Mountain Research and Development Vol 26 No 2 May 2006: 109–114

Yao Yonghui Large-Scale Hydroelectric Projects Zhang Baiping Ma Xiaoding and Mountain Development on the Ma Peng Upper River 109

The upper Yangtze River is extremely rich in the local economy. The local government hydropower, with 9 large-scale hydropower faces the dilemma of supporting national projects planned and 2 under construction. hydropower development on the one hand, Current and projected large-scale hydropow- and safeguarding the interests of local peo- er projects pose difficult challenges as well ple on the other. Local regional development as great hope for development of local requires general planning and a proper impoverished areas. There are great difficul- national policy for resettling dam migrants. ties in coordinating hydropower development A special national eco-district is proposed and local regional development, owing to to delimit reaches in the upper Yangtze Riv- gaps in national policies, clear separation er area that will provide ecological security between enterprise and local communities, for the developed reaches and the dams and problems with local management and lower down on the Yangtze River.

The appeal of hydropower on the and many dam projects provide multi- upper Yangtze River ple benefits. By 2020, aims to produce China is expected to quadruple its gross 200–240 GW of , which domestic product (GDP) between 2001 means adding 7–9 GW of new hydropower and 2020, while doubling its use of capacity per year. To meet this goal, China energy during the same period. Owing will need to build the equivalent of rough- to the rising price of oil in the world ly 1 every 2 years. For- and the high risk associated with tunately, there is an enormous potential nuclear energy, hydropower develop- for hydroelectric power in the upper ment has become a major energy strate- reaches of the Yangtze River, especially in gy worldwide, with a substantial increase the section of the mainstream above in reliance on hydropower in China. and below Yushu, namely the Jinsha River FIGURE 1 The Yangtze and The appeal of hydropower is clear: it is (Figure 1). Flowing for 2360 km from the Three Gorges Reservoir region, with the location of the 4 potentially an emissions-free way to eastern Tibetan Plateau to the low-lying planned dams upstream, in the meet China’s expanding energy needs, Basin, with a drop of 3280 m, the lower Jinsha River. (Map by authors) Yao Yonghui, Zhang Baiping, Ma Xiaoding, and Ma Peng

TABLE 1 Characteristics of the main hydropower projects in the lower Jinsha River compared with the Three Gorges 110 dam. (Source: Wu 2004)

Storage capacity Installed capacity Investment Dam (billion m3) (GW) Migrants (Yuan/kWh)b)

Wudongde 4.0 7.4 14,200

Baihetan 19.2 12.0 80,500 0.797

Xiluodua) 12.9 12.6 32,000 0.796

Xiangjiabaa) 5.2 6.0 79,000 0.765 (97,300)

Three Gorges 39.3 18.2 120,000 1.07

a) Under construction b) 8 Yuan ≈ US$ 1

Jinsha River has an enormous potential to ment per unit of energy is generally less supply hydropower—as high as 112.4 GW, than 0.8 yuan/kWh (US$ 0.1/kWh), obvi- of which about 75.120 GW is exploitable. ously lower than the 1.07 yuan/kWh (US$ Currently, a total of 9 hydroelectric 0.13/kWh) for the Three Gorges. In par- dams have been planned for the middle ticular, there are far fewer people to be and lower Jinsha River reaches, 4 of which resettled compared with the enormous are in the lower Jinsha River (Figure 1). number (1.2 million) resettled as a result The 4 planned reservoirs have a total of the Three Gorges project. Therefore, installed capacity of 38 GW, more than hydropower development along the Jinsha double that of the Three Gorges (18.2 River is believed to be quite feasible. GW). Hydropower development unfolded in 2003, with the start of the Xiluodu proj- Positive and negative impacts of ect, the second largest hydroelectric proj- large-scale hydroelectric projects ect in China, following upon water storage and power generation at the world-famous Three of the 4 hydropower projects in the Three Gorges project located at the end lower Jinsha River—Baihetan, Xiluodu, of the middle Yangtze River. In this sense, and Xiangjiaba—mainly affect Zhaotong construction of the Three Gorges dam was City on the eastern bank of the lower Jin- only the prelude to hydroelectric develop- sha River (Figure 1), in the northeast of

FIGURE 2 Buildings on concrete stilts ment in the Yangtze River. Province. Typically densely popu- show the extreme scarcity of flat land Development of hydroelectric energy lated (5.2 million inhabitants in 2004) suitable for construction in the densely in the lower Jinsha River has proven to be with limited available land (23,020 km2), populated Zhaotong City area. (photo by Zhang Baiping very cost-effective (Table 1). The invest- this area is characterized by poverty, mountainous terrain, and ecological fragility (Figure 2). The city itself is also characterized by poverty, with a very low annual per capita income of less than US$ 800. The local government and residents have good reasons for and high expecta- tions regarding hydropower projects to promote the regional economy.

