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Three Gorges Dam

Three Gorges Dam. Wendy Jeffus, Harvard Extension School. Yangtze River. 6,211 km (3,859 miles) in length To give you a perspective it is 3,103 miles from San Francisco to Boston!. Yangtze River. It is the longest river in Asia.

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Three Gorges Dam

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  1. Three Gorges Dam Wendy Jeffus, Harvard Extension School

  2. Yangtze River • 6,211 km (3,859 miles) in length • To give you a perspective it is 3,103 miles from San Francisco to Boston!

  3. Yangtze River • It is the longest river in Asia. • The third longest river in the world (after the Nile in Africa and the Amazon in South America).

  4. River Cruises • 4 to 12 day cruises are popular…

  5. Yangtze River • Floods every year. • 1931 • 140,000 lives lost • 1934 • 30,000 lives lost • 1975 • 230,000 lives lost (11 million struck with illness when an network of 62 dams collapsed) • 1990-1995 • 20,000 lives lost

  6. Three Gorges Dam THE THREE GORGES DAM Type: Concrete Gravity Dam Cost: Official cost $25bn – (actual cost believed to be much higher)Work began: 1993Due for completion: 2009 Power generation: 26 turbines on left and right sides of dam. Six underground turbines planned for 2010Power capacity: 18,000 megawatts Reservoir: 660km long, submerging 632 sq km of land. When fully flooded, water will be 175m above sea levelNavigation: Two-way lock system became operational in 2004. One-step ship elevator due to open in 2009. Source: BBC “Three Gorges dam wall completed” May 20, 2006. http://news.bbc.co.uk/2/hi/asia-pacific/5000092.stm

  7. Three Gorges Dam • The Dam was a response to energy consumption. • 1919 • 1st proposed by the Nationalist leader, Sun Yat-Sen • 1944 • Another dam proposal originated in the U.S. • ~1945 • 50 Chinese engineers sent to the U.S. for training • 1949 • Mao supported the dam • 1980s • 5 year agreement with the U.S. to provide technical assistance to dam builders • 1988 • Canadian engineers determined the dam was feasible & economically sound • 1992 • Li Peng decided to go ahead with the project.

  8. Benefits Power Generation Flood Control Navigation Environment Fishery (in the reservoir) Tourism Recreational Activities Costs Temples & Artifacts Relocation 1,200 villages 1.13M people Environment Wildlife Golden Monkey, River Dolphin, Chinese Alligator, etc. Three Gorges Dam Source: http://www.bsos.umd.edu/mwr/tgp/

  9. Government Perspective • Li Yong'an, general manager of the Yangtze River Three Gorges Project Development Corporation • Under budget “no more than 180 billion yuan (22.5 billion U.S. dollars), 20 billion yuan less than the initial budget of 203.9 billion yuan (25.2 billion U.S. dollars).” • Strict Financial Management • Early Expected Completion (2008 versus 2009) • Economic Development since 1993 (when construction began). • Low Interest Rates • Low Inflation (have kept price increases to a minimum). Source: “Foreign estimates of Three Gorges costs ‘wrong’,” May 19, 2006 http://www.china-embassy.org/eng/gyzg/t253522.htm

  10. The Opposition • Human Rights • Displacement of villagers • 100 lives have been lost during construction • Protest leaders have been arrested or jailed • Corruption • Relocation money has not made it to the people • Environment & History Source: “A terrible beauty is born” The Economist, May 25, 2006. See Also: “Three Gorges dam's social impact” Jill McGivering, BBC News, 2006.

  11. Mission: To assist in financing the export of U.S. goods and services to international markets. • Goal: To help U.S. companies of all sizes turn export opportunities into real sales that help to maintain and create U.S. jobs and contribute to a stronger national economy. • Does not compete with private sector lenders. • Tries to “fill the gaps” where the private sector is unwilling or unable to assume credit and country risks. • Goal: help level the playing field for U.S. exporters by matching the financing that other governments provide to their exporters. • Provides: • Working capital guarantees (pre-export financing); • Export credit insurance; • Loan guarantees and direct loans (buyer financing). • 85% of transactions benefit U.S. small businesses. Source: http://www.exim.gov/

  12. Nationwide, Ex-Im Bank has supported ~ 11,000 transactions with $65.5 billion in authorized financing. • In MASSACHUSETTS, the EIB has supported 89 communities, 158 companies and financed a total of $2,221.35 million in exports during the last five years. • Boston Activity • Cashman Equipment Corp. • Fleet National Bank • Genuone, Inc. • Patriot International Ltd. • Sovereign Bank • State Street Bank & Trust • Cambridge Activity • – Accent Semiconductor Tech • – Aspen Technology Inc. • – ELI Inc. • – Kenneth M. Maillar • – Simat Helliesen & Eichner Inc. Source: http://www.exim.gov/

  13. Activity in China Source: http://www.exim.gov/products/chinaexp-en.pdf

  14. Who Was Involved? • Caterpillar • Peoria, Illinois • Earth-moving Equipment • Voith Hydro • York, Pennsylvania • Turbines • Rotec Industries • Elmurst, Illinois • Concrete Placing

  15. Who Else Was Involved? • 1.3 million people that had to be relocated. • 657 factories that had to be closed. • 1 Billion Chinese. • 6 Billion Global Citizens.

  16. Something to Think About.. • What is the main goal of the project? • Are there other options? • What is the main goal of the EIB? • Should the EIB connect its goal to the environment?

  17. 1992 Environmental Policy • In 1992 the EIB authorized the Board to grant or withhold financial support based on 7 Criteria: • Air Quality • Water Use & Quality √ • Waste Management • Natural Hazards • Ecological Resources √ • Socioeconomic & Sociocultural Contexts √ • Noise

  18. YES It is directly related to political risk If they don’t who will It might bring international pressure on the USA if overlooked Yes, But with fewer criteria NO Too many criteria Leave it to an expert (focus on what you’re good at) The USA was polluting when it was developing It allows other agendas to be hidden It’s too late Should the EIB Police Environmental/Social Concerns?

  19. Some Numbers… • 1996 • EIB Claimed $16B in Aid • Combined Request was $300M • EIB Claimed $14B in Exports • Combined Request expected $1B • EIB Claimed 300,000 Jobs • Combined Request expected 19,000 Jobs • US Trade Deficit with China was $100B • Estimated Impact of Requested Aid was $1B

  20. Today • Jan. 6 2008 (Xinhua) -- China's Three Gorges Dam attracted a record high of 1.25 million tourist arrivals in 2007. • 310,000 were foreign tourists in 2007 (up 35 percent from 2006). • March 2008 (forthcoming) “China's Water Warriors: Citizen Action and Policy Change” Cornell University • http://www.npr.org/templates/story/story.php?storyId=17810431 Sources: http://news.xinhuanet.com/english/2008-01/06/content_7374888.htm http://news-info.wustl.edu/news/page/normal/10761.html

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