive funds for reallocation from central regulating authorities (Gladden, 2013). A particular amount of unilateral or non-unilateral payments should be provided to the individuals who are already reallocated without any adequate financial assistance. The Three Gorges Dam authorities should try to employ able, relocated villagers to meet the requirement of unskilled labor for construction activities of the project. This would help to increase the income level of these poor individuals and hence secure their wellbeing in the long run (Todorovi, Mitrovié and Bjelica, 2013). Eradicating Economic Problems The government of China has already declared that in the long run, some additional new power plants would be constructed with the Three Gorges Dam. The authorities also stated that smaller sized dams would be constructed upstream for enhancing current productivity level of the dam, lowering siltation and maximizing energy generation (Randolph, 2012). The planning department of the dams in China had framed 12 projects relating to additional smaller dam construction. However, out of these 12 smaller projects, only 3 have been accepted (Mtholyok, 2012a). It is declared that by 2030, more than 100 hydroelectric power generation stations would be established in China on the upstream area of Yangtze River. Xiludo dam is the next dam to be built, after completion of the Three Gorges Dam project. This dam would be 278 meters high with the capacity to generate electricity worth 12.6 million kilowatts (Mtholyok, 2012a). It would be the third largest dam in the world. A cost worth $6 billion dollars is estimated for accomplishing the upcoming Xiludo dam project. Nonetheless, it is claimed that this dam would also create similar poor social and environmental impacts along banks of Jinsha River, which is a tributary of the Yangtze River. It will also involve reallocation of more than 100,000 individuals in city of Zhaotong. Therefore, adequate project and reallocation funds cannot be procured by the government of China for the Xiludo dam project, if problems of the Three Gorges Dam project are not rectified. The World Commission on Dams is an organization formed by the World Bank for assessing benefits and costs associated with each dam building projects. The Three Gorges Dam Committee authorities must refer to this organization of the World Bank, for taking advices regarding problem eradication. If the committee strictly abides by norms of World Bank, then the bank can agree to provide additional funds to finance future extension programs of the project in long run. Furthermore, issues relating to human rights and environment should be corrected to secure long-term success of the Three Gorges Dam project (Morris, 2013). The government authorities of China should undertake special measures to protect and preserve the fishery business in villages located near the dam. If the extent of siltation in reservoirs behind the dam is reduced, then navigation oriented trade of China would not be hampered (Knight, 2012). Conclusion Since emergence of globalization, Chinese economy is growing with almost 9% productivity rates (Mtholyok, 2012a). The country experiences largest population strength in the world and have become an attractive investment zone of popular multinational companies. All such factors have stimulated the rate of industrialization in China. Even so, it is noted that increased industrialization in the country demand for additional energy resources. Hydroelectric energy is the energy resource produced from electricity generated from water. It is a type of renewable source of energy. Then again, environmental and social damages created by hydroelectric power generation dam projects have ultimately forced researchers to believe that it is a type of non-renewable energy resource. The Three Gorges Dam project of China was introduced to serve noble causes. It aimed to control flood, improve navigation business, generate hydropower and control natural floods created by the Yangtze River. However, water pollution, greenhouse gas emission, ecosystem disruption, siltation, deforestation, misappropriation, corruption, flooding and social unrest are not characterized to be common features of the high profile project. The problems of the project are primarily created due to poor planning and strategy formulation process of the government of China. In long run, better financing plans, reforestation process, adequate reallocation approaches and other environmental friendly measures can help to lower problems associated with the Three Gorges Dam construction (Kanda, 2011). If these problems are resolved, then the project would generate direct or indirect benefits to the emerging economy of China. Reference List Alghalith, M., 2007. New economics of risk and uncertainty: Theory and applications. New York: Nova Publishers. Benser, C. and Hobbs, B., 2012. An empirical identification of project management toolsets and a comparison among project types. Project Management Journal, pp. 24-43. Bittner, E. and Gregorc, W., 2010. Experiencing project management: Projects, challenges and lessons learned. New York: John Wiley & Sons. Blomquist, T., Hällgren, M., Nilsson, A., and Söderholm, A., 2010. Project‐as‐practice: In search of project management research that matters. Project Management Journal, 41(1), pp. 5-16. Bourne, L. D., 2012. Stakeholder relationship management: A maturity model for organisational implementation. Farnham: Gower Publishing, Ltd. Chinyio, E. and Olomolaiye, P., 2009. Construction stakeholder’s management. New York City: John Wiley & Sons. Gladden, R., 2013. Project management for flat organizations: Cost effective steps to achieving successful results. Project Management Journal, 44(6), pp. 1-14. Heldman, K., 2011. Project management jumpstart. New York: John Wiley & Sons. Johnson, G. and Scholes K., 1984. Exploring Corporate Strategy. London: Prentice Hall International. Kanda, A., 2011. Project management: A life cycle approach. New Delhi: Prentice Hall Pvt. Ltd. Kansas Geological Survey, 1999. Prevention and remediation of landslides. [online] Available at: [Accessed 10 June 2014]. Knight, F. H., 2012. Risk, uncertainty and profit. New York: Courier Dover Publications. Lubin, G. and Schafer, I., 2010. 17 Earthshaking facts about the three gorges dam and chinas next even bigger water project. Business Insider, 7 July. Morris, P. and Jamieson, A., 2009. Translating corporate strategy into project strategy. [pdf] World Press. Available at: [Accessed 10 June 2014]. Morris, P., 2013. Reconstructing project management reprised: A knowledge perspective. Project Management Journal, 44(5), pp. 6-23. Mtholyok, 2012a. The three gorges dam. [online] Available at: [Accessed 10 June 2014]. Mtholyok, 2012b. China’s three gorges dam. [online] Available at: [Accessed 10 June 2014]. Randolph, S., 2012. Fundamentals of Project Management. Project Management Journal, 43(4), pp. 81-81. Todorovi, M., Mitrovié, Z. and Bjelica, D., 2013. Measuring project success in project-oriented organizations. Journal for Theory and Practice Management, pp. 41-48. Williams, D. and Parr, T., 2006. Enterprise project management. 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