Potential benefits Theoretically, major investments due to hydropower projects should be a powerful driver in developing the local society and economy. Hydropower projects could pro- vide local residents with clean energy, hopefully reducing forest logging, protect- ing the mountain ecosystem, and promot- ing the regional economy. Large water

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111 surfaces could regulate the local climate. resettled in mountainous areas. “Up- Waterways could be opened from slope displacement,” ie moving popula- (very close to Xiangjiaba) to Xiluodu, tions up the slopes, has been deter- greatly enhancing the accessibility of mined as the main model of resettle- counties along the river. Water storage ment. But moving to higher and from these projects could enormously steeper mountain slopes means worse expand water bodies and improve produc- conditions both for life, production, tion conditions for the aquatic industry. and the environment. Moreover, the projects could provide • Low compensation for dam resettlement. opportunities for employment, building Compensation for dam resettlement is materials, and agricultural and other by- currently set at lower rates than reset- products. There is also a potential to opti- tlement for transportation projects or mize industrial structures. With compensa- urban development. Money to increase tion for migrant resettlement and displace- compensation could come from a ment, and reconstruction of cities and 0.0001 yuan (8 yuan ≈ US$ 1) tax on towns, enterprises, and infrastructure, it each kWh of electricity generated by a would be possible to upgrade low-yield new dam. A 1981 circular from the farmland, rationally redistribute the popu- Ministries of Water Resources and Pow- lation, greatly develop the secondary and er and the Ministry of Finance recom- tertiary sectors, and promote population mended precisely this tax, but it has flow from rural areas to cities and towns so never been implemented. as to reduce population pressure on agri- • No proper mechanisms to guarantee the vital cultural land, especially sloping farmland. interests of local residents. An administra- But past experience has also taught tive order from the government of Yun- that hydropower development will not nec- nan Province, in the name of support- essarily improve local social and economic ing national hydroelectric construction, conditions. The negative social and envi- can expel residents from the town ronmental effects of hydropower projects where they and their ancestors have appear now to be more obviously felt. Cur- lived for hundreds of years. The local rent and planned large-scale hydropower government and residents seem to have projects pose tough challenges as well as no alternatives. They have no opportu- great hopes for future development. nity to participate in decision-making processes relating to their lives and to Resettling migrants production. All relevant decisions have been made by the hydropower develop- The three hydropower projects in the low- ment enterprise and the provincial er Jinsha River will above all necessitate leaders. the resettlement of 180,000 residents • Dilemma for local governments. Local gov- (Table 2) and displacement of a whole ernments are in a very embarrassing county town and 9 townships in Zhaotong position, neither ignoring the lack of City. Although this figure—especially benefits for local residents nor oppos- when examined for each project—is much less than figures for the Three Gorges TABLE 2 Projected reduction of farmland area and projected displacement of population in Zhaotong project, the difficulty of resettlement is far City. (Sources: Wu 2004; Wu 2005) greater. The main reasons for this are the Inundated farmland (ha) Residents to be displaced following: Hydropower project • Difficult conditions for resettlement. Exter- Total Irrigated fields Total… …of which rural nal population displacement is almost Baihetan 4000 800 67,000 64,000 impossible, as hardly any places are willing to accept people for resettle- Xiluodu 1733 400 32,000 30,000 ment. People in this case have to be relocated in northeastern Yunnan. As Xiangjiaba 1600 533 85,000 55,000 stated above, this region has few patch- Total 7333 1733 182,000 149,000 es of flat land, hence people have to be Yao Yonghui, Zhang Baiping, Ma Xiaoding, and Ma Peng

