China kicks off controversial mega-dam project in Tibet, risking fresh tensions with India

Chinese Premier Li Qiang launched construction of a mega-dam project in the lower reaches of the Yarlung Tsangpo river in Tibet on Saturday, with a total planned investment of 1.2 trillion yuan ($167 billion), according to the official Xinhua News Agency.

A new company called China Yajiang Group was also officially unveiled on Saturday. It will be responsible for constructing the hydro project, consisting of five cascade dams and located in the city of Nyingchi in the southeast of the autonomous region of Tibet, Xinhua said.

The power generated will be mainly transferred outside of Tibet, while also used for local consumption needs, Xinhua said, without providing details on the project’s capacity. The total investment would make the dam one of the costliest infrastructure projects ever and a likely boon to Beijing’s efforts to revive economic growth.


The dam could become a source of tension between China and India, as the Yarlung Tsangpo runs through the contested Arunachal Pradesh area and feeds into one of India’s major rivers. Beijing has said that there won’t be any adverse impact to downstream areas.

Environmentalists in China have long worried about the irreversible impact of dam construction in the Yarlung Tsangpo gorge, where the river drops 2,000 meters (6,560 feet) in elevation over a 50-kilometer (31-mile) stretch. The area is home to a national nature reserve and one of the country’s top biodiversity hotspots.