based on materials from the site - By Cryptopolitan_News

China has launched the construction of a $167 billion mega dam in Tibet on the Yarlung Tsangpo River, despite potential risks for India and Bangladesh located downstream. The country dismissed concerns that the project could affect water availability, geopolitical stability, and ecosystems located downstream.

The transboundary nature of the Yarlung Tsangpo River, which originates from the Tibetan plateau and flows into the Brahmaputra River on its way to Bangladesh through the Indian states of Arunachal Pradesh and Assam, raises concerns about the dam's impact on these regions. There are also concerns that the project's location near the Line of Actual Control (LAC) with India may pose geopolitical risks.

China dismisses concerns over the mega dam in Tibet
The reduction in water levels in the river over a 50-kilometer stretch is nearly 2000 meters, which Chinese officials believe minimizes the need for large reservoirs and reduces some ecological risks. The dam will include five cascading dams located around the city of Nyingchi in southeastern Tibet.

China has promised to take measures to prevent ecological violations in areas located downstream. Beijing confirmed that the project underwent scientific scrutiny to ensure no negative impact on agriculture, water rights of neighboring countries, and biodiversity downstream. The Chinese Ministry of Foreign Affairs also acknowledged that the project would help prevent natural disasters, promote regional energy cooperation, and adapt to climate change.

The Chinese Ministry of Foreign Affairs also noted that the dam would not be used for political pressure. Analysts have expressed concerns about the potential for China to disrupt the flow of water to India and Bangladesh in case of political tensions, which could create risks of flooding or drought downstream.

The generated electricity will be fed into China's national power grid and is expected to become the main source of clean energy in the country. There are concerns about the high cost of laying power lines to deliver electricity to major areas of China. There are also concerns regarding the logistics of delivering materials and workers to such a remote site.

Environmentalists have also expressed concerns about the irreversible ecological consequences of building a dam in the Yarlung Tsangpo gorge. They reported that the Grand Canyon is a national nature reserve and a hotspot for biodiversity for rare species such as the snow leopard and ancient cypress trees.

There are also seismic risks that Chinese authorities claim the dam is capable of withstanding. The project is located near the border of two tectonic plates, at a site where an earthquake measuring 8.6 occurred 300 miles away in 1950.

India launches its hydropower project
India has also initiated its own multi-purpose project on the upper reaches of the Siang River (SUMP) in Arunachal Pradesh to mitigate the anticipated risks associated with the construction of the Chinese dam. The country reported that the construction project for a 10-12 gigawatt dam downstream aims to reduce flood risks and enhance the country's water security.

China's pursuit of a new source of clean energy to help the country achieve its goal of zero emissions by 2060 is likely to stimulate demand for hydropower infrastructure. Following this news, shares of the Chinese company Power Construction and Energy Engineering surged by 10%, while shares of the Hong Kong company China Energy Engineering rose by just over 50%.

The project was announced under China's 14th Five-Year Plan in 2020 and was later approved in late 2024. Premier of the State Council of the People's Republic of China Li Qiang launched the project on July 19 in the southeastern Tibetan city of Nyingchi, near the border with India. He also announced that China Yajiang Group will be the new company managing the project.
It is estimated that this dam will be three times larger than China's Three Gorges Dam, with an expected annual electricity generation of 60,000 megawatts. The project budget of $167 billion is more than four times the $37 billion required to complete the Three Gorges Dam.

The launch of the project took place at a time when bilateral relations between the two countries had stabilized after a border incident in June 2020, which resulted in the deaths of around 20 Indians and four Chinese. After a four-year stalemate, China appointed a new ambassador to India in 2024, and both countries also agreed to simplify visa procedures and resume direct flights.

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