FIGURE 3 Slope farming and resulting erosion and land degradation processes in Dashabao, 112 Zhaotong City. (Photo by Zhang Baiping)

land surface), steep slopes (nearly half the land has gradients higher than 25°), high precipitation (over 1000 mm), and wide- spread cultivation on sloping land (more than 70% of its farmland is on steep mountain slopes). This has induced seri- ous soil erosion (Figure 3). More than half (52%) of the land surface suffers from soil loss, and 57% of the area affected has heavy (5000–8000 t/km2) or moderate (2500–5000 t/km2) degrees of soil erosion. Hydropower projects inundate high- quality farmland in the valleys (Table 2), ie the best farmland with the favorable cli- matic conditions of the city. This necessar- ily leads to reclamation of farmland on mountain slopes, which have to be much greater in area than the land inundated in valleys in order to provide enough food for the large and still growing population. This undoubtedly means more serious soil erosion. Moreover, the construction of dams ing national policy and the orders of and storage of large bodies of water in higher administrative authorities. reservoirs can trigger geological disasters There is a saying in the local areas such as landslides and debris flows. In about the projects: “The country will such a mountainous region, the construc- get achievement, the enterprises will tion of roads for the transportation of get benefits, the local government will materials needed by the projects necessar- get difficulties, and resettled migrants ily undermines slope stability (Figure 4) will get poverty.” and induces landslides and more serious soil erosion. Environmental impacts Coordinating hydropower Ecologically speaking, Zhaotong City is development and regional FIGURE 4 Environmental impacts of hydro- rather fragile due to its mountainous ter- project road building in Zhaotong City. development (Photo by Zhang Baiping) rain (mountains occupy over 97% of the

From this it can be concluded that serious tensions exist between hydropower devel- opment and regional development. The hydropower enterprise—the Three Gorges Corporation—is state-owned, and only dis- cusses issues with provincial leaders. The Zhaotong City and lower local govern- ments have no rights in relevant decision- making. They cannot be sure how much they will benefit from the production of hydroelectric energy from these projects. There is widespread concern that, although the hydropower stations are as modern as those in Europe, the residents will become as poor as people in Africa. The local government and residents have a clear responsibility but uncertain

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113 interests. The local governments and resi- A new approach to the dilemma dents above all face many responsibilities The following proposals have been fully related to displacement of residents considered and put forward by the Zhao- before the start of the projects (Figure 5), tong Commission on Development and and protecting the environment of reser- Reform and the authors, so as to coordi- voir areas afterwards. But what about the nate hydropower development and interests of the local residents and the regional development, especially to inte- region? Their responsibilities are clear grate local needs in the overall hydropow- and must be taken, while their interests er development scheme in the upper are only theoretical and uncertain. reaches of the Yangtze River. The govern- There is thus a potential for social con- ment of Zhaotong City has submitted flict. Low levels of compensation make peo- these policy suggestions to the govern- ple complain, usually about the local gov- ment of Yunnan Province, with a view to ernment. It has been reported that serious having them considered and implemented conflicts have taken place at some dam- by the State Council in the near future: building sites in recent years in southwest FIGURE 5 Resettlement of the rural population in areas such as this China. Although China has experience of 1. Draw up new regulations for resettling peo- traditionally farmed landscape along the and has learned lessons from resettling peo- ple in the upper Yangtze River. Jinsha River will cause social conflicts, ple in the Three Gorges dam area, social China issued exclusive regulations for especially as the local and district governments have little decision-making conflict seems to be unavoidable between the resettlement of people affected by power vis-à-vis the state and the those who will be displaced, local govern- the Three Gorges project, which effec- hydropower company. This calls for change ments, and hydroelectric enterprises. tively helped solve problems raised in at the policy level. (Photo by Zhang Baiping) Yao Yonghui, Zhang Baiping, Ma Xiaoding, and Ma Peng

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the process of resettlement. People in that radically transform people’s lives the upper Yangtze River area, howev- and environment. er, are to be compensated according The local government hopes that to the criteria set in the Regulations the hydropower enterprise can con- Regarding Land Confiscation Compensa- sider fully connecting the project-spe- tion and Migrant Resettlement for Large- cific road with the local road to form and Medium-Scale Water Conservancy a continuous system in the region, and Hydroelectric Projects, which was especially along the lower Jinsha Riv- drafted based on the 1986 Land Law er, for future use. It also hopes that of China and issued in 1991 by the the project will use local materials to State Council. This Regulation was the greatest possible extent, and, most drawn up at the time of the planned importantly, that the enterprise will economy and is obviously outdated. employ as many local workers as can Without proper dam resettlement reg- be trained during construction of the ulations, arranging resettlement poses dams and can work in other areas or a grim challenge to local govern- for other hydropower projects in the ments, while benefits for migrants future. cannot be guaranteed. 3. The upper Yangtze River region, espe- 2. Make a general plan for hydropower devel- cially the lower reaches of the Jinsha opment and regional development in the River, is the main ecological defense upper reaches of the Yangtze River. or ecology-controlling pivot of China’s This plan should be formulated joint- most developed economic center (the ly by the central government, the lower Yangtze River delta region) and state-owned hydropower enterprise, its greatest hydroelectric project (the the provincial government, and local Three Gorges project). To some governments. It would be best to take extent, they are a national ecological into account the views of the local defense. Only if the central govern- FURTHER READING people. This plan must have multiple ment can resolve the interacting prob- Government of Yunnan Province. objectives, particularly with regard to lems of poverty and ecological fragili- 2003. Emergency Circular of The Yun- poverty alleviation, ecological restora- ty in this region can ecological nan Government on Speeding up Land Confiscation and Migrant Displacement tion, and local economic develop- defense be built and protected. It is in the Construction Areas of the Xiluodu ment. In brief, hydropower develop- thus strongly suggested that the lower Hydroelectric Dam [in Chinese]. Docu- ment should be coordinated with reaches of the Jinsha river be delimit- ment No 140 of 2003 issued by the Government of Yunnan. , Chi- local mountain development. ed as a special national eco-district. na: Government of Yunnan Province. Dam building is a social question as Sustained ecological compensation Government of Zhaotong City. 2004. well as an economic one. Broad-based should be provided to this national Report on Suggestions for Resettle- ment Policy in Reservoir Areas of inclusion of stakeholders in decision- eco-district, which, as a payback, Xiangjiaba, Xiluodu, and Baihetan Dams making about hydropower develop- could engage in “green” production [in Chinese]. Zhaotong, China: Govern- ment of Zhaotong City. ment may slow down the process, but and provide ecological security for the Sinton JE, Stern RE, Aden NT, Levine it leads to more perceived equity and lower reaches of the Yangtze River MD. 2005. Evaluation of China’s Ener- acceptability for large-scale projects and the large-scale dams on the river. gy Strategy Options. Berkeley, CA: Chi- na Energy Group. Also available at http://www.nautilus.org/aesnet/ 2005/NOV3005/LBL_Sinton.pdf; accessed on 14 February 2006. ACKNOWLEDGMENTS Ma Xiaoding Woodman S. 2000. Wishful thinking: Research Institute of Investment, State Development China, resettlement models and the Work on this article was supported by the National Nat- and Reform Commission, No. A-11, Muxidi-Beili, Xicheng international review of big dams. China ural Science Foundation of China (Grant No. 40571010). Qu, Beijing 100038, People’s Republic of China. Rights Forum 2000(Spring):16–20. [email protected] Also available at http://www.irn.org/ AUTHORS Ma Xiaoding is Associate Professor of Engineering and programs/threeg/0005.woodman1. Investment Assessment at the Research Institute of html; accessed on 14 February 2006. Yao Yonghui, Zhang Baiping Investment, State Development and Reform Commission Wu YF, editor. 2004. Selected Docu- State Key Lab of Resource and Environment Information in Beijing. ments and Works of Hydropower Devel- System, Institute of Geographic Sciences and Natural opment in the Jinsha River Valley [in Resources Research, Chinese Academy of Sciences, PO Ma Peng Chinese]. Zhaotong, China: Coordinat- Box 9719, Datun Road, Beijing 100101, People’s Repub- Development and Reform Commission of Zhaotong City, ing Office of Hydropower Development lic of China. No. 98 Chongyi Street, Zhaoyang Qu, Yunnan 657000, in the Jinsha River Valley. [email protected] (Y. Y.); [email protected] (Z. B.) People’s Republic of China. Wu YF, editor. 2005. Study on the Yao Yonghui holds a post-doctorate in environment [email protected] Development of Zhaotong [in Chinese]. management and applied GIS. Ma Peng is Head of the Development and Reform Zhaotong, China: Zhaotong Commis- Zhang Baiping is Professor of Mountain Geography and Commission of Zhaotong City, Yunnan Province. sion of Development and Reform. Applied GIS.

Mountain Research and Development Vol 26 No 2 May 